Knowing Yourself, Web3 Investing Lessons and a Dog Called Duke

PoolTogether Community Interview #34: Weston Nelson

Hello,

Hope you are all enjoying the summer and that it is not too hot for you to enjoy this.

Today we have a Community Interview with Weston Nelson. We hope you are seeing just how diverse the PoolTogether Community is. People from all ages, countries, professions, technical knowledge etc.

Everyone is and can be involved with the DAO and protocol and many have gone on from starting with PoolTogether to work with other protocols. It is a great learning space.

Most importantly and different to a lot of spaces in Web3/Crypto - you will find a very warm and welcoming space where people are here to help.

So, if you have not already, please be sure to connect more with the PoolTogether Community at our official Discord: https://pooltogether.com/discord and Twitter: https://twitter.com/PoolTogether_

Let’s go with the interview!

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Tell us a bit about yourself/How long have you been into crypto?

Hey Poolers, my name is Weston Nelson. I’m 33 years old, married to an awesome human named Molly, and have a 9 year old Jack Russell Terrier named Duke is a bundle of energy.

I’ve worked full-time in Web3 for a couple years now; mostly as a research analyst and trader; but as of late last year, began feeling drawn to DAOs and learning smart contract development. I started contributing in collective collaboration because I see so much potential for the betterment of our world through the use of technology; specifically Web3.

I think it might be best to actually start by sharing my view on the main lesson of Web3 - which is to truly understanding what this is all about - I try my best to explain it in a way that people can resonate with; while not over simplifying it as well.

The main lesson or fundamental question of Web3/Crypto, is actually a relatively simple question: Can we live in a system where the root permissions exist…. independent of central authorities?

Stated differently, the foundational question is one of digital freedom…do you and I have property rights in the virtual world? Or… can some central authority make the decision to surveil you, freeze your assets, take your stuff?

Everything else is built upon this.

So my macro outlook can be answered with this question: do I see value in the answer to posed question being a yes? And I would answer with a resounding yes.

So; independent of prices in the short and even medium-term, the amount of value here that I see is nearly incomprehensible - and I believe the phrase “the internet of value” is with merit.

Do you want to tell us about the main lessons you have learned since then?

It’s been my observation over the past 15 years or so studying markets and businesses that fundamentals do generally always win in the long-term; and I see Web3 as an iteration of the internet boom a couple decades ago. The biggest difference being it is an iteration that is orders of magnitude more powerful.

I began my career in financial services, spent a lot of time studying markets, economics, and worked at various different firms, the most well known probably being Fidelity Investments. I met some of the sharpest people I’ve ever known at Fidelity, when it comes to traditional equity markets, there are truly brilliant people there (also good to see their recent moves into crypto of course!)

What was your best crypto moment?

I’ve had a lot of incredible experiences in crypto; tough one to answer for me…but if I had to pick one; it would be when I drew the conclusion that $BTC was going to absolutely skyrocket in price in fall 2020. I can’t remember if it was Square or MicroStrategy that went first, but I remember vowing to myself if another public corporation put $BTC on their balance sheet; I would make a massive bet on the upside potential of the market.

As it turns out; I remember evaluating both companies and MicroStrategy had a much more appealing risk/reward analysis; and so I - even though was a bit scared at the decision when I did it - I felt near complete conviction that my thesis was right. So I loaded up on $MSTR Long Call Options that were way out of the money - (strike was $220 I think) in October of 2020; and ended up selling them all at some point in January 2021.

This taught me that when you truly have conviction in something; to stick with it. I remember discussing this with a few very smart traders/risk managers; and they thought I was nuts for thinking this was a good idea. I hope to make more trades like this at some point in the future!

What was your biggest fail?

I’ve had quite a few. I’ve become over-confident in my analysis on several occasions and this led to a few scenarios of me making poor decisions, where had I zoomed out a bit; it would have been clearer that my assumption was flawed. I think if I had to isolate one thing though… it is a bit painful, but it would be this: carrying on about my business in DeFi with mostly disregard for the rising costs to interact with the Ethereum Mainnet.

It is a bit embarrassing actually for me because one of the core tenets of good trading is to pay attention to costs; but I think overconfidence played a big part here. So; where this ultimately ended up? I started questioning my PnL - win win win, why was I net on the day? And long story short…I made literally thousands of transactions amounting in gas fees that I cannot even fathom I actually paid. I certainly will never make this mistake again.

Do you have any suggestions for people getting involved in crypto investing based on your long experience within the financial world? What should they be looking for or focused on?

Know yourself. This means to be honest with yourself regarding: your tolerance for risk, your goals, and your skillset. Are you genuinely ok with a 90% drawdown, or will it eat you alive? If you can answer this question prior to taking a position in something, you can handle the volatile nature of crypto asset markets from, a much more serene place of mind. I also really value community and learning from others that I respect and admire.

I think I have learned a lot as an invididual, but I am constantly also asking my peers what they think about this or that, and trying to see what other leaders in the space are thinking....and this mindset is one that I think is useful for both anyone new to crypto/DeFi and also those with lots of experience.

Look for the intangible sense of authenticity that some people/teams give off. I know this is of course an impossible thing to actually do as it can't be quantified, but there is - at least in my own experience - some truth to this. Listen to your gut is another way of putting it I think.

How did you find out about PoolTogether?

So there was someone from the DeFi world who ran for public office recently and had supported in some capacity the development of some of the smart contracts that were used in conjunction with PoolTogether. I saw this person was aspiring for a leadership position in our governance system that we currently have and thought it was such an honorable and excellent thing to do and so I was vocal in demonstrating support for his campaign, donated a bit of my assets personally to support the cause, and that was actually about it as far as PoolTogether at the time.

But things change fast in DeFi; and before I knew it; I heard about some issue that was raised. It bothered me so much as it felt like a direct attempt to shut down that search for freedom that I spoke about earlier; that I just had to learn more.

I read all the details I could find; couldn’t believe what I was reading, but nonetheless wanted to show support - so I found out about Pooly and got myself a Pooly NFT. I recently upgraded to a Pfer But I still love my Pooly! Defending DeFi is something near and dear to my heart.

Why have you stuck around?

As I have learned more and more about PoolTogether; I have come to realize what an incredible group of people are behind the scenes and what great work they are doing. I am continually impressed with the community, the protocols transparency, the commitment to opensource software and decentralization, it really just is a place that aligns with my values almost perfectly and so although I am involved in a few other projects; I definitely intend to continue to help PoolTogether in whatever capacity I can and perhaps even become more involved if the need arises.

Would you recommend PoolTogether to others? How would you describe it to them?

Of course, without hesitation. I would describe it as a way to engage in DeFi that is fun; connects you to a great community; and also provides the potential for economic gain based on prizes.

Are you involved in any other projects or communities/any other thoughts and comments you would like to make?

I am currently on the Oracle Council at Thales Protocol and the Delos Community Multisig at Saddle Finance and recently joined the Layer2 DAO Team as well in a strategic capacity which is something I am very excited about.

I was also very fortunate to spend quite a bit of time with the crew from Gelato Network earlier this yea working through some big challenges together; and another one of my highlights in crypto without a doubt was attending EthDenver this past February with Hilmar (one of the co-founders) and Ari (a genuine big brain)- it was one of the best experiences in my life.

Are there any books you would recommend? Why?

Too many to list! I have been reading basically incessantly since I was 14 years old (20+ ago now) on basically anything to do with technology. The essence of the idea that we can use our brains to coordinate with each other, plan, strategize, and achieve better standards of living through our ability to learn has always just captivated me. I'll be reading until my very last breath, I can be certain of this. I'll throw a couple curve balls here as far as specifics....

1. The Power of Now by Eckhart Tolle - the wisdom in this book is timeless, enough said.

2. The Education of a Bodybuilder by Arnold Schwarzeneggor - if you want to get a sense for what world class ambition truly looks like, I found I resonated very much so with Arnold as he walked his own path through challenges.

3. Healing is Voltage by Jerry Tennant - the bioelectrical connections to health and wellness that are lost on the West & Empiricism, but nonetheless exist and exert a powerful force on our well-being.

Jerry has done a brilliant job in working towards quantifying this energy, and identifying ways to help people be well using both traditional methods and also what others would refer to as "alternative" methods...to me, though, they are simply pragmatic.

And of course can't not have something to do with crypto! So I would say to ready both the Bitcoin Standard by Saifedean Ammous - my first real deep dive into blockchain technology and an excellent read on what is "value" in an economy, what is "money" - had I not read this I may have never found Ethereum. Which leads me to the last book: Life After Google: The Fall of Big Data and the Rise of the Blockchain Economy by George Gilder - I think the title of this one kind of speaks for itself

Any Final Thoughts?

I appreciate it very much being asked these questions and feel honored to share my viewpoints. I think I have definitely learned a lot; but I am also still finding my way through this all….just like every one of us all. To me, perhaps the most important thing is committing to being a lifelong learner, so that is what I would leave you with in closing thoughts. Also, feel free to reach out to me whether in Discord or on Twitter… things are a bit hectic but I try my best to help anyone looking to make an impact here.

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We hope you have enjoyed this detailed and fascinating interview.

Please join us for the PoolTogether Community Call on Fridays at 1.45pm on the PoolTogether Discord. Plus, to deposit into PoolTogether and to learn more about the protocol, please goto https://pooltogether.com/

Remember also to enjoy the Optimism rewards currently available.