This is Eric Golden and my guest today is Andrew Steinwold. Andrew is the managing partner at Sfermion, an NFT-focused investment firm where he makes venture-style bets and directly invests in NFTs. He is a pioneer in this space. We discuss the challenges of starting up a Web3 fund, how NFTs make the metaverse possible, and what drives value in various NFT categories. Please enjoy this conversation with Andrew Steinwold.   For the full show notes, transcript, and links to the best content to learn more, check out the episode page here.   -----   This episode is brought to you by Coinbase Prime. Coinbase Prime combines advanced trading, battle-tested custody, financing, and prime services in a single solution. Clients have used our comprehensive investing platform to execute some of the largest trades in the industry because they are the only publicly-traded company with experience trading and custodying crypto assets at scale. Get started with Coinbase Prime today at coinbase.com/prime.   -----   Web3 Breakdowns is a property of Colossus, LLC. For more episodes of Web3 Breakdowns, visit joincolossus.com/episodes.   Stay up to date on all our podcasts by signing up to Colossus Weekly, our quick dive every Sunday highlighting the top business and investing concepts from our podcasts and the best of what we read that week. Sign up here.   Follow us on Twitter: @Web3Breakdowns | @ericgoldenx | @patrick_oshag    Show Notes [00:02:14] - [First question] - How he and his wife Josie Bellini got into the crypto space  [00:05:40] - Why crypto OGs had a disdain for NFTs [00:07:55] - A snapshot of the NFT market today and the metrics he tends to look at  [00:11:18] - Whether or not he’s surprised that the blue chip assets have held up [00:13:56] - The early formation of Sfermion and what lead him to start it  [00:18:33] - Thoughts on holding NFTs and building an investable fund around them [00:23:13] - Plans for their second fund and what it will be comprised of  [00:24:41] - His investment process and philosophy on exposure and valuation  [00:28:15] - Top level view on capital allocation when investing and building funds  [00:31:07] - Second Life interview; in-game economies [00:32:54] - Value is unlocked in more assets than just ones with utility  [00:35:37] - How they pitched fundraising a venture fund compared to one that invested in NFTs [00:39:10] - USD performance fees and capital deployment in their venture fund   [00:43:37] - The different areas of the competitive landscape in NFTs  [00:46:43] - Whether or not courts have reached out to them given their assets [00:48:59] - Real world use-cases and experiments that could prove useful in the future  [00:53:28] - Axie Infinity; thoughts on the Axie Infinity experiment and play-to-earn product market fit [00:57:51] - What he’s most excited to see built over the next six months and six years