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Interview with Kyle Samani cofounder and Managing Partner at Multicoin Capital
Can you introduce yourself and your role in Multicoin Capital?
My name is Kyle Samani. I’m a cofounder and Managing Partner at Multicoin Capital, a hedge fund that invests exclusively in crypto.
I started programming when I was about 10 years old. I studied finance at NYU, then started my first tech company when I was 23 called Pristine. Pristine went on to raise millions in venture capital, and was ultimately acquired. I got into Ethereum in March of 2016, and made the decision to launch Multicoin with my best friend Tushar Jain in May of 2017. We’ve been live since August 2017.
Today we’re managing more than $50M, have 8 full time employees, and are fortunate to have a number of marquee investors, including Marc Andreessen, Chris Dixon, David Sacks, Elad Gil, and Ari Paul.
What is the difference between investing in the traditional equity markets and the crypto markets today i.e. What are the common pitfalls for the do it yourself crypto investor?
The most important difference is fundamental mis-pricing of risk. Cryptoassets are much riskier than equities, but their prices don’t necessarily reflect this. I personally believe that the vast majority of cryptoassets are overvalued today, although the crypto as an asset class is undervalued.
Additionally, cryptoassets are much more volatile than traditional asset classes. This is a function of a few things, most notably: 1) a lack of general accepted valuation models 2) a market consisting of mostly unsophisticated investors 3) fragmented order books across geographies with capital controls.
Hodl is touted as the panacea for crypto investing, what are your thoughts?
This all depends on your investment strategy. HODL makes sense if you have deep conviction over a long term time horizon. Otherwise, it may not be the best strategy for you.
Do you foresee the larger tech giants creating their crypto assets infrastructure; would that eventually make an allocation of crypto assets and tech the same thing?
I don’t expect tech giants to hold meaningful amounts of crypto assets on their balance sheets as this is not their primary function. I think crypto will generally be considered a separate asset class. Equities represent a legal claim on the underlying assets of a common enterprise. Cryptoassets are not equities.
Do you think there is a likelihood of tech giants or specific industry groups forking existing open source projects or cloning existing open source software to jump-start their own blockchain platform?
Yes, this is already happening (see IBM, Microsoft, others). This will accelerate over the next few years.
What is the minimum investment in MultiCoin?
Our minimum investment is $1M USD.
Can payment be done both in Crypto and Fiat?
Yes, we accept investment in both USD and crypto.