Uncensored Crypto podcast: episode 6 review

The Uncensored Crypto podcast delivers straight-talk about Bitcoin and other cryptocurrencies, Web3, the blockchain, DeFi, NFTs, and more. Host Michael Hearne interviews the disruptors at the forefront of the crypto revolution who are shaping our economic, financial, and political future.

In the sixth episode of the Uncensored Crypto podcast, our CEO, Michael Hearne, speaks  with Jesse Proudman. Proudman is a serial crypto entrepreneur, previously founding Strix Leviathan and currently the CEO of Makara, the first SEC-registered crypto robo-advisor.

What is Jesse Proudman hoping to accomplish with Makara, and how did he even get into crypto in the first place? Michael gets to the bottom of these questions – and more – in the latest Uncensored Crypto podcast episode. 

What was Jesse’s journey to crypto?

First things first – Jesse is a natural entrepreneur. He started his first business at 13, and was even running a business while attending college. In his own words, he’s always preferred the  entrepreneurship route – and “never had a real job.” IBM Ventures – a company known for embracing blockchain technology, hired him as a cryptocurrency subject matter expert after they acquired his company in 2017.

At this point, Jesse knew that his next venture would be in the crypto world. When IBM said there was no capital for a crypto accelerator program he designed; he left the company and built Strix Leviathan. Strix Leviathan is a crypto-focused quantitative hedge fund that has been quite successful.

But Jesse Proudman wanted to do more. He sat down with his team and decided to address some of the biggest problems facing the crypto sector – including how to address the fact that the digital asset world can be intimidating to newcomers. 

What is Makara?

Makara is an SEC-approved crypto robo advisor, and the vision is simple: simplifying and democratizing the crypto investing experience. While many new investors may decide to invest at a centralized exchange, Makara offers baskets of assets that follow a particular “theme.” Once users sign up, a survey helps determine what basket makes the most sense for their investment goals. Gemini operates as Makara’s custodian. 

There are many people who are curious about Bitcoin or other cryptocurrencies, but there’s usually a motive for that curiosity. Some established investors believe that Bitcoin is a great way to hedge against inflation, and aren’t interested in other cryptocurrencies. 

Other crypto traders may want to focus only on DeFi tokens, believing that decentralized finance will grow over the next several years. Makara is a platform for democratizing access to crypto markets, and helping people “invest crypto on autopilot.”

How Does It Work?

When you think about a traditional robo advisor, the idea is to help clients design a portfolio according to their risk tolerance. Proudman points out that the entire crypto ecosystem is “volatile” when compared to traditional asset classes. As a result, the goal of Makara is to help cryptocurrency investors find assets based on their interests and goals.

Makara makes it easy for users to invest in a particular “theme.” It’s not a mutual or fund, but can be thought of as more of a model portfolio. When you subscribe to a basket, you’re actually HOLDING the assets. One example would be the Web 3.0 basket, where every asset is somehow related to Web 3.0. The company’s Blue Chip basket focuses on the largest and most established cryptocurrencies – hence the “blue chip” moniker.

Since you’re holding the assets, Makara users have more autonomy. You’re free to trade the assets – or baskets –  at will, because you’re participating directly. How does the robo advisor determine what assets to include in their baskets? An investment committee examines the projects to determine that the project has sufficient trading volume, and is traded on enough exchanges.

Thoughts on the metaverse

Jesse Proudman also acknowledges in this podcast episode that the metaverse is here, pointing out that Makara will soon offer a metaverse basket. Michael asks him his thoughts on the rise of the metaverse, and Jesse points out that the word clearly means different things to different people. “At the end of the day, I think it’s about bringing social network capabilities onto the blockchain,” he says.

He tells the Uncensored Crypto podcast he’s excited about the metaverse because it allows people to interact, express themselves, and collect art. The metaverse obviously allows for new and innovative ways to interact, and Proudman appreciates the fact that it’s bringing new people to crypto who otherwise may not have been interested. 

Ultimately, it seems like this aligns with Jesse’s vision: a future where crypto can be used as a democratizing force rather than an exclusionary one.