In February, Reddit co-founder Alexis Ohanian said he would step down from his daily role at the company to return to investing.
Ohanian is now full-time at Initialized Capital, the early-stage VC firm he co-founded with Garry Tan in 2012. The firm has more than $250 million in assets under management, and its investments include Coinbase, Instacart, Zenefits, Opendoor, Soylent, Cruise Automation, and Standard Cognition.
Ohanian told Term Sheet. “It’s a big part of why Initialized was the first check-in Coinbase. You could see these trends popping on r/Bitcoin, for example. The early, organic communities served as really great focus groups.”
How high do you think Bitcoin will go?
OHANIAN: To the moon. [laughs] I still hold a little bit of Bitcoin, and I think it has such mindshare that it will continue to be a store of value.
The cryptocurrency market is still in its “Wild West” phase, so what do you think regulation will look like?
OHANIAN: Right now, it seems like we’re in a pretty low regulation environment in the United States. I would be surprised if there was anything other than a light touch. It’s important because there have been a lot of charlatans who have gotten into these initial coin offerings as a get-rich-quick scheme. It’s frustrating because it undermines what is a really innovative technology. These people should be punished full-stop.
The hope is that you can do enough to punish existing bad actors and deter future ones, but you also have to make sure that you don’t throw the baby out with the bathwater.