Imagine revenue growth is a spectrum. On one side, you have high-quality revenue and on the other side you have high-velocity revenue.

So how should a builder in today's climate proceed? Well first, let’s discuss the tradeoffs as I see them.

Growing high-quality revenue requires a sustainable, profitable, and defensible income stream that contributes to the long-term health and stability of your business. Growing high-velocity revenue can be just as, if not more challenging. However, you generally give up long-term revenue foresight in exchange for greater upside in boom cycles. High-velocity revenue is subject to a trend, so you're incentivized to focus on short-term wins vs long-term defensibility. Crypto is unique because it allows companies to grow revenue faster than ever before. Blockchains and tokens collapse the cost of coordination and introduce new business models that align attention and resources in ways we've never seen. There are countless examples of DeFi and NFT projects generating revenue figures in weeks that would take traditional companies years. Quality or not, crypto revenue generation has defied the laws of physics.

In the same way, many investors from last cycle paid a premium for annualized NFT revenues, I am seeing current investors pay a premium on annualized meme coin revenue. In my opinion, both examples of high-velocity revenue, still in search of defensible product market fit.

"But Jon, look at the volume figures, look at the next generation of college kids paying their rent on sports betting? NFT’s and Meme coins will be synonymous with any speculative activity." I agree. I am incredibly excited about meme coins and NFTs as new forms of value creation. I write from the perspective of someone investing through cycles, booms, and unfortunately, busts. Why? Because what gravity is to physics, product market fit is to business success. Gravity (pmf) is not visible, but its effects are undeniable. It's seen in metrics like customer growth, retention and engagement. If your product/service requires the end user to be fundamentally bullish on an underlying asset, that uncertainty should be reflected in your valuation.

So do what feels natural, take advantage of high revenue velocity moments because they don't last forever. Just remember, few, if any companies can have their cake and eat it too. Like trust, high-quality revenue is built with time but can be destroyed in minutes. We all know projects that prematurely launched a token or NFT to build a war chest in hopes of delivering long-term value, but lost their users in the process. The crypto market in particular will exploit every flaw in the mind, the volatility and return profile of the asset class ensure of it. So make sure your cap table is not just outcome-aligned, but values-aligned. Iterate quickly and remember technology changes, but humans don't.