An interview with VC investing in Crypto projects
A: Hello Sir, you are from which VC firm?
B: XYZ Inc.
<small talk>
A: How is it that new SM chains launch despite competition of Cardano and Ethereum?
B: The problem with established chains is that they have too high token price, it is much better to launch new one from 0
A: So you support chains like AVAX, SOL, LUNA, ALGO and effectively print money?
B: Well, who said print money, we innovate but for this innovation we want high profit, this is why VCs own sometimes even 50% of tokens of those chains, yes.
A: But others could copy you and fork!
B: No way, we usually patent parts of software so it is not possible to fork those chains
A: But doesn’t centralise those chains?
B: Yes but most people don’t care, they want to flip coins and NFTs and want cheap transactions
A: They could use AWS or something, why blockchains for it?
B: Blockchain is hyped so we capitalise on it.
A: But AGLO actually wants to have decentralised governance?
B: True but some parts of their software stack are patented so it is a bit tricky in some aspects
A: So what is patented in each chain?
B: It depends, in AVAX metastable byzantine agreement consensus
, ALGO also has number of them:
A: and SOL?
B: 8 patents:
A: And people don’t care?
B: Well some do but many don’t.
A: When will you realise gains of those 50% allocations?
B: Well these are our secrets but yes we will have to at some point, VCs need to return revenue to shareholders, we are not charities or something.
A: You said that VC chains innovate but they patent software, why?
B: Other network have communities, we have money, a lot of money and we can effectively buy scientist and engineers but we cannot buy communities of other chains.
A: So you need to make sure other chains don’t copy your tech to their communities?
B: Yes, this is the only line of deference for us.
A: Thank you for a chat.
B: You are welcome.
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