Hi!

Welcome to Web3 Bits, where I share a few of the most interesting web3 bits for you to consumer over the weekend.

It's been a good six months since my last missive. Life's been busy, but I'm glad to be back! If there's anything you'd like me to cover, write about or questions to answer - just let me know in a reply email and I'll get to it next time!

The bull is back!

In September last year I wrote about why I'm getting more bullish which turned out to be fairly prescient:

It's very exciting to be back in a bull market. Now is a good time to take a step back and remember the pitfalls of bull markets:

• Prices fluctuate and so do our emotions. Violent price movements remove the apathy that we got used to during the bear market. At highs, we're high. When prices drop we're down. Our internal greed/fear index goes crazy. On the upswings we feel like we don't hold enough coins. We get greedy and fear not having enough upside.
• The noise in the industry rises to stupid, ridiculous levels and it's hard to focus on what's real. The problem is that the noise isn't only loud, it's also very believable: influencers and thought leaders are as swept up in the bull market as you are. It's easy to fall into the 'well if that X person is saying that 10,000 PFP collections are the next thing, it must be true!".
• Grifters and stupid projects abound. Capital becomes cheap and with it, bad projects.

All of this leads me to a few personal conclusions for this bull market:

• Hang on to your inner common sense and first principles thinking. Products need to solve a user pain point and tokens need a reason to exist.
• Lower the volume: I listen to a ridiculous number of web3 and finance podcasts (some are listed here). It's time to pick the episodes and hosts more carefully, and remember that media companies suffer bull market mania just as badly.
• Discipline in investing. Set price targets early and stick to them. Don't over trade. Don't fuck up a simple investment thesis.

Writings

• All things governance research that I've been focusing on. Still a work in progress.
• Points! Points! Points! They've become quite the narrative, but what can businesses really offer and why you should be highly skeptical.