How To Win Crypto's Next Bull Market | Rob Hadick

**Scott Melker** (0:00)
Crypto prices may be struggling, but behind the scenes, institutional adoption is accelerating. Today, I'm talking with Rob Hadick from Dragonfly about prediction markets.

**Rob Hadick** (0:09)
It looked to me like it had started to permeate more of the non-Techford or the non-crypto culture.

**Scott Melker** (0:15)
Tokenization.

**Rob Hadick** (0:16)
The perfect world is one where everything is tokenized and we can get tokens to be the only source of value accrual.

**Scott Melker** (0:22)
Stablecoins.

**Rob Hadick** (0:23)
If stablecoins and tokenization is like in the water supply, everyone has to drink water, and so every company will be a water dispenser.

**Scott Melker** (0:30)
And why companies like PolyMarket are growing regardless of what Bitcoin does.

**Rob Hadick** (0:34)
PolyMarket is being referenced as a source of truth. PolyMarket just had the best month ever in June. They don't care what the price of Bitcoin is.

**Scott Melker** (0:41)
We also break down what really happened on October 10th, why retail disappeared, and what the next crypto bull market could look like. Are institutions building the future of crypto while retail sits on the sidelines? We're going to find out. Let's go.
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**Rob Hadick** (2:08)
Great. Well, I'm glad I could be.

**Scott Melker** (2:10)
Why haven't we done this before? It's my fault, I'm assuming. You know?

**Rob Hadick** (2:14)
Maybe it's your producer's fault.

**Scott Melker** (2:16)
Yeah, that's right. We need someone to blame, but I'm glad that we're finally doing it. So obviously, we're out here at the Audi Summit. What are the sort of prevailing narratives that you're hearing or that you're interested in on the ground here?

**Rob Hadick** (2:29)
Yeah, I mean, this summit is pretty institutional, as you can tell. So it's been pretty interesting to see. There's about 330 people here, but basically every bank, every asset manager, a lot of the different investment companies, so the traditional investment companies are here. They're very focused on the things that you would think those people are focused on. So stable coins, tokenization, the future of AI, what does AI look like and how does it interact with crypto?
How do the market is going to do? What is Clarity Act and how is that going to affect the markets? So that's been the prevailing narratives. And so I think your listeners won't be surprised because that's a lot of what the narrative has been in the market recently. And we've seen the market get more mature, get more institutional. But it's exciting to see this much interest from all of the big name, you know, financial companies in the world.

**Scott Melker** (3:17)
Agreed. So that doesn't necessarily align with how you actually allocate capital.

**Rob Hadick** (3:20)
That's, yeah, it's from a venture capitalist perspective. You know, it does make it interesting right now to figure out how you're going to allocate capital. We've been, for Dragonfly, we've been obviously a little bit different in the way that we've thought about the space than some others. And so we've always viewed this space as financial technology. And so we've always invested in the infrastructure, and then we've invested in decentralized finance, centralized financial companies, prediction markets, payments companies, stable coins. That's been the prevailing narrative within all of our funds basically. And a lot of those things are doing incredibly well. So we have a couple of portfolio companies. I heard you just talked to Christian Carlos, obviously very close to Polymarket, where one of the largest shareholders there have been in them for several years. And Polymarket just had their best month ever in June. They don't care what the price of Bitcoin is.
We have another portfolio company called Rain, which does stable coin backed credit cards.