Categories: Fin-Tech Tool Box

The Long View on Crypto: 3 Questions for Coinbase Alum Nick Tomaino

Click here to view original web page at
Beatrice Moritz Copyright Beatrice Moritz Photography 2018

Cryptocurrency markets are in a slump and people are discouraged. But not Nick Tomaino. The longtime Coinbase employee, who now runs a crypto venture fund backed by big name investors Mark Cuban and Marc Andreesen, thinks things are looking up.

It’s been a year since Tomaino launched the $26 million fund, called 1confirmation, and he says its investments in ten ventures have so far notched year-over-year returns of 40%. While he’s happy with the early performance, Tomaino adds he’s grateful he doesn’t have to face the short-term demands of a hedge fund, and that he can stay focused on the bigger picture of crypto.

In a recent Q&A with Fortune’s The Ledger, Tomaino shared his thoughts on investing strategy and the future value of currencies like Bitcoin and Ethereum. His answers have been edited for length and clarity.

Fortune: You launched 1confirmation last August. What have you learned since then?

Nick Tomaino: One of the things I’ve learned is a lot of people in crypto tend to focus too much on public perception and press. In the last year, I’ve learned that stuff isn’t that important.

There’s different strategies people can adopt, but in the last year a lot of people have tried to go all in on social media and Twitter. I’ve tweeted a lot in the past year but I’ve also tried to tone it down, and focus on being a good partner to the founders I’ve invested in.

What in the world of crypto are you most excited about right now?

A lot of VCs want to see products that use blockchain to find solutions for supply chains or the financial markets.To me the most exciting stuff is still at the infrastructure rather than the application layer. We’re interested in solving problems for the existing crypto community. That’s why we’re focused on four categories of investment:

1) Stable coin companies like MakerDAO and Basis, which are a product the crypto world really wants and needs, especially given some of the problems Tether has. [Stable coins are designed to be a non-volatile

2) Marketplaces in general, including those that help with staking such as Tezos and Vest [staking refers to putting up a balance of tokens in order to help validate transactions on proof-of-stake blockchains].

3) Scalable solutions, especially Bloxroute, which was developed by blockchain experts at Cornell University. What Akamai did for the Internet, Bloxroute wants to do for blockchain by improving throughput.

4) Decentralized exchanges [markets to buy and sell cryptocurrency that don’t rely on a central server or operator].

Where do you see the price of Bitcoin and other cryptocurrencies at the end of the year — and in five years?

I don’t think Bitcoin will cross $10,000 again by the end of this year. But in the next five years, it’s very likely there will be another boom much higher than the one last year and the price will be over $100,000.

I see a world in five or 10 years when Bitcoin is a widely used store of value and is the digital gold, and Ethereum is the most widely used crypto platform and where Ether is the digital oil.

In five years, Bitcoin and Ethereum will lead the way and a lot of the cryptocurrencies you hear a lot about in the top 20 of CoinMarketCap aren’t likely to be around, especially meme-based currencies like Iota and Neo. If the meme is good, it might be sustainable. But if they don’t develop a product they won’t be around.


Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Published by

Recent Posts

$10K Bitcoin Stronger Than Ever But No One Seems to Care: Google Trends

Risk Disclaimer - By using this web site you agree to its terms and conditions. All materials, including but not… Read More

6 hours ago

Bitcoin Is A Hedge Against Gov’t “Fiscal Irresponsibility”, Analyst

Equities portfolio manager turned crypto fund executive Travis Kling has argued that Bitcoin has come into its own as a… Read More

6 hours ago

Why Are France & Germany Blocking Facebook’s Crypto? The Euro, Apparently

For those most part, governments have ignored Bitcoin . While the crypto asset’s proponents see it as the future of… Read More

6 hours ago

U.S. Charges JPMorgan Suits for ‘Spoofing’ Precious Metals Markets

| Source: Lorimer Images/Shutterstock The United States Department of Justice has charged three gold and precious metals traders from JPMorgan… Read More

6 hours ago

Your Crypto Exchange Can’t Send Even $1000 Without Exposing You

Regulator-compliant crypto exchanges are required to share your information with other financial institutions. | Source: Horth Rasur/Shutterstock Transferring more than… Read More

6 hours ago

Bigger Bloodbath in U.S. Stock Market Likely: Factors of Further Downtrend

Geopolitical risks and an uncooperative Fed could trigger a short-term relapse in stock prices. | Image: Shutterstock The U.S. stock… Read More

6 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More