Empire Newsletter Segment

To read full editions, subscribe.

Simon Dedic of Moonrock Capital emphasizes the need for more consumer applications in the crypto space, citing recent investment trends.

Infrastructure vs. Consumer Apps

Dedic notes that the last year has seen significant investment in infrastructure projects but questions if too much emphasis is being placed on this area. He suggests that while infrastructure investments remain appealing to venture capitalists (VCs), a focus on consumer applications is equally vital.

“Infra plays are very easy for VCs,” Dedic points out, acknowledging their importance but challenging the notion of prioritizing infrastructure development before fostering consumer adoption. He believes both can evolve together rather than sequentially.

Drawing a parallel to the early internet, Dedic highlights that the creation of consumer applications, such as email, happened concurrently with infrastructure development, rather than waiting decades for infrastructure to mature.

The Role of VCs

Dedic asserts that VCs have a responsibility to facilitate user engagement in crypto, rather than limiting their focus to funding infrastructure projects alone. He is optimistic that this approach is gradually beginning to manifest.

SocialFi Insights

Regarding SocialFi, Dedic discusses Kaito’s success and emphasizes the need for utility-focused projects. He critiques the sector for being overly speculative and argues that financialization should be a feature, not the primary focus.

While he supports SocialFi innovations, he believes many projects are idealistic and too similar to existing platforms like X. What he desires is the emergence of innovative social experiences on crypto platforms, along with the removal of barriers to entry for broader crypto adoption. After all, the goal is to onboard the mass public into the crypto world, isn’t it?