Parent-Sub Framework example: Roblox Corporation. — We wrote a piece titled Competitive Edge & Web 3.0, which laid out the Parent-Sub Framework we use to think of Metaverse/Web 3.0 businesses. This edition explores the idea through a real-life Metaverse/Web 2.0 example: Roblox Corporation. The Parent-Sub Framework At the Parent level: Commoditization at the Sub level is a necessary precursor…

How will Moats evolve in the Web 3.0 world; the Parent-Sub Framework — The evolutionary dynamics of Competitive Edge is an interesting area in the long arc of history. As the Web 3.0 juggernaut rolls forward, the mechanisms by which competitive edge is built will reshape profit pools, and value creation opportunities. This edition sheds some light on the framework that we use…

Why Code is a competitive edge in Web 3.0… — As Web 3.0 gains traction, one of the most important skill sets is the ability to understand the language of Code. This edition looks at a live example of how Code plays a central role in our internal decision-making process. Incentives ought to be the eighth wonder of the world…

Will Decentralization deliver on its promise? — John Kenneth Galbraith’s interesting book The Anatomy of Power looked closely at how Power is exercised: By Force or Punishment. By Currency or Compensation. By Collective Belief. Convincing others to accept one’s will in the belief that it is Right. Galbraith’s conception of Power is a useful framework to understand…

Is Inflation Really A Risk? — This edition illustrates how we test market biases, through our self-learning framework (example covered here). To highlight and contrast cross asset-class behaviour, we illustrate with examples from Equity and Credit markets. The edition concludes with some thoughts on algorithmic models and their utility in thinking about real-world phenomena. As economies…

Will growth create value? — Zomato Limited has filed papers to go public in India, and is looking to raise $1 Bn. IPO Pricing is yet to be finalized. This edition delves into Zomato’s business, and offers some thoughts on the India opportunity and valuation. This edition is laid out in 5 sections 1. Business …

The Wizard of Odds was a master of probability. — In a break from our usual long-form pieces covering businesses and valuation, this edition focuses on how we use self-learning algorithms in our internal framework. Our basic philosophy leans away from predicting future outcomes. We are better served by triangulating embedded market expectations, then corroborating/diverging with embedded expectations. Our self-learning…

The art of guesstimation in the face of uncertainty — Coinbase Global, Inc IPO is around the listing corner. At a time when IPOs and Cryptocurrency of all hues are attracting attention, Coinbase’s Direct Listing IPO has been in a league of its own. As an important cryptoeconomy infrastructure player approaches IPO, how should one think about the business, IPO…