🐢 [Analysis] Slow money crypto – Mike Maples, Jr.

Dave Swensen, the Chief Investment Officer at Yale, pushed for the ideas of "fast money" and "slow money". Fast money investors try to outperform in the short term, thus liquidity is paramount to them as they need to get in and out of an asset quickly. Slow money investors, on the other hand, try to make money by owning a part of a business that appreciates faster than the broader market over a long time, thus liquidity matters less to them. In fact, Swensen suggests the contrarian idea that a lack of liquidity is often an advantage. Liquidity makes markets significantly more competitive and efficient and introduces temptations to trade, whereas a lack of liquidity allows slow money investors to take advantage of market inefficiencies by buying and holding assets that are underpriced and less in demand. Being right and patient is what matters, not liquidity. Given the uncertainties of crypto, founders should seek a combination of the two, as fast money provides insights on shifting market developments and slow money help with long-term value creation.