Hello!
Welcome to a milestone episode of the DCO Podcast! We are excited to share that this is our first-ever video-recorded episode. We are releasing the audio version of this podcast for today. Keep an eye out for our humble YouTube debut in the coming weeks.
Also, Joel and Sid are in Singapore for Token2049. Drop us an email if you are a founder or researcher looking to collaborate with us.
In this episode of the DCO Podcast, we dive into a conversation with Arthur Cheong, the founder of Defiance Capital.
Arthur is someone I have followed ever since he wrote a report on Synthetix (SNX) back in 2019. SNX was just $0.04 at the time. It caught my attention because his background in equity markets resonated with my own experiences in my career.
We start by discussing how Arthur views the evolution of the crypto market. We then discuss what Joel calls “cynical optimism.” As a market evolves, its participants do not interact solely on the basis of idealism. They begin to understand the risk that comes with bad actors. The actions of a small minority of bad actors can have ripple effects.
Being a veteran is the fine art of balancing optimism with cynicism. Arthur talks about balancing the ability to double down on good ideas while having a strong filter for potentially terrible ones during the investment process. You need to be cautiously optimistic to survive and win as an investor. It is a skill that comes with time.
We also discussed the difference between liquid and venture investments in crypto.
Unlike with liquid tokens, the competition for investing in equity for crypto products is fierce. Too much capital is chasing the same deals, driving valuations sky-high before projects ever have a listed token.
This means that being patient and deploying into tokens in liquid public markets can prove to be a smarter choice. You get the advantage of liquidity with the valuation of a late-stage venture. Arthur breaks down how he thinks of this, along with the east-west divide within crypto. In particular, we cover why investing in Asia can still be a source of edge.
It is a rich conversation that goes beyond the usual crypto chatter and is a good primer on how a liquid fund manager thinks about risks and opportunities. If you are interested in understanding how a seasoned DeFi investor navigates this space, this episode is definitely for you.
Getting ready for the Eigen week at DCo,
Saurabh Deshpande
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