The Decade of Crypto Wisdom: 3 Key Tips from a Venture Capital Pioneer
A Journey from Wall Street to the Crypto Universe
Jake Brukhman, a computer scientist known for his tenure at Amazon and his Wall Street experience, shifted gears to become a pivotal figure in the world of cryptocurrency. As the founder of CoinFund—among the first venture firms solely focused on crypto—Brukhman has spent a decade observing and investing in this dynamic space. According to Fortune, his experience and insights provide three essential tips for those just stepping into the crypto market.
1. Stick to Crypto’s Titans for Safety
When entering the unpredictable waters of cryptocurrency, Brukhman’s first advice is to anchor your investments with the market’s stalwarts, such as Bitcoin and Ethereum. By focusing on these well-established entities, newcomers can shield themselves from the wild fluctuations and potential scams of lesser-known projects.
“Joining the space with the big names is significantly safer. Bitcoin and Ethereum come with robust ecosystems that are over a decade old,” Brukhman remarks, reminding us of Ethereum’s meteoric rise from a mere $0.60 to its current standing.
2. Embrace Responsible Project Leadership
Brukhman highlights the importance of investing in projects committed to strong governance and transparent token management. During the 2016 ICO rush, many blockchain initiatives faltered due to poor execution and misaligned incentives. Today, however, sound practices are emerging, ensuring the longevity of projects.
A protective governance structure, according to Brukhman, is key. “Roughly 90% of projects we back have token distribution schedules over multiple years,” he notes, underscoring a critical aspect for any savvy investor to look for.
3. Know Your Founders
Despite the allure of anonymity in the crypto realm, Brukhman advises caution. While Bitcoin’s Satoshi Nakamoto remains a legend, most projects helmed by unknown founders are less reputable. CoinFund prioritizes understanding the people behind the projects they invest in.
“We’ve never invested in purely anonymous founder projects. Transparency is crucial to mitigating risk,” reflects Brukhman, emphasizing how knowing the faces and minds behind crypto ventures can guide better investment decisions.
Tune into Crypto Insights
Brukhman’s full conversation and additional episodes of Fortune’s Crypto Playbook are invaluable for anyone wanting to dive deeper into the evolving world of cryptocurrency investments. Explore the vodcast for a closer look at the forces redefining finance today.
