Trader and contributor @polyfactual.

Web3
Joined July 2024
AI is replacing labor. But nobody’s asking the obvious question: If users are the only thing left, why aren’t they getting paid? Wrote a piece about it here, some of my proposed solutions for post AI economics. jonlourie.substack.com/p/use…
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I could see robinhood:0xedbf91223639800bcd5756815caf908df3b890be flipping Orbio this next run up, it has a good value prop, novel narrative.
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People are way too doomer on hyperscaler earnings. Everything checks out. Losers: $GOOG core business faces the AI cannibalization dilemma. It spends massively on the tech threatening its core search business. $META just has reckless leadership, that's how Zuckerberg operates, always has. Winners: $MSFT has more disciplined leadership and a business model far more resilient to AI disruption. The rest of them have businesses pretty impervious to AI cannibalization operating in non-digital verticals. So, take that for what it is.
I don't think we're about to see an AI bubble burst, at least not a 2000-style collapse. A few reasons: First, everyone is already anticipating it. Valuations, debt, and capex are being scrutinized. The risks aren't exactly hidden. Second, AI isn't one homogeneous industry. Neoclouds and labs are not in the same position as Microsoft, Google and Amazon who have huge cashflows. Third, demand and revenue growth remain enormous. The technology is generating huge economic value, even if some of the infrastructure spending proves excessive. I expect a prolonged, uneven repricing amidst highs and lows, rather than a massive collapse. Some companies will fail; others will consolidate. There are just too many question marks for a massive bubble pop to happen in one go.
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Jon Lourie retweeted
We’ve partnered with @trylimitless and to kick it off we're hosting a stream this Wednesday/tmrw at 9 AM EST! We'll be joined by Dima, CPO at Limitless, to discuss what's next for Limitless, our partnership and answer your questions. We're also giving away 10 to 20 in USDC for the best questions asked during the stream! Come hang out, ask questions, and win some prizes. See you Wednesday!
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I don't think we're about to see an AI bubble burst, at least not a 2000-style collapse. A few reasons: First, everyone is already anticipating it. Valuations, debt, and capex are being scrutinized. The risks aren't exactly hidden. Second, AI isn't one homogeneous industry. Neoclouds and labs are not in the same position as Microsoft, Google and Amazon who have huge cashflows. Third, demand and revenue growth remain enormous. The technology is generating huge economic value, even if some of the infrastructure spending proves excessive. I expect a prolonged, uneven repricing amidst highs and lows, rather than a massive collapse. Some companies will fail; others will consolidate. There are just too many question marks for a massive bubble pop to happen in one go.
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Gotta give credit to @MCGlive. One of the best crypto podcasts out there. Bullish or bearish, these guys consistently cover the most interesting builders and trends in the space. No weekly mood swings, uninformed macro takes, or endless debates about whether crypto is dead. Just real insights, great builder interviews, and thoughtful, level-headed analysis. A breath of fresh air in crypto media.
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No moat just means your product extracts more value than it gives. Past that, you’re basically competing on how well you dupe users. I expect to see way more grifting disguised as "hustle" or "drive to win." However, there is an upside. Last year, many companies skipped airdrop to prioritize VCs. I think this trend reverses to put users front and center.
In otherwords, all the value has shifted from platform to users
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Been using this to track information flow about midterms recently Very good tool
🇺🇸 Trade US midterm markets on Banana Predict 🍌 All the polls, odds, and analytics you need to stay ahead. Trade smarter. Predict better.
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In otherwords, all the value has shifted from platform to users
there is no moat
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The largest allocators in crypto are all selling after BTC has already tanked massively. From what I understand, they were anticipating Uptober, and now they’re sitting on substantial gains from their August entries. Watching those numbers go down is probably scary. The big-brain move would have been to anticipate Bitcoin weakness heading into the midterms, knowing that Iran would shock the oil supply and that nervousness surrounding the Anthropic IPO would manifest before the roadshow. Could BTC go down further? Absolutely. But the time to offload your portfolio and be a smart allocator was the first week of October. Doing it now is psychologically revealing. Next week is probably a good time to start looking for entries. I think the post-midterm environment actually looks very bullish. There are only so many bearish articles you can write about the same topics before people get bored. Ultimately, this is about attention flows.
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Jon Lourie retweeted
A callback to our interview with @morganlai, where she shared one of the most insightful observations about prediction markets right now: "Prediction markets don't have a liquidity problem. They have a discovery problem." Pm liquidity is fundamentally a distribution issue. Unlike stocks or memecoins, prediction markets are tied to specific events, interests, and moments in time. The challenge is getting the right markets in front of the right people at the right time. @arespro is building to solve exactly this.
Ares founder @morganlai was an early Pumpfun investor. Now she's building @arespro, a social trading layer for prediction markets. Her takeaway from memecoins: traders weren't just trading tokens. they were constantly repricing narratives and information as reality changed. Prediction markets turn that behavior into an explicit asset class.
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Jon Lourie retweeted
Inter, Real Madrid, Sporting and Aston Villa are each priced near 80% to win tonight All four winning together is priced at about 41% Less than a coin flip All 9 Champions League home teams are favored tonight on @trylimitless Their prices add up to 5.65 home wins out of 9, or 63% In the league phase's first two seasons, home teams won 148 of 288 games About half Four lopsided games explain the gap > Inter to beat Shakhtar: 81.1% > Real Madrid to beat Leipzig: 80% > Sporting to beat LASK: 79.2% > Aston Villa to beat Viking: 79% The other five are far from safe > Betis to beat Feyenoord: 61.5% > Brugge to beat Lens: 53.6% > Bayern to beat Arsenal: 44% > Lille to beat Galatasaray: 44% > Como to beat Man United: 42.6% All 9 favorites winning: about 1% How many of the 9 home teams win tonight?
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Maybe it's time to take another look at $SPCX
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Privacy will likely be the thing that saves crypto long term. Definitely the most bullish narrative in the short-term.
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I'm proposing that instead of investing in companies, we simply invest in people who are exceptionally good at pushing buttons on the internet and generating consistent returns. We can keep the IPO process mostly the same. Even keep the initials.
Technical moats are mostly over at this point. If you’re building something that is meant to be durable, the only moats now are: • Proprietary data • Network effects • A physical component
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People are still seriously underpricing how big onchain call/put options will get. It's not competing with Hyperliquid. If I own a crypto asset, I can sell covered calls against it and collect the premium upfront. I get paid immediately selling at a price I'm comfortable with. Very different use case from just going long or short on perps. The revenue and growth potential here is massive. Getting exposure rn is still rock bottom entries.
Derive is already doing billions in monthly options notional. This seems like early Hyperliquid. Been wanting to sell covered calls on my crypto positions for years.
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This is absolutely correct, if your buying tokens in this space I would stick to the largest two. The guys who already have lots of connections to LPs and experience. Creating an options market is extremely difficult.
Citrini Research’s new crypto basket gives $DRV a 10% target allocation 👀 Back when @DeriveXYZ was on MCG... The team was already building in the options space. Now, with @Lighter_xyz pushing further into options for institutional traders, the competition is getting more interesting.. @ksett13 said, “Options are really, really hard to build, hard to maintain, and hard to get liquidity to"
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The attention economy might be the first casualty of the agentic economy. Think about it. If agents are doing all the work/search etc, why are we still optimizing for eyeballs? Attention might actually become friction in many regards. Instead, you would see an intention economy. A user inputs a request, and agents strive to give a 10x return on it.
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Jon Lourie retweeted
Republicans need 3 of 7 Senate races to keep control. Democrats need 5 of them That math is right. It also counts Kansas as safe Republican control is priced at 36.5% on @trylimitless Republicans already have 31 seats that aren't up this year The 7 are Alaska, Iowa, Maine, Michigan, New Hampshire, Ohio and Texas Give them every race outside the 7 where they're favored, and they're at 47 Winning 3 of the 7 gets them to 50, with Vance breaking the tie Run today's odds race by race, and they win 3 or more of the 7 almost half the time So 36.5% looks cheap Until you check the seats that math calls safe In Kansas, Roger Marshall's odds slid from 70.5% to 61.5% in a week. He's still favored, but that's about as tight as Ohio and Texas In Nebraska, independent Dan Osborn is at 28.5% against Pete Ricketts South Carolina is 84.5% Republican, not a lock And New Hampshire, one of those 7, is 89.5% Democratic Count all 35 races and Republicans average about 48 seats, 2 short of 50 If each race moves on its own, they keep the Senate about 25% of the time The real Republican case is that the races move together One polling error in their favor could flip several races at once By rough math, the tighter that link, the better their odds, from about 25% up to about 40% 36.5% sits in the upper half of that range Will this map move as one, or will Republicans have to win it state by state?
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Jon Lourie retweeted
Many prediction markets simply aren't worth trading today. You might spot a 3¢ edge, but with capped upside, the return isn't enough to justify the trade. @Lattica is currently building one of the best tools to change that. From our talk with @SteveFlanders22 and @wkflanders
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