Sfermion - A Metaverse-Native Investment Firm

Note: This post is copied from Sfermion’s medium.com post.


I’m Andrew Steinwold, a crypto investor and analyst who in recent years has been focusing on the digital asset ecosystem’s rising metaverse: a new web of shared virtual spaces that are always online, open, and unlock new kinds of economies.

This young but maturing ecosystem is brimming with unprecedented levels of promise, which is why I am excited to announce a new investment manager entity, Sfermion. The firm is centered around investing and actively supporting metaverse-native digital asset projects.

The phrase “metaverse-native” is quite broad but consists of assets like non-fungible tokens (NFTs), native tokens within virtual worlds or games, and other esoteric crypto token instruments.

Investing in these assets directly gives us maximum alignment with the teams and ecosystems. We seek to be value-additive by being active participants in the communities we become stakeholders in. Whether by building structures in virtual worlds, participating in tournaments, organizing virtual meetups, or beyond, we want to immerse ourselves within and throughout the industry.

We’ve seen investment funds like Polychain Capital and Placeholder pioneer the way by investing directly into digital assets and by becoming activist investors in cryptonetworks. We are following in their footsteps but forging our own path by focusing on these esoteric digital assets. Our thesis is that distributed ledger technology (DLT) enables a true metaverse to form because DLT gives users real digital property rights.

Before DLT, it was impossible for a true metaverse to form because users had no digital property rights. They were under the complete control of corporations that could delete their accounts and destroy their assets at any time. DLT was the missing piece of technology and its arrival has allowed a true metaverse to emerge where people will live, work, and play for years to come.

Since discovering bitcoin in 2013, I understood we had the potential to reimagine value and create stronger, more equitable systems. It wasn’t until 2017 when I launched a firm that was focused on the crypto industry, that I was able to spend all my energy in the ecosystem.

After understanding the implications of NFTs and the metaverse, I launched Sfermion in 2019. I’ve invested my own capital for roughly a year now and built out the back-office infrastructure needed for this type of business.

As the creator of Zima Red, a newsletter and podcast meant to explore metaverse-native projects, I’ve met incredible builders, creatives, and thinkers who I’ll only continue to learn amazing insights from. I’ll use these insights to make Sfermion the first and best firm of its kind. I’ll be releasing more in-depth information about the firm over the coming months, so stay tuned. If you have any questions, comments, or concerns, please feel free to reach out via Twitter.


Important Disclosures 

This article (the “Article”) is intended solely to provide general information about Sfermion LLC (“Sfermion”). Nothing on the Article is directed at or should be relied upon by any investors or prospective investors in any vehicle managed by Sfermion LLC. Sfermion LLC does not intend to solicit or make its investment advisory services available to the general public. Under no circumstances should any information provided on this Article be considered as an offer soliciting the purchase or sale of any security or interest in any pooled investment vehicle sponsored by Sfermion LLC nor should it be construed as an offer to provide investment advisory services. Such offers or solicitations will be made separately and only by means of the confidential offering documents of the specific pooled investment vehicles which should be read in their entirety, and only to those who, among other requirements, meet certain qualifications under federal securities laws. Nothing on this Article constitutes investment, accounting, tax or legal advice or is a recommendation that you purchase, sell, or hold any security or other investment or that you pursue any investment style or strategy. Any opinions expressed on this Article are subject to change.

An investment in any strategy, including the strategy described in the Article, involves a high degree of risk. There is no guarantee that the investment objective will be achieved. Past performance of these strategies is not necessarily indicative of future results. There is the possibility of loss and all investment involves risk including the loss of principal.