1kx

Token networks are an unusual thing to invest in, and 1kx has built its business around them. The firm began in 2018 and describes itself as a research-driven global investment firm, working with founders on the design and growth of crypto networks governed by their communities.

A thesis about the cost of trust

The firm's current statement rests on a claim it made at its founding: that trust was about to become contestable, and that the biggest outcomes in technology would go to networks and companies that reduced its cost. Having made more than one hundred and sixty investments across three market cycles, it says that thesis has held up in decentralised finance, stablecoin payments and the protocols beneath them. A framework it calls Cost of Trust 2.0 sets out the two mechanisms by which it believes that value is captured, and the firm publishes research and an onchain revenue report and dashboard alongside it.

How it works with founders

Earlier descriptions from the firm called it an early-stage investor specialising in ecosystem growth. It said it helps founders bootstrap token networks and acts as a hands-on adviser in the creation, design and iteration of token models. Its team describes itself as made up of technical operators and strategic thinkers, several of them former founders, who will help with community coordination, ecosystem building and even the launch of go-to-market subDAOs. It calls its approach to community a particular strength.

Investing principles

The firm says it underwrites on fundamentals, commits across market cycles and partners with founders building configurations that compound, meaning ones that need a blockchain in order to exist. That excludes ideas where a blockchain is simply bolted on. Its investing areas now include DeFi, stablecoins and onchain infrastructure.

Research and community

Beyond cheques and advice, 1kx publishes research, holds events and runs a network that founders can join. The firm talks about a love of the rebellious spirit in crypto, and about the culture it shares with the companies it backs. Its site also links to press coverage, and to a note from its founding partners that reflects on eight years of building the firm.

Anyone considering a relationship with the firm should note that its focus is crypto and onchain businesses, not general technology startups.

1kx is an early-stage investment firm that specialises in crypto ecosystem growth. It helps founders launch and shape token networks governed by communities, and it treats network building as both an art and a science.

Products and services

• Early-stage investment: backing for web3 founders at the start.
• Token model design: hands-on advice on creating and iterating token economics.
• Ecosystem support: community coordination, ecosystem building and go-to-market subDAOs.
• Research and events: published research and gatherings for its network.

Customers and markets

Founders in web3 and decentralised networks who need help reaching growth and economic sustainability. The team is made up of technical operators and former founders with experience across crypto.