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All the Money in the Worldby@mattmarkham
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All the Money in the World

by Matt MarkhamSeptember 3rd, 2018
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<em>How to Buy into Blockchain</em>

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How to Buy into Blockchain

I think the biggest opportunity in blockchain lies in the $256 Trillion of real world assets yet to be put on the network. To give you an idea of how much money this is, take a look at the infographic above.

Even if only 0.10% ends up on the blockchain, that’s $256 Billion of opportunity sitting there.

The biggest risk and reward sits with those who get in early. As Richard Branson often quotes, “nothing ventured, nothing gained.” I write this as a young man, so it’s a fit for me, as I can afford volatility, but consult your financial advisor before doing anything.

Look at Wyoming, which has just passed legislation, allowing state-sponsored utility token sales.

This reminds me of the Marijuana legislation. Investors who got into a group of promising companies have done well so far, but they’ve had to be ok with volatility. Here’s an example of a company that has done well in that space. If you were in this stock a year ago and held until today, you would have made 500%+

Let’s look at some examples of where this is happening, and how you can dip your toes in as an early bird investor into blockchain:

1. ICOs — while these vehicles are risky, top investors, including Mark Cuban and Tim Draper are investing when conditions are met that validate the company as “legitimate.” What does a legitimate ICO look like?

  • At least 5 full time team members and developers
  • A semblance of a working product
  • A real reason to buy the token
  • In regards to the above I need to see a real case of demand outstripping supply of the token (Binance does a great job of this) or the token providing access to a real asset like cash flow or equity. Here are some examples of tokens that satisfy the above:
  • Mortgages on the Blockchain — Block66 — this one’s a no brainer. more than 5 full time team members, a pre-MVP with a team that has successfully sold lending businesses in the past — a big help for a mortgage platform that connects borrowers and sellers in the mortgage process. The biggest question here for me is, why buy the token? Well, the token provides an income stream of ETH for those who buy the tokensbecause the product redirects fees from platform users to token holders, compelling people to hang on to their B66 tokens!
  • http://www.xeophinbio.io — Xeophin — this one is very interesting, although I’d recommend understanding what you’re buying, so if you don’t understand drugs or healthcare then I’d recommend reading up before proceeding. The team is tokenizing income, as a royalty, from their rheumatoid arthritis drug, XeRA-1, tackling a $28.5 Billion market. Again, why buy the token? Similar to Block66, token holders here get access to a stream of income, although this time from biotech instead of mortgages. Xeophin is also seeking SEC compliance, which would make it a one of a kind venture.
  • https://sindric.io/ — Sindric — this is a pureplay bet on institutional assets entering the cryptoasset space. Run by a team that already has a successful trading platform (https://www.coinmarketwatch.com/), CEO Vishal Karangutkar is one of the best blockchain developers out there and has a team experienced in trading. There’s no Bloomberg experience for institutional players, and that all changes with Sindric. There’s ~$900 Billion of institutional assets waiting on infrastructure before they’ll enter the space — Sindric provides just that. Why buy the token? Unlike most platforms, you’re buying access to a team that already can give token holders premium features on its existing site to help them beat the market on crypto trading.

2. Established Companies: while slightly less risky than ICOs the return here can also be quite attractive if you find the right play. Again, as Tim Draper asks, why is there a genuine demand for this token. As Marc Cuban asks, is there a platform I can use this token on? Here are a few examples:

  • Keep in mind these tokens all have the following: more than 10 full time team members, profits, offices internationally, a strong following and a proven token ecosystem:
  • earn AXPR. Get the freelancers you need. — aXpire — a FinTech software company — has a freelancing site called MatchBX that requires use of their token, AXPR. All fees on the platform (a flat rate of 3% of the job amount) are burned, which reduces the supply and benefits the community. They mainly serve businesses, but allow P2P interaction on this platform. Their other platform, Resolvr, a spend management tool, services hedge funds and private equity firms. The spend management tool requires AXPR as a monthly software fee — the SaaS model!

  • http://www.binance.com — Binance — a cryptocurrency exchange that makes its money through listing and trading fees. It’s probably the most famous exchange, led by CZ, and based in Malta. Like aXpire, Binance burns their tokens and have real uses cases for their tokens through listing requirements.

3. Royalty streams, IP: invest some of your funds in sponsoring intellectual property going into the blockchain space. Earn a royalty every time that software or piece of intellectual property is used. There are multiple ways to do this, leave a comment if you’d like to know more, but it’s a nice way to get involved without too much leg work.

So there you have it, 3 routes to earn from blockchain in a way that’s currently only beginning to be tackled.

Nothing venture, nothing gained.

All the best,

Matt

p.s. leave 50 claps if this was helpful!

p.p.s. again, none of this is financial advice