Field Note #54. On "Overcoming the Matthew Effect in Crypto"

Source: Elisabeth Berger & Andreas Kuckertz, "Overcoming the Matthew Effect in Status Dominated Environments -- a Configurational Analysis of Venture Capital Investments" in Credit & Capital Markets 51(2): 293-314 (2018)

  • Issue: Matthew Effect exists in venture (aka "incumbency advantage," "rich get richer," advantage begets advantage")
  • Pet Hypothesis: Matthew Effect is far worse in crypto-related domains due to (over)reliance on social (e.g., crypto Twitter), high domain complexity (cult of faux expertise or the Talebian IYI), visibility of status flexes (e.g., invocation of art, iconography), and difficulty in auditing integrity (e.g., anon, high influence of luck in returns/performance).
  • Solution: hard work + alliances.
    * Hard work works
    * Lone wolves starve

The Details.

You've successfully subscribed to Sandeep C. Ramesh
Great! Next, complete checkout for full access to Sandeep C. Ramesh
Welcome back! You've successfully signed in.
Unable to sign you in. Please try again.
Success! Your account is fully activated, you now have access to all content.
Error! Stripe checkout failed.
Success! Your billing info is updated.
Error! Billing info update failed.