Inception Capital: Why did we invest in Unisat?

UniSat is the premier platform for Bitcoin Inscriptions and Runes. Designed specifically for the Bitcoin ecosystem, the platform and wallet (available via mobile and browser extensions) facilitates the management of Bitcoin-based assets such as Ordinals, BRC20, Runes, and Atomicals (ARC20) tokens. It allows users to store, mint, and transfer these assets directly in their browser without having to run a node, making interaction with Bitcoin's emerging asset class simpler and more convenient.

The wallet supports a variety of innovative features such as instant inscription of Ordinals NFTs and Runes, instant viewing of unconfirmed NFTs in the mempool, and a marketplace to trade these assets. Additionally, UniSat prioritizes security and does not store private keys on its servers.

In short, UniSat is one of the best existing solutions for regular people to interact directly with the thriving Bitcoin asset ecosystem.

The advent of the Ordinals protocol has led to the fastest growth in new transactions on the Bitcoin network since 2009, with BRC20 accounting for the vast majority of those transactions. However, interacting directly with Ordinals and BRC20 requires technical knowledge that most people don't possess.

UniSat is changing that. In the past few months, they have released a whole suite of products, including Wallet and Inscribe in February, Search in March, and Marketplace and Rune support in April. This team knows how to build products that users want.

Since launch, over 50% of inscriptions have been created by UniSat Inscribe, and over 80% of BRC20 are traded on the UniSat Marketplace.

For the first time in Bitcoin’s history, there is a real opportunity to profit from mining Bitcoin for transaction fees rather than relying on fixed block rewards, driven primarily by consumer interest in trading Bitcoin’s native tokens.

After the recent Bitcoin halving and the simultaneous launch of Runes, Bitcoin’s daily transaction volume peaked at over 900,000 per day, and Runes’ share of transaction fees even surpassed BTC for a few days.

On May 8, the total fees per block temporarily exceeded the block subsidy reward for the first time since 2017.

The growing momentum of inscription and rune activity gives people hope for the future of Bitcoin. In order to maintain Bitcoin's security budget, it is necessary to find a way to increase transaction fees to offset the reduction in block subsidy revenue after each halving. Currently, inscriptions and runes are the main way to increase transaction fees, and platforms that facilitate these transactions, such as UniSat, are critical to promoting interaction.