Advise for financial advisors on how to wrap their solemn heads around new tech such as NFTs, DAOs and DEFI.
P/art1: Code is King
Let’s kick off with the simplest of statements. Web 3.0 is here to stay & from here it will keep on growing. This newest version of the internet abides by a whole new set of rules, and those who are nimble will profit the most. So, let us open Pandora’s box, glimpse inside this prolific crypto wilderness & dissect what is under its roaring hood…
Every generation chooses it’s own zoo. Maybe that is why apes became one of the animals of preference in the standard idiom of millennials trading crypto, breathing blockchain, writing & re-writing its code; Often during lonely nightly sessions, accompanied only by the likes of Discord, Twitter & Telegram _all of which are social community platforms. Loneliness generates its own set of thrills.
Though their choice of words may seem outlandish (Millennials “ape into a coin” like Wall Street veterans buy into a stock,) their dealings with cryptocurrencies in general: are pretty much straight-forward. Competition is real, but equally so, is working in teams towards goals that surpass purely egocentric motivations. Successful crypto projects thrive on teamwork. Their strength emanates directly from collaboration.
Social by design, as a group, Millennials behave more like bees forming a hive; All the hexagons popping in and out of crypto marketing, directly refer to how bees work in group. Millenials are simply making awesome things happen. To cite Thoreau: “The morning wind forever blows, the poem of creation is uninterrupted; but few are the ears that hear it.” If you don’t want to get ran over by the bus, better start listening to what the younger generations are doing here.
Successful Teams build efficient rewarding ecosystems
Energetic millennials, with the help from older generations, are the kind of animals openly hunting for another type of mammoth. They aim to shake up and reshape whole industries & challenge behemoth multinationals. It is wonderful observing teams being built around relatively young entrepreneurs and especially IT-people, in the know of how blockchains are coded; Nothing stops them from disrupting the whole system.
For your information, some really big Fortune500 companies have understood this. Look how Maersk has reshaped the whole shipping industry, how BMW has integrated blockchain in their production chain, or how Ve-chain is growing at a vast scale. Teams succeeding in designing a resourceful rewarding ecosystem, as well as attracting some expert members of their industry of choice, are destined for the stars.
Financial expertise and coding genius cross-sectioning, not only generated marvellous DEFI (Decentralized Finance) projects, but made the crypto hive swarm out towards all sectors of our economy, at an unprecedented rate. Until the 2017 boom, crypto as a sector missed the adequate tools for larger players to move in. Experiments were obviously already being rolled out into many sectors of our economy…
Interestingly, for full functionality, we had to wait for the birth of DEFI in 2020. DEFI essentially professionalized coded rewarding mechanisms. If crypto does anything, it cuts out some middlemen, which reduces the cost of entire operations (in any industry.) So, not only the roles & rules of banking are gradually changing, the whole concept of ownership is turned upside down. The money one saves from the middlemen, can be used to stimulate anybody willing to change & evolve towards more efficient processes.
Nothing useful comes from in being in denial. DEFI is in a very specific way the epitome of a liberal market. Its very configuration is lean and efficient & embodies free trade like nothing else has ever done before in human history. If we can trust the code, then nothing stops us from cooperating beyond any border. Pair that to governance mechanisms which can be very social, as well as sustainable; And you know the perfect storm is brewing.
Greatness is often described as a natural ability to excel. In crypto, eminence comes into being through teamwork. And the team revolves around proper rewarding mechanisms translated in a fully functional ecosystem, guaranteed by a well written code. The code is the backbone. The team is the vessel. The passengers are the people using the decentralized application, generating (best case scenario) ever increasing transactions. Fees on transactions make the ecosystem fully circular…
Legislation Must Follow Suit
Goes without saying, one must be careful and watch out with the motivations of certain influencers online. Though they have different motivations to do so, many “just want to shill their favourite project to their followers on social media.” They warm people up to a certain coin through popular channels like You Tube, Twitter or Telegram, which then make people flock like lemmings to a predesigned destiny.
Oand of course, pump-and-dump-schemes and rug-pulls are still around. A lot of so-called ‘shitcoins’ attract all types of gold diggers. Some people smell the money & try to get a piece of the pie through sneaky deception. Speculation abounds. Luckily, the cryptographic industry is starting to give positive signs of genuine maturity. Bad actors tend to be named and shamed, as much as possible. Be that as it may, will it be enough?