← The Book of Simulations

Seeking the Soulful Chapter 06

Simulant: Nick Tomaino

Role: Founder

Company: 1confirmation

Guided by: Kristian Michail

Role: Founder

Company: Simulations

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Reading Time: 24 minutes

In this simulation, one of crypto’s top investors confronts the risk of soullessness within crowds and capital. Through simulation, the soul speaks its truth.

① Context

Hello Nick. I’m curious to know why you are you doing this.

I don't know man. Vibes, I guess.

Do you want to tell us who you are? Speak to the children out there, those who are unclear about what it is that you do.

My name is Nick Tomaino. I run 1conformation, an early stage, crypto focused venture fund. I started in crypto about 11 years ago. I’ve always been a native internet person. I grew up hanging out in message boards dating back to middle school when I was collecting sneakers. I came across a Bitcoin article in 2012. Then I came across the first online forum that Satoshi Nakamoto created and saw the media narrative around Bitcoin being this magic internet money used to buy guns and drugs.

But what was really happening was a new digital nation was forming where people were not aligned by physical location, but were aligned by economic incentives. Where sovereign people could all own Bitcoin and share the same beliefs. This new nation formed around it’s founder’s vision. I believed then and I still believe now that forming these digital nations is the most important thing happening in the world.

So basically, 11 years ago I decided to dedicate my career to it. I started at Coinbase. I was the first non-technical person to to lead business development and marketing in the early days. And then I started 1confirmation in 2017, one of the first early stage crypto venture funds and that's what I've been doing since. I try to support founders that are bringing crypto to more people. That's the thing I care about most, because it leads to human empowerment.

So you chose the path of being an arms dealing, drug pusher?

So they say.

Well, I guess with all things in life, bad actors pop up everywhere. And, it’s not like crypto has any shortage of nefarious players. Money can do weird shit to people. The fear it can breed is biblical. It can have a soul sucking lure on any one, at any time. I guess that’s just the nature of reality we live in. I actually developed a closer relationship with God, having gone through two crypto cycles. I realised there are false idols in every industry. Even if the idols are deemed “good” or “bad” by the masses. Even the Bitcoiners are at risk of idolising Satoshi as their God. It’s like Bitcoin, the new religion, you know?

Certainly. I think you’re spot on. False idols is something that has held crypto back in a lot of ways.

② Challenge

Now that the context set, is there a specific challenge that you're working through as a VC, either professionally or personally, that would be worth exploring in this conversation?

This is a first class problem or whatever, but something I've been thinking about a lot lately when you have a lot of money is what's the best use of it? I’m trying not to fall down the path doing what is perceived as prestigious, like getting a whole bunch of houses or whatever. There's certainly a pull to do that. And there's reasons why that's beneficial. But I also feel there's a soulless greed in the world. So how do you balance progress, success, and not going too crazy by getting too sucked into this kind of world of soullessness. I think greed is a source of a lot of evil. And again at a high level again, it’s a first world problem. But it’s something I've been thinking about lately.

That’s honest. I feel like it's a third world problem as much as a first world problem. Whether you have money or no money, you still have to come up against soulless people and soulless environments. Soullessness thrives in rich and poor parts of the world. Maybe not all money is equal. Maybe it appears equal in the illusion we’ve been sold. Maybe there is soulful money, and soulless money. Maybe some money we think is legitimate is really just synthetic, fake and artificial. And I don’t even just mean hyper-inflated fiat money printed by the government. I feel if you were soulful, you could turn even the shittiest currency into gold. And if you were soulless, you could turn sound money into soulless shit. Maybe even the soundest money like bitcoin can become soulness by the nature of how you make it and spend it. Maybe a rich drug dealer or rudderless crypto whale are similar in evil if there is no soul in their operation. Maybe true wealth is soulfulness, and all else is a lie. Greed can definitely trick you to sell your soul for money, when no amount of money can buy back your soul. I get your dilemma. If you’ve got a lot of money, then what do you do with it all?

Yep, it’s like how do you keep pushing forward, striving for growth and success, whilst staying true to yourself? I do not want to get sucked in to this vortex of soulless greed that I feel exists in every industry and every aspect of society.

Do you believe in God or is that completely unrelated as a venture capitalist when making decisions?

Yeah, I am a believer. I'm Christian. I believe in in Jesus Christ.

How has that relationship formulated your thesis as an investor?

There is a mob mentality in the world. Mob mentality is linked to soulless greed. When I think of evil, I think of the devil. And this devil comes out as the madness of crowds. So when everyone is going one way that's often far from the truth, it lends itself to more evil. Look at the story of Jesus Christ, who was persecuted on a cross by the mob and then resurrected. And it turns out, he was the true son of God. That demonstrates the soullessness of a mad crowd, right? This relates a lot to how I think about investing in crypto. You shouldn’t go with the mob and follow the herd, right? To really make a difference, you need to be unique, think for yourself and be anti mimetic. I think my relationship to God and how I invest in crypto are somewhat related.

What would you say to a critique of Christianity, if they said you are stupid for following the crowd and being apart of that mob?

Christianity is one religion that actually recognises that scapegoating is wrong. And following the crowd is wrong. It shows this with Jesus being resurrected. Personally, I believe it’s true. Whether that story is ultimately true or not, it almost it doesn't matter. It's a valuable story. For humans to understand and believe, it's pretty unique in that sense. The story of Jesus recognises scapegoating and violence is wrong. In Greek mythology, the scapegoat actually becomes a god but it's never acknowledged that it was wrong to scapegoat and exile someone from the community. In many ways it’s a story of anti-mimetics. It’s really important for peace, growth and progress. I’m not a religious zealot when it comes to Christianity. I'm open minded to other religions. I love to learn about other religions. Actually, I had a friend here yesterday that was telling me about Sikhism, which is a religion that I really wasn't familiar with at all and I think there's probably a lot of valuable stories and takeaways from all kinds of different lineages.

③ Character

So given the madness of the crowds prevalent in the financial world, what does that make you then?

Ultimately, I don’t want to get sucked into the mimicry of doing stupid things. I also think one of the reasons I've been successful is because I see a big picture and I don't necessarily make it me versus them. I try not to do me versus them. I do think the madness of crowds exists but I’m trying my best to not get sucked into it, even though sometimes I do. I’m trying to fight it. That's what I would say.

So then as someone who can sometimes be apart of mad crowds, and is not about soulless greed, what does it make you as a character?

A perceptive participant.

Are you cool if I call you that throughout the rest of this simulation?

Sure.

Sweet. So who is your challenger?

There are many people in my world who don’t have anything at stake. They have no skin in the game. It's a term I've been using a lot lately. It’s important for people to not just have an opinion but risk something meaningful, right? Whether that's capital, reputation, or time. Get more skin in the game. A lot people are passive observers. I also think there's evil participants as well actively doing evil things. So It's not just passive observers that are the challenger. But they are a part of it. The passive observers are often the ones jumping into the madness of crowds and contributing to all of that.

⑤ Facts

🅐 Doing

Cool. Let’s do some digging now. What you are doing in the world as a Perceptive Participant. What actions are you taking as this character?

In one sense, I’m playing the perception game by trying to look good and trying to make the fund look prestigious and things like that. Also with things like buying the big house and stuff. Those are two examples of things I am doing in this character. But I’m also speaking out against anything soulless when I see it. So that's the other side of it. I’m out there evangelising. I don't hear many people talking about this stuff. So to me, that's something.

For example, I feel a lot of founders in crypto want to raise the most money they possibly can as early as possible by brand name investors to be perceived as prestigious, right? And I've learned from experience that it’s not a winning playbook. I’m trying to focus the reality of building something rather than just being perceived to be prestigious to the outside world.

I'm very transparent in communication with my investors and the founders that we're investing. We only invest in products we understand deeply. We are active participants in the products and active partners to the founders we invest in.

On a personal note, I just played in a golf tournament at a prestigious club I am at a member of. I brought someone that I've met fairly recently that I think is a great person and is going to be a good friend but not someone a prestigious club would expect me to bring along. I did it anyway. It's just a small example.

And I guess that applies to our fund. It’s not pretentious. We're not really doing any marketing. I'm on Twitter and stuff, but I don't talk to press. I'm not trying to be on CNBC or have our fund be famous in the mainstream media. That's another thing that comes to mind.

🅑 Having

What about things you are having in your world? Your havings are the results, the realities and the outcomes you have as the Perceptive Participant character.

Like the basic things I have? I have a great family. Kids, a wife, loving parents, siblings. So that's all great stuff. I've got a cold plunge that I use every morning. I've got an ultra red light therapy bed that I use every day. I’m working out every day. We have something called Project 150. I'm trying to live to 150 years old and taking really good care of my body.

What about things you don’t have?

There is one thing that bothers me is within in playing the perception game or whatever. We have one of the best performing crypto funds in the world over the past seven years and we don't have the brand name recognition that some other funds do. Funds who in my view are way worse at doing what I do.

So you don’t have recognition?

Yeah, I guess. I don't have the recognition I feel I deserve relative to what I've done, what we've done as a fund and what 1confirmation has built and helped build.

🅒 Being

So what's that as a way of being? Is that being disappointed?

It's not really disappointed. Maybe it's frustrated at times, especially when I see it affect team members or something like that. It's healthy motivation more than anything. I'm not satisfied. And that keeps a chip on my shoulder. I feel like it will come in time and it's not something that I'm trying to force. I've kind of found playing the long game and just sticking to my guns has been a great strategy long term. I very much believe in that approach.

There's certain things that when I see another fund mentioned or something like that, it just keeps me motivated and keeps me working. So in many ways, I think it's motivating. It's probably a positive thing. I'm not satisfied with what I've done so far. I think the best is very much yet to come.

And what ways are you not being as Perceptive Participant? These may be ways you want to be or don’t get to be or way’s you are glad you are not being inside this character.

Well, mimetic, right? I'm trying to fight the imitation. Humans are all imitative, mimetic and tend to follow the herd. I'm trying to not do that in everything from the way I fundraise, to the types of investments we make, to how we market ourselves from a fun perspective. Then in more personal life, not worrying about what the neighbours are doing.

I think there's also parts of myself that I don't show fully to the world. My online persona is very much crypto. But I do like a lot of other stuff that I think is unique, and maybe worth showing, but I don't show it as much.

Like being reserved?

I feel like everyone online is playing a character to some degree, right? So my character is a crypto person. You know, a crypto enthusiast, or crypto VC or whatever you want to call it. So that's the online persona that I show, but it's not showing you my interest in sports or my devotion to family. I do feel there will come a time where I show more of that. Overall I am being selective to this character. It seems I would probably raise appreciation if I just leaned into the like crypto character as much as I can because that's what got I’m known, for right? But it’s also good to be showing other stuff, because on one hand the internet is becoming more robotic, less human. And on another hand, I think crypto and a lot of crypto tools are making the internet more human. I want to lean into stuff that's making the internet more human and I think doing things like showing your true self rather than just the character you portray is leaning into the more human side of the internet. I feel like I should be doing more of that.

🅓 Wanting

Cool. So what else do you really want?

I want to positively impact the most people. I don’t want to contribute the soulless vortex of greed for money, attention, and power. I think that gets back to what we talked about at the beginning. What I'm struggling with is that in some ways to positively impact a lot of people you have to compete against those playing this soulless greed game, and then also bring something unique, whilst not getting too swept up in it. It’s a fine balance. I also don’t think fighting soulless greed head on or being antagonistic is necessarily the answer. Maybe the answer is playing the game in a more positive way that can offer others an alternative.

⑤ Choice

You mentioned Passive Observers are a challenger. But if you played that character instead of Passive Participant, would it get you what you want?

As a Passive Observer, you're not positively impacting people, right? You're just contributing to you the madness of the crowds. You're watching game, but you're not really playing it. So I’d say no.

How about these Evil Participants driven by soulless greed, would that get you want you want?

Ummm, no. But maybe being disguised as one whilst being something else could. You know, like playing some of the same game, but giving it a slightly different message.

Got it. So these Evil Participants are not all bad is that what your saying?

No, I don't think it's all bad. Being an evil participant is bad, but it’s hard to know who is being an evil participant, right? The evil participant I am describing is viewed by the world as the top of the game. So looking like that on the exterior, but being something else entirely might be a way to impact the most people.

Understood. So will the Perceptive Participant get you want?

Maybe.

I think my approach has done great so far, but I’m not fully satisfied. Perceptive Participant is what I've been for the past. It’s worked well in many ways. It’s been seven years since I started with 1confirmation. So I do think it's possible staying on that path is the winning playbook.

Ok, it’s time to make a choice. It’s time to choose a character that inspires you most. A conscious creation in the direction of your future. If you could choose two words, what would the character be?

It's a good question. I don't know. I'd like to think about it more about it to be honest. I like the path of the Perceptive Participant, but I’m not 100% set that it’s the only path for the next 10 years. It’s a great thing to think about. I need to sit on it.

Do you feel comfortable proceeding as Perceptive Participant?

Yes, definitely.

Ok great. Let’s proceed.

⑥ Simulation

We're gonna go to a special place now.

Please close down your eyes. I'm gonna close them with you. Let's take a deep breath together. It’s time to relax and let your imagination wonder. Perceptive Participant, go to a time in your life, whether it was recent or whether it was many years ago, where you were up against “soulless greed.” Maybe it’s even a time when you were greedy yourself. Go to that time and place. And when you're there, let me know. If you feel safe enough to share what's taking place, I invite you to do so. If not, you can just say pass and we can go somewhere else.

Pass.

Ok great. Let’s travel to another place now. Go to a moment where there was “madness of crowds.” Maybe it's earlier in your career. Maybe it's when you're much younger. Let me know when you're there. Do you feel comfortable to share where you are and what's happening? If not, you can also say pass.

Yeh, it's actually the same situation. Pass.

Cool. We're gonna go to another moment now, when you got caught up into some expression that felt “mimetic.” You can either feel free to share it or you can also say pass.

Pass.

Cool. Stay in that moment for me. Stay in your own private world. Is there any anything you feel called do in this moment? Maybe its an action, maybe it's an expression, maybe something that you want to speak aloud? Having gone back to the past, is there anything you want to do is this moment to re-write history?

Um, no. There is no action I feel called to take. But this does help me a lot. I realize the people sucked up in the soulless greed are not bad people or even willing participants. They're just doing what they think they need to do at that time. This helps me empathize with that.

Alright, beautiful. Keep your eyes closed. We're gonna go to one more place now. Let's go to far distant into the future. You're being a Perceptive Participant in the world. Maybe it's 20 years from now. Maybe it's when you're grey and old. It's timeless. It's spaceless. You are in the future now. Go to the place where it's undeniably true that Perceptive Participant is alive and real in the world. What miracle has come true?

I mean to me, it's like the whole world uses crypto, owns crypto and is benefiting from crypto.

Where are you exactly?

I’m in my house with my family. I’m hugging my son.

Beautiful, if you feel called to do it, take this moment to wrap your arms around yourself and feel the hug of your son. Connect to the love and feel it in now. When you are done, you can open your eyes.

⑦ Integration

What was that you just experienced?

It was cool. I liked it a lot. Particularly the end of this process. I liked going back and thinking about things that have happened in the past and what could happen in the future. I don't do a lot of that. So it leads me to think I should do more of it really because I think it was powerful. I enjoyed it.

I’m glad you had a taste of what’s possible in simulation. Especially, for trusting me to have this conversation.

You are good at what you do. So tell me, what’s the vision for simulations?

Let me say it this way. Questions are the gateway to the soul. Simulations is a quest—aeon. A timeless and spaceless questioning of one’s experience of the world. An eternal quest for truth across the ages of ages. This is not a conversation with God. It’s not artificial intelligence either. It's a hero’s journey into natural intelligence. A sequential dialogue with the highest self, which sheds any layers that disconnect you from the soul. It’s a layer one technology with endless utility. A protocol for creation. A new format in consciousness. A language model designed for man’s spirit. I am not raising money for this venture, but if I ever do, you’ll be someone I’d call.

It’s super cool. Let me know if there is any way I can help.

Good to know. I’d like to pray to close this simulation out. But if that’s not your vibe, we can always we can end things now.

Let's pray.

All right. Do you want to lead the prayer or do you want me to do it?

You got this.

Dear Father, Thank you for the opportunity to speak to another brother on the path. We started this simulation as strangers, we leave in the grace your spirit. I pray for more beautiful conversations like this in the future. I pray for the soulful to remember who they are are. I pray for the soulful to come together. I pray for the leaders of the world to speak their truth. Thank you, Nick. Thank you, Lord. Amen.

Amen. Thank you very much.

Simulation Complete