They are considered the future of gaming and crypto: non-fungible tokens (NFTs) are said to have a growth potential of 10,000%. This venture capital firm has decided to focus its crypto investment strategy on NFTs and Automated Market Maker (AMMs): good foundations for success in DeFi at lower risk.
In an episode of the podcast The Thesis, the founder of CoinFund, Jake brukhman, reveals the crypto investment strategy adopted by his company.
Brukhman indicates that unlike most companies venture capitalist, he appreciates being able to participate in a concrete way in the activities of the crypto companies to which it granted funding.
For Brukhman, it is essential to have a certain degree of understanding of the functioning of these networks of companies to assess their potential.
Since its creation in 2015, CoinFund is one of the first companies in its sector to take an interest in DeFi and yield farming : 20% of its capital would be allocated to DeFi.
Brukhman believes that the success of these protocols is due to their simplicity: it is relatively easy to iterate the technology and to progress quickly through it.
Towards new horizons for NFTs
The difficulty for an investor lies in the construction of an investment portfolio and the choice of corresponding projects.
The plethora of offers available, whether at the level of Automated Market Makers (AMM) or some DEX, complicates investment decisions for novices.
Brukhman is currently focusing on AMM and non-fungible tokens. The first is a key element of Challenge : MAs have indeed provided a volume of liquidity which has enabled the sector to develop rapidly.
As for NFTs, Brukhman considers that their use could develop in areas other than those traditionally reserved for them – art or collectibles.
The NFT tokens can, for example, be used for the management of domain names, the sale of insurance policies or the sale of copyrighted assets.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.
Will NFTs be used only to tokenize existing unique physical assets or will they allow new ones to be created? Brukhman’s company senses great potential behind NFTs and, it certainly smells good of money. NFTs are unique, but CoinFund is unlikely to be the only traditional finance investment firm to look to cryptocurrency in the future and bet on DeFi.
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