In Episode 8 of Layer One, The Block’s Kelvin Sparks and Hypha founder Steven Gates were joined by Santiago R. Santos of Inversion Capital. He explains why many crypto token valuations are structurally flawed and outlines his framework for investing in durable, cash-flow-supported adoption, with a focus on B2B stablecoin use cases.
The group debates how to value crypto beyond tribal narratives, arguing that many token prices overpay for a future that still requires regulatory clarity and real demand for blockspace.
OUTLINE
00:00 - Intro
00:00:27 - Scope and disclaimer
00:01:41 - FDV and investor framing
00:04:02 - Valuation bias
00:12:23 - Investing through cycles
00:21:44 - Choosing Avalanche infrastructure
00:28:29 - Retrofitting real businesses
00:35:46 - Who’s building this model
00:41:52 - Writing, thinking, first principles
00:50:16 - Fieldwork beats theory
00:52:53 - Asking the right questions
01:00:23 - TGE and FDV reality
01:07:30 - Final takeaways
Host/Guest links:
Santiago R Santos - twitter.com/santiagoroel
Inversion Capital - twitter.com/inversion_cap
Steven Gates - twitter.com/stvngts
Kelvin Sparks - twitter.com/imyoungsparks
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