An open call to #Bitcoin-only angels and VCs: help us understand how custodial startups implementing full-frontal KYC/AML readily raise 10s of millions, while those building non-custodial products without KYC (for defensible reasons) struggle to get a meeting.
This isn’t an attack. It’s a deep desire to understand, and because if you don’t back those building more than just fiat systems on Bitcoin rails, who will?
It's definitely an attack ✊🏼
#[0]
Bitcoin only business models are hard
No doubt. But if your thesis starts with “Bitcoin,” you signed up for it.
📝🤔
To clarify, I understand KYC, AML, OFAC sanctions, the designation of a money services business, acquisition of money transmitter licenses, and the rest.
And how this can lead ultimately lead to a real or perceived “regulatory moat.”
you just gave the reason in the question. no KYC, no jurisdictional support, nobody willing to burn their hands 🤷♂️
They are tethered to tradfi business models (rent seeking, regulated moats).
Non-Custodial, value for value is an unproven and unfamiliar economic model. VCs have a model that works (until it doesn’t).
I don’t agree with these sentiments, but that’s what I hear from friends running these firms.
The Angels that invest in open source non KYC Bitcoin solutions are poor. True story. 😅
