A Comprehensive Overview of Multicoin Capital's Investment Portfolio
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A Comprehensive Overview of Multicoin Capital's Investment Portfolio
Looking at Multicoin's portfolio, it shows a stronger preference for infrastructure such as public blockchains and DeFi.
Navigating Web3 tides with focused insightsBy 1912212.eth, Foresight News
Multicoin Capital first gained significant attention through a series of influential crypto investment theses, then rose to prominence during the previous bull cycle by successfully betting on high-performance blockchains such as Solana, quickly establishing itself among the top-tier venture capital firms. However, after the FTX collapse, negative fallout persisted—Multicoin's fortunes, once made on Solana, were also undone by it. In December 2022, the firm admitted to severe losses, with its assets plummeting 90% that year, sparking widespread public outcry.
Criticism flooded in overnight, igniting debates over whether Multicoin was incompetent or simply unlucky. Now, as controversy fades and bull market noise returns, Multicoin has regained momentum amid rising crypto asset prices.
In a letter to annual investors released in March 2024, Multicoin Capital revealed that its cryptocurrency-focused hedge fund had delivered a 9,281% return to early investors since 2017. This performance more than offsets the 91.4% loss the fund suffered in 2022. Multicoin executives Tushar Jain, Kyle Samani, and Matt Shapiro wrote: “In 2023, crypto did what it does best—survived death once again. The market rebounded dramatically, and our hedge fund was able to capitalize on the recovery, significantly outperforming the broader market.”
A review of Multicoin’s investment portfolio reveals a strong preference for infrastructure projects such as public blockchains and DeFi. It is also a bold lead investor across numerous funding rounds. Foresight News breaks down its ecosystem map below.
L1
Algorand is founded by Silvio Micali, a pioneering cryptographer, Turing Award winner, and MIT professor. Algorand is the first blockchain to offer instant transaction finality, with transaction throughput comparable to major payment and financial networks.
Aptos is a Layer 1 blockchain built by former members of Meta (formerly Facebook)’s development team, leveraging the Move programming language and Diem-BFT consensus technology from the Diem project.
Launched in 2017, Arweave is a decentralized storage network enabling users to store data permanently with a one-time upfront fee.
Ceramic is a decentralized data network designed to bring infinite data composability to Web3 applications.
Dfinity aims to build a decentralized Internet Computer, allowing developers to create and run applications on a distributed platform without relying on traditional cloud services, databases, or payment gateways.
Developed by Dapper Labs, the team behind NBA Top Shot, Flow is designed to support large-scale NFT collectibles and blockchain gaming.
Fluence is a decentralized computing network for building, hosting, and running peer-to-peer applications and protocols.
Mina uses advanced cryptography and recursive zk-SNARKs to compress the entire blockchain to around 22KB—roughly the size of a few tweets. It enables efficient execution of zero-knowledge smart contracts (zkApps) and simple programming. With privacy features and seamless integration with websites, Mina is building a private gateway between the real world and the crypto world.
Founded in 2020 by Alex Skidanov and Illia Polosukhin, NEAR achieves global scalability using sharding and a consensus mechanism called Nightshade. NEAR focuses on predictable costs for applications and provides developers with protocol-level tools.
Nervos addresses the scalability trilemma by separating state generation from state validation/storage within a layered architecture.
Announced in May 2022 and founded by Jayendra Jog and Jeff Feng—former software engineers at Robinhood and risk investors at Coatue Management—Sei Labs aims to become the fastest network for trading digital assets. Built-in technologies like Twin-Turbo consensus and transaction parallelization reduce latency and boost throughput. As the network matures, Sei Labs plans further upgrades with Sei V2 and a parallelized stack to enhance performance and growth.
Solana is a high-performance blockchain built for large-scale applications, supporting use cases in finance, NFTs, payments, and gaming. It operates as a single global state machine with openness, interoperability, and decentralization.
The Tari platform enables anyone to write complex rules for digital assets with confidence they will be enforced. Tari makes it possible to manage, use, and transfer nearly any kind of digital asset—from tickets to loyalty points to virtual goods.
XION is a public chain built for mainstream adoption through generalized abstraction. It primarily leverages Cosmos development tools including CometBFT consensus, Cosmos SDK, IBC, and CosmWasm. On top of these, XION features infrastructure-level USDC integration and user-friendly abstraction of technical complexity.
L2
Founded in 2018, StarkWare’s two main products are StarkEx, a scaling engine built on Ethereum, and StarkNet, a decentralized ZK-Rollup. StarkEx offers fast withdrawals, supports ERC-721 and ERC-20 tokens, enables L2 NFT minting, DeFi pooling, dAMM (distributed AMM), and real-time oracle price feeds. Its latest version, v4.5, supports Volition—a hybrid on-chain and off-chain data solution. StarkNet launched on mainnet in November 2021, allowing independent smart contract deployment; any developer can write and deploy contracts permissionlessly.
SKALE enables developers to run high-speed, low-cost smart contracts on Layer 2. Its elastic sidechains aim to deliver all the benefits of full-capacity sidechains while maintaining the security of a truly decentralized network. Elastic sidechains offer high performance and configurability.
Co-founded by OpenAI CEO Sam Altman, Worldcoin developed World ID, a biometric identity verification system using an orb-shaped scanner to authenticate users via iris scans. Worldcoin will launch its Ethereum Layer 2 network, World Chain, this summer, built on the OP Stack. Users who scan their irises to obtain a “World ID” digital passport will receive priority block space and temporary gas subsidies. By integrating robot checks into its core, Worldcoin will allow wallets beyond the World App to integrate World ID. Both WLD and ETH will be usable for paying gas fees on World Chain.
Formerly CyberConnect, Cyber rebranded in May as a social restaking modular L2. Built on the OP Stack and launched in partnership with Altlayer, Cyber integrates custom infrastructure secured by EigenLayer’s Active Validation Service (AVS). Its developer mainnet is already live.
Fhenix is a Layer 2 based on fully homomorphic encryption (FHE), aiming to bring computation on encrypted data into Ethereum Virtual Machine smart contracts.
Infrastructure
Cross-chain
LayerZero is a cross-chain interoperability protocol focused on lightweight message passing. It aims to deliver trustless, secure, and configurable communication across blockchains.
Born from a hackathon, Wormhole was launched in October 2020 by blockchain infrastructure firm Certus One, initially as a direct token bridge between Ethereum and Solana ecosystems. In August 2021, developers from Jump Crypto released a second version using a Proof-of-Authority (PoA) Guardians network as an oracle and a permissionless relayer network to transmit messages across chains.
Oracles
Pyth currently offers over 350 price data sources covering cryptocurrencies, foreign exchange, metals, ETFs, and U.S. stocks. With near real-time updates and broad asset coverage, DeFi applications can now build financial products previously unattainable—such as perpetual futures—that weren’t feasible with other oracle solutions.
MEV
Eden is a priority transaction network designed to protect traders from frontrunning, adjust block producer incentives, and redistribute Miner Extractable Value (MEV).
Jito Labs is an MEV infrastructure company building high-performance systems to scale Solana and maximize validator rewards. Its total TVL has surpassed 2 million SOL.
FastLane is a MEV solution for the Polygon ecosystem.
Wallets & Payments
MathWallet supports over 50 blockchains, hundreds of tokens, and decentralized applications through a comprehensive suite of mobile, web, and hardware wallets.
Lore is a multi-chain wallet group that pools funds through chat groups—used for buying meme coins, increasing airdrops, purchasing blue-chip tokens, and sharing private sales.
Superfluid is an asset streaming protocol enabling real-time crypto transfers for DAOs, Web3 enterprises, and DeFi games worldwide.
TipLink is a lightweight wallet that simplifies digital asset transfers to just sending a link. Crypto holders can generate a TipLink and send it to anyone via any platform—SMS, Discord, email, etc.
Bitcoin Ecosystem
Arch Network is a parallelized PoS network using ZK proofs to enhance Bitcoin-native programmability. The network consists of a Rust-based zkVM (ArchVM) and a decentralized validator network. It features three key aspects: programmability, parallel execution speed, and trustless interoperability and composability.
Launched by startup studio Thesis—which has years of experience in BTC ecosystem development and created tBTC—Mezo aims to deepen Bitcoin’s infrastructure capabilities by enabling cheaper, faster transactions without compromising core principles.
AI
Alethea AI is an artificial intelligence company enhancing human-AI interaction through iNFTs (intelligent NFTs)—non-fungible tokens embedded with AI personalities.
io.net is a decentralized cloud computing network that allows machine learning engineers to access distributed GPU clusters at a fraction of the cost of centralized providers.
Render is a provider of decentralized GPU rendering solutions. Render allows anyone with a GPU to contribute their rendering power in exchange for RNDR, greatly expanding GPU compute availability and scale for artists, designers, and researchers.
DAO
Alpha Venture DAO
A builder DAO exploring and innovating at the edge of Web3, delivering significant value to Web3 users and ultimately returning Alpha to the Alpha community.
CabinDAO is an online and real-life community leveraging blockchain technology to help creators earn a living online.
Salad is a family of builders committed to unlocking future economic opportunities through blockchain. Through platforms Arcaden and Apollo Academy, it offers not only gaming and education but gateways to new possibilities.
Seed Club is a DAO focused on building and investing in communities. They aim to ensure value created by communities on the internet is captured by users, not platforms.
DeFi
Lending
Timeswap offers flexibility, enabling borrowers and lenders to define their own risk profiles through adjustable interest rates and collateral ratios.
Hubble is a Solana-based DeFi protocol allowing users to borrow USDH—a dollar-pegged stablecoin—using multiple assets as collateral. Borrowing USDH lets users unlock liquidity (cash) from long-held tokens.
Swivel gives borrowers the ability to lock in fixed yields or otherwise enhance their returns.
DEX
THORChain is a decentralized cross-chain protocol aiming to decentralize cryptocurrency liquidity through a network of public THORNodes and ecosystem products. Native and cross-chain liquidity is open to individuals, products, and institutions alike.
Saber is a cross-chain stablecoin and wrapped asset exchange on Solana. Designed for low slippage even in large trades, Saber maintains high capital efficiency and optimal utilization for liquidity providers.
Marginfi is a Solana-based decentralized margin protocol offering unified accounts for trading, portfolio management, and enhanced capital efficiency across underlying trading protocols.
dForce aims to build an integrated, interoperable matrix of open financial and monetary protocols, including asset protocols (USDx, GOLDx, dToken), liquidity protocols (dForce Trade), and lending protocols (dForce Lending).
Coin98 is an integrated DeFi platform offering a full suite of products—including Coin98 Wallet, Coin98 Exchange, and Space Gate (cross-chain bridge). Coin98 aims to meet underserved needs in the industry, becoming the go-to gateway connecting traditional finance users to any DeFi service or blockchain.
Derivatives
Drift is a decentralized perpetual contracts trading protocol on the Solana ecosystem.
Perpetual is a decentralized perpetual contracts protocol for all assets.
Strips Finance (now renamed RabbitX)
Strips is an interest rate derivatives trading protocol on Arbitrum. Perpetual Interest Rate Swaps (IRS) continuously pay the difference between floating and fixed rates. Using IRS, traders can build strategies to profit from interest rate movements or capture “swap spreads.”
Liquidity
DFlow is a protocol supporting decentralized order flow markets, solving the issue of fragmented harmless order flow through tokenomic incentives.
Geode Finance is a liquid staking solution secured and governed by a DAO’s governance token.
Lido allows users to stake their assets and earn daily staking rewards. Users can stake any amount of tokens—there is no minimum requirement.
Saffron is an asset-backed and customizable risk protocol for DeFi.
Sommelier is a cross-chain DeFi gateway built on Cosmos SDK for maximum interoperability with other blockchains. It automates vaults to achieve top-tier returns while minimizing risk.
Glif is a liquidity leasing protocol on Filecoin, allowing FIL holders to deposit FIL into liquidity pools and earn iFIL. Launched in March 2023, shortly after Filecoin launched its own Virtual Machine (FVM), enabling smart contracts and opening up to decentralized applications. Prior to launching the protocol, Glif’s leaders Jon Schwartz and Peter Andersen had been building foundational products in the Filecoin ecosystem since 2019.
Stablecoins
UXD is a fully collateralized, decentralized stablecoin on Solana backed by an asset-liability management module. However, its official Twitter account has not been updated since last year.
Privacy
Keep is a privacy layer enabling the use of private data on public blockchains without sacrificing security or confidentiality. Keep powers tBTC, a secure and decentralized tokenized Bitcoin on Ethereum.
MobileCoin is a privacy-focused payment protocol providing secure, private cryptocurrency wallet services optimized for mobile apps.
NFTs & Creators
Galxe is a collaborative credential infrastructure empowering brands to build communities and products in Web3 using NFTs and credential data.
Fractal is a Solana-based NFT marketplace co-founded by serial entrepreneur Justin Kan, creator of Twitch. Fractal hosts Web3 games and provides tools for developers to build new ones.
Genies builds an avatar ecosystem encompassing avatars, fashion and collectibles, spaces and venues, and social experiences. Genies develops tools to express creativity and experiences through avatars.
Heroic Story is building a collaborative, community-owned game powered by smart contracts and non-fungible tokens (NFTs).
Hawku is a marketplace platform for utility and gamified NFTs.
Juke is an NFT marketplace for film and television collectibles, helping thousands of fans worldwide collect over 10 million favorite moments.
Founded in 2021, Mercury creates unique digital experiences for top university brands, bringing fans closer to athletes and teams. Partnering with leading universities across sports, Mercury builds hyper-localized platforms to elevate the modern fan experience. Its community includes dynamic conversations with athletes and teams, exclusive content, and digital collectibles and passes unlocking special fan access.
Audius is owned and operated by a global, vibrant open-source community of artists, fans, and developers. Audius empowers artists to share music directly and earn streaming revenue like never before.
FanTiger is a music NFT marketplace dedicated to creating a decentralized community for artists and their fans.
Metaplex is a cost-effective NFT ecosystem for markets, games, art, and collectibles, with over 250,000 collections to date.
Social & Identity
REALY Metaverse aims to become a hyper-realistic, AAA-grade integrated metaverse game product with deep social, e-commerce, gaming, and trading functions.
Spring Labs is building a foundational credit system aimed at providing consumers with more transparent and secure services. The Spring network allows users to freely view all proofs related to their credit and identity, with open alerts and notifications. Spring seeks to shift paradigms in data security and cost-efficiency, benefiting financial institutions.
Web3Auth enables users to log into decentralized applications (dApps) using OAuth accounts such as Google Login and Facebook Connect. Torus uses Distributed Key Generation (DKG) for key management, works seamlessly across all browsers and devices, and enables smooth account recovery without introducing new trust assumptions.
Farcaster is an open protocol—similar to email—that supports multiple clients. Users can freely move their social identity between apps, and developers can always build new applications with novel features on the network.
Satellite.im is a multi-platform chat application built with modern decentralized technologies and a peer-to-peer workflow. It aims to provide end-to-end encryption without sacrificing quality.
Development & Tools
The Graph is a decentralized data protocol for indexing and querying blockchain data, initially starting with Ethereum.
Textile is known for creating Textile Photos, an early IPFS-based photo-sharing app. It also offers a suite of tools, including decentralized databases, real-time application data, communication tools, remote backup and recovery, identity tools, and cryptographic tools via APIs and cross-platform SDKs.
Clockwork allows developers to schedule transactions and automate smart contracts without relying on centralized infrastructure.
Solscan is a real-time browser for the Solana ecosystem.
Dialect is a protocol for intelligent messaging—offering dynamic, composable decentralized application notifications and wallet-to-wallet chat functionality.
Dune is a database where you can query human-readable Ethereum smart contract data using SQL, visualize results, and instantly share them. You can also browse, share, and fork analytics created by the community.
Enso is an investment app that allows friends to invest in each other and create investment strategies together. You can observe your friends’ trades, review past performance, and grow alongside an investment community.
Grape Network provides tools to help DAOs manage their communities more efficiently.
Streaming Fast is a blockchain API company focused on streaming real-time state updates, enabling high-speed searches, and providing irreversible transaction guarantees.
Zama is an open-source cryptography company building cutting-edge Fully Homomorphic Encryption (FHE) solutions for blockchain and AI. A leader in the FHE space, Zama enables arbitrary computations on encrypted data. Over the past four years, its team of over 30 PhDs and cryptography experts has achieved dozens of breakthroughs. For certain computational tasks—especially in blockchain—Zama’s open-source libraries TFHE-rs and Concrete are production-ready.
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