Investment Thesis: Part 1
In this investment thesis, we delve into the world of Bitcoin Inscriptions, BRC-20 and IDO Launchpads.
BRC-20 & Ordinals: Awakening the Bitcoin Giant
The first quarter of 2023 witnessed the emergence of the BRC-20 standard, a groundbreaking development introduced by the pseudonymous developer Domo. This innovation marked a signifi cant leap in Bitcoin’s functionality, introducing the concept of embedding JSON data into ordinal inscriptions. This capability enabled users to deploy, mint, and transfer tokens on the Bitcoin blockchain, a concept previously unexplored in its ecosystem.
The BRC-20 standard leverages the potential of ordinal inscriptions, treating them as a means for deploying and transferring value in the form of tokens. This novel approach served as the foundation for the experimentation and early adoption of BRC-20 tokens within the Bitcoin community.
This development allows for the inscription of various data types, including text, images, videos, and audio, directly into individual satoshis.
Drawing parallels with Ethereum’s journey, which saw the ERC-20 standard introduced in 2016, leading to the conceptualization and development of DAOs, NFTs, and eventually the evolution towards Decentralized Finance (DeFi) with platforms like Maker, AAVE, Curve, and Uniswap, we believe the ERC-20 roadmap could provide valuable blueprints for the BRC-20 ecosystem. Although there are distinct differences between the two, the progression pattern of ERC-20 offers insightful precedents that could guide the development trajectory of BRC-20.
At Metazero, we recognize the transformative potential of the BRC-20 standard. Its emergence not only represents a technical advancement but also signifies a new chapter in Bitcoin’s evolution, one that we are keenly positioned to explore and research on, understanding its implications for the broader blockchain and investment landscape.
Launchpads: Gateway to New Frontier
Metazero maintains a strategic focus on both emerging and established platforms, actively scouting and collaborating with the native launchpads of each ecosystem. Our involvement in these launchpads is more than just an investment; it’s a commitment to staying deeply engaged with the growth and evolving narratives of each blockchain. This approach allows us to have an agile and comprehensive monitoring system.
Being actively involved in launchpads provides us with a unique vantage point. It opens up opportunities not just for capital deployment, but also for incubation and forming partnerships. These partnerships are not limited to our immediate ecosystem; they extend across various blockchains, allowing us to connect with value-aligned partners in different blockchain environments.
Having previously invested in prominent launchpads like DAO Maker, Paid/Ignition, BullPerks, TrustPad, Poolz, BSCPad, Vent, and CardStarter, Metazero has developed an in-depth understanding of the key elements that contribute to a successful launchpad. Our experience gives us a nuanced perspective on various critical aspects, such as tier structures, effective token value accrual mechanisms, sourcing and vetting projects suitable for Initial DEX Offerings (IDOs), and aligning token economics among various stakeholders.
One of our core strengths lies in structuring cap tables that align the interests of founders, private investors, launchpads, and retail investors. This balancing act is crucial for creating sustainable and equitable investment opportunities. Additionally, our experience enables us to navigate the complexities of collaborating with third-party co-hosting launchpads. By doing so, we eff ectively minimize conflicts in consensus, which are often a significant hurdle in the lead-up to successful launch strategies.
