Jake Brukhman is a computer scientist at Amazon Before Wall Street founded Coinfund, it was one of the first venture capital firms to devote themselves to cryptocurrency investment. He is also the latest guest on Fortune’s new podcast, Crypto Playbook (available in Spotify, , , , , apple and Youtube) Brukhman shared his insights based on a decade of investment and provided some very practical tips for those who came to this market for the first time.
His first advice for new immigrants is that choosing a major cryptocurrency with a pre-established trail is the safest. Doing so will allow investors to gain exposure to cryptocurrencies and benefit from their growth, while also allowing them to avoid the excessive volatile and thorough scams that come with new projects.
“As a new participant entering the space, insist that big guys are absolutely safe. Bitcoin,invest Ethereum. These projects have been around for more than a decade and have established good communities and ecosystems. ” Brookeman.
Coinfund, who has only 60 cents, has been lucky enough to invest in Ethereum, and today’s transaction volume is nearly $4,000, but his advice remains.
In the podcast, Brukhman went on to point out that as the cryptocurrency industry matured, a range of norms and guardrails had emerged to ensure blockchain projects were managed responsibly. These new practices focus primarily on token management and create incentives to align founders and investors.
In the past, most notable is that in the initial coin offering in 2016, the founders of the blockchain project will be eager to sell millions of tokens to retail investors and then fail to follow their plans, thus skewing or crashing the token’s price.
Today, Brookman noted that responsible projects will include governance measures that protect investors and limit the allocation of their token supply for a few years. He said 90% of crypto projects CoinFund chooses to come back with these properties – which is clearly a sign that new investors should also look for these qualities before putting down their money.
Finally, Brukhman shared that his fund was separated from the anonymous founder. While this may seem obvious, it is worth remembering that encryption’s initial appeal to many is a new form that is not under government control and protects the privacy of their users.
Of course, the most famous example is Bitcoin, whose founder, Satoshi Nakamoto, never revealed his identity today. Satoshi enjoys an almost fabulous position among Crypto fans as it builds the first and most successful blockchain and shows with complete integrity, but unfortunately he is the exception not the rule. Subsequent projects carried out by anonymous founders often prove to be a scam.
Brookman said CoinFund supports the founders whose privacy choices range from fully open on social media to those who use pseudonyms to cover up their identity. But he said the company always needs to be aware of who to deal with before investing.
“From our perspective, we never had to invest in purely anonymous founders. We never found a project, you know, investing in it is so important that we should take that risk for the anonymity of the founders, so we haven’t done that yet,” he said.
You can find the entire interview with Brukhman and the first three episodes of Crypto Playbook, here.
