Sats Capital 🐸🧙🍄

SatsCapital is a decentralized venture capital fund powered by #bitcoin | Invite only access | Bitcoin & Ordinals OG |🐸🧙#NFA, ofcourse, GG

[Sats Capital 🐸🧙🍄 @sats_capital]

@SatsCapitalist @anarcho_catbus @LeaksBlockchain Expect Us :)

Real recognize Real!

GG// NGMI 🐸

[Nullish @nullish]

2000 blocks (2 weeks) until the halving.

Nobody is prepared for what's about to unfold on Bitcoin.

[Eric V Stacks @EricVStacks]

I don’t believe that governments will attempt to confiscate #bitcoin I believe they will roll out the orange carpet for us instead.

[DEGEN NEWS @DegenerateNews]

NEW: 1 @solana MEMECOIN $WEN (@wenwencoin) FREE ALLOCATION IS NOW WORTH OVER $260

[Sats Capital 🐸🧙🍄 @sats_capital]

There is no second best #Bitcoin

[Dan Held @danheld]

We are about to see an explosion of L2s, Dapps, and new financial primitives on Bitcoin.

And both the puritan maxis and altcoiners are sleeping on it.

This is going to be a paradigm shift. Great ready 👏

[Sats Capital 🐸🧙🍄 @sats_capital]

@nomadiccryptoHQ @rj_26_10 GG

[Sats Capital 🐸🧙🍄 @sats_capital]

Psyops art refers to the use of visual, graphic, or artistic techniques to convey messages and influence the perception, attitudes, and behaviors of a target audience.

//GG

[Udi Wertheimer @udiWertheimer]

ordinals are the most important crypto innovation in 2023

not just in bitcoin, but in all of crypto

people who think this is just about jpegs are missing the point

this is a generational shift for the world’s dominant digital asset and you are quite simply sleeping on it

[zk-🦈 @ZK_shark]

VCs are the root of all evil in NFTs 🩸

They destroy the incentive model and force founders to either continually dilute and/or force founders to turn holders into customers.

Once a NFT founder takes VC investment, they cannot reward the holders to the same extent as they could without the VC on the cap stack. Yes they can help the “brand” scale and provide capital that pump your bags short term - but what’s the final stage ? How does the VC exit ?

VCs have a legal and fiduciary responsibility to act in the best interest of their LPs 100% of the time. VCs do NOT have a fiduciary responsibility to act in the best interest of the NFT projects holders.

The VC model works great for pure play tech and crypto startups that need capital to scale, however, in NFTs - they will eventually cause death spirals.

What NFT projects are IPOing on the nasdaq ? What large tech companies are acquiring NFT collections ? How many NFTs are doing second rounds higher than the first ? How do VCs actually get the original capital back with a triple digit return ? - except for a few exceptions - this does not exist in NFTs.

Crypto protocols, crypto products, and new blockchains/ blockchain tech have greatly benefited from VC investments.

They provide valuable capital, connections, guidance, and feedback - at early stages that can be invaluable. However, the VC model was overextended to NFT collections and alt coins over the last few years putting the VCs interest before holders.

How does the VC actually make money for it’s LPs in regards to a NFT collection or NFT company investment ?

Let’s explore some common scenarios - In return for capital, generally NFT founders provide a % of equity, promise for future equity, convertible debt/pref to equity structures, debt, tokens, NFTs, or a portion of future revenue.

No NFT projects are raising debt because the predictable revenue streams and hard assets to secure against don’t exist in this neck of the woods.

Once you give equity or some derivative of future equity - the incentive model of the founder being able to reward the holders is diluted. The stakeholders of the VCs that the GPs must act in the best interest of don’t necessarily align with holders.

The equity gives them a seat at the table and decision making power, and given how many VCs already blew up in this space - the founder must keep the few left happy to keep the $ coming in. However, how do they actually get that exit for the LPs? Keep in mind, many of these VCs have a fixed fund life and must return capital on some pre determined basis.

How does a NFT project actually make $ to increase the value of the equity if no exits or acquisitions of NFT collections are taking place ? The common playbook - more mints, dropping a shitcoin, selling products to the holders, and doing more dilutive mints.

Look at the above - In order to make $ for the LPs what does the VC have to do ?

Take a portion of the mint revenue - this hurts holders -(instead of the founders deploying it directly to benefit project holders in an accretive way directly/they have to fork the cash over)

If they get allocated a portion of a token - they must sell it to monetize it. For every sell, their is also a buyer. AKA the VCs dumping on the community members. Lockups almost expiring = announcement time.

Selling products to holders - how sustainable is this for the projects ? Those LPs want those margins high = high cost low quality ? This turns the holders to customers - who are most likely down 80% from the top

I’m believe projects leading the way like Pudgy and Degods can brake the traditional model and are able to build lasting tech/product companies that are more aligned with holders while also giving IP value.

My opinion has evolved on VCs over the years-Especially after I quit working at one. Most of my close friends work in/VCs as I did for almost a decade.

VCs stop DMing me pls - not interested

OMB holders come first🫡🧑‍🍳

Thoughts ?

[Taproot Wizards @TaprootWizards]

https://t.co/YqtEcomceA

[Sats Capital 🐸🧙🍄 @sats_capital]

@TaprootWizards GG

[Udi Wertheimer @udiWertheimer]

are you ready for @TaprootWizards?

teaser video by @_toadx0 https://t.co/TfqErzyyzj

[Nullish @nullish]

?¿

[Michael Sullivan @sull]

@ZK_shark and the snack machine thread:

https://t.co/nN8h6EqLMN

[zk-🦈 @ZK_shark]

🫡⏳