- Arthur Cheong acknowledged Joel John’s analysis of crypto narratives as the best work of 2023.
- Joel John released an article today, delving deep into the role of crypto narratives on crypto investors and founders.
- John asserted that the narratives accelerate at the beginning of a bull market, mainly due to technological developments.
Arthur Cheong, the founder, and CEO of the leading Web3 and crypto-focused investment firm DeFiance Capital, recently took to Twitter to acknowledge the analysis of crypto investment published by the crypto enthusiast Joel John. Arthur Cheong, known by his first name on Twitter, appreciated John’s article, hailing it as this year’s best writing on crypto investment.
On August 4, Arthur shared the Twitter post recommending crypto investors and founders to read the analysis:
This is one of the best read I've on crypto investing this year.
— Arthur (@Arthur_0x) August 4, 2023
100% must read for all crypto investors and founders alike. https://t.co/tdNn9nCCFG
Earlier today, John released a blog post entitled “The Narrative Wedge”, with a sub-title “A field guide to profit and survival”. The article revolved around the evolution of crypto narratives and their impact on “founder’s strategies and blind spots in venture investing”.
John narrated that decentralized finance (DeFi) has gone from a “peak of inflated expectations to a slope of enlightenment”, shedding light on the new developments in the field. He reflected on the performance of the leading DeFi platforms and the enthusiasm of founders to adapt to the expanding crypto world. He added,
While there is a reduction in interest and usage, a far higher number of users are retained within these product categories. However, if you were to look at search trends for the same function, you would witness a very different story.
Putting together his findings on DeFi, John asserted that narratives accelerate at the beginning of a bull market, mainly due to technological developments. Illustrating with examples, he elaborated that the DeFi exchanges like Compound, UniSwap, and Bored Apes are demonstrative of these narrative tailwinds “blending with product usage to produce outsized returns for investors”.
John further added that in venture investing, products become a bet on “the return of a bull market”, reflecting on its illiquid nature and the extensive time taken for the products to evolve. The enthusiast reiterated, “This misinterpretation of a short-term price rally for actual consumer demand is a trap multiple founders we see fall into”.
