Delphi Daily

Disclaimer: Delphi Ventures holds positions in ANJ and RUNE.

In crypto, anonymous founding teams have historically been seen as a risk. There are two main reasons for this:

(1) Reduced Informational Edge – Identity enables investors to determine whether a team has the necessary experience and track record to execute on its plans.

(2) Reduced Accountability – Identity acts as social capital that the team puts at stake in order to show their commitment to the project. Without identity, the costs of exit scams and rug pulls by founding teams go down. Even assuming no bad intentions, it’s much easier for an anonymous team to quit when times get hard, knowing they won’t have to live with the reputational consequences of failure.

Unsurprisingly, most VCs and institutional investors have historically chosen not to invest in anonymous teams. However, the Bitmex charges last week show us the other side of the identit

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