In the last episode of The Scoop, we explored why some venture capitalists are becoming reluctant to invest in token models.

However, not all VCs in the crypto space share this sentiment. Multicoin Capital — a VC whose combined crypto funds total nearly $550 million — is “primarily token investors,” according to managing partner Kyle Samani.

In this episode of The Scoop, Kyle Samani talks through some of Multicoin’s recent investments and lays out when the token model can be an effective value capture mechanism for up-and-coming crypto projects.

As Samani explains, token incentives are ideal for projects that require a large initial investment in exchange for prolonged rewards:

“If you can identify use cases where the token is incentivizing one upfront action that has long lasting or perpetual value creation elsewhere, that is a super, super compelling way to use token incentives.”

Episode 90 of Season 4 of The Scoop was recorded live at SALT New York 2022 with The Block's Frank Chaparro and Research Director George Calle with Multicoin Capital Managing Partner Kyle Samani.

Listen below, and subscribe to The Scoop on Apple, Spotify, Google Podcasts, Stitcher or wherever you listen to podcasts. Email feedback and revision requests to [email protected].

This episode is brought to you by our sponsors Tron, Chainalysis & IWC Schaffhausen

About Tron

TRON is dedicated to accelerating the decentralization of the internet via blockchain technology and decentralized applications (dApps). Founded in September 2017 by H.E. Justin Sun, the TRON network has continued to deliver impressive achievements since MainNet launch in May 2018. July 2018 also marked the ecosystem integration of BitTorrent, a pioneer in decentralized Web3 services boasting over 100 million monthly active users. The TRON network completed full decentralization in December 2021 and is now a community-governed DAO. | TRONDAO | Twitter | Discord |

About Chainalysis

Chainalysis is the leading blockchain data platform. We provide data, software, services, and research to government agencies, exchanges, financial institutions, and insurance and cybersecurity companies in over 60 countries. Backed by Accel, Addition, Benchmark, Coatue, Paradigm, Ribbit, and other leading firms in venture capital, Chainalysis builds trust in blockchains to promote more financial freedom with less risk. For more information, visit www.chainalysis.com.

About IWC Schaffhausen

IWC Schaffhausen is a Swiss luxury watch manufacturer based in Schaffhausen, Switzerland. Known for its unique engineering approach to watchmaking, IWC combines the best of human craftsmanship and creativity with cutting-edge technology and processes. With collections like the Portugieser and the Pilot’s Watches, the brand covers the whole spectrum from elegant timepieces to sports watches. For more information, visit IWC.com.