CitizenX is a company that focuses on leveraging technology to empower individuals and communities. The company specializes in creating innovative solutions that aim to improve the quality of life for citizens through the use of cutting-edge technology and data-driven approaches.

Citizen X

CitizenX

Interesting article by Nic Carter. This article alone should stand as a basis for bringing unelected regulators before Congress and asked questions under oath. The campaign for Crypto is starting.

Fungify was our first investment as a firm where we were the lead investors.

2022 was a year for building 💪💪 and Shigeo Kageyama & Team coded their fingers off 👨💻👨💻

2017 gave us ICOs ->2020 DeFi ->2022 NFTs, and now 2023 will be the year of NFTDeFi

Fungify 🍄🍄 is the first original protocol since Uniswap v3. It’s a novel primitive: an index fund that can lend itself out. It’s a new frontier of financialization for NFTs.

- 💵Earn yield from NFT exposure
- 💸Borrow against your NFTs
- 💰Sell your NFTs instantly

DeFi has had four big primitives: units of account, exchange, lending, and perpetuals.

- MakerDAO(unit of account, lending)
- Uniswap/Curve (exchange)
- dYdX (perpetuals)
- AAVE/Compound (lending)

Fungify is a lending protocol with its own unit of account ($NFT), like Maker, but it’s a unit of account tailored to NFTs. DeFi doesn’t need another stablecoin; it requires an asset that’s stable relative to the NFT market. How do they do this? Through a vault that accepts the deposit of NFTs in exchange for a proportional share & allows for the withdrawal of NFTs by redeeming those shares—in essence, creating a fully backed NFT index.

There are two essential byproducts of $NFT:
1. The ability to instantly sell NFTs into a global liquidity pool that builds upon the liquidity of every collection within the index. This is better than having multiple vaults with fragmented liquidity and large spreads.
2. Every holder of $NFT is a lender to those borrowing against their NFT collateral. Borrowing is subsidized by latent demand for $NFT as a unit of account, the same way demand for DAI as a unit of account reduces the cost of capital in the Maker ecosystem.

The market cap of the collection constrains the liquidity of fragmented vaults. With a consolidated vault, the flywheel of “trading-> LP fees -> liquidity -> more trading” can proceed without topping out prematurely. The more liquid $NFT becomes, the more attractive it is as an index. As it is bought for its value as an index, the cost of capital for the system decreases, supercharging the borrower 🤸🤸 lender flywheel. 

These flywheels of increasing trading $NFT liquidity and increasing lending $NFT liquidity feed into each other; the system’s growth is bounded only by demand for NFT liquidity. As the NFT market swells, need for liquidity will follow suit, setting the stage for the age of NFTDeFi. 

The age of Fungify 🍄🍄

Useful Links:
Website: https://fungify.it
Twitter: https://lnkd.in/eQJ84Kd7
Docs: https://docs.fungify.it

👀👀 peeled for Wednesday, 2/08 🤜🤛

Almost $20B has been invested into Web3 gaming over the last 2 years. Many of the funded game makers will go live in 2023 (as they approach 2-3 yrs of development).

Even a moderate hit game of about ~50m players can instantly 3x all of Web3's user base.

We are a thesis-driven investment firm. The Citizen X narrative has been that a viral and fun-to-play web3 game will catalyze the next great wave of public adoption. 

In the next 12 months, we will witness a Web3 gaming title/project going mainstream for the first time.

AAA studio-produced, competitive and fun-to-play games to compete with Fortnite, Warzone, and CSGO. Gaming is a far bigger industry than Music, and we have a front-row seat.

We 👀 👀  you, Arcade, Blockstars, Formation Games, Ex Populus, Just Wont Die, Merit Circle, SNACKCLUB, Taleverse Entertainment Studios, Walker Labs

Projects seeking to launch with a token are staying private longer. This includes projects that are very well financed. We believe that once the market stabilizes later this first half of 2023, we will see new tools, infrastructure, and hotly anticipated gaming titles come to market.

In reviewing our Fund II's current portfolio at the 2022 year-end, approximately 40% of those projects are strategically delaying their token-related launch. We are advising projects to have the token become an integral part of the project's economy before launching.

We are a thesis-driven investment firm. From this cycle, we see how much more successful companies with a hybrid structure of equity and tokens have been at raising money compared with projects that have focused only on the token side of the business. 

A SAFE + token warrant structure makes a startup anti-fragile 
and they can focus on developing their product-market fit in the short term, deferring token economy design later 🔥 🔥 

When we say, "build in a bear," this is what we mean 🐻 🐻

High-quality founders and higher-quality tech get built in bear markets.

https://lnkd.in/g9W8bZXf

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