Accretion is an accounting term that refers to the growth of the value of an asset via its own cash flows. An accretive asset price grows endogenously. Example: "Some hybrid stablecoins may prove accretive over the long term"
The grand daddy of crypto currencies. Bitcoin is the most well known internet money. It was born in 2008, written by a anonymous "Satoshi Nakamoto". There are 21 millions "bitcoins" making it a "numerous clausus" (finite number) asset and thus more resistant to monetary driven inflation. Example: "I got Mark a bitcoin for his 21st birthday, man he better not lose that private key".
CTO (Continuous Token Offering)
Continuous Token Offering refers to the practice of listing a token on a public exchange and then offering it to private investors, maintaining both private and public pipes of funding. Minimizes pump and dump. Contrast to ICO (Initial Token Offering) with private discount and public listing following. Refer to a specific type marketing and management of a token supply. Example: "I miss the ICO days, I wonder if the CTO funding will bring back capital formation in crypto"
Decentralized is a particular topology of network. Broadly speaking a network can be a/ centralized (the brain vs the body) b/ decentralized (a tree structure like the banking system) or c/ Peer to Peer network (distributed). Example: "In theory, bitcoin is a peer to peer network, but in practice it is decentralized, the miners are few and there are many whales".
Discounted Cash Flow Analysis
Discounted Cash Flow Analysis is an accounting method used in finance to arrive at valuation of assets. What is the worth of a financial instrument? One approach is to take the future cash flows coming from this instrument and sum them up. This is the amount of money the financial instrument will generate. Then 'discount' to the present for money in the future is worth less than money today (the business may die) usually between 5% and 50% depending on risk. Only applies to instruments that are accretive (have cash flows). Other valuation methods include "Demand & Supply" analysis. Example: "Bitcoin has no cash flows, therefore it is not subject to DCF analysis. The value of bitcoin is purely an exchange rate construct."
A distributed network refers to a network topology. A network can be a/ centralized (the brain and nervous system) b/ decentralized (a tree) c/ peer to peer (a social network). Distributed networks are in between b/ and c/, they are distributed across many nodes, but still exhibit degrees of centralization. Bitcoin as an open source internet native is in theory decentralized (aka peer to peer money) but in practice has centers of concentration (whales and mining hashrate topology).
FF1 is the first "supercoin" marketed by TwoPrime. It is a numerous clausus instrument (100million and that's it) and is marketed via the Continuous Token Offering. It is fractionally backed by crypto assets and it's theme is crypto. From a fiat investor standpoint, it offers a liquid crypto instrument backed by a diversified allocation with smoother price action than BTC. From a crypto investor standpoint it offers access to a unique store of value. Example "FF1 went from $3.00 to $3.50 during the 2 months of covid-19 turmoil, it was a stable store of value throughout the crisis".
The practice of fractional backed reserves is ancestral and refers to management of a money as in circulating currency. Modern monies serve as "liquid stores of value", you may sit on cash or crypto during crisis and you use it for payments. To serve the payment layer, traditionally a fraction is needed typically 7% of stock, hence the 12x fractional reserve banking ratio. This is important for instruments wanting to function as payment layers. Example: "FF1 is at term is fractionally backed reserve currency".
HODL is an anagram of HOLD. Holding an asset means not selling it and literally holding it. You may hold a house, a stock, a crypto. Because crypto valuations depend on nothing but psychological supply and demand the HODL component is over-represented in the price action. HODL has emerged as the dominant zeitgeist in crypto. Example: "Me: GrandMa here is a crypto coin for you it's an FF1, GrandMa: but what am I supposed to do with it? Also me: nothing grandma, absolutely nothing, just HODL and see where the price is in 3 years"
Hybrid coins, also known as "supercoins" exhibit price action that is between volatile stores of value (BTC) and stablecoins (no volatility/gain). They exhibit a smoother price action.
ICO (Initial Coin Offering)
ICO was one of the killer apps of crypto in 2017-2018. It referred to the practice of selling private tokens at a discount and then taking advantage of exchanges to list them "public". The ICO was ill fated as a pump and dump mechanism but did prove that crypto capital formation was indeed a potential killer app. See modern CTO (Continuous Token Offering) for construct. Example: "ICO's lost 90% of their value through the 3rd crypto-winter, it was all scams".
Killer applications of crypto
Killer applications refer to the things everyone uses and have achieved wide penetration. For example mail, web, AI search, online shopping, WFH, social media for internet technology. Crypto has it's own killer apps, they are financial. The killer apps of crypto are "volatile store of value", "capital formation", and "stable coins".
Modern Monetary Theory (MMT)
MMT is a description of the inner workings of the modern banking system (post Bretton Woods era). How money is put in circulation, printed, is described in a 4 layer banking system of you / commercial banks / investment banks / central banks. This description is operational. More political are its applications, traditionally left policies wants social applications while Reagan used MMT to fund Star Wars. Today we use MMT in the form of QE at the central bank layer. Increasingly "stimulus packages" are targeted from central bank to you and I, bypassing the banking distribution network (e.g. crypto). Example: " What if instead of waiting for the prez signature on these $1200 checks we would give the people with cellphones a crypto FED wallet that they controlled". This sentence sounds tongue in cheek but is actually a US congress narrative.
A moon coin is a coin whose valuation is unlimited on the upside and usually the downside. BTC is a "moon coin", its value is set in the market by supply and demand of BTC. It's valuation is usually volatile for no assets anchor it (not even fractionally). The opposite of a moon coin is a stable coin.
Open Source Finance Foundation
The birth of bitcoin was in open source. It was released to developers who started tinkering with the network and the source code. In time, miners could run operations with the code anywhere for Open Source allows use as well. The open source finance foundation focuses on the infrastructure of modern banking. Crypto plays a role as store of value (volatile) and stable coins means of payment, usually linked to FIAT.
Sharpe Ratio is a quantitative measure of risk return. It is defined as the rate of return above risk free divided by it's own volatility measured as the standard deviation of said return. The ratio include reward over risk. The higher the Sharpe ratio the more performant risk-reward, high reward, low risk. A low Sharpe ratio indicates high risk low return.
A stable coin sees it's value stable. A digital dollar is a real dollar which keeps it's peg. The peg is usually maintained with fractional reserves markets. Central banks can and do issue their own stable coins with various degrees of fractionality. Stable coins also play a central role in exchanges for people exchange volatile stores of value crypto for balances of stable coins. Stable coins play a role in banking and exchange infrastructure.
Stock-to-Flow analysis is an accounting valuation method for assets. It is used for market or exchange centric "supply and demand" valuations. It is widely used in crypto. We model the existing stock (supply) and model new stock as flow.
Store of Value
A store of value is anything that can keep value over time and you can redeem for cash. A piece of art is a store of value, a house, a crypto currency. Cryptos are stores of value, they are volatile with some liquidity. Cash, by definition, is completely liquid for it is the liquid stable coin so to speak. Cryptos are volatile stores of value and do not correlate with the economy for they do not depend on economic cash flows to exist. These stores of values are not securities.
Treasury at the Open Source Finance Foundation is managed by TwoPrime. The proceeds from the sale of FF1 tokens goes to the treasury of the OSFF. TwoPrime then manages this treasury by allocating to a variety of crypto assets including liquid cryptos, lending in crypto currencies and as shares in equity funds (VC). This allocation of treasury is a way to hedge the crypto field in one abstraction.
Two Prime, is a fintech company creating financial products rooted in crypto currencies. Two Prime manages the treasury of it's FF1 token. FF1 is a hybrid stablecoin, a mix between a moon coin and a stable coin. The Two Prime team is based around the world, Russia, Asia, Europe, UK, India, with core management in the US. It is legally based out of Hong Kong. It's motto: "To AbundAnce!"