Buzz of the town: Era of new venture capital- never lose your capital
Venture Capitalist lose 7-8 bets to gain 10X in one successful project. If they can't gain 7-8X in that successful project, their capital is lost. ICOs being mostly scammed and undelivered, lots of capitals are lost by the investors in the last ICO bubble.
One of the million Steem holders, @theycallmedan noted that crypto market is so dampened that Elon Musk can't drive the market while last year, a single tweet from John Mckafee would drove up a crypto market. One of the reasons is the ICOs pump and dump. Investors are so pissed off, most of them have left. New investors are scare to drive in.
Here comes power of delegation that is recently brainstormed by @acidyo, @tarazkp , @theycallmedan and many others. In future, investors will delegate SP to their favorite SMT (i.e. ICOs) in return of ICOs/SMT tokens. If the project is doing well, investors will continue support. If the business fails, investors can undelegate their SP. The loss will be missing out curation or bidbot profit for few months. But the whole capital will be safe. If few projects can return handsome gain, they investors will make handsome money. Moreover, small SP holders can also participate through delegation. SP delegation to new DApp can be more profitable or lucrative than current bidbot delegation.
Moreover, it can attract outside interest from many, many investors who are looking for safe venture capital type investments. Steem's price can go up due to demand from investors to buy more SP to delegate in lucrative new ICO/SMT craze with little risk.
In the meantime, content creators can find new DApps where they can earn SMTs more rationally than in current Steemit environments. For example, @dtube will have its own SMT and can experiment with different reward distribution method that is currently used in Steemit. Content creators will find their favorite DApps whichever satisfy their niches and demands.
Delegating SP for multiple purpose from bidbots to (future) SMTs is already a thriving economy. The release of SMTs, Oracle and Community will make it more useful, diverse and lucrative.
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Disclaimer: This opinion is not a financial advice, it my personal perspective and opinion. Please seek professionals for financial decisions.
Cheers!
Image sources: Most images are open sourced (e.g. Pixabay, Wikimedia etc.) with Creative common license. Some images are used with due courtesy to respected owners.
Thanks for reading.
@riseofth
Cryptominer since 2013, occasional trader and tech blogger
Another interesting part of investing into Steem in various ways is that one can still actively use the investment to some degree whereas in venture capital, it is locked up for potentially years before there is even a chance of return.
Like @theycallmedan, more and more are going to start understanding the potential of investing this way and many who are umming and ahhing are going to miss out.
Great point. However, it can also put unduly pressure on the DApp devs to stay relevant and push short-term thinking. The successful DApp will figure out the balance. But by any measure, it will be a new addition to the Smart Contract Features that blockchain enthusiasts are calling for.
That is true so it is a tradeoff position but introduces accountability. A decently seasoned investor will understand their obligations and as you say, figure out the balance.