Top 6 Takeaways From CryptoOracle’s April 29th Fireside Chat With Tim Ogilvie, CEO of Staked
At CryptoMondays NYC on April 29th, we held a Fireside Chat featuring Tim Ogilvie , Founder & CEO of Staked. You can watch/listen to the…
At CryptoMondays NYC on April 29th, we held a Fireside Chat featuring Tim Ogilvie , Founder & CEO of Staked. You can watch/listen to the hour long conference conference below:
Or you can save some time and read our six highlights below:
1. Tim Got In To Staking By Following The VC Money Flow
About two years ago, Tim started looking at Crypto given his practice of looking at where VCs are spending money (the smoke) and digging to see if there is any fire. About 18 months ago, he noted that everything in crypto that was getting funded by VCs was using staking as the security model. Very early on in his career Tim had worked on the debt derivatives desk at JP Morgan and saw the array of financial products coming out of a single interest rate. Tim sees a staking yield as very similar to an interest rate, and he got excited about staking under the belief that staking will similarly spawn a large number of financial products.
2. Staking Is Highly Collaborative
As stakers all get paid in coins that they stake, there is tremendous alignment among market participants that fosters industry collaboration. Below is a great diagram of industry participants via Meltem Demirors:
3. Interest In Proof Of Stake Is Being Driven, In Part, By The Shortcomings of Proof of Work
Tim believes that interest in Proof of Stake was driven by the well known shortcomings of Proof of Work including the massive energy cost ($6 billion) and the concentration (two firms control more than 50% of the hash power), which makes it vulnerable to 51% attacks. In addition, while both Proof of Work and Proof of Stake are inflationary (i.e. more tokens are produced every day, the majority of that inflation goes to holders in Proof of Stake (net of taxes).
Proof of Work is not going away, but Proof of Stake is gaining share, and will represent $30-$50 billion of market cap by the end of the year.
4. The Biggest Evolution In Staking Over The Last 18 Months Is The Broad Recognition That It’s A Thing
People have woken up to the fact that they can make money in staking, and that’s what gets people’s attention. 18 months ago, nobody knew what staking was or how it worked.
5. Crypto Funds We’re The Early Staked Customers, Followed By Other Crypto Institutions In Need Of Infrastructure
Firms like Pantera, Multicoin, and BlockTower were the early customers of Staked. They were followed by other crypto related companies (e.g. wallets, custodians) that want to outsource the provisioning of staking services for their customers. To date, Staked customers have largely been U.S. based.
6. The Next Year Will See The Introduction Of Other Ways To Make Crypto A Productive Assets
For the first 8–9 years, crypto was kept under the mattress. Now with staking, it has become a productive asset. In addition to staking, loaning crypto assets to others who can use it (e.g. to short) is another way to produce income. But those are just the beginning. Derivative staking related products are poised to explode, creating an array of productive uses of crypto
If you got value from this post please “Clap” below (up to 50 times). That’s how I get value. Thx!