ZEROPOD S2 E6: "Believe in Something" with 1confirmation founder Nick Tomaino

Tony Hawk emphasizes the importance of believing in something beyond financial gain, encouraging engagement with products and people in the Ethereum space. Nick Tomaino, founder of 1confirmation and an early Coinbase employee, shares his passion for collecting, particularly sneakers and rare books, influenced by basketball culture and his family's history in Americana collecting. He highlights his favorite book, "Reminiscences of a Stock Operator," for its insights into trading psychology.

Tomaino contrasts the liquidity of cryptocurrencies with that of rare books, expressing a stronger belief in NFTs as collectibles. His collecting interests are driven by passion rather than profit, having never sold sneakers or books and only a small amount of crypto and NFTs. He reflects on the human instinct to collect, suggesting it may be evolutionary and influenced by social dynamics, particularly in the NFT community.

Tomaino discusses his educational background in economics and management at Yale, motivated by financial success, and how his interest in venture capital grew from following Fred Wilson's blog. He recounts his early career at Coinbase, where he helped onboard merchants to accept Bitcoin. Despite initial excitement, he notes that Bitcoin did not significantly save merchants money due to limited adoption. He humorously recalls purchasing an engagement ring with Bitcoin, likening it to the "Bitcoin pizza" story.

His determination to work with Brian Armstrong, Coinbase's CEO, involved persistent outreach, ultimately leading to his successful joining of the company. He highlights Armstrong's calm demeanor as a key factor in attracting talent. The conversation emphasizes the importance of stoicism in the volatile crypto industry, stressing that a deep belief in the space is essential, especially as many early participants have exited.

Transitioning to venture capital, Tomaino shares his experience at Runa Capital, where skepticism about crypto was prevalent due to scams. However, his passion for the industry led to the creation of One Confirmation, aimed at supporting early-stage projects. The name symbolizes the initial investment in promising crypto founders, reflecting a commitment to the blockchain ethos.

The investment philosophy centers on attracting new users to crypto, with early investments in companies like OpenSea and Coinbase. Tomaino recounts his early engagement with OpenSea and the NFT market, noting the significance of true asset ownership and the evolution of trading mechanisms. He appreciates Degen's social tipping mechanism as a means to draw new users into crypto, comparing it to past models like Steemit and Dogecoin.

The conversation addresses the growing awareness of issues with centralized social networks, underscoring the need for decentralized social media for censorship resistance and user data ownership. Tomaino discusses financial incentives in attracting users to decentralized platforms, acknowledging the Farcaster team's efforts to explore new monetization methods.

He reflects on evolving attitudes towards speculation in the Farcaster ecosystem, describing it as a "superpower" while advocating for diverse monetization strategies. The ease of launching tokens has created opportunities for creators without technical expertise, viewed positively. The concept of microtransactions is emphasized, enabling users to mint podcasts for small fees, benefiting both creators and supporters.

Tomaino believes Ethereum has the potential to outperform Bitcoin in the long run, acknowledging Bitcoin's strong narrative as "digital gold." However, he suggests that Ethereum could evolve into a better store of value and emphasizes its dual role as a currency and application platform. Innovation is crucial for Ethereum, with successful applications like Polymarket demonstrating its potential.

The concept of "skin in the game" is discussed, where individuals risk something that directly affects them, making crypto a vital ownership opportunity, especially in regions where traditional markets are inaccessible. Looking ahead to 2025, there is excitement for a potentially more favorable U.S. administration for crypto, with hopes for pro-crypto policies.

Tomaino offers advice for newcomers to the crypto space, stressing the significance of conviction and stoicism. He acknowledges the temptation to chase quick profits and recommends finding a belief or purpose that extends beyond mere financial gain. He encourages active engagement with products, urging individuals to ask questions and maintain curiosity rather than simply following trends.