Skycatcher

Gm and Happy Monday! This week, Dan Smith, a Lead Blockworks Researcher and Jonah Weinstein, a Portfolio Manager of SkyCatcher, join Jason to dive into the timely conversation about which metric is better/best to evaluate L1 tokens – REV or RSOV? Start your day with the Empire newsletter by Katherine Ross: https://blockworks.co/newsletter/empire?utm_source=podcasts Follow Santi: https://x.com/santiagoroel Follow Jason: https://x.com/JasonYanowitz Follow Empire: https://twitter.com/theempirepod Join the Empire Telegram: https://t.me/+CaCYvTOB4Eg1OWJh -- Grab your tickets to Permissionless IV. Use code EMPIRE10 for 10% off: https://blockworks.co/event/permissionless-iv -- SKALE is the next evolution in Layer 1 blockchains with a gas-free invisible user experience, instant finality, high speed, and robust security. SKALE is built different as it allows for limitless scalability and has already saved its 50 Million users over $11 Billion in gas fees. SKALE is high-performance and cost-effective, making it ideal for compute-intensive applications like AI, gaming, and consumer-facing dApps. Learn more at https://skale.space and stay up to date with the gas-free invisible blockchain on X at @skalenetwork -- Marinade Labs develops staking technologies that strengthen Solana.In 2021, our protocol was the first to bring liquid staking to the network; today, our sophisticated, high-performance staking delegation platform brings billions in liquidity and security to the SOL market. We have solutions for both DeFi and TradFi, including liquid and native staking, as well as direct enterprise integrations. Our best-in-market features include user downside protection (through protected staking rewards) and optimized delegation (via our automated auction marketplace). Cryptoasset investors worldwide, from individual traders to global institutions, use Marinade to earn rewards on their SOL treasuries and holdings. We are headquartered in New York, with offices in the European Union, including Prague. To learn more about Marinade, visit https://www.marinade.finance. -- Crypto never sleeps. So we built an Al analyst that never blinks. Meet Focal by FalconX: a GenAI insights engine built for institutional crypto. Already used by 80+ funds managing $10B+ in AUM.  - Screen, chart, and analyze 1300+ tokens - Summarize market-moving news instantly - Integrates data from CoinGecko, Kaito, Token Terminal, Tokenomist, The Tie Get started today: https://askfocal.com -- Ledn is the leading platform for Bitcoin-backed loans, offering a secure and transparent way to unlock liquidity without selling your Bitcoin. Ledn has issued over $9 billion in loans since 2018 and has never lost a single satoshi of client assets, earning a reputation as the name you can trust in the crypto space.Visit https://www.ledn.io to learn more. -- Chapters: 00:00 - Intro 02:31 - Why Do We Need Better Valuation Frameworks? 05:00 - What’s Wrong With The Metrics Today? 08:07 - What’s The Proper Reference Point To Understand Value? 09:33 - Are L1 Tokens Money? 11:10 - Ads (Skale Marinade) 12:48 - Is A L1 Token A Commodity Or Company? 19:32 - Why RSOV Valuation Is So Important 23:48 - Ads (Skale Marinade) 29:07 - Valuation Litmus Test 31:38 - RSOV & Capital Inflows 37:53 - What’s REV? 42:58 - RSOV’s Valuation Mechanism 44:43 - Where RSOV and REV differ 47:27 - If Native Assets 10X, Do The Hotspots? 49:05 - Ads (Falcon x, LEDN) 50:52 - Monetary L1 Premium Factor In? 55:36 - RSOV vs REV Valuation Trends Over Time 01:00:49 - How Does Staking / DeFi Deposits Impact Valuation? 01:02:47 - PE Values In RSOV 01:05:25 - Audience Question From Telegram — Disclaimer: Nothing said on Empire is a recommendation to buy or sell securities or tokens. This podcast is for informational purposes only, and any views expressed by anyone on the show are solely our opinions, not financial advice. Santiago, Jason, and our guests may hold positions in the companies, funds, or projects discussed.

Dan Smith

Lead Researcher

Blockworks ResearchBlockworks

Jonah Weinstein

Founder

SKSkycatcher

How should we value L1 tokens in crypto? Today’s guest, Jonah Weinstein of Skycatcher, introduces RSOV—“Realized Store of Value”—a new metric designed to fundamentally rethink how we evaluate Layer 1 assets like ETH, SOL, and BTC. In this episode, we explore why traditional models like DCF and REV fall short for monetary assets, how RSOV works, and why it may be a better way to understand crypto’s total addressable market. Tune in for a fresh perspective that could change how you analyze L1s forever. ------ 📣SPOTIFY PREMIUM RSS FEED | USE CODE: SPOTIFY24 https://bankless.cc/spotify-premium ------ BANKLESS SPONSOR TOOLS: 🪙FRAX | SELF SUFFICIENT DeFi https://bankless.cc/Frax 🦄UNISWAP | SWAP ON UNICHAIN https://bankless.cc/unichain 🛞MANTLE | MODULAR LAYER 2 NETWORK https://bankless.cc/Mantle 🌐SELF | PROVE YOUR SELF https://bankless.cc/Self 🟠HEMI | BTC & ETH, ONE NETWORK https://bankless.cc/hemi ------ TIMESTAMPS 0:00 Intro 0:23 How to Value L1 Tokens 7:18 REV 20:32 L1 Tokens are Money 27:11 Payments vs SoV Use Case 36:13 TAM for Digital Money 41:45 BTC: Special Snowflake? 45:31 RSOV 1:03:17 REV vs RSOV 1:12:07 RSOV Valuations 1:18:27 RSOV Drivers 1:34:10 Future of RSOV 1:36:43 Skycatcher 1:38:55 Opportunities to Watch 1:40:46 Closing & Disclaimers ------ RESOURCES Jonah Weinstein https://x.com/_Jonahw RSOV Deck https://docsend.com/view/mb2v6k3yr38gpfwm RSOV Dune Dashboard https://dune.com/sc_research/rsov RSOV Template Financial Model https://docs.google.com/spreadsheets/d/1IH0IX0yal7raqhO8SWzcVGK-TAH-b7avRlZ3pxR0krc/edit?usp=sharing Skycatcher https://skycatcher.xyz/ ------ Not financial or tax advice. See our investment disclosures here: https://www.bankless.com/disclosures⁠

This is the second episode of our multi-part series on the video game console market. If you've yet to listen to Episode One, Sia Kamalie is the founder and fund manager at Skycatcher. Join me in breaking down the video game console market and his thesis for why it's an inflecting opportunity.  In this episode, we go micro and Sia is back to break down Sony. Sia and I spend a lot of time talking about catalysts and some of the dynamics that are happening under the hood of this massive conglomerate. Please enjoy this Breakdown on Sony. For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is sponsored by Finley - modern debt capital management software for borrowers and lenders. Ask around and you'll find that nearly every operator or investor has experienced the operational nightmare of managing debt capital. Finley works by translating unstructured credit agreements into code, which gets all parties on the same page and helps them streamline the credit management lifecycle--think covenant reporting, interest and fee tracking, and portfolio analysis. Join the forward-thinking finance leaders, investors, and bank executives already modernizing their debt capital operations with Finley. Learn more and request your demo at finleycms.com.  —-- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns (00:04:50) Series Overview: Video Game Console Market (00:05:43) Deep Dive: Sony's Business Segments (00:06:43) Sony's Entertainment Powerhouses: PlayStation and Crunchyroll (00:08:39) Sony's Strategic Shifts and Financials (00:13:06) Crunchyroll: The Netflix of Anime (00:14:18) Crunchyroll's Market Position and Growth Potential (00:16:30) Synergies Between Sony's Business Lines (00:19:09) Sony's Blockchain and NFT Ventures (00:21:05) Sony's Financial Outlook and Growth Strategy (00:29:12) Sony's M&A Activities and Gaming IP (00:42:08) Emerging Markets and Gaming (00:47:06) Sony's Management and Future Prospects (00:48:31) Lessons From Breaking Down Sony

Today's episode is the first in a multi-part series on the video game console market. Our guest is Sia Kamalie, the founder and fund manager at Skycatcher. Skycatcher describes itself as focused on capturing asymmetry at the internet frontier, and Sia has very strong conviction that the video game console market is entering a major paradigm shift with an app store model set to hit its inflection point. We start with an overview of the video game console market, laying out its size and current state. In episodes two and three, we explore this theme in even more depth when we cover the names most exposed to it: Sony and Nintendo.  On these episodes, we always recommend doing your own research. We invited Sia on to lay out his thesis, so this one is particularly geared towards that investment opportunity. Please enjoy this Breakdown of the video console market.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here. ----- This episode is sponsored by Finley - modern debt capital management software for borrowers and lenders. Ask around and you'll find that nearly every operator or investor has experienced the operational nightmare of managing debt capital. Finley works by translating unstructured credit agreements into code, which gets all parties on the same page and helps them streamline the credit management lifecycle--think covenant reporting, interest and fee tracking, and portfolio analysis. Join the forward-thinking finance leaders, investors, and bank executives already modernizing their debt capital operations with Finley. Learn more and request your demo at finleycms.com.  —--- Business Breakdowns is a property of Colossus, LLC. For more episodes of Business Breakdowns, visit joincolossus.com/episodes. Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com). Show Notes (00:00:00) Welcome to Business Breakdowns (00:06:54) Overview of the Video Game Console Market (00:14:52) The Shift to Software and Digital Purchases (00:19:02) Nintendo and Sony: Current Trends and Future Prospects (00:29:23) In-Game Purchases and Subscription Models (00:33:58) Nintendo's Iterative Console Cycle (00:34:47) Sony's Lifetime Value and Revenue (00:35:56) Profit Margins and Software Sales (00:40:26) Console vs. Mobile and PC Gaming (00:47:44) The Rise of eSports (00:50:41) Gen Z and the Future of Gaming (00:54:28) Emerging Markets and Console Growth (00:56:37) Valuation and Market Potential (00:59:08) Lessons From The Video Game Console Market