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scaling to 10k ft: the fat alp thesis

a critically acclaimed weekly consumer crypto roundup

bonjour,

i send this newsletter to you as i sit perched precariously on a chairlift in the french alps (i am normal and can be trusted with working remotely). my fingers frostbitten from typing, the landscape as white and pristine as the pages of an unaudited stablecoin whitepaper - full of promise, devoid of detail. updates are sparse this week, having dedicated myself to an intensive study of french wine's effect on altitude sickness. preliminary results: inconclusive, but delightfully so.

allons-y, mes amis and happy let's circle back season,

xx c

Staking $HYPE is now live on mainnet. Cambria had a successful mint on Ronin and there's a ton of growing excitement for user-owned gameplay. Zerebro announced it’s agent platform Zentients, and here's a recap of their year. In the lead up to Berachain launching Royco, Boyco pre-deposit vaults have amassed almost half a billion USD. Wayfinder rolled out phase 1 and are seeing great signup numbers. Winners stay winning i.e. ai16z, virtual, zerebro, arc are continuing to get the bid as AI infra outperforms agents and memecoins. Telegram rolled out a feature to turn digital gifts into NFTs. There's now a curated list of AI agent frameworks, launchpads, tools, tutorials, and resources. Smac dropped a great overview of how 2025 might shape up. Key takeaway: The incoming administration's policies on immigration and tariffs add uncertainty to the economic outlook, while key indicators to watch include the performance of semiconductors relative to the broader market and the strength of the US dollar, both of which could signal shifts in market sentiment and economic conditions.

The Fat App Thesis

David Phelps took a fresh look at Joel Monegro’s 2016 "Fat Protocol Thesis," which basically predicted that protocols (chains) would capture way more value than the apps built on top of them. The idea was simple: apps drive users to chains, which then boosts the value of the protocol tokens, much like a digital nation-state’s currency. For years, this theory seemed spot-on, as protocols raked in sky-high valuations while apps struggled. But Phelps argues the obsession with protocols has gone off the rails, creating a market where chains are treated like untouchable idols, even when they don’t actually do much.

Fast forward to 2024, and apps are making a comeback. Projects like Polymarket, pump dot fun, Hyperliquid are proving they can deliver real value by offering new user experiences that don’t rely on token speculation. Phelps calls this the “Fat App Thesis,” flipping the old narrative on its head. Instead of protocols driving value, it’s the apps that are pulling users in, and protocols are becoming increasingly interchangeable. The game has shifted: apps are where the magic is happening, while chains are just the rails they run on.

Phelps doesn’t think protocols are doomed—far from it. But he’s clear that the future belongs to apps that can show users something new and exciting. The days of betting big on protocols just because they’re protocols might be over. If crypto wants to really grow, it’s time to back the apps that are driving the action and rethink how value is built in the ecosystem.

Oldcoin Bad, Newcoin Good

Jez’s guide, Oldcoin Bad, Newcoin Good, frames crypto as a massive multiplayer online game (MMO), complete with health, levels, online friends, pvp, pve, a town square, an economy. The piece dives into the unwritten rules of crypto investing, arguing that success often hinges on finding the right group to grind with, building real expertise in a niche, and avoiding common pitfalls like over-trading or tilting. Jez highlights the importance of collaboration, suggesting that joining a high-trust chat with ethical, resilient grinders can supercharge your journey. The guide also offers practical advice for picking a strategy that suits your temperament. Whether you’re a "trench warrior" chasing shitcoins, a "good new thing hunter" spotting underpriced gems, or a "stable farmer" playing it safe, the key is to develop an edge that scales. Jez emphasizes the shift in crypto from old coins to new narratives, where fresh tokens with strong fundamentals and flywheel effects tend to outperform legacy plays. The overarching message is clear: treat crypto like a game, but play smart. Find your people, and always stay adaptable as the meta evolves.

Overheard on Crypto Twitter

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