As an early crypto institutional investor, Multicoin Capital has previously made investments in public chains like Solana. This public emphasis on privacy operations continues its long-term focus on the risks of on-chain transparency. Similar funds like a16z have also reduced tracking through multi-address dispersion.

In terms of capital pathways, Multicoin mobilizes internal funds through regular address changes and privacy tools, motivated by the need to protect strategies from being copied. Strategically, it views privacy as a necessary infrastructure for institutional-level DeFi rather than an optional feature.

Similar to early institutions avoiding on-chain tracking by turning to OTC, or Zcash's historical positioning as a value storage, Multicoin currently sees the privacy sector as being in a transitional phase amid increasing transparency and regulatory tracking of public chains.

Structural Judgment

Essentially, this is a transfer of pricing power. Institutional funds are forced to turn to privacy infrastructure due to on-chain transparency, with projects like Zama and Zcash gaining pricing power. The mechanism involves rising tracking costs of public ledgers and the maturity of privacy technologies, prompting capital to reconstruct from purely transparent public chains to privacy-enhanced layers or native privacy chains, redefining the institutional entry threshold for DeFi.

ABAB News · Law of Cognition

On-chain transparency is institutional exposure; privacy is the new moat.
Changing addresses is not an operation; it's a survival strategy.
Public chain records heroes; privacy chains bury traces.