- Vinny Lingham discussed his digital currency hedge fund, Praxos, and its approach to market risk.
- Lingham highlighted challenges in building blockchain products with high transaction fees on Bitcoin and Ethereum, and noted his team now operates across several blockchains.
- Lingham expressed concerns regarding debt-driven strategies in the cryptocurrency sector, predicting potential instability within the next three years.
- Solana was identified as a strong blockchain for development, with Lingham stating its scalability but acknowledging occasional network downtime.
- Both Lingham and Kurt Wuckert Jr. emphasized the importance of product utility and customer adoption in the blockchain industry.
Entrepreneur and blockchain advocate Vinny Lingham joined Kurt Wuckert Jr. on episode 22 of the CoinGeek Weekly Livestream to discuss his work in digital currency, the state of market utility, and upcoming projects. The conversation took place as Lingham prepares to launch a new documentary on the Carnivore diet, titled “Animal,” which is set for release on June 20.
Lingham explained that his hedge fund, Praxos, operates differently from many in the sector. The fund does not take on market risk and instead focuses on earning returns through market mechanisms similar to those found in casinos. According to Lingham, Praxos aims for steady, “boring” annual returns of 30–40% and has maintained 1.5 years of positive results. The fund primarily deals with Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) due to their high liquidity, making profits through rate arbitrage between major exchanges.
Wuckert and Lingham addressed the challenges of building blockchain products that offer real utility. Wuckert praised Civic, one of Lingham’s ventures, for issuing millions of identity passes and continuing to address customer needs. Lingham stated that his team initially attempted to build new services on Bitcoin, but abandoned the effort due to high fees. Ethereum was found to be even less practical, sometimes costing up to $500 to onboard a single customer. This led his team to migrate to Solana, and eventually adopt a multi-chain approach, adapting to whatever technology is most effective.
Discussing broader industry risks, Lingham commented on the heavy reliance on debt among leading firms and individuals. He described strategies like those used by Michael Saylor as unsustainable, and predicted a significant downturn in the next three years. Lingham warned that models relying on debt could be problematic once companies exhaust sources of new funding, resulting in forced asset sales.
On the topic of blockchain scalability, Lingham supported Solana’s potential, noting that while it experiences downtime during periods of high activity, the network continues to improve. He predicted Solana could eventually surpass Ethereum in market value. Lingham also acknowledged that although the BSV blockchain can process up to one million transactions per second, current transaction fees are so low that they may not provide enough revenue for miners.
Both Lingham and Wuckert concluded the discussion by stressing the need for utility and customer adoption within the blockchain space. Lingham encouraged those interested in his work to watch “Animal” on June 20 and suggested that future blockchain success will depend on practicality and real-world usage.
Additional segments of the livestream included further discussion on upcoming blockchain events and interviews with other industry figures, including insights from Ty Everett.
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