What do billionaires do with all their money? Well, once they’re done buying a fleet of vacation homes that will sit unoccupied for most of the year, it’s kind of a crapshoot.

They say money can’t buy you happiness, but it can get you pretty close to full, legal immunity, and isn’t that the same thing?

So, in the midst of crypto’s bear market, we thought we’d take a look at how some billionaires are investing their money to prepare for crypto’s future.

Espresso Shots

☕️ Crypto's Global Future 🇮🇳 🪙

At this year’s G20 summit, an intergovernmental forum, crypto was high on the list of economic priorities.

The G20 Summit is a gathering of 19 countries and the European Union. Collectively, world leaders gather to discuss their nation’s macroeconomic futures.

The G20 is operated on a rotating presidency and this year, with India at the helm, the proceedings were held in Pragati Maidan, in New Delhi, India.

In the hearings and debates surrounding crypto’s global usage, it emerged that the future of crypto will be laid out in a series of synthesis papers.

These papers will be published by the Financial Stability Board, the International Monetary Fund, and the Bank for International Settlements.

The publication of these papers is expected between July and September of 2023.

But the world’s financial powers also told these institutions that they could always email their professors if they need an extension.

☕️ Game Winner Wants Millions for Key 🔑 🏇

The winning key for Yuga Labs’ Dookey Dash game is now held by an eighteen-year-old Fortnite streamer.

The streamer, Kyle Jackson, who goes by “Mongraal”, has yet to accept the key, but has placed it up for auction at 2,222 ETH or roughly $3.6 million USD.

Nobody’s quite ponied up to that price yet, but the leading bid is from UpDAO at 690 ETH or $1.1 million USD.

UpDAO is a collective connected to the yet-to-be-released Web3 game, Pixel Vault’s Inhabitants Universe, leading many to believe they hope to secure the key as a promotional incentive for upcoming gaming.

Regardless, Kyle Jackson’s online gaming stands to make him a millionaire seven years before he can legally rent a car.

☕️ Metaverse Manuscript Heads to Auction 📕 ❄️

The original manuscript for Snow Crash, a 1992 novel by Neal Stephenson, is headed to auction at Sotheby’s, a fine arts company.

Snow Crash is believed to have coined the term, “metaverse.” Cassandra Hutton, Sotheby’s Head of Science & Popular Culture explained:

“Stephenson not only predicted technologies which we consider mainstream today, but his ideas have since gone on to inspire generations of inventors and entrepreneurs who shape the very fabric of our digital development,” 

In addition to the original manuscript, the highest bid will also receive a tachi sword inspired by the one used by the novel’s main character, “Haro Protagonist,” yes, that’s really his name. Also, the winner will receive a one-of-one NFT of said sword.

The Snow Crash manuscript is estimated to fetch between $40,000 and $60,000, which doesn’t seem fair as my autographed Blu-ray of Snowpiercer is only worth $23.99.

Spilling the Beans

The Billionaire's Playbook

Crypto Billionaires. They’ve had a rough go of it since last November.

With the collapse of FTX sending devastating waves throughout crypto, everybody lost something.

But of course, the more you had invested in crypto, the more you probably lost.

What’s interesting though, is that the wealthiest minds in crypto, the Venture Capital titans and hedge funds that keep crypto’s wheels greased, didn’t lose hope.

Rather than withdraw their investments from crypto and Web3 and head out the door with a bad taste in their mouth, they used a destabilizing event as an opportunity.

The best investors don’t get to be rich by panicking at the first sign of volatility. You alter your investments, focus on where the development (and the money) is going to be, and you pivot.

So, where are the optimistic crypto billionaires directing their investments?

First and foremost, into infrastructure. No, not roads and bridges, but the crypto equivalent.

Tech like cold wallets, inter blockchain portals, really any tech that’s going to make NFTs useful and crypto a viable alternative to more traditional modes of currency.

This is the kind of innovation that’s going to have to take place if crypto is going to stand tall enough to rival centralized currency.

Investment firm, Multicoin Capital, is one of the entities pouring funds into these drives toward crypto innovation.

“We’re particularly interested in proof-of-physical-work networks,” said Kyle Samani, head of Multicoin, “The network design has matured to a point where others can stand on the shoulders of the first movers.”

In addition to network-based investments, some funds are looking to infrastructure that will support Web3 gaming.

Shima Capital is one such fund. General Partner, Yida Gao feels, “We have a strong thesis around how gaming will bring forth the next wave of crypto users.”

Shima Capital is investing in tech that will create the ground floor for those Web3 games. They’re investing in the underlying floors that will support data-heavy games and create compelling and fruitful in-game economies.

Crypto and gaming has always seemed like a match made in heaven. The largest deficit has been that there hasn’t really been a truly popular Web3 game that’s actually fun to play.

But when that symbiotic relationship finally clicks… boom. Watch out.

But beyond investments in the infrastructure that will support crypto for generations to come, some funds are focusing on areas that are the most resistant to outside interference.

Tribe Capital, another investment firm, has decided to allocate its resources on global protocols.

Why? In short, the US has become a bit too... uncertain for them.

“Protocols that are global in nature— meaning not necessarily based in or serving the United States — have a stronger narrative and a stronger go-to-market plan,” explained Boris Revsin, a managing partner at Tribe Capital.

Resvin further explained, “Because they’re not as impaired by the uncertainty that’s been created by U.S. regulators.”

These global protocols are truly decentralized and censor-resistant, by going international instead of domestic, Tribe may be able to skirt much of the tumult of America’s currently dicey relationship with crypto.

As crypto billionaires and those flush with cash start pouring their capital into crypto infrastructure, it’s worth trying to understand their actions.

Essentially, these individuals are trying to double down on their belief in crypto. But they're also trying to minimize their short term risk and exposure to volatility.

By investing in infrastructure as opposed to speculative assets, they can create long term plays without short term panic.

It’s a bit like saying the car market is too volatile: if you can’t decide whether to invest in an electric car company or a gas car company, just invest in roads. We’ll need those either way.

But whether these billionaires are pouring their money into gaming, tech, or international regulation, it’s admittedly comforting to see they haven’t fled altogether.

Rather than be dissuaded by the mistakes of the past, these people and firms are looking to the future.

But weirdly, they still won’t invest in my roommate’s patent for single-serving, frozen tomato sauce cubes for bachelors. If anyone is interested, let me know.

Meme of the Day

"Charlie, don't forget what happened to the man who suddenly got everything he always wanted... He got hit with a massive tax bill."

Crypto 101

One-of-One NFT: Or sometimes written numerically, as a “1 of 1 NFT”. This is an NFT that has been issued a single, unique release.

Most NFTs today are issued as part of NFT collections. Each individual NFT in a collection is still unique but they share characteristics and style. NFT collections are often issued with thousands of similar tokens, with varying degrees of rarity.

A one-of-one NFT means there is only a single token and no broader collection. It’s like a single painting or a photograph with only one print. These are often considered the rarest and most valuable of NFTs. The holographic Charizards, if you will.

The Last Sip

We’ve covered what crypto billionaires are buying, what are crypto criminals shopping for?

• New identities.

• Guns with the serial numbers filed off.

• Attack dogs with hearts of gold that are also somehow good with kids.

• Gaming PCs.

• Anime Girlfriend Body Pillows.

Stay Caffeinated,

Coffee & Crypto Team

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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.