OpenEden’s Post

Incentive alignment within an economy is crucial, because not only do you want to prevent people from being malicious, but you also want to align their long term vision with yours. e.g. if you let people stake and unstake willy nilly, and you're giving them n returns when they stake... consider giving them n/3 returns when they stake willy nilly, and n returns if they lock up their tokens for 12 months. ____ 👉 DM me for tokenomics help. Simplicity Group

What can we learn from the last great rotation? What if the current rotation out of mega cap techs is more sustainable? What if the huge valuation premium is about to normalize? Given the importance of the Mag7 for the faith of many indices and - due to the increased market share of ETFs - portfolios, I reckon it´s worth to look for any histroic guidance where shelter could be found. While I do acknowledge that the analogy isn´t perfect, I still think that looking at what happened after the 90´s tech bubble burst can offer some noteworthy insights. When the bubble burst on March 27, 2000, money immediately rotated back into previously out of favour defensive sectors. By year-end they were +35-45% higher from the point the tech bubble burst in March - against a falling S&P500! You enjoyed the post? 👍 like it 💬 tell me what you think and leave a comment 🔔 follow me and hit the bell to make sure you´re getting notified about the next update on global financial markets

As a long term passive investor, I’ve been asking myself the usual question of whether to ease off while the market is hot. AI hype is driving huge valuations of tech firms and from my vantage point it’s only partly justified. There’s a long, hard (but fun!) road to refining and embedding this tech into everything. Watched this video today that served as a good reminder of why to hold steady https://lnkd.in/gqvfA5bT There’s an elegant simplicity of the approach of dollar cost averaging - you don’t invest more when prices are high, the amount is fixed not the units purchased, so you buy fewer units at the higher price. And the inverse when prices are low. Easy to follow too, which is the other key to its success.

Absolutely wild to me HOW wrong some very smart tech folks are about diversifying. Having investments on two different platforms the same investments in NOT diversification Buying any two funds with different symbols is NOT diversification Holding onto all of your RSUs because the company has multiple revenue sources is NOT diversification Buying the S&P500 and Total US stock market together is NOT diversification Buying Nasdaq 100 (QQQ) and investing in the Mag 7 companies is NOT diversification Diversification should aim to reduce your exposure to a company/sector/country/currency. We want to be in things are are not positively correlated in risk. Want a portfolio review? DM me “review”.

Silicon Valley Bank's latest State of the Markets report highlights some key points that stood out: - VC Dry Powder: There's a lot more today ($277B) than what we saw during the dot-com era ($83B) and the global financial crisis ($74B). - Nearly 70% of startups reduced net burn YoY in 2023, improving EBITDA margins for VC backed tech companies. - 21% of companies exiting today via M&A are selling for less money than they raised. - There are 750 US VC-backed tech unicorns and only 20% will be cash out by year-end, indicating that unicorns have ample runway to wait out market lows before fundraising or exiting. - 1 in 4 funds closed in 2023 had a focus on AI, with the sector claiming 1 in 5 VC deals. Check out the full report here: https://lnkd.in/gixW5nGt

In the digital age, trust has evolved into a pivotal factor in driving business. It’s no longer merely a matter of personal relationships but has scaled through technology and economic models, shaping new competitive advantages for businesses. Whether by ensuring transparency in transactions or enhancing credibility via social media, trust is becoming an indispensable currency. In this article, let's explore the rise of “Trust Tech” and examine how the “Trust Economy” fuels business value through brand credibility and monetized traffic, ultimately questioning if startups can thrive within this evolving landscape. #trusttech #trusteconomy

Having just caught up on the latest trends in trading from Benzinga, it's fascinating to see the industry buzzing with activity. From significant investment rounds to strategic moves by big players, the financial world is constantly evolving. Here are a few key points that caught my attention: - Ellipsis Labs raises $20 million in Series A funding, with Paradigm leading the way. - Coinbase secures registration as a restricted dealer in Canada, marking a significant milestone. - Getty Images expands its creator community through the Create By Getty Images event series. - Biotech sector updates focus on pipeline and regulatory news, shaping the future of healthcare. - Intel's strategic decisions and market share shifts are under scrutiny, reflecting the tech landscape's competitive nature. What are your thoughts on these developments? Do you see any particular trend shaping the future of the financial markets? Share your insights and let's discuss! #Finance #Trading #Innovation https://lnkd.in/eauB77bW

Check out Silicon Valley Bank’s latest State of the Markets report! Some great data and insights here. For those who have heard me talking about the “game of chicken” between investors and founders on valuation, it seems like more founders are finally blinking as nearly 25% of disclosed deals were down rounds. Having gone through a few of these cycles, we know this needs to happen before we can get back to sustained growth. Our report also indicates that founders can take heart that nearly 60-80% of startups who have a down round go on to raise a subsequent upround. While more companies are shutting down, we are also predicting an increase in Series A rounds this year and that we are “closer to the end than the beginning” of this market correction. This is consistent with my view and with AI taking hold, and interest rates likely to decline by the summer, we will see brighter days ahead as we get deeper into H2. Take a read, would love your thoughts!

My latest Tech Trader column.