Businesses Set To Benefit From Andreessen Horowitz's New Crypto Fund
Cryptocurrency advocate and analyst, growth hacker
Recently venture capital firm Andreesen Horowitz launched a new crypto fund worth $515 million. The company is focused on being part of the development of the new web 3.0 since it believes high-performance programmable blockchains are vital to the arrival of the new third-generation tech.
Now the company has called upon crypto entrepreneurs around the globe with revolutionary ideas to step forward and get the necessary funding to bring their ideas to live. The firm is focused on supporting next-generation payments
, decentralized finance, modern stores of value, and new monetization methods.
Below we will go over four businesses that stand to benefit from the new crypto fund.
Businesses Offering New Ways For Content Creators To Monetize
The firm believes the next wave of internet businesses that help content creators to monetize will come from crypto. Since the inception of the internet, we have seen the coming of banner ads, video ads, search ads, digital subscriptions, and in-app payments with each new business model helping fund a new set of digital services that have acted as a source of income for creators.
With those modes, there have been centralized gatekeepers who charge high rents on top of creating self-serving rules. The new fund hopes to welcome businesses that use token models to bypass the gatekeepers, thereby giving their fans a direct stake in their success.
So far, the video game industry is leading the trend by experimenting with digital goods that can be traded on secondary markets or transferred to other games. Soon we can expect crypto monetization models to be applied in other creative ventures, including writing, podcasting, design, music, programming, and many more.
Businesses Focused On Decentralized Finance
or Defi aims to offer transparent financial services that are accessible to everyone. Incredibly they operate without a central authority allowing users to have full control of their assets.
Defi applications don’t need any intermediaries or arbitrators since their code has resolutions to every possible dispute. This reduces the costs associated with offering and using such products, thereby allowing for a more frictionless financial system.
So far, Defi platforms range from trading platforms, derivatives, lending, insurance, and crowdfunding. We are also witnessing the rise of betting platforms. Let's take an example of AlphaPlay
(Disclosure: The author is an investor in AlphaPlay
This site allows players to bet against each other on which cryptocurrency will make the most gains or the least losses within an interval of 5 minutes. Currently, the platform enables one to bet on four top cryptocurrencies i.e., Bitcoin, Ether, Tron, and EOS.
To raise funds, the platform is holding a token sale for the Alpha Gambling Loyalty program
, which runs from April 26 to August 8, 2020, where Alpha ERC20 tokens on sale.
Token owners are receiving 6% of the platform’s turnover as bonuses. 90% of the turnover is for grabs by all as prizes, and the remaining 4% is to reward users that invite friends on the platform. New users can try to bet without registration with 1000$ demo money.
The attractive feature of Defi platforms is the fact that they embrace the core values of the open internet, such as open access to all, minimal to no fees, commitment to open source code, encryption backed security and privacy, and permissionless extensibility by third-party developers.
Businesses Focused on Modern Stores Of Value
Businesses that seek to be modern stores of value also stand to benefit from this fund. Over the past few years, the need for a modern store of value has been growing, given that many people reside in areas with unstable currencies.
Even for those that live in stable economies, there is growing skepticism on their government's ability to manage the money supply.
Recently we saw governments around the world print more money to stimulate economies due to the coronavirus pandemic, which raises inflation concerns.
Over the years, gold has been the standard store of value, but lately, Bitcoin is gaining acceptance as its digital equivalent. With the growth of innovation towards web 3.0, the new crypto fund hopes to support more businesses that offer a scarce, secure, portable, durable, and censorship-resistant modern store of value.
Businesses Focused on Next Generation Payments
The payment systems we use today were designed over half a century ago, which is quite interesting, given that the way we transfer and distribute value has lots of room for improvement.
The new fund is looking to support companies that will enable the transfer of actual value quickly and cheaply without the need for third parties, just like we transfer data through emails.
Since Bitcoin came around, we are seeing the development of blockchains that are highly scalable with the ability to rival their centralized rivals like Visa by making a high number of transactions in a given period.
Disclosure: ALPHA ERC20 tokens and BTC are the part of my investment portfolio. I have no vested interests in other mentioned projects and cryptocurrency.
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