🚨Disclaimer: This is not investment advice. I am not an investment advisor. This information is meant to be for educational & entertainment purposes - DYOR(Do Your Own Research).

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Understanding the pace of Technological innovation - Slow or Fast?

Over the last 2-3 years, the things we do online have not changed much!! But think about your life ~20 years back, when there were no smartphones, internet apps, or cloud computing services.

In late 90s, how would you react if someone told you, “In some time you would…”

• Order a taxi from our phone, and the taxi would know exactly where to pick you up, drop you and charge money from your bank account.

• You could do all your banking on the phone, Watch a movie on a moving train with audio piped through a wireless a headsets.

• Do a video call with participants from around the world.

  It would have seemed straight out of a science fiction movie.

That’s because technology evolves in S-Curves

It feels like not much is changing, but then a new technology or concepts comes along Smartphones, Internet etc, and everything explodes.

So are we ready for the next wave up? The Metaverse may be the next generation of the internet.

No single definition of the Metaverse.

Metaverse = Web 3 + AR/VR/Sensors +  Social Interactions

Not one virtual world but many worlds where people interact for different needs (work, play, socialize, etc)

Metaverse use cases are still emerging (similar to how the internet grew)

• Potentially everything we use the internet for today and more

• Gaming, commerce, art, media, advertising, smart manufacturing, health care, virtual communities, and social collaboration 

The idea of the metaverse has been in the works for over 2 decades

Why now?

• Improved Infrastructure: Higher speed internet, Increased computing power on edge & cloud devices

• Hardware & Software Innovation: AR & VR Capability, 

• Blockchain Technology: Building trust in a decentralized, trustless environment

• Sociological changes: Generation of children growing up more comfortable with  virtual interactions - Roblox, Minecraft

So What does the future look like

If you haven’t watched the movie Ready Player one, I would strongly encourage you to watch the Trailer. It is a great way to get a sci-fi glimpse of what the metaverse can become. There are enough cases of visions from sci-fi movies coming to life in 20-30 years.

Potential Use cases in the future - Fully immersive experiences

Lots of excitement about the potential of the space, but still early days

Metaverse, Gaming, Sports, Music, Fashion NFTs are just starting off… 

What is the role of NFTs in the Metaverse?

Digital assets, such as NFTs(non-fungible tokens), in the Metaverse enable a form of sovereign ownership for the users/owners and are tradeable, composable, immutable and mostly interoperable.

Brands have already begun establishing their Metaverse identities

Lots of similarities with the early days of the internet but this is just the beginning

• Clunky Graphics & Bad UI & UX

• Mobile device access is limited

• Complex to understand with lots of jargon

• Lack of Trust & lots of scams

• Regulatory standards are not clear

Still limited to a small user base with price being very volatile & speculative

Large Metaverse Projects

Decentraland - Live ($MANA)

Oldest project in the space. Single Metaverse layer. Building collaborations with top crypto projects globally, many setting up virtual headquarters there. Prominent metaverse, used actively by communities. Networking & Events primarily driving Decentraland adoption. Many art galleries few games. JP Morgan established a presence

The Sandbox - Early Alpha Release ($SAND)

Build a game platform with multiple creators - Blockchain based minecraft competitor. Evolved from a non-blockchain project into a new paradigm. Primarily focused on gaming. Many prominent NFT communities & game companies have acquired land. HK specific land projects MegaCity being launched

Cryptovoxel - Live

Oldest project in the space. Single Metaverse layer. CryptoArtists from all around the world have taken over this platform generating lots of content. Filled with art galleries and an active community. Many art and business-related events. Unfortunately, no central way to find and access them

Somnium Space - Live

High-end devices-focused project. With beautiful image rendering on a high-end VR device. Every plot has a different size and limitations. A small community, high-end VR equipment is required. Art galleries & private land built for custom requirements

Meta (Facebook)

Over the past couple years, Mark Zuckerberg has staked his legacy on the development of the metaverse: new virtual spaces which he believes will be as transformational to the world as smartphones were 15 years ago. Early releases have not lived up to people’s expectations, and the company has received a lot of flak.

There is a growing list of contender projects as the lines between games & metaverse projects also blur out - Axie, Enjin, GALA, MetaHero, BigTime, VulcanForge, StarAtlas, BLOK

This article was to get you started; I will write more focused articles diving into specific areas & use cases over time.

🚨Reminder of Disclaimer: This is not investment advice. I am not an investment advisor. This information is meant to be for educational & entertainment purposes - DYOR(Do Your Own Research). Please do your own research before you decide to invest your hard-earned money. If you are unsure seek help from a professional financial advisor who can understand the full breadth of your financial needs & commitments to advise you on what you should do.

Let’s dive into the 10 insider tips in full Crypto Humor using Memes to help us

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1. Crypto is highly correlated i.e. things move together

External Correlation - BTC moves with SPX, Bond prices, inverse to Dollar index. When crypto was a small asset class, it could exist in a vacuum from the rest of the world. That has changed with an inflow of hedgefunds, family offices and other financially minded players. They view this as a high-risk asset, which ties to whether the market is “Risk-on” / “Risk-off”. So when the US Dollar was pumping and US equities, Tech stock were going down in a “risk-off mindset”, it was hard to think that Crypto would be spared from this carnage. Crypto is now tied to Powell and his view on Fed monetary policy tightening.

Internal Correlation - All coins move with BTC - The 15k to 20k tokens that exist in crypto (half of which are down 90-98%) move broadly in the same direction (up or down) as Bitcoin(BTC). Till this correlation lasts, alt coins are simply a higher beta play to BTC.

Action: Watch the broader markets for signs of a reversal before jumping back in and don’t hope to catch the bottom.

2. No one really knows the true price of any crypto - its basic Demand and Supply at its best.

Should BTC be worth $1, $1k, $20k, $70k, $100k??? Depending on who you speak to, there is a justified answer for each of these valuations.

But one thing is true - when more people want something and are standing in line to buy it, the prices keep going up. Why is that - we get a double kicker - 1. those who hold it don’t want to sell it anticipating higher prices, 2. new entrants want to buy it, hoping it will go up more in future. However, there is a pivotal moment when this price auction process reverses, and suddenly, the first set of cracks appears. The few sellers who are in the market for the first time can’t find buyers willing to pay the current price(OMG, blood is on the streets). Now buyers step back and wait for lower prices. Damn, prices are cracking. Sellers hoping for higher prices start to panic seeing prices falling, they flood the market with supply, prices drop, and more buyers stay on the sidelines waiting to get more discounted prices. This can continue until there is true capitulation - with a bunch of bear market rallies to suck in bottom fishers along the way!

Its amazing - so simple and obvious - but most of us miss seeing it for what it is.

Action: When your taxi driver and barber are talking about crypto, and it is on the news, sell everything. When your friends hate you for talking about crypto coz they finally could not deal with the pain and sold everything - it might be a good time to re-enter.

3. Liquidity is King - If you don’t know what it is, you are the liquidity.

1. Market Liquidity - Having explained the market auction across buyers and sellers leads us to the core concept of Liquidity or money. When it is injected into a market in the form of buyers bringing new cash to buy up assets, it leads to an increase in prices. It creates a strong move up, and when that is taken out of the market (and cash is put under the mattress), it sucks out the life & blood from the market - creating the vicious downward spiral of collapsing prices.

Action: Watch this closely to understand when the party is starting and when it is getting over - coz as the liquidity drains out, prices will start to fold

2. Personal Liquidity - Reflects how much cash you have available to capitalize on opportunities when they emerge (when prices drop). If you are fully invested and have little cash ready to re-deploy into the market, you will miss out on many opportunities.

Action: More money is made by waiting on the sidelines for the right time. Don’t try to time the tops. Sell to lock in profits and keep cash available to be able to redeploy when opportunities emerge.

3. Exit Liquidity is covered in the Shillers/Scammers section below

4. Make a plan & Stick to it

Let’s say I set a goal to climb Mt Everest. Then 2 years go by, and one night as I am finishing my 2nd bottle of wine, I wonder why I still did not make it to Mt Everest.. ehhh - obviously - no plan, no progress tracking, no honest assessment of where you are going wrong and what you need to improve. Climbing Mt Everest is a dream and it will stay that way unless I really put in the hard work to make it happen. No plan, No Prep, No training - NGMI

Why do we think making it in Crypto or investing will be any different?

Action: Spend some time to think about your goals and develop an action plan to work on it - ideally with an accountability partner or someone you can trust

5. Beware of Shillers & Scammers

Twitter is the hub of crypto. There are people who have built a huge following on Twitter and Youtube, touting themselves as experts who have “made it” and are talking about projects that are the next 100x Gems.

Let’s follow a typical cycle. The price of a token is ranging around $0.8 to $1. No one is talking about it or buying much of it. A few crypto influencers start talking about this as the next biggest coin with a 100x potential. As they tweet, price already starts to move up from $1 to $2 to $3 to $4.. People are FOMOing in to buy this next best Altcoin. “ABC” is such a nice guy to share this amazing thing with all his followers.

See anything wrong with this? Lots → The influencers loaded up on a big bag on this for around $0.7 based on some inside sales from the project team.. Shared with a few of their close friends who bought it for around $0.8 to $1. Then released the info to their wider audience who pumped up the price with their sudden buying. What happened next, the influencers and the project team started selling out their bags around the $3 to $4 range - effectively dumping on their followers (late buyers). As the buzz settles, given no real catalyst for the price to have risen, its slowly grinds down from $4 to $1 and then keeps dropping to $0.2.. Buyers on the top -EXIT Liqduity for the shillers!

Many examples of this around

6. Learn to take profit and manage your greed!

This can be a hard one. Sell to early and watch it going up as “every one” is making profit. Sell to late and see it keep dropping in price!

Action - When you see life-changing money or profits in front of you, take it and stash the money away. Its not your unrealized gains but realized gains that matter

7. Investing is not about buying lottery tickets

Looking for tips and random project names from influencers without any research or understanding of the nature of the business, founders, roadmap, and execution capability is like buying a lottery ticket and hoping that you win.

Stories like this create a negative feedback loop in our heads to promote taking unmanaged risk.

8. Metaverse is not around the corner - don’t FOMO in on projects at any price!

Q3/Q4 2021 saw a huge surge in metaverse projects with all the buzz around Facebook → Meta. While I don’t doubt the potential of what Metaverse projects or Gaming crypto could create - for now, that pipe dream is quite far away. Most don’t even have a working product, let alone think of an active user base and recurring revenue to generate cash flow.

I have interacted with founders who were just interested in a cash grab and looking at making something really basic and dumping on their community.

Valuations went crazy and since then have crashed and burned. There will be a next wave which will catch the imagination of people - but be careful and practice appropriate portfolio diversification & risk management.

9. When you hear yourself “Hoping” for something to go up - it’s already game over!!

We get emotionally tied to outcomes.$5k investment goes to $10k -100% profit and we don’t take profit. Then as it slips to $9k we vow to sell it next time it comes to $10k. Keeps sliding well past our entry price - with a few bounces along the way. So now we have a profitable investment that is now loss making $4k value and we hodl it down all the way $2k wondering why we did not sell at $8k or $9k - sounds familiar.

When the direction changes (ie. it starts to go down) sell it and get out - it’s that simple.

Action: Your goal is not risk avoidance but risk management: to mitigate risk and have a significant degree of control over the possibility and amount of loss. And when you learn to realize profit.

10. You need to stick around to make it to the next round

If this (Mad Max Fury) is what the world of crypto really is like, you need to grind it to get OG status and build your strength. If you took your beating and leave to come back in a few years - you are a tourist who might get it handed to them next time when you come back.

Action: Use this time to develop a game plan, build a network with those who are truly interested in the space, build a business, learn new skills and help the space move forward. You would be surprised how well-prepared you will be for the next wave.

Bonus Tips: Read till the end for my 2 bonus tips

Bonus 1: Buy the rumor, sell the event

If crypto is really driven by a lot of hype, most participants overestimate the impact of something happening on its price e.g. Ethereum Merge, New partnership deal, or new staking capabilities. Most actual events get priced in (or over priced) quite quickly when the new comes out. NFA - Best play is to buy it in the early days when there is rumor / news but don’t hold it past the actual event - definitely in a bear market.

Bonus 2: Most of crypto is a ponzi, spend time to find the real gems

Real wealth will be created if you can spend time doing research to find out which projects & teams are actually building and delivering new products & services. Stop treating it like buying a lottery ticket - put in the hard work to find the real gems. Have a few small well-research investments vs. a spray-and-pray approach.

If you liked this article - Do sign-up for my FREE weekly newsletter, share it with your friends, and give me feedback. You can find me on Social Media Twitter - @sauravbhats or Linked in.

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🚨Reminder of Disclaimer: This is not investment advice. I am not an investment advisor. This information is meant to be for educational & entertainment purposes - DYOR(Do Your Own Research). Please do your own research before you decide to invest your hard-earned money. If you are unsure seek help from a professional financial advisor who can understand the full breadth of your financial needs & commitments to advise you on what you should do.

Thanks for reading Saurav’s Newsletter! Subscribe for free to receive new posts and support my work.

🪐 You stopped writing!! What happened?

Hi everyone 👋. Welcome back. No excuses here. I just went down a rabbit hole in crypto that sucked up too much of my mind space. I skipped 1 week of writing, which turned into 2,3,4 and before I knew it - I had stopped writing.

If you are still looking for the most woke crypto content (blockchain, nfts, defi) and life advice (lots to learn from my mistakes), this is the place for you.

💡What’s in it for Me: Get Smarter in 5 Minutes

This is where I curate a reading list of insightful articles, market updates & bite-sized learning nuggets to get you caught up for the week. If you're reading this you are part of the 300+ subscribers to this newsletter, thank you. 🙏

🔥Crypto Market Update

Let’s start with some crypto market updates.

• BTC is down ~70% from its all-time high price of $69k

• Many smaller alts are down 95% to 98% - I did not appreciate that was possible till I saw the charts and price action

Just to be clear, a 98% drawdown means if you put in $100k at the top you are now down to $2k and your money needs to 50X (5000% return to break even if you bought the top)

So what caused this mess?

• Markets were overheated. Money Printing was stopping. Interest rate hikes were on the horizon. Risk on assets was not in vogue. Even Netflix went down 70%. The next trigger for crypto came from the Crypto Market Contagion.

• Terra Luna / UST Crashed - This was touted as the most amazing algorithmic stablecoin. Amongst the safest bets in crypto but that was not to be. find out more.

• 3AC Collpased - $18Bn assets under management but with very high exposure to Terra & UST. They took a huge hit. Once they went down the full force of the contagion kicked in.

• For those of you who bought the dip hoping for a quick bounce. My condolences. The markets had a lot of unwinding ahead of them.

• Markets stabilized a saw a small relief rally in July & mid August - Many alt coins going up 100% (as much as 300% MATIC) from their lows.

NFT Market got hit Hard

Monkey pic got demolished from 100-150Eth down to 15-20Eth currently.

The liquidity just dried out, lots of money was pulled from the market. Teams rugged and the tourists have mostly left.

So is this game over for Crypto?

NFA (Not Financial Advice). But I don’t think so.

In my next article (coming this weekend), I will lay out some of my learning from this roller coaster and what are the pitfalls to avoid if you are still hanging around for the next round in Crypto or even tech stocks (any ARK fund maxi’s out there)

If you liked this article - Do sign-up for my FREE weekly newsletter, share it with your friends, and give me feedback. You can find me on Social Media Twitter - @sauravbhats or Linked in.

🚨Reminder of Disclaimer: This is not investment advice. I am not an investment advisor. This information is meant to be for educational purposes - DYOR(Do Your Own Research). Please do your own research before you decide to invest your hard-earned money. If you are unsure seek help from a professional financial advisor who can understand the full breadth of your financial needs & commitments to advise you on what you should do.

The NEWEST ALPHA GROUP in the CRYPTO GAME

The Kongz been taking on the CryptoPunks group and making big waves!!

What does this even mean… Alpha Group?

Many of you have joined this newsletter midway through this journey. I wanted to write a recap of the key content so far and potentially the recommended order in which you should read it.

The Crypto world feels like walking on slippery ice

But as TONY STARK says it - Sometimes you gotta run before you can walk

Start here if you are New

• 💡What's the Fuss about Blockchain? Simplified Series - Crypto & Blockchain is all the rage. Let's look at a few analogies to understand it better and really understand what makes it special.

• 🥇Top 5 Crypto Currencies and their smashing returns! - Elon might have got most people convinced that Bitcoin + Doge = Crypto!! But that's not true. Lets look at some of the other big projects in the crypto world

• 🥇Next 5 Crypto Currencies and their smashing returns! [Top 10 Series] - What! There is more than Bitcoin & Ethereum?? Get primed on Ripple (XRP), DogeCoin (DOGE), Polkadot (DOT), USD Coin (USDC), Solana (SOL)

• The Real World of Crypto - 🔥"Ferrari's & Parties" or "Scams & Rug pulls"- Must Read - Everyone is looking to get-rich-quick but Crypto is like a jungle out there. The reason for the high return is that you need to battle Scams, Volatility, RugPulls, Hacks to come out the winner.

What’s up with Bitcoin

If you have not heard of bitcoin, you were clearly living under a rock but now is the time to catch up on it.

• Bitcoin Price - Scam or Real? Is Bitcoin just another Tulip mania of the 21st century or is the first digitally scarce decentralized currency a marvel of technology that truly is worthy of its price appreciation?

  

The NFT Mania

Cyber Kongz is looking to up-end Crypto Punks with quite a few prominent members moving over to this new group. The group’s membership is represented by ownership of the NFT. Those that own the “Genesis Trait” kongz are the super alphas.

These pixelated pictures are selling for crazy money. The latest sale was 3 days ago for 215 Ethereum (the Green dude with specs). At a current market price that is $750,000 USD.

You would think that is stupid as hell!!! Just a bunch of crazy people with too much money. That cant be further from the truth

Would your thinking change if I told you that based on current projections the ‘Genesis Kongz’ can create annual Yields of around $500k per year - and if you have crypto money - you really want to get into some of that yield to be ready for the crypto winter when you need liquidity to keep going.

If you want to find out more - here is where to start

• 📣🖼 Demystifying NFTs - Here's what you are missing out!! - Banks have been around for centuries. While they have continued to evolve with changing times, de-centralized finance promises a utopian world that can de-throne the banks from this position of power.

• 😱NFTs are a Scam - I wouldn’t pay for something I can just copy!! ("Crypto N00B" #Q1) - Not everyone is born into Crypto and there are no Dumb questions. We all start from the bottom of the ladder. Conversations with a Crypto N00B aims to answer some of these questions

Decentralized Finance - Defi Explained

• 💸 De-centralized Finance (Defi) - A BIG SCAM or the Next Banking killer? Banks have been around for centuries. While they have continued to evolve with changing times, de-centralized finance promises a utopian world that can de-throne the banks from this position of power.

• 🚀A new era of Central Bank Digital Currencies - From trading sea-shells to minting gold coins, humans civilization has come a long way, as we set out on a new chapter of Money with blockchain-based Central Bank Digital currencies

Investing Advice from “Tony Stark”

• 💸10 things every Crypto Investor Must know!! - Crypto investing is not for the “Faint-Hearted” & it is Volatile like Hell (not everyone can take a 40% drop in hours). This article presents some tips that will help you in your journey.

• 10 Investing Lessons I Learned (Part 1) - Investing isn't as easy as it seems. I guess it's a bit like surfing - it seemed simple when I saw it but was totally different ball game when I actually tried it the first time.

• 10 Investing Lessons I Learned (Part 2) - Once you get hooked to investing, you are always looking for the perfect wave to ride - the right stock, at the right entry price, exiting at the perfect time!

Is there more to Crypto than just pumps & NFTS

• 🏆 10 ways Blockchain will disrupt the Olympics - Paris 2024 and Los Angeles 2028 - Blockchain is changing the world!! Let's explore how it can transform the Olympic experience from ticketing to fan tokens to sponsorships

If you liked this article - Do sign-up for my FREE weekly newsletter, share it with your friends, and give me feedback. You can find me on Social Media Twitter - @sauravbhats or Linked in.

🚨Reminder of Disclaimer: This is not investment advice. I am not an investment advisor. This information is meant to be for educational purposes - DYOR(Do Your Own Research). Please do your own research before you decide to invest your hard-earned money. If you are unsure seek help from a professional financial advisor who can understand the full breadth of your financial needs & commitments to advise you on what you should do.

So how is the world of crypto like?

Money & Flashy life - Thats What people feel crypto about…

Lots of quick money, flashy life, luxury cars, parties in exotic locations, and lots of fun. While this may be true for some of the early adopters of crypto this is far from how the world of crypto feels like if you are just starting off. For many of the early adopters of crypto who have made their wealth, they are in wealth conservation mode.
For the newcomers, it’s a whole different story..

What Crypto Really feels like to a Newbie!! Dangers all around you, barely able to keep your head above water

The Movie Max Fury Road captures the essence of how it really feels like. The crypto industry is a wild west environment where anything goes. There is so much positivity and disruptive potential around every corner, but when there is promise and profits, there are also scammers and nefarious crooks waiting to steal from others. Crypto having little to no regulation, existing solely online in an all-digital world, and existing outside of the normal realm of society, has attracted even more criminals to the asset class, who appear as scammers, hackers, ransomware issuers, attackers, and more.

In this article, let’s dig further into the darker side of crypto. To balance it out don’t always want to focus on the glamour and amazing side of this world

How should you visualize the world of crypto?

Let me explain this with some analogies. If you are a Game of Thrones die-hard you will like this and if not hopefully it will still serve the purpose of the explanation.

Outpost 1 (Winterfell castle) the CRYPTO EXCHANGE

When you first decide to enter this magical world - the first step is to take your fiat currency (USD, EUR, SGD) from your Bank account or Credit card and head over to a crypto Exchange (Binance, Coninbase, Gemini).

Picture below of the Winterfell Castle from Game of Thrones

You must now choose your castle carefully before you move your money there.

Is the exchange large enough, regulated, reputed, secure etc. Hopefully, if you do your research and make the right choice - this castle should feel very similar to the experience you have with your current financial services provider. They would have large walls, guards, security, people to help, etc. They would guard you against the attack of the hordes from outside the walls (picture of that later). If you have any issues customer support would help you out (even if some of them take a few days to months to respond)

The key thing you have to worry about here is

1. Volatility of the market - it is a roller coaster

2. Choosing bad crypto to invest in (most do some pre-screening before they include the tokens, so it should be ok)

3. Leverage - don’t take on too much leverage or you risk loosing it all

The Real World of Crypto Outside the wall

What!! is there something I can do with my Tokens other than buy them and leave them on the exchange?

Of course, the answer is yes. The real nature of crypto is to take your token out in a decentralized wallet (like metamask, phantom etc) and go to platforms that offer various services (Buy/Sell NFTs, Staking, Yield Farming, IDOs etc)

Now, this might seem scary for many of you and that is fine. Best not to extend yourself to an area that you don’t feel comfortable venturing into.

For those that do decide to “Venture out” from the safety of the exchange - do tread with caution

So let’s assume you are the adventurous type that has decided to go out. How would you do it?

You would need to have a decentralized wallet, which allows you to transfer tokens (BTC, ETH, SOL) from your Exchange to a “Self managed” wallet. Typically this wallet has a seed phrase that is set up when you make your account.

DO NOT LOSE THE SEED PHRASE- if you lose it, you will NEVER be able to log back in and retrieve your holdings. Also, don’t write the seed phrase on your computer or any electronic device that can be accessed digitally. Ideally, save it in multiple locations on a physical paper and keep it safe.

So what are the Dangers that life ahead of you that you need to be aware of

1. Scams.. Lots of Scams

This is like the wild west, very little protection from your friendly regulators

Scams are everywhere online, and cryptocurrency exchanges are no different. As you consider investing in different startups and exchange platforms, be aware of the possibilities of losing your cryptocurrency investments.

Feels like everyone is coming for you and your money in a different way

I. Imposter websites

You may be following a solid tip from someone with a lot of expertise but still become a victim by accidentally visiting a fake website. There's a surprising number of websites that have been set up to resemble original, valid startup companies. If there isn't a small lock icon indicating security near the URL bar and no "https" in the site address think twice.

Pro Tip: Look up the Twitter or Discord channel if possible for the group you are looking to invest with. See how many followers they have - make sure it is a legitimate account and then use their official links to access their website. If you are looking to buy NFTs ideally buy it directly from Opensea or Solanart without direct trades - it would be worth paying the extra fee charged.

II. Fake Mobile Apps

Another common way scammers trick cryptocurrency investors is through fake apps available for download through Google Play and the Apple App Store. Although stakeholders can often quickly find these fake apps and get them removed, that doesn't mean the apps aren't impacting many bottom lines. Thousands of people have already downloaded fake cryptocurrency apps.
While this is a greater risk for Android users, every investor should be aware of the possibility. Are there obvious misspellings in the copy or even the name of the app? Does the branding look inauthentic with strange coloring or an incorrect logo? Take note and reconsider downloading.

III. Bad Tweets and Other Social Media Updates

If you're following celebrities and executives on social media, you can't be sure that you're not following impostor accounts. The same applies to cryptocurrencies, where malicious, impersonating bots are rampant. Don't trust offers that come from Twitter or Facebook, especially if there seems to be an impossible result. Fake accounts are everywhere.
If someone on these platforms asks for even a small amount of your cryptocurrency, it's likely you can never get it back. Just because others are replying to the offer, don't assume they aren't bots, either. You have to be extra careful.

IV. Scamming Emails & Direct Messages on Discord

You will get loads of scamming emails or direct messages from people claiming to be the company or the group you are engaged with. They will offer you something that looks legitimate but will be a special offer. I know we are all trained to look out for this, but the sophistication of these attacks in crypto is totally at a whole different level.

Pro Tip: Never respond to these messages. Go back to the official site or platform to complete your transactions. If you are part of a Discord Messaging group always interact directly on the group - not in private DMs

Some examples for your reference

Rug Pulls & Exchange Shut down

The term “rug pull” has been used repeatedly to describe a very disastrous situation that occurs in decentralized finance and elsewhere in cryptocurrencies that can leave an investor with extreme losses.

Rug pulls are a blatant exit scam in most cases, designed as a promising project that attracts users. When liquidity flows into the project and the price grows, developers then pull all the liquidity they can, crushing the capital of those left holding the bags in the end.
Several major projects that had gained widespread attention, even again attracting some of the world’s most well-known billionaire investors, were involved in such schemes and resulted in enormous losses for everyone involved. Even with all the attention, developers disappear with everyone’s funds, never to be seen or heard from again.

DeFi100 Coin Scam: DeFi100 Creators Rug Pull Investors, Disappear With $32 Million

Defi HACKS

DeFi-Related Hacks Account For 76% Of All Major Hacks in 2021. When you put your tokens in a smart contract, while the contract is immutable on the public ledger a hacker can find a way to leverage an exploit and remove the money from the smart contract. For some of the reputable Defi sites, they undergo a full audit of the smart contract and certain providers even offer insurance against theft and loss. However, this is limited to only a handful of the Defi sites and definitely, the risk of losing your money/tokens is real.

Reproduced from an article in Mission Critical Magazine

According to the recent Atlas VPN team findings, DeFi-related hacks make up 76% of all major hacks in 2021. In addition, many fraudsters have started fake DeFi projects to benefit from the crypto industry hype. The data is based on the Cryptocurrency Crime and Anti-Money Laundering Report released by CipherTrace in August 2021. Even though the first Ethereum-based protocol (MakerDAO ) for DeFi was released in 2017, hacks abusing the system were not recorded until 2020. In 2019, money lost to hacks was mostly from phishing, ransomware, and other cyberattacks.
A year later, in 2020, DeFi hacks made up one-quarter of all funds lost to hacks that year — $129 million. One of the biggest DeFi hacks that happened last year was the attack on Harvest Finance. Cybercriminals exploited the crypto asset management platform via a flash loan attack that resulted in a loss of over $24 million. In the first half of 2021, DeFi hack losses have reached $361 million, surpassing last year’s total losses by 180%.

DeFi protocols could get hacked because of various reasons. Many DeFi projects get hacked because of developer incompetence, which causes coding mistakes that hackers can abuse. Other cybercriminals can take out a flash loan and manipulate the token price to hack the DeFi protocol.

Human error in Transfers

The current world of crypto is still complex. When transferring money or assets, you need to ensure you put in the right address, choose the right network - if you get it wrong - your money or your assets are gone - poof.

Its like accidentally setting your pile of cash on fire. There is no undo button. You cant call a helpline or support number. If you are transferring money between exchanges, there are enough warnings but if you still get it wrong, then it is all on you!!

In Summary, some tips

• Don’t rush into crypto for all its glitz, glamour, and promise of future riches.

• Do your own research before you decide to put in your hard-earned money into something.

• Ideally diversify across sites, exchanges, tokens etc to ensure that if there is a bad apple it doesn’t burn the house down

• Take our time, to understand and learn the ropes before you venture into the deep end of the crypto pool

• If you can make it past all of this, you would get to enjoy this experience

And on a parting note. Let Morpheus set the stage for us 🤣🤣🤣

Some of my earlier posts if you have not read them yet

• 💸 De-centralized Finance (Defi) - A BIG SCAM or the Next Banking killer?

• 💸5 Essentials for CryptoCurrencies. Get started NOW!!

• 💸10 things every Crypto Investor Must know!!

• 📣🖼 Demystifying NFTs - Here's what you are missing out!!

• 🥇Next 5 Crypto Currencies and their smashing returns! [Top 10 Series]

• 🚀A new era of Central Bank Digital Currencies

If you liked this article - Do sign-up for my FREE weekly newsletter, share it with your friends, and give me feedback. You can find me on Social Media Twitter - @sauravbhats or Linked in.

🚨Reminder of Disclaimer: This is not investment advice. I am not an investment advisor. This information is meant to be for educational purposes - DYOR(Do Your Own Research). Please do your own research before you decide to invest your hard-earned money. If you are unsure seek help from a professional financial advisor who can understand the full breadth of your financial needs & commitments to advise you on what you should do.

💡What’s in it for Me: Get Smarter in 5 Minutes

Hi everyone 👋. Welcome back to ‘The Weekly Recap’, where I curate a reading list of insightful articles, market updates & bite-sized learning nuggets to get you caught up for the week. If you're reading this and haven't signed up, join the 280+ others by clicking below, and to the regular readers, thank you. 🙏

Subscribe now

🧠Quote of the week

📚Here is what I liked reading

• 32 Valuable Lessons from 32 Years of Life - (MUST READ) What I’ve learned each year since Day 1 in one sentence or less. Say “yes” to more experiences and “no” to more stuff.

• Twitter rolls out bitcoin tipping for iOS users via Lightning, looks to NFTs for the future - (HUGE SIGNIFICANCE) Part of its “turning fans into funds” strategy. The platform is focused on becoming a hub for creators. Twitter also plans to roll out an NFT authentication feature (early days for the product)

• Stop doomscrolling: 6 better ways to spend a 15-minute break on your phone - We don’t need to hide our phones during a break. We just need mobile break options that improve our state of mind—not bring us down.

• DeFi bug accidentally gives $90 million to users, founder begs them to return it- Not everything is perfect in Defi Land. Be careful what you do out there.(Thanks Kaushik Chowdhury for sharing this)

🔥Crypto Market Update

China FUD (Fear, Uncertainty & Doubt) impact not as deep as the last few times: People’s Bank of China declared on Friday that all virtual currency-related companies were unlawful and banned foreign crypto exchanges from serving Chinese users

Huobi Global, a leading crypto exchange takes a dive: Announced that it would cease all Chinese-based services by the end of the year, sending Huobi Token (HT) to eight-month lows.

Ripple Surprises NFT Sector With $250M Fund: The platform stated that it aimed to resolve the tokenized artwork’s minting problems, including “clunky” user experiences, hefty transaction fees, and potential environmental repercussions.

Crypto Market Cap back up to 2T, just where it was before China banned Crypto (Once again) last friday.

Bitcoin Price action predictions by PlanB (Creator of the BTC stock to flow model have been killing it). He has been on point so far..

📺 NFT Art project by Infinity Labs

Sold out in less than 2 min at launch. The first deflationary art project, with 8888 items across 8 timelines. Over time, these art pieces merge to become 1111 unique pieces of art.

Check out the art collection here - solanart.io/collections/infinitylabs

📺 Connected Brains PodCast

🙋‍♂️Term of the Week - “Gas Price”

A term refers to the price a user is willing to pay for a transaction on Ethereum blockchain. Gas price is dominated in Gwei.

🤣Just for Laughs

That's all, folks. 👋

Remember, if you're enjoying this content, please do tell all your friends to check it out and hit the subscribe button. Hope everyone has a great weekend.🚀🙏🏻

Help me grow and improve with your feedback

Subscribe now

🚨Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

🚨Disclaimer: This is not investment advice. I am not an investment advisor. This information is meant to be for educational purposes - DYOR(Do Your Own Research).

Are we really living in a world of Traditional Finance?

Money has been around for centuries - from seashells to gold coins to pieces of paper. We replaced the barter system with forms of money and through the process got many obvious advantages - one of them being a universally acceptable medium of exchange ( the blade-smith did not need to find a meat-smith who needed his swords to eat chicken for dinner - seemed obvious). This system worked well when people were transacting in small communities and almost everyone knew each other.

As trade grew, we needed intermediaries to facilitate the interactions as we did not really know people far away in distant lands. These intermediaries provided services for a fee. While the fee seemed small as a % of the transaction for the convenience offered, it added up across 100s of millions of transactions.

Fast forwards a few 1000 years, we now have a global financial system with money moving and being settled around the world. Technology has enabled millions of transactions per second, advanced algorithmic trading systems, real-time onboarding of people. You can send money to your friends via their phone number or email address. Buy things from merchants halfway around the world with assurances that the goods will be delivered as expected.

Can we really call this traditional finance?

Let’s understand how Traditional Finance works?

If I told you that you could walk into a stranger’s shop, pick up any item and walk out saying you will pay them later - do you think that would be possible. That’s exactly what happens - in today’s world. When you buy a cup of coffee with a “Credit Card” and tap your card to make the payment - no money exchanges hands. It is all based on a system of IOUs (I owe You). While there is a real-time transaction to validate whether your credit card is active and you have enough credit line from your bank - the coffee merchant doesn’t get paid till a few days later + there is the possibility that for 90/120 days the customer can dispute the transaction

So what does all of this have to do with anything?

• A critical component of the financial services infrastructure as we know it today involves large financial intermediaries such as Retail & Commercial Banks.

• These intermediaries are the glue that brings trust together and enables unrelated participants to transact with each other.

• When 2 unrelated participants don’t have the same banker, the banker establishes a level of trust amongst themselves e.g. Citi, JP Morgan, HSBC - may all be involved in a transaction to remit money from Hong Kong to the US.

So what is Decentralized Finance?

DECENTRALIZED FINANCE = NO MIDDLE MAN

The development of Bitcoin and thousands of other cryptocurrencies in a little over a decade has changed the definition of money and spawned a parallel universe of alternative financial services, allowing crypto businesses to move into traditional banking territory.

DeFi turns this arrangement of middle me on its head by re-conceiving of financial services as decentralized software applications that operate without ever taking custody of user funds.

Defi uses public blockchains such as Ethereum and builds layers of software programs to perform specific activities similar to the functions done by the departments in a bank. These use Web 3.0 technology that makes it easy to lock in the funds, make transactions and interact with smart contracts (computer programs) directly from your web-browser.

Want a loan? You can get one instantly by simply putting cryptocurrency up as collateral. This creates a “smart contract” that finds you money from other people who made a pool of funds available on the blockchain. No bank loan officer is necessary. Everything runs on so-called stablecoins, which are currency like tokens typically pegged to the U.S. dollar to avoid the volatility of bitcoin and other cryptocurrencies. And transactions settle automatically on a blockchain – essentially a digital ledger of transactions that is distributed across a network of computers – rather than through a bank or other middleman taking a cut.

DeFi platforms are structured to become independent from their developers and backers over time and to ultimately be governed by a community of users whose power comes from holding the protocol’s tokens.

There is also a Hybrid model - centralized finance, or CeFi (Mix of Traditional Finance & Decentralized Finance) where consumers enter into an agreement with a company like BlockFi that collects information about them, requires them to turn over their crypto and also serves as a central point for regulators.

History of Defi

Size of the Defi Market -$70-100Bn

Measured in “Total Value Locked”. What does that mean it is a similar concept as “Assets under Management” used by financial institutions to reflect how much money are they managing for their Clients. “Total Value Locked” represents the $ value of Tokens like Bitcoin, Ethereum, USD Stable coins that have been locked into Smart Contracts (or borrowing/lending programs) . The higher this number the more people are using these platforms and transacting them.

Defi alternatives to traditional finance products?

Defi Alternative Product <> Traditional Prod

1. Ability to make Tokens <> Central bank to make a new currency (USD, SGD)

2. Buy & Sell Tokens (Decentralized Exchanges) <> Buy & Sell currencies / stocks in on an exchange

3. Decentralized Payment <> Alternative to payment networks (Visa/Master) or SWIFT (international remitance)

4. Liquidity Pools (or Deposits) <> Place for depositors to put money in the bank

5. Borrowing Pools (or Loans/Lending) = Place for people to take loans leveraging deposits

6. Insurance

7. Fund Management

8. Derivate Products

9. Other interesting offshoots - Lottery and many more

So how can I visualize this world?

Currently, centralized exchanges like Binance, Coinsbase, Gemini - act as gateways across these two worlds. They are a critical player in the ecosystem that allows you to move money in & out of cryptocurrencies.

As time goes on, more avenues of convergence of Traditional & Crypto capabilities have started to emerge

1. Ability to pay for your everyday expenses with a crypto card that end of the month you can settle with crypto holdings

2. Use crypto as collateral to take a fiat loan

3. Buy real-world assets with crypto.

Will this be the end of Banks?

Is Defi like the meteor above that will destroy the Traditional Banking planet

Simple answer - Not for the next 20+ years.

Long answer - The Defi world still has a lot to figure out still. It is a 3-4 year-old industry that still has a lot to figure out in terms of User trust, complex UI/UX, Regulatory compliance and has not been battle-tested over centuries similar to banks.

At the end of the day, we are talking about people’s money, hard-earned cash - representing their lives savings.

What are the risks with Defi?

DeFi cuts out trusted intermediaries that financial regulators rely on to ensure market integrity. Licensed operators like banks and brokers play a quasi-governmental role in traditional finance, collecting and reporting data to the authorities, including information on capital gains on investments made by their clients, to ensure taxes are paid. Their participation in the market depends on following lots of rules.
By contrast, DeFi programs are unregulated apps created by coders interested in capital markets. Users’ assets can and have been hacked, and not all of the operations are built in good faith. “Rug pulls,” when developers abandon programs after investors contribute significant assets, are notorious in DeFi.

Scams, Rug Pulls, Crazy Volatility and permanent Capital Loss all part of the Defi Landscape today

Summary

• Finance has moved Traditional (Manual) to Digitized to Digital Banking

• However, it is still plagued by many of the fundamental problems such as requirements of large intermediaries and legacy technology

• Blockchain based Decentralized Finance provides an exponential step change in this paradigm.

• While the promise is strong, these are still early days of what lies ahead

• In this unregulated world many things still need to be worked on - Trust, Scalability of technology, User Experience, Consumer protection etc.

• A truly integrated E2E experience leveraging the benefits of Decentralized and Centralized capabilities, will help customer benefits from the strengths of both worlds

Some of my earlier posts if you have not read them yet

• 💸5 Essentials for CryptoCurrencies. Get started NOW!!

• 💸10 things every Crypto Investor Must know!!

• 📣🖼 Demystifying NFTs - Here's what you are missing out!!

• 🥇Next 5 Crypto Currencies and their smashing returns! [Top 10 Series]

• 🚀A new era of Central Bank Digital Currencies

• Bitcoin Price - Scam or Real?

If you liked this article - Do sign-up for my FREE weekly newsletter, share it with your friends, and give me feedback. You can find me on Social Media Twitter - @sauravbhats or Linked in.

🚨Reminder of Disclaimer: This is not investment advice. I am not an investment advisor. This information is meant to be for educational purposes - DYOR(Do Your Own Research). Please do your own research before you decide to invest your hard-earned money. If you are unsure seek help from a professional financial advisor who can understand the full breadth of your financial needs & commitments to advise you on what you should do.

💡What’s in it for Me: Get Smarter in 5 Minutes

Hi everyone 👋. Welcome back to ‘The Weekly Recap’, where I curate a reading list of insightful articles, market updates & bite-sized learning nuggets to get you caught up for the week. If you're reading this and haven't signed up, join the 278+ others by clicking below, and to the regular readers, thank you. 🙏

Subscribe now

🧠Quote of the week

📚Here is what I liked reading

• 7 Rules to Live a Better Life - (MUST READ) - Making hard choices now makes life easier later. Making easy choices now makes life harder later.

• To Remember The Moment, Try Taking Fewer Photos - Snapping too many pictures may harm your ability to retain memories. But selfie addicts, don't despair! There are techniques to make photography enhance memory

• 5 Qualities of Highly Desirable People - That everyone can learn to build meaningful relationships. Wise men speak because they have something to say; Fools because they have to say something.

• Blockchain Can Disrupt Higher Education Today, Global Labor Market Tomorrow- Blockchain can play its part in the education sector — record-keeping in 2–3 years and then adoption by the labor market?

• What's the Fuss about Blockchain? Simplified Series - Crypto & Blockchain is all the rage. Let's look at a few analogies to understand it better and really understand what makes it special.

🔥Crypto Market Update

The Crypto markets continued to gyrate trying to get its head around the impact of Evergrande and the contagion if any. The market cap is down another 10% from last week’s $2.2Tn to $2Tn. But during the week there was another flash crash of 22% rating many nerves. The market continues to make “lower highs” & “lower lows” showing we aren’t really out of the woods yet.

Volatility is part of being part of the Crypto journey. If you were invested and the drop made you feel uncomfortable, now would be a good time to assess your position size and see if you want to reduce the size of your crypto portfolio.

On the brighter side, NFTs continue to be in full swing with new projects being minted every day and existing projects setting all-time highs. Thats a reasonable return over the last few months going from $750 to $2.8M

📺 Connected Brains PodCast

🙋‍♂️Term of the Week - “BuyWall”

Buy walls are a relatively new phenomenon in public order book exchanges with the rise of cryptocurrency trading. Buy walls are always manipulative in nature, designed to scare traders and skew price perception by placing anomalously large buy order(s) at a single price point. This will be reflected in the order book as a seeming "wall".

🤣Just for Laughs

It’s all about perspective. I once donated 5 bitcoins to PirateBay… 🤣

That's all, folks. 👋

Remember, if you're enjoying this content, please do tell all your friends to check it out and hit the subscribe button. Hope everyone has a great weekend.🚀🙏🏻

Help me grow and improve with your feedback

Subscribe now

🚨Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

💡What’s in it for Me: Get Smarter in 5 Minutes

Hi everyone 👋. Welcome back to ‘The Weekly Recap’, where I curate a reading list of insightful articles, market updates & bite-sized learnings nuggets to get you caught up for the week. If you're reading this and haven't signed up, join the 260+ others by clicking below, and to the regular readers, thank you. 🙏

Subscribe now

🧠Quote of the week

While it is important to plan… Sometimes you just need to ACT!

Contribution from Vishnu Thilak

📚Here is what I liked reading

• 10 Powerful Habits to Master for Ultimate Success - MUST READ - Stop watching everyone else be successful and awaken the beast inside you!

• It’s Never Too Late to Start a Billion Dollar Business - Yes, Mark Zuckerberg started Facebook at 19. But IBM was started by Charles Flint at the age of 61.

• Crypto’s latest trend is “To play games before they’re even built” - Takes test & learn approach to a whole new level

• 6 Things Socially Intelligent People Don’t Do - Act like a know it all!

• 14 lessons from entrepreneurs on starting your own business - Entrepreneurs in the Technology Pioneers community share lessons including testing assumptions, being open to new opportunities, and focusing on purpose.

Subscribe now

📺 Connected Brains PodCast

🔥Crypto Market Update

Crypto markets move sideways, holding around $2.2T market cap

Solana down 20% WoW - Suffers Sharp Volatility After Network Becomes Flooded With Transactions Much of the action took place after the Solana network went down.“1/ Solana Mainnet Beta encountered a large increase in transaction load which peaked at 400,000 TPS. These transactions flooded the transaction processing queue, and lack of prioritization of network-critical messaging caused the network to start forking.”

Insider trading on NFT platform OpenSea, the $1.5 billion start-up admits - OpenSea’s head of product, Nate Chastain, was accused by Twitter user @ZuwuTV of using secret crypto wallets to front-run sales on the platform.

🙋‍♂️Term of the Week - “DeFi”

DeFi is short for Decentralized Finance. DeFi is the movement within crypto to not just trade decentralized currencies but do so in a way that is itself decentralized. The most popular DeFi projects are decentralized exchange protocols, which automate the exchange of cryptocurrencies among buyers and sellers, eliminating the need for a middleman (like Banks)

🤣Just for Laughs

It’s all about positioning.

That's all, folks. 👋

Remember, if you're enjoying this content, please do tell all your friends to check it out and hit the subscribe button. Hope everyone has a great weekend.🚀🙏🏻

Help me grow and improve with your feedback

Subscribe now

🚨Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

🚨Disclaimer: This is not investment advice. I am not an investment advisor. This information is meant to be for educational purposes - DYOR(Do Your Own Research).

Noob… What is that?

Seriously. Is that where we are starting from. As I said, there is no dumb question around here. I was surprised when I referenced Crypto Noob and I was asked- what’s that?

Noob: A person who is inexperienced in a particular sphere or activity, especially computing or the use of the internet. Generally used in gaming.

Informal: A person who has recently started a particular activity : NEWBIE

So who is a Crypto “N00B”

Someone new to Crypto, still figuring out their way in this new world. Not a believer yet, many times asking the right fundamental questions that old-timers just take for granted. But as I said, no dumb questions only dumb answers. So let’s get started.

Recommended Pre-Read

If you are new here and have not read some of my earlier articles, I would recommend starting from there before your dive into these topics as it would help to know some of the terms and contexts.

• 💡What's the Fuss about Blockchain? Simplified Series

• 📣🖼 Demystifying NFTs - Here's what you are missing out!!

Are Digital Art NFTs having a Tulip Mania?

The Tulip Mania gripped Dutch Investors which created an artificial price bubble

Let’s get this one out of the way - I think so!

A bit like the 2000 Dot Com boom or the 2017 ICO boom.. Lots of crazy ideas getting funded. Lots of ART concepts coming around.
People making millions just by holding something for 26 minutes.. come on!

There were reports this week that well-known NFT whale Pranksy held a CryptoPunk NFT for just 26 minutes before selling for a $1.23-million profit. Full Article

Will most of these things lose value - possibly. A bit like the musical chairs we have come to see some of these boom cycles.

But the point here is just like the DotCom Boom or the ICO Boom, the companies that came out of the rubble of the crash had true intrinsic value. They build great products continued on their journey and become - Google, Facebook, Amazon or in the Crypto world Bitcoin, Ethereum, Cardona, etc

This Article is not looking at the current craze and trying to find specific NFT Digital Art projects that will survive a correction in price when it happens. I am looking to explain this asset class in terms of its long term value and mass applicability

Q1. NFTs are a Scam - I wouldn’t pay for something I can just copy!!

Let’s unwrap this statement because we have 3 items being discussed here:

1. What are NFTs and whether they are a scam?

2. How much is something worth - To you and To others?

3. Is something that can be copied worth anything?

#1. NFT = Non-Fungible Token (A file that lives on a blockchain)

“Non-fungible” means that it’s unique and can’t be replaced with something else. For example, a US dollar note is fungible — exchange one for another, and you’ll have exactly the same thing. A one-of-a-kind trading card or painting, however, is non-fungible. If you traded it for a different card, you’d have something completely different.

An NFT registered on a blockchain has truly become a “unique” asset that cannot be faked, tampered with, or spoofed. Blockchains enable public access and private ownership of any digital media file

An NFT is not just about “Digital Images”. It could represent:

• Digital Items: GIFs, Collectibles, Music, Videos and sports highlights, Virtual avatars and video game skins

• Real-World Items: Collectibles (Art, Watches, Wine), Designer sneakers, Deeds to a car, Tickets to a real-world event, Tokenized invoices, Educational records & Legal documents, Signatures

• Many more interesting and creative options.

  

NFT is a Concept ----> Digital Art is a specific use case.

Eventually, this technology capability will be used for many things where ownership and authenticity need to be established without a central intermediary for both real-world & digital items.

At the bottom, I have listed various non-art NFTs use cases being used TODAY.

OK So. NFTs the concept & associated Technology are not a Scam!! ( I hope you agree)

#2 How much is something worth - To you & To Others?

The basic premise of economics is that the price of something at its core is determined by an intersection of Demand & Supply. That does not mean that demand is always rational as that is typically influenced by human psychology and herd behavior. So yes demand is created by hype like the Tulip Mania that gripped Dutch Investors, and a lot of wealth was destroyed or it could be created because something truly is scarce and has value.

I am sure that was the question on people’s minds in Nov 2017 when Dmitry Rybolovlev paid $450M1 for “Salvator Mundi” a painting by Leonardo da Vinci in an auction at Christie's, New York. Have you ever stopped to wonder what factors may cause this painting to be so expensive - it is rare (only 1 of its kind), by a very renowned artist, in demand by a community of individuals who value these paintings. Dmitry is one of those who value this painting, expect it to go up in price, and has the financial means to purchase it. I might even be happy seeing an image of that on my computer and derive value from it. But the price of my copy is $0. It is free because there is an unlimited supply of pictures of the painting online. These guys taking a picture also have a free copy.

Just because I don’t understand why a Da Vinci Painting is valued at $450M and I won’t pay that much for it (not that I have the money), doesn’t mean it is overpriced. It just means I don’t know how to appreciate or value it.

Price (what you pay): Price is the amount of money paid by the buyer to the seller in exchange for any product and service. Value (what you get): implies the utility of worth of the commodity of service for an individual.

2.1 Copy Vs. Original Impact on Value

Damn, I was busy right-clicking on the video and downloading something someone paid Millions of $$ for. That’s nasty but true. So where is the value??

The value lies in owning the authentic file - Would a photocopy of the author-signed book have the same value as the actual author-signed book. You can copy a digital file as many times as you want, including the art that’s included with an NFT.

But NFTs are designed to give you something that can’t be copied: ownership of the work (though the artist can still retain the copyright and reproduction rights, just like with physical artwork). To put it in terms of physical art collecting: anyone can buy a Monet print. But only one person can own the original.

2.2 But the Digital Copy is exactly the same as the original

Not always. It may seem so on the face of it, but not every copy is the same as the original

• Lower Quality - In today's context, if you get a WhatsApp forward of a video you can see the video on your phone or small device but it has been substantially reduced in quality from the 1080p or 4k version that it might have been originally created in. If you decide to cast it on a big screen it might not look as nice (pixelated). Same for pictures, it is better to have images emailed to you because if you want them printed later in high resolution.

• Limited Cross format capabilities - You can get a copy of a book in Pdf. But it might not show up on your Amazon Kindle. Even if you find a kindle version of the book (for free), it would not come with features like cross-device linkage, highlights etc.

• Future Proof - For those old enough, what happened to all the Music on Tapes or Movies on VHS that you had made copies of. It would be hard to find a Cassate tape or VHS player. Who knows which format will today’s digital content need to be streamed in whether backward compatibility will be taken for granted.. Learning from Apple products that’s not always the case.

  

#3 Is something that can be copied worth anything?

What it if could not be copied in the future???

Let’s take a walk down memory lane.

Most of us arent art collectors, so let’s start with a more relatable example of Music. Back in the day, the only way to purchase music was in the Physical form. You had bought it as a CD, LP, Vinyl, Tape in order to experience it (radio was just streaming content).

Then came the Digital Age - Where any song or album could be converted to an MP3 compressed file and copied/duplicated any number of times without any cost. This with peer-to-peer file sharing dramatically devalued the perceived worth of recorded music. Artists now had wider “exposure” for their work but had to rely on other means of generating revenue i.e. touring, merchandise, brand sponsorships, etc.

Let me make a bold statement - In the last 20 years, the internet has destroyed more value for the Creators than anything that came before it. It has made us believe that all content should be available for free. We can copy images, books (pdfs), music (mp3) . It takes a few seconds to make a copy, download, share - its now second nature for us.

Streaming services like Spotify have created a new business model of distributing music, but the earnings from these are still extremely skewed to a selected few and don’t even come close to the profits that successful artists made in the age of the CD.

Well, there’s good news for the coming decades, with the onset of blockchain technology, music is becoming scarce again

What I wont be able to fire up my favorite P2P pirating program and download full albums or movies anymore. Yes!!

Artists are selling their music as NFTs – and they’re making millions

What is a Music NFT? How To Buy & Sell Them

NFTs: Are they the future of the music industry?

In December 2020, Deadmau5 sold 6,000 collectibles as NFTs with a collective value estimated at $96,940. Grimes auctioned 10 NFTs for $6 million, including unique images and short videos set to her music.

But there is always someone is hacking these things. I am sure they will find a way to make it available for Free!

That is possible, But at this point, my educated guess is that more and more creators will start shifting their content over to NFT based platforms that give them more control over the distribution and earnings from their work - art, music etc. As the big artists and creators move over to these platforms, their fans will move with them and embrace this new model of rewarding their favorite creators and consuming their content. This will lead to the elimination of many of the middlemen and platforms that have to build a business around sucking away the revenue between Creators & Consumers.

As for the hackers or freeloaders, their life would be a bit harder to crack the robust encryption of a blockchain database. I am sure there will be some workaround but as more online services come to life it might be harder to bring your pirated/fake goods to this online party.

Just like we saw in the move from Xbox to Xbox Live - Pirated games and hacking the consoles became a thing of the past because you were not allowed to connect to the online servers and play with your friends till you bought a legitimate copy of the game. And just that 1 thing created incentive enough for kids to pester their parents to buy them the original games.

Understanding our biases of Physical vs. Digital Goods

AN IN-DEPTH POST ON THIS TOPIC NEXT WEEK…

In Summary

• If you don’t see value in something, does not mean there is no value in it!

• Understand your own biases before evaluating a new technology or a social shift

• NFTs will bring much-needed shift back for Digital Assets - authenticity, scarcity, clear ownership, tamper-proof & smart contract capabilities

Some of my earlier posts if you have not read them yet

• 💸5 Essentials for CryptoCurrencies. Get started NOW!!

• 💸10 things every Crypto Investor Must know!!

• 📣🖼 Demystifying NFTs - Here's what you are missing out!!

• 🥇Next 5 Crypto Currencies and their smashing returns! [Top 10 Series]

• 🚀A new era of Central Bank Digital Currencies

• Bitcoin Price - Scam or Real?

If you liked this article - Do sign-up for my FREE weekly newsletter, share it with your friends, and give me feedback. You can find me on Social Media Twitter - @sauravbhats or Linked in.

🚨Reminder of Disclaimer: This is not investment advice. I am not an investment advisor. This information is meant to be for educational purposes - DYOR(Do Your Own Research). Please do your own research before you decide to invest your hard-earned money. If you are unsure seek help from a professional financial advisor who can understand the full breadth of your financial needs & commitments to advise you on what you should do.

💡What’s in it for Me: Get Smarter in 5 Minutes

Hi everyone 👋. Welcome back to ‘The Weekly Recap’, where I curate a reading list of insightful articles, market updates & bite-sized learnings nuggets to get you caught up for the week. If you're reading this and haven't signed up, join the 245+ others by clicking below, and to the regular readers, thank you. 🙏

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🧠Quote of the week

📚Here is what I liked reading

• 15 Simple Rules for a Good Life - Must read now!!

• This 3X Founder Shares His Approach to Figuring Out What to Build Next -
  People think that a startup is only about the idea. But in some ways, the idea is the most disposable or flexible part of the company. When something is a burning need, there will likely already be some hacky duct tape solution that folks are trying to cobble together to solve for it. That’s how you know there’s really a pain there.

• How Axie Infinity Creates Work in the Metaverse (PLAY TO EARN $$$)
  A cute NFT pet game called Axie Infinity is currently raking in more protocol revenue than Ethereum and Bitcoin. Filipinos are benefitting.

• 7 Stupid Things Society Wants You to Do - You may not agree with them but it does make you wonder, would things have turned out differently 🤔

• Why China's bitcoin miners are moving to Texas - Beijing's crackdown on cryptocurrency sends bitcoin entrepreneurs moving to the wild wild west

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🔥Crypto Market Update

On the face of it the market cap remains almost flat to last week ~$2.2T. But hidden underneath that is a $500Billion “Flash crash” that happened in a matter of hours. The market has since then recovered half that loss but it is a strong reminder of what I said last week - Crypto is a wild ride. Not for the faint-hearted. If you are using leverage you better know what you are doing, or you will get wiped out

Market cap chart - Dropping from $2.4T to $1.85T

So why did this happen?

No clear answer - someone started a BTC dump, that caused a chain of events taking out leveraged positions from various exchanges. The number of liquidations in the 24 hours (after that) by exchanges in total was ~$3.54B liquidated! During this time, 330,243 traders were liquidated. The largest single liquidation order happened on @HuobiGlobal

‘Bitcoin Day’ sees flash crash as president of El Salvador taunts IMF - find out more about what happened

Solana is still on fire - up ~44% over the last 7 days despite the market drop. Another new blockchain that is on fire is Algorand - up 94% driven by potential use a backend provider for apps in Elsavador - more here

Buying a Big Mac with BTC in El Salvador

🙋‍♂️Term of the Week - “Validator”

In contrast to mining on a Proof of Work blockchain network, Proof of Stake blockchain networks are secured by a distributed consensus of dedicated validators who have staked (locked into the network) a significant amount of token as long as the validator nodes are running.
Validators are queued for block-signing based on a combination of random selection, amount (weight) staked and length of time staked (age), and others depending on the design of the consensus algorithm.

🤣Just for Laughs

Hopefully, this is how the HODL’ers are feeling after the flash crash..

That's all, folks. 👋

Remember, if you're enjoying this content, please do tell all your friends to check it out and hit the subscribe button. Hope everyone has a great weekend.🚀🙏🏻

Help me grow and improve with your feedback

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🚨Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

🚨Big Disclaimer: This is not investment advice. I am not an investment advisor. This information is meant to be for educational purposes. Please do your own research before you decide to invest your hard-earned money. If you are unsure seek help from a professional financial advisor who can understand the full breadth of your financial needs & commitments to advise you on what you should do.

CRYPTO is BACK!! BULL run in full swing

🔥With the Crypto market getting back to its May exuberance levels, there is a lot of renewed interest from Retail investors to buy in again. The dream of getting rich, buying a Ferrari, and the private jet and the island is back. Some of these include Retail investors who got burned in the crash of May/June, while others are new to the game or missed the boat last time around. They are now chomping on the bit to get back to Crypto Assets - 🚀Caution to the wind and all.

Let’s dive into the 10 Must know in full Crypto Humor using Memes to help us

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1. Not for the “Faint-Hearted” & Volatile like Hell (not everyone can take a 40% drop in hours)

May to Jul ‘21 was a difficult period for the Crypto market with lots of FUD (Fear Uncertainty and Doubt). One minute the sentiment was super euphoric (everyone shouting Bitcoin to hit $250k) and then all of sudden - Crypto / Bitcoin was dead, every possible bad news was coming out and people were worried this thing was going to zero. Everything from China, to US Govt to Hacks - all thrown in with the Kitchen sink.

Then after a very classic “Wyckoff Accumulation” the market started to pick back up. Here are some good strategies to trade the “Accumulation Phase” (generally happens when large players look to shake out the small retail traders and take their money).

Below is a CHART of the total Crypto Market losing $1Trillion in Market cap as leveraged positions across various exchanges unwound in a matter of hours. Even as the price started to recover it was met with more fear, triggered by more people looking to get out. And in just over a month the market recovered most of its losses - climbing ~ 95% from its lows

This roller coaster has caused emotional turmoil among new participants. Many of whom lost a considerable amount of money through this process.
A month into the crypto crash cycle Your 21 year “Old” self is ready for anything

And if you were able to hold out the panic, fear, and uncertainty and hopefully held an unleveraged (10x or 100x) position you could be back to a pretty picture.

2. Understand your investing style - Day Trader, Swing Trader, Buy & Hold, Dollar Cost Average

Most people reading this article will not be active traders. If you are not glued to a screen most of the day and have a day job, then it is really important to understand your investing style - how much time can you devote to your trading / investing activity.

• When do you do your research?

• Do you need to set private alerts & triggers?

• How do you determine when is a good time to buy etc.

📣The 24x7 nature of the Crypto market makes it really tempting to keep at it. It all seems easy when the markets are on an up-trend. Even “Blindfolded Monkey Beats Humans With Stock Picks” in this uptrend where the rising tide is raising all sails.

The key thing to know is - this party 🥳 will not get on forever. The market will go through its ups and downs - you need to have your exit plan, risk management strategy etc. planned out in line with your investing style. — Else you might find yourself suddenly going from “Trader” to “Long term holder” as prices crash (Those who have been through it, know what I mean 😂🤣)

3. Don’t FOMO in. There are many trains, each leaving every 5-min

If you haven’t heard - FOMO - Fear Of Missing Out. Ita basic human psychology. It happens to all of us and it drives many of us to make decisions to follow the herd mentality. And when the bus goes off the cliff you are left wondering - “I did see all the signs of this being CRAP, why did I still step onto this bus” OR. “Holy S#%$, someone pulled the rug from under me”

It is important to understand:

• what you are buying?

• why are you buying it?

• what is a good price for this?

When the market is entering parabolic euphoria it is hard to control your greed (which is generally a good sign to take profits). I have come to realize, I can’t really predict where the market will go, what the price of a certain item will be (valuation and$ price can change overnight).

What you want to do is set your own risk limits, do your research, and operate within the boundaries of the investment style that fits your profile. This would mean that sometimes certain Tokens may be too extended to purchase but you would just have to wait for a market correction to buy those gems when the price makes sense for you. With 11,000 tokens in the crypto market and more being minted every day, I am sure there is no dearth of opportunity.

Ethereum Chart below shows that it has hit the price of $1,800 multiple times since the start of this year.

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4. This is about Dreamers using new Technology to change the world

Crypto and Blockchain has definitely moved beyond its first use case setup by Bitcoin for peer-to-peer payments and potentially a store of value (hedging against inflation). Early adopters have taken Blockchain technology and are now spreading it from various walks of life and bring to life more and more uses cases.

From new Blockchains to Layer 2 solutions to Parachains and Oracles to NFTs - if you don’t understand what these technologies enable and why people are going crazy about them you may just see this all as a scam.

Just like the Early days of the internet in late 1999/2000 - the boom and bust cycle produced the technology giants of today like Amazon, Google, Facebook. If you want to make money investing in crypto you need to get your hands dirty to really understand which technology or projects have the potential to change the world and how their teams are executing against that vision.

5. Don’t over-engineer things. You just have to “Ape in”

Ape (aping) In the cryptocurrency scene, ‘aping’ or ‘to ape’ refers to entering a position in a coin. It’s a slang term used a lot in chats and on Twitter. For example ‘ What coin are you aping into?’ would mean ‘ What coin are you buying?’

While you can do a lot of research, read many blogs, and watch lots of videos, there is no better way to get in, than buying your first crypto token. And that is when the real roller coaster begins. You change from a bystander to someone on the roller coaster.

Of course it is important to ease into the world of crypto slowly. Don’t bet the house and the farm just yet. Start with small amounts of money that you can afford to lose. The fractional nature of crypto is such that you can get into it and buy a few $ worth to start getting to understand it better.

6. No one went broke Taking profits along the way

Always take profits along the way. It is hard to do because it seems like something that is going up will keep going up and you don’t want to have stepped out too early in this process. But it is even more hard seeing all your profits evaporate and have a very profitable investment turn into a loss. Also, as you take profits and stash them away for future buying opportunities when the market dips you are improving the chances of higher returns over time

7. If you are not a Tourist, learn the language

This world has developed its own terminology and if you really want to understand it you need to learn the language and what they mean

HODL: Cryptocurrency investors developed the term "HODL," which stands for "hold on for dear life." The acronym originally came from a misspelling of the world "hold."Digital currencies can be highly volatile, so when they start experiencing significant price fluctuations, some market participants state that they should simply "HODL."

Moon/Mooning: When a digital currency moons, that means it rises sharply in value. For example, a crypto trader could talk about how an altcoin is going "to the moon!"

Whale: The term "whale" is used to describe a trader who makes sizable bets. This term is a good one to know because market participants with the ability to execute very large transactions can potentially manipulate the market—or "make waves in the ocean."

A few resources - here or here

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8. Take your time to learn the ropes

This is your hard-earned money we are talking about! You worked a long job 8-10-16 hours to make this money. You have made choices of not buying yourself an expensive gift or taking a holiday to save up this money. Don’t get caught into a get-rich-quick mindset through all of this without taking time to understand this space.

Read crypto news to understand what is happening - Decrypt, Cointelegraph

9. There are lots of Scams; Do your own research

When there is so much many to be made and information asymmetry, there is an equal share of SCAMS. Please be extremely cautious. When you are starting off stick with the known & trusted platforms and avoid high

'We lost our life savings in a cryptocurrency scam'

Here is a list of types of scams

• Scam #1: Social media con artists

• Scam #2: DeFi rug pulls

• Scam #3: NFT scams

• Scam #4: Altcoin pump and dumps

• Scam #5: Viruses and malware

10. Enjoy the ride - Learn, share and give back to the community

The whole ethos of Crypto is centered around community-led build. There is a lot to learn from extremely passionate people. Along the way find a way to give back and share your learnings with the community. This is not a get-rich-quick scheme, it is an opportunity to be part of the most disruptive change of our lifetime.

I guess this newsletter is my effort to share what I learn and help other along their journey.

Pictures Taken at the height of the last crypto market bull run in 2017 and then just after the market crash in 2018 (FYI. This is meant to be funny)

A few more for Laughs

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Some of my earlier posts if you have not read them yet

• 💸5 Essentials for CryptoCurrencies. Get started NOW!!

• 📣🖼 Demystifying NFTs - Here's what you are missing out!!

• 🥇Next 5 Crypto Currencies and their smashing returns! [Top 10 Series]

• 🏆 10 ways Blockchain will disrupt the Olympics - Paris 2024 and Los Angeles 2028

• 🚀A new era of Central Bank Digital Currencies

• Bitcoin Price - Scam or Real?

• 10 Investing Lessons I Learned

If you liked this article - Do sign-up for my FREE weekly newsletter, share it with your friends, and give me feedback. You can find me on Social Media Twitter - @sauravbhats or Linked in.

💡What’s in it for Me: Get Smarter in 5 Minutes

Hi everyone 👋. Welcome back to ‘The Weekly Recap’, where I curate a reading list of insightful articles, market updates & bite-sized learnings nuggets to get you caught up for the week. If you're reading this and haven't signed up, join the 230+ others by clicking below, and to the regular readers, thank you. 🙏

Subscribe now

🧠Quote of the week

Elon’s is Elon. Only he can understand why he does what he does or says what he says. He has built a brand of setting extremely aggressive and audacious goals. While he may not be able to beat them most of the time, he pushes the boundaries of what we think is possible 🚀

📚Here is what I liked reading

• How to Consistently Accomplish 100x More Results With 1/10th Your Usual Effort - I realized action doesn’t matter if your beliefs are wrong. That’s like trying to sail a boat that’s still anchored to the harbor; you can thrash around all you want, but you’re not going anywhere.

• Proof of Green: How Ethereum 2.0 SolvesCrypto’s Energy Concerns - Stake? I thought you said Steak!

• 8 Product Hurdles Every Founder Must Clear — This PM-Turned-Founder Shares His Playbooks - Narrowing in on a market and finding the right customer. Building out the first version of the product. Teaching yourself how to bring it to market. Sticking to a consistent vision.

• 5 Life Lessons From Chess - Some Little Reminders from One of the World’s Oldest Games

• What is Audius? The Decentralized Music Sharing and Streaming Service - It’s like Spotify or SoundCloud, but on the blockchain: Audius is a crypto-powered music streaming app that’s giving power back to artists. Already has 5M users

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🔥Crypto Market Update

Crypto Market rise to $2.2T (up 10%). BTC testing the $50k resistance. Solana is on FIRE🔥 up 70% this week and continuing to rise like a rocket 🚀.

3 Reasons Why The Solana Price (SOL) Could Keep Rising

Binance continues its challenges with Regulators - Latest hit - MAS orders crypto exchange operator Binance to stop providing payment services to Singapore residents

How scammers are exploiting the NFT mania The crypto industry has always been plagued by opportunistic scammers, from those running Twitter giveaways to ones airdropping tokens as bait, which steal all your tokens if you try to move them. Now, with NFTs selling like proverbial (and digital) hotcakes, hucksters have shifted their tactics to exploit this growing market — and their efforts appear to be working.

One of the readers shared that I should highlight the volatility in crypto by sharing a chart. Below is the Bitcoin chart for the last 9 months. Its been a intense ride with a >50% drop from May highs and ~70% rise from the lows. Most of us mere mortals cant time the market but it is important to not panic if you are investing in crypto. It is not for the faint hearted. Understand why you are investing and learn to do your research to get over FUD (Fear Uncertainity Doubt)

🙋‍♂️Term of the Week - “Market capitalization (market cap)”

Traditionally, it refers to the monetary market value of a company based on outstanding shares of stock. Market capitalization is used to show the size of the company. In Crypto, market cap is measured by the multiplication of the circulating supply of tokens or currency and its current price. - It is a reference to the size of the tokens value.

🤣Just for Laughs

Hopefully, this is how the HODL’ers are feeling..

That's all, folks. 👋

Remember, if you're enjoying this content, please do tell all your friends to check it out and hit the subscribe button. Hope everyone has a great weekend.🚀🙏🏻

Help me grow and improve with your feedback

Subscribe now

🚨Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

🚨Big Disclaimer: This is not investment advice. I am not an investment advisor. This information is meant to be for educational purposes. Please do your own research before you decide to invest your hard-earned money. If you are unsure seek help from a professional financial advisor who can understand the full breadth of your financial needs & commitments to advise you on what you should do.

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People are going Crazy on NFTs..
Is it just another fad from the crypto weirdos?

Most of you have heard of NFTs. While you may not understand the technology behind it but am sure you have read of people dropping millions of $$$ on random pictures or pieces of art. $900M in NFT Sales were made as CryptoPunks went stratospheric with almost $400M in sales at the time of writing this article (Aug 2021)

YES!! you got it rite these pixelated images traded over $400M dollars. Not the whole image. Each character is traded seperately.

As of 27th Aug 2021 from www.larvalabs.com/cryptopunks

$7.6M for the first image on the left

If you were living under a rock and have not been tracking some of this action, let’s get you caught up.

• Beeple, Everydays stirred up the Art world in March 2021 —The First 5000 Days $69 million, Christie’s

• Here Are the 10 Most Expensive NFT Artworks, From Beeple’s $69 Million Opus to an 18-Year-Old’s $500,000 Vampire Queen

• 12-year-old coder is set to earn over $400,000 after about 2 months selling NFTs

• ‘Disaster Girl’ has sold her popular meme as an NFT for $500,000

Based on reading this you can fall into 2 camps

1. This is just hype like the Tulip Mania that gripped Dutch Investors, and a lot of wealth was destroyed OR

2. There is more to this than what meets the eye. Let’s dig deeper to understand this a bit more.

If you fall in the second camp, you have come to the right place. As part of this article, I would explore those questions along with a few more

• Why would anyone pay money to view or buy these digital pictures - “I can just copy them and save them”

• Who are these people buying this? Have they lost their marbles paying such high prices?

• How does all this connect to the Metaverse (If you don’t know what is the metaverse - read how Mark Zuckerberg is betting big on the Metaverse as the future of Facebook)

It is not all about pixelated art. Some of these NFT’s are very intricate pieces of digital art.

Beeple, The First Emoji. Part of the $69.3 million Everydays.

As I am not an art expert, I have no background on how to ascribe value to specific pieces of artwork or why some NFT collections are more valuable than others. What I would look to do is evaluate what the underlying technology to make an NFT is and what it is capable of doing. In subsequent articles, we can dig a bit into what helps create more demand for certain artists/types of art.

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What is an NFT

NFT = Non-Fungible Token (A file that lives on a blockchain)

What does it mean in plain English?

Fungibility - In economics, fungibility is the property of a good or a commodity whose individual units are essentially interchangeable and each of whose parts is indistinguishable from another part.1 For example, gold is fungible since a specified amount of pure gold is equivalent to that same amount of pure gold, whether in the form of coins, ingots, or in other states.

“Non-fungible” means that it’s unique and can’t be replaced with something else. For example, a bitcoin is fungible — trade one for another bitcoin, and you’ll have exactly the same thing. A one-of-a-kind trading card or painting, however, is non-fungible. If you traded it for a different card, you’d have something completely different.

An NFT registered on a blockchain has truly become a “unique” asset that cannot be faked, tampered with, or spoofed. Blockchains enable public access and private ownership of any digital media file

Comparison NFT Internet vs. Internet of Today (From Ethereum website)

How do NFTs work

NFTs are minted (created) on a Blockchain. To start with Ethereum was a popular platform but now they are being created on other blockchains. NFTs gives the ability to assign or claim ownership of any unique piece of digital data, trackable by using blockchain as a public ledger. An NFT is minted from digital objects as a representation of digital or non-digital assets. For example, an NFT could represent:

• Digital Art:

  • GIFs

  • Collectibles

  • Music

  • Videos and sports highlights

  • Virtual avatars and video game skins

• Real-World Items:

  • Collectibles - Art, Watches, Wine

  • Designer sneakers

  • Deeds to a car

  • Tickets to a real-world event

  • Tokenized invoices

  • Educational records & Legal documents

  • Signatures

• Many more interesting and creative options.

If you want to get super technical. The most commonly used token standard that started everything. ERC721 tokens are non-fungible; each token is unique and can be priced independently. There are a comparable token formats for other Blockchains such as BEP-721 for Binance smart chain.

What problems are NFTs really solving?

To help differentiate a passing FAD from a fundamental This is an important question to ask. What problem is NFT really solving?

Over the last 20-30 years as the internet has grown it is destroyed a lot of value for creators as it has become easy to make multiple copies of their original work (art, music, books) without really pass the value back to the creator who had to spend considerable hours creating and perfecting this piece of art.

Along comes NFTs, leveraging a Decentralized Blockchain infrastructure to provide the below-listed attributes to get us to the promised land

• Authenticity - Is the item genuine or a copy/replica

• Scarcity - Defined number of units or copies in circulation. e.g. tickets for a gaming event with specific ticket numbers or seat numbers

• Ownership - who does the item belong

• Fractionalization (optional) - part ownership

• Unique - not interchangeable 1:1 with something else

• Tamper-proof - No one can manipulate it in any way

• Smart contract capabilities - the ability to program logic into the NFT e.g. pay a royalty to the original creator every time a sale happens, destroy the Green NFT if carbon footprint goes above a threshold, etc.

All of these without having to depend on trusted intermediaries that had the ultimate power to block out individuals they felt like or change a record as they deemed fit. The underlying blockchain system builds on distributed, a decentralized trustless environment which is scalable, global & robust.

“Can’t I just take a screenshot of the file?”

Damn, I was busy right-clicking on the video and downloading something someone paid Millions of $$ for. That’s nasty but true. So where is the value??

The value lies in owning the authentic file - Would a photocopy of the author-signed book have the same value as the actual author-signed book. You can copy a digital file as many times as you want, including the art that’s included with an NFT.

But NFTs are designed to give you something that can’t be copied: ownership of the work (though the artist can still retain the copyright and reproduction rights, just like with physical artwork). To put it in terms of physical art collecting: anyone can buy a Monet print. But only one person can own the original.

“Is NFT only about Digital Art?”

Not really. Art is just the first set of use-cases for NFTs that have caught the social fancy. NFTs can be used for anything that has finite quantity, is not interchangeable, uniquely identifiable. You would start seeing more and more NFTs being created to represent real-world physical assets whose ownership is managed as an NFT. Ownership of these assets can then be easily verified on the open blockchain, used as collateral for transactions, and easily traded or fractionalized for sale. (more uses cases are explained below)

History of NFTs

NFTs have come a long way. The most notable ones have been CryptoPunks (still going strong) and Crypto Kitties.

Today, NFT minting platforms Mintbase and Mintable enable virtually anyone with the tools to mint their NFT. 

Marketplaces for NFTs include OpenSea (most prominent), Nifty Gateway (limited edition works), Super Rare (single edition works), Cargo Marketplace,  Known Origin, and MakersPlace. 

“This NFT world is likely the greatest unlock of artist opportunity in 100+ years. This isn’t a suboptimal or fringe version of the real-world art economy, it is a vastly improved one.” — Scott Belsky, (Chief Product Officer at Adobe, Founder of Behance, Venture Partner at Benchmark)

Mainstream business & artists getting involved

Highlights

• People have spent more than $230 million buying and trading digital collectibles of NBA highlights

• Vault from CNN - Moments that changed us For more than 40 years, CNN has taken you on extraordinary journeys telling the stories of our time. Now, Vault by CNN offers you a new way to own and experience some of those historic Moments that changed us and the world.

Music Artist

Pop music artists Kings of Leon, Grimes, Flume, and Steve Aoki have all created NFTs for sale to great success. Rolling Stone reports NFTs to be a possible game-changer for musicians who opt to offer songs, albums, virtual paraphernalia, and even coupons for virtual meetings to “super-fans” as NFTs. 

NFTs are a game-changer for independent artists and musicians

The potential for the Creator economy is huge with creator tokens soon to start popping up.

Metaverse and Galleries of the future

If you don’t already know about the metaverse, it is a virtual world where people will interact, work, play - Watch the movie Ready Player one to get a better perspective of what is possible.

Many of the digital artwork, Avatar accessories, buildings, goods will be NFTs that have been purchased and can be used or put on display in the virtual world.

Only time will tell how these use cases will really pan out over time. But for now, I won’t go down this rabbit hole and will keep that for another article.

Why should I care

NFT's could change how we think about ownership, the same way the internet changed how we consider communication and commerce.

Internet-enabled us to Bridge the physical distance divide. Started with - image, voice, text Reduce friction in the process

NFTs will help us to virtualize Physical & Digital Assets, driving frictionless movement of assets with all the benefits of authenticity, scarcity, clear ownership, tamper-proof & smart contracts

Content Creators will take back control

Today content creators have limited control. They are either fleeced by middlemen in whichever industry they are part of or get the wrong end of the stick from consumers when their hard work is indiscriminately copied without any income being generated for them. Many content creators have had their art, music, product banned from social media platforms for incorrect copyright infringement claims. All of these can become things of the part as Content creators can package their product and reach out to consumers directly. The blockchain can help enforce access, payment services, royalties as the book, music, video, etc is consumed by end-users. Their work can be packaged as NFTs with smart capabilities that can enforce how royalties are shared every time a book is sold ahead or payment streamed for each page of the book that is read. The options are endless.

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Examples of NFTs

The NFT world is relatively new. In theory, the scope for NFTs is anything that is unique that needs provable ownership. Here are some examples of NFTs that exist today, to help you get the idea:

• A unique digital artwork.

• A unique sneaker in a limited-run fashion line.

• An in-game item.

• An essay.

• A digital collectible.

• A domain name.

• A ticket that gives you access to an event or a coupon.

How do I get my first NFT Art?

The crazy for now is still in the realm of NFT Art. While it seems like a 4 step process, it still has quite a few hurdles for noobs to get started. Definitely an opportunity to simplify the process & make the UX better.

1. You need to get your money into the crypto universe (most likely through an exchange like coin base, binance, gemini etc

2. Buy some ETH or BNB (depending on which platform you want to buy NFT on)

3. Sign-up for a decentralized wallet like metamask and transfer your tokens to it. Some options let you buy ETH directly into your decentralized wallet.

4. Go to an NFT marketplace like OpenSea, Rarible, etc and buy your first NFT.

This is not meant to be a full how-to on buying an NFT. I can try to do that separately.

Some of my earlier posts if you have not read them yet

• 💸5 Essentials for CryptoCurrencies. Get started NOW!!

• 🥇Next 5 Crypto Currencies and their smashing returns! [Top 10 Series]

• 🏆 10 ways Blockchain will disrupt the Olympics - Paris 2024 and Los Angeles 2028

• 🚀A new era of Central Bank Digital Currencies

• Bitcoin Price - Scam or Real?

• 10 Investing Lessons I Learned

If you liked this article - Do sign-up for my FREE weekly newsletter, share it with your friends, and give me feedback. You can find me on Social Media Twitter - @sauravbhats or Linked in.

💡What’s in it for Me: Get Smarter in 5 Minutes

Hi everyone 👋. Welcome back to ‘The Weekly Recap’, where I curate a reading list of insightful articles, market updates & bite-sized learnings nuggets to get you caught up for the week. If you're reading this and haven't signed up, join the 215+ others by clicking below, and to the regular readers, thank you. 🙏

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🧠Quote of the week

If there is anything Iron Man has taught us - Sometimes you gotta run before you can walk!! That’s a bit like how I feel about my Newsletter & Youtube channel. Don’t overthink it.. 🚀

📚Here is what I liked reading

• 5 Habits of People Who Refuse To Be Mediocre - (MUST READ) Escaping mediocrity is hard, but it’s the best thing you’ll ever do for yourself.

• Blockchain applications (use cases) that will change the world in the next 5 years- The next half-decade will see mass adoption of blockchain technology.

• High Achievers Are People Who Break Rules and Ignore Trends - Be a creator, not a consumer. Be a leader, not a follower. Commit to what you’re great at.

• Explanation Effect: Why You Should Always Teach What You Learn: It is a peculiar irony in life that the fastest and best way to learn something is to give it to others as soon as you learn it — not to hog it yourself.

• Fake online reviews cost $152 billion a year. Here's how e-commerce sites can stop them - While there are well-intentioned valid users creating online reviews, there are also malicious users and bots.

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🔥Crypto Market Update

Total Crypto Market cap remained flat at 2T. Bitcoin was relatively flat, while the other coins had some winners(BNB,SOL) and some losers (XRP, DOGE, DOT). Some new capability launches ahead with Cardona launching the much anticipated smart contracts in Sep.

Record $900 million month for NFT sales as CryptoPunks go stratospheric. Almost $400 million has been spent on CryptoPunks over the past 30 days. The average sale price for the pixelated punks is a whopping $214,000. One of the most expensive ones ever sold was number 7523, a rare alien punk wearing a face mask that went for a whopping $11.5 million in a Sotheby’s auction in June.

Crypto is embracing aspects of regulation - Cardano Getting Regulated: The Cardano Foundation announced on August 24 that it would use Coinfirm's services to offer AML/CFT analytics for Cardano's native cryptocurrency, ADA. The analytics will allow the project to comply with the Financial Action Task Force, the European Union's Sixth Anti-Money Laundering Directive, and other legislation.

🙋‍♂️Term of the Week - “Over The Counter (OTC)”

It refers to the process that cryptocurrencies are being traded outside an exchange directly between two parties. People usually opt for OTC as some coins are too small to be listed on exchanges or the cryptocurrencies are banned in certain jurisdictions.

🤣Just for Laughs

That's all, folks. 👋

Remember, if you're enjoying this content, please do tell all your friends to check it out and hit the subscribe button. Hope everyone has a great weekend.🚀🙏🏻

Help me grow and improve with your feedback

🚨Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

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🚀🔥 I have started a new podcast series #ConnectedBrains!! I will look to help people understand more about Blockchain, Crypto & Digital. I plan to invite Leaders from various industries to share their learnings & experiences.

As a starter, I published the first video "5 Things to know before you invest in Crypto". Please check it out on youtube 📺.

"SUBSCRIBE", "LIKE" and hit the "BELL ICON".

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What’s up with the Crypto markets?

Since I wrote my last article on the Top 5 cryptocurrencies (21 days back), the Cryptocurrency Market cap has jumped from $1.6T to $2.1Trillion. That’s an amazing 30% return in 21 days (not considering some coins that have doubled or tripled). During the same time, the high growth stock portfolio of US stocks has gone down 15% 🥺🥶

As the Chinese saying goes “May you live in interesting times”

In this article, I look at the “Next 5 Crypto Currencies”. If you haven’t read my earlier article 🥇Top 5 Crypto Currencies and their smashing returns! - now would be a good time to find out more about them. And if you are new to this space or my substack, you can read a few of the starter articles on:

• 💸5 Essentials for CryptoCurrencies. Get started NOW!!

• 💡What's the Fuss about Blockchain? Simplified Series..

Ok, So we have more than 11,000 tokens, you don’t know much beyond Bitcoin & Ethereum. Lets look at numbers 6 to 10 covering Ripple (XRP), DogeCoin (DOGE), Polkadot (DOT), USD Coin (USDC), Solana (SOL)

This is not meant to be deep dive into these projects but an initial primer to get you started on understanding what they are. If you decide to part with your hard-earned money because of what you read here, I would suggest “Do your own research” first.

6. Ripple (XRP) - Mkt Cap $59Bn

Ripple is a Blockchain technology that acts as both a crypto currency and a digital payment network for financial transactions. It was first released in 2012. It is a global payment network and has major banks and financial services institutions as its customers. The Token XRP is used to help with quick conversion between different currencies. What’s interesting about this project is that it allows seamless transfer of money in any form FIAT or Crypto. So similar to how the FX markets allow seamless transfer between currency pairs USDSGD (USD to Singapore dollar), EURCAD (Euro to Canadian Dollar) the ripple network with its participant of financial providers makes it easy to simply transfer BTCSGD, ETHCAD

Rather than use Proof of work-based mining, Ripple uses a consensus mechanism, based on a group of bank-owned servers (authorized participants) to confirm transactions. In comparison to Bitcoin, Ripple transactions use less energy, are confirmed faster, and cost lesser.

Unfortunately, Ripple has been riddled with legal challenges - mixture of the Token economics and the how company was structured. SEC filed a suit against Ripple and its current & former CEOs, claiming that selling XRP constituted offering unregistered security - essentially an illegal IPO.

As the case drags on with no clear resolution yet in sight, Ripple’s legal woes have become representative of the murky regulation enveloping digital currency, reflecting the mismatch between laws largely developed during the Great Depression and today’s fast growing fintech & crypto ecosystem. While opinions differ on whether the SEC has a strong case against Ripple, almost everyone agrees that the underlying problem is a lack of clarity over how cryptocurrency can be regulated in ways that don’t sabotage the industry or unfairly target companies and investors who may have had little way of knowing they were running afoul of regulators

If you are interested in a more detailed history of Ripple and some of the challenges with its Tokenomics check out this great article on Reddit.

7. Doge (DOGE) - Mkt Cap $42Bn

I know! I know! There are lots of views on Doge - the good, the bad & the ugly. However, one thing is given, when something manages to have a market cap of $42Bn it does deserve to be understood.

So what is Doge. It is a peer-to-peer open-source cryptocurrency started in 2013 by Jackson Palmer & Billy Markus. It started as a joke based on a popular meme featuring a Shiba Inu (Japanese dog breed). The Doge blockchain has value and its underlying technology is derived from Litecoin (another cryptocurrency)

Dogecoin has a loyal community of supporters who trade it and use it as a tipping currency for social media content on Twitter & Reddit.

It moved into the limelight recently with Elon Musk tweeting about it and the potential anticipation of announcements when he was to appear on Saturday Night Live show. In a typical “Buy the rumor, sell the news” many people traded it successfully and filled their coffers.

Elon Musk’s SpaceX Is Launching An Actual Dogecoin Mission To The Moon In 2022

In more recent news the Dogecoin Foundation Is Back With Elon Musk's Adviser and Ethereum's Vitalik Buterin

It’s hard to say how DogeCoin will play out in the future, but an interesting way to look at it is - “it is a very loyal customer base, that is looking for a product to be solved to them”. As thought leaders like Vatalik get involved in the project they can really craft the product offering of what can be developed - many more use cases to come ahead.

8. PolkaDot (DOT) - Mkt Cap $28Bn

In the crypto world, there are many Blockchains - Bitcoin, Ethereum, Cardona, Solana etc. They don’t really talk to each other or exchange information with each other. Wouldn’t it make sense to have some common interface for them to interact? Concept of Interoperability

Enter - PolkaDot 😎. Its like a bridge for Blockchains

Polkadot is a sharded bridge-like protocol, which focuses on maintaining communication, value transfer, and pooling the security of blockchains. It allows blockchains to operate with each other in a parallel manner by unifying them into one network. The unification compounds the strengths of different blockchains and mitigates their weaknesses.

If you are wanting to understand more details - Collators, Bridges, Staking Rewards etc this is a great article to deepdive.

9. USD Coin (USDC) - Mkt Cap $27Bn

Let’s first understand 2 terms:

• Fiat Money is government-backed currency that we use in our daily lives. Each country typically issues its own fiat currency and mandates it as legal tender.

• Stable Coin is a crypto equivalent of the designated fiat currency, where it is meant to mimic the price of the fiat currency & external reference it is pegged to. They are not subject to price volatility in the same way that traditional cryptocurrencies are. If it is the same then why do you need a stable coin? Well, that is easy, because it gives you all the benefits of a cryptocurrency - fast & cheap to transfer, fractionalization etc.

USD Coin (USDC) is a digital stable coin that is pegged to the United States dollar and runs on the Ethereum, Stellar, Algorand, and Solana blockchains, as well as on the Hedera Hashgraph system. USD Coin is managed by a consortium called Centre, which was founded by Circle and includes members from the cryptocurrency exchange Coinbase and Bitcoin mining company Bitmain, an investor in Circle.

Circle claims that each USDC is backed by a dollar held in reserve, or by other "approved investments", though these are not detailed.

USDC is issued by regulated financial institutions, backed by fully reserved assets, redeemable on a 1:1 basis for US dollars, and governed by Centre, a membership-based consortium that sets technical, policy, and financial standards for stablecoins.

Remember Stable coins are simply crypto tokens that are meant to allow investors to hold money in Pegged currencies such as USD without converting to FIAT. These stable coins to appreciate in value like other crypto currencies.

10. Solana (SOL) - Mkt Cap $23Bn

Solana is a web-scale blockchain that provides fast, secure, decentralized apps and marketplaces. It is currently the fastest blockchain network that supports 50,000+ TPS (Transactions per second) and 400 ms Block time. The system is able to support an upper bound of 710,000 TPS on a standard gigabit network and 28.4 million TPS on a 40-gigabit network - in simple English - there is more room to grow and it can get faster than what it is

Unlike Bitcoin which uses PoW (Proof of Work) - lots of processing and electricity to show that you did the work and write the next block, Solana uses a Proof of History method (innovated by Solana). With Proof of History, you are able to create historical records that prove that an event occurs during a specific moment in time.

Check out this article if you want to read more technical things about solana.

So this is a great technology, with lots of projects and many developers working on it. Did any of this help in the price returns for this token? Another rhetorical question 😂😂. Of course the answer is “YES”. I had take out my calculator to do the math.

In 12 months, it returned 2,445X - going from $9M in market cap to $22Bn. An investment of $1,000 in Solana 12 months back would be worth $2.4Million today.😱😱

Some of my earlier posts if you have not read them yet

• 💸5 Essentials for CryptoCurrencies. Get started NOW!!

• 🏆 10 ways Blockchain will disrupt the Olympics - Paris 2024 and Los Angeles 2028

• 🚀A new era of Central Bank Digital Currencies

• Bitcoin Price - Scam or Real?

• 10 Investing Lessons I Learned

If you liked this article - Do sign-up for my FREE weekly newsletter, share it with your friends, and give me feedback. You can find me on Social Media Twitter - @sauravbhats or Linked in.

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💡What’s in it for Me: Get Smarter in 5 Minutes

Hi everyone 👋. Welcome back to ‘The Weekly Recap’, where I curate a reading list of insightful articles, market updates & bite-sized learnings nuggets to get you caught up for the week. If you're reading this and haven't signed up, join the 190+ others by clicking below, and to the regular readers, thank you. 🙏

Subscribe now

🧠Quote of the week

To new beginnings and learning from our experiences!!

📚Here is what I liked reading

• Stop Overlooking These Essential Skills - MUST READ - Everything from “How to run a meeting” to “How to accept a Gift”. 9 amazingly interesting skills.

• The Most Innovative Companies in 2021 (VISUAL CAPITALIST) - This year has been rife with pandemic-induced changes that have shifted corporate priorities—and yet, innovation has remained a top concern among corporations

• Top 10 Cryptocurrency Exchanges in 2021 - Good to be aware of the options (Binance, Coinbase, Bityard, Huobi, Bitmex, Gemini, Bitfinex, Bittrex, FTX, Deribit)

• How computer vision works and why it’s plagued by bias - Facial recognition technology, for example, is known to misidentify Black people, but its use is surging in retail stores. It’s also already common in policing, which has prompted protests and regulations in several U.S. cities and states.

• Why Failure Is More Important Than You Think - Your success is often explained by the failures in your past

🔥Crypto Market Update

BTC & Ethereum taking a breather after a strong run-up. Other large Alt-coins continue their uptrend over the last 7 days Solana up 63%, Cardona 25% & Ripple 20%. $90M hack of Liquid Exchange in Japan. Ethereum co-founder Vitalik Buterin joins Dogecoin foundation & will help shape its future

🙋‍♂️Term of the Week - “Altcoins”

Altcoins = any crypto coins not named Bitcoin.
They share characteristics with Bitcoin but are also different from them in other ways. For example, some altcoins use a different consensus mechanism to produce blocks or validate transactions. Or, they distinguish themselves from Bitcoin by providing new or additional capabilities, such as smart contracts or low-price volatility.

🤣Just for Laughs

That's all, folks. 👋

Remember, if you're enjoying this content, please do tell all your friends to check it out and hit the subscribe button. Hope everyone has a great weekend.🚀🙏🏻

Help me grow and improve with your feedback

🚨Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

Subscribe now

Olympics is the world’s foremost sporting event, with top athletes from more than 200 nations going head to head to showcase their athletic skills. The “best of the best” pushing the limits to bring glory for themselves and the nations they represent. While the event may have started off as a competition of human strength, will & endurance, they are now as much a Technological marvel of what is possible.

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🏋️‍♀️2021 Tokyo Olympics - New Technology used

In the 2021 Tokyo Olympics, from wearables to 3D printed shoes & AI-powered coaching, athletes used technology to help get closer to winning the coveted gold medal in their respective events. Sports technology that monitors technique and apparel to improve performance is an important part of an elite athlete’s preparations. But critics say this can equate to “technological doping” and has worsened the inequality between well-funded teams and those from developing nations. Some of the new capabilities that were showcased to the viewers this year included:

• Biometric data: An example of this was the heart rate sensor & four cameras just 4 feet from the archer’s face. Viewers got to see on-screen graphics showing how the athlete’s heartbeats change and highlight any adrenaline rushes.

• Panoramic coverage: “A myriad of high-speed 4K cameras” enabled a totally new way to get up close to all the action

• 3D athlete tracking: Viewers got real-time insights and overlay visualizations during the sprint & swimming events using AI & computer vision

• Cooler clothing: Products sensed body temperature and dispersed heat from the wearer’s skin through a sophisticated device.

• Olympic robots: Robot mascots, Miraitowa and Someity were original planned to greet visitors but eventually were used to help participants. Also, field events used robots for throwing events with automatic driving functions to self-navigate and retrieve items such as javelins or hammers.

🏅So can Blockchain (Crypto) radically change the Olympics in 2024 or 2028?

This is a rhetorical question😅. Of course, the answer is yes!! While most of the focus of cryptocurrencies has been on Bitcoin and the volatility around it, most people have not looked at the underlying benefits Blockchain and other Community tokens are bringing to this space. Let’s extrapolate how these emerging trends can play out over the next 4 to 8 years.

A quick refresher on Blockchain: A blockchain allows two individuals who don’t know each other to exchange value or information without the need for a trusted third party. This opens up a range of possibilities where traditionally, we have needed trusted intermediaries to drive consistency. On the Blockchain, all authenticated information is saved “on-chain” and made available to participants in a secure format. In the sports industry, blockchain could be used to:

• Facilitate mass coordination between stakeholders through decentralization

• Reduce costs by removing third parties

• Build trust between stakeholders

• Secure data and make them transparent

10 Ways Blockchain will change the Olympics?

While there are various other technological advances in the space of Augmented Reality, 5G Networks, Artificial Intelligence/Machine Learnings, this article focuses primarily on use cases around blockchain and what they can enable.

1. Crypto Sponsorships

Not all teams have the financial support needed from their governing bodies to get Olympic-level training, equipment, or paying for travel expenses. Cryptocurrencies provide an easy way for teams to secure private sponsorship from around the world to fund these activities (With the lowest transfer fee).

As an example in 2014, the Jamaican team had qualified for the Winter Olympics for the first time since 2002. The two-man sled was piloted by Winston Watt, a 46-year-old Jamaican-American who also competed in 2002, with Marvin Dixon as the brakeman. But Watt revealed that, even after putting his own money up to fly the team to his training session, there wasn't enough money to send the two to Russia. As a result, he turned to donations, launching a PayPal account to pay for the estimated $40,000. The team raised $25,000 in Dogecoin to pay for the shortfall.

2. Tokenizing Aspiring Athletes

When amateur & young professional athletes start off their careers, in many countries, they don’t have the financial support needed from the state to help them train and prepare for the major sporting events (including the Olympics). Most of them end up dropping off from the sport or not performing at their maximum potential due to the lack of financial support.

Tokenizing amateur athletes seeking funding to launch their careers still has a long way to go before it can go mainstream. However, if the kinks can be ironed out, it is truly an amazing proposition for both the athlete and the investor backing them. Platforms that allow investors to first view an athlete’s performance tape & credentials. They can then buy tokens of the athlete to fund their current requirements for a promise of a future cut of the athlete’s earnings. Parties are looking to level crypto tokens to implement these contracts. To prevent exploitation there are ethical and logistical questions that still need to be dealt with, but this does provide an opportunity to bridge the economic divide that technologically advanced participants have over other athletes.

Growing adoption in this is also seen with Argentine soccer star Lionel Messi's transfer to French club Paris St Germain which included a payment in cryptocurrency fan tokens

3. Smart Ticketing system

Ticketing has 2 key problems - Counterfeiting & Ticket scalping

• Counterfeiting is the sale of fake tickets that look like the original but don’t get you entry into the event. By the time the purchaser notices the counterfeit, it is already too late. They lose money and the irreplaceable opportunity of viewing the sporting event

• Ticket scalping is the practice of buying tickets to an event for the purpose of reselling them at higher prices.

3.1 Counterfeiting

As tickets are an “Asset”, Blockchain technology is ideally suited to help manage the end-to-end lifecycle of this process in a transparent (clear ownership & authenticity) and efficient way. If you are a fan who has missed out on the purchase of a ticket for a major sporting event, you may be tempted into an impulse buy of the ticket from a vendor outside the stadium, but are you really sure of the authenticity? Smart ticket platforms trace the chain custody for tickets (from the organizer to the final purchaser). With this available publically, the fans would have a way to ensure they don’t get to miss the event due to a phony ticket. These records are immutable and document each exchange, so users would be able to trace the ticket back to the original seller before parting with their hard-earned money.  

3.2 Ticket resale & Scalping

Leveraging NFTs on blockchain to mint tickets allows the organizers to keep track of the tickets even after they are sold. All tickets are securely linked to the purchaser, and these transactions are recorded onto the blockchain. Any further sale or transaction of the tickets will also be listed on the blockchain. This would allow the organizers to monitor purchasers who are mass purchasing and reselling tickets, fraudulent transactions etc.

NFTs can provide additional revenue streams for the organizers in the form of transactional fees - for the tickets used as collectibles. Unlike the physical ticket market, blockchain-based digital tickets would be easier to authenticate. They can continue to earn a small fee (as part of the NFT) for the organizers every time the ticket is resold. If this fee is a % of the value of the sale price of the ticket it ensures the organisers get a share of creating this truly memorable experience.

4. Decentralizing Fantasy Sports Participation, Payments

Fantasy Sports is a type of game played online, where participants assemble imaginary or virtual teams composed of proxies of real players of a professional sport. Their performance & skills in the real world would determine how the fantasy team performs. This is a multi-billion dollar industry with teams & players being traded for top $$$. And when there are such large sums of money at stake, Decentralized trust powered by Blockchain can definitely play a big part. Blockchain help provide the clear basis of ownership, transfer of rights & associated payments in an externally auditable, immutable & transparent way.

5. Recording and Sharing Performance Data Securely

50 to 100 years back, only the performance data of the athlete in the event was recorded for official purposes - track & field run time, javelin throw distance, etc. That has completely changed now as more data is being produced via sensors & biometric devices - wind speed, temperature, individuals heart rate, angle of throw, on and on. Teams are capturing this data to create better models to eke out improved performance for their athletes. Not all teams have the financial & technological muscle to spend on this. There is an opportunity for smaller countries to pool together resources and develop shared systems helping their athletes. It would require utilizing a platform that allows data to be shared between coaches, trainers, managers and athletes. It is critical to ensure the data is not easily hacked, duplicated, or extracted without appropriate clearances. The blockchain can provide this secure environment without the risk of unauthorized participants stealing or accessing data.

6. Transparency For Drug Testing

Olympics are high-stakes competition. Every country and athlete is trying to get ahead, any edge, any advantage they can get. This can sometimes lead to the dark path of doping & performance-enhancing drugs.

Systematic doping of Russian sports-men and -women has resulted in 43 Olympic and tens of world championship medals being stripped from Russian competitors[when?]—the largest number from any country, more than four times the number of the runner-up, and more than 30% of the global total.[citation needed] Russia has the most competitors who have been caught doping at the Olympic Games, with more than 200.1

While Blockchain can not stop people from taking performance-enhancing substances, it can definitely increase the transparency and auditability of the process of testing. Blockchain-based solutions can provide an unassailable (impregnable) chain of custody for drug testing, handling, and storage. Instead of relying on hearsay based approach with opaque data, this system can increase the level of trust of participants and visitors in the whole process.

7. Fan Tokens + Fan Revenue Sharing + Content Creation

Fan engagement tokens have created the most exciting innovation at the intersection between sports & technology. This token is a “fungible digital” utility token that gives the holder (fans) access & influence over certain decisions made by the teams & managers. The tokens provide its owner the right to vote on team matters such as what should be the design of the kit, names for training ground, or picking charity initiatives.

Rewarding fans for interacting with sites, sharing content, interacting with posts on social media, and accumulating tokens that can be exchanged for collectibles or other important rewards - a truly monetizable loyalty program for fans. These fan tokens give members rights to be involved in decisions such as voting on the final jersey the team wears, special invite with athletes for web meetings etc. Teams can also hold contests on blockchain platforms, tying unique identifiers to fans who can purchase tickets to lead up events and, as a result, be entered into contests or giveaways.

8. Data and Information Sharing with Fans

Fans are not just crazy about the athlete but crave historical stats, performance data, wins/losses etc. While this information is brought up on video displays or on websites, it would be amazing to have this available real-time on a public blockchain. This would spur a wave of creative analytics and insights from enthusiasts that can perform “On-Chain” (on the blockchain) analytics leveraging this data building even more engaging platforms for fans to engage with their favorite teams and athletes.

9. Sports collectibles & NFTs

Olympic highlights and special moments can be converted into digital NFTs (similar to NBA Topshots) and made available for purchase to Fans. These authentic NFTs would increase in value & use as the digital metaverse capabilities improve.

Authentic Digital memorabilia. While memorabilia from older Olympic events are sold on online auction sites, it is still hard to validate their authenticity and lead to many fakes in circulation. Going into the next Olympics, the memorabilia can include “on-chain” verification to ensure it is easy to authenticate the artifact and have a clear traceability of ownership from the original purchaser.

10. Logistics for Tourists & Visitors

In addition to the ticketing benefits to visitors, blockchain capabilities can help the organizer improve the overall logistics & ecosystem available to the visitors of the events. From Airport clearance, hotel booking, nearby attractions, restaurants, deals, logistics many businesses and can be linked together to provide a more seamless & secure environment for the visitors of the events.

PWC Report on Blockchain & Sports industry

Some of my earlier posts if you have not read them yet

• 💸5 Essentials for CryptoCurrencies. Get started NOW!!

• 💡What's the Fuss about Blockchain? Simplified Series

• 🥇Top 5 Crypto Currencies and their smashing returns!

• 🚀A new era of Central Bank Digital Currencies

• Bitcoin Price - Scam or Real?

• 10 Investing Lessons I Learned

If you liked this article - Do sign-up for my FREE weekly newsletter, share it with your friends, and give me feedback. You can find me on Social Media Twitter - @sauravbhats or Linked in.

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🚨Big Disclaimer: This is not investment advice. I am not an investment advisor. This information is meant to be for educational purposes. Please do your own research before you decide to invest your hard-earned money. If you are unsure seek help from a professional financial advisor who can understand the full breadth of your financial needs & commitments to advise you on what you should do.

💡What’s in it for Me: Get Smarter in 5 Minutes

Hi everyone 👋. Welcome back to ‘The Weekly Recap’, where I curate a reading list of insightful articles, market updates & bite-sized learnings nuggets to get you caught up for the week. If you're reading this and haven't signed up, join the 175+ others by clicking below, and to the regular readers, thank you. 🙏

Subscribe now

🧠Quote of the week

Keep Learning, Growing & Changing!!

📚Here is what I liked reading

• How hackers stole and returned $600 Mn in tokens from Poly Network - Hackers pulled off the biggest ever cryptocurrency heist on Tuesday, stealing more than $600 million in digital coins from token-swapping platform Poly Network, only to return nearly all the assets less than 48 hours later

• 15 Lessons Life Has Taught Me About Women - They’re not as complicated as you think and will help you improve your relationship

• Visualized: The Biggest Ponzi Schemes in Modern History - Some things simply sound too good to be true, but when money is involved, our judgement can become clouded. This is often the case with Ponzi schemes.

• Here's how your favorite websites would have looked in the 90s - The nostalgia is strong with this one 🤣🤣🤣

• How journaling reduces stress and increases productivity - If you’re caught in a cycle of overthinking and stress, the simple act of writing can be a powerful tool. “The idea is to keep a regular journal. When you have a bad experience in your personal or professional life. The bad things that happen to you create little tears in the fabric of your life story. By writing about those events several times, you craft a story that knits the bad things into the narrative of your life”

📺YouTube Learning

Jeff Bezos । 5 Minutes for the NEXT 50 Years of Your LIFE:

We all have the same amount of time in this world, NOBODY has more time. Every job comes with pieces that you don’t like but we have to get over it and focus on the parts that we do like.

🔥Crypto Market Update

The Crypto market continues its upward run with Bitcoin & Ethereum up 11% and other top 10 alt coins seeing as much as 36% increases over the past week. Analysts feel Bitcoin may take a breather at this level before making its next leg up in what looks like a continuation of the Bull run.

🙋‍♂️Term of the Week - “SMART CONTRACTS”

Smart contracts are potentially one of the most useful tools associated with blockchain, and they can enable the transfer of everything from bitcoin and fiat currency to goods transported around the world. Smart contracts are self-executing, business automation applications that run on a decentralized network such as blockchain. Just as cryptocurrencies made counterparty risk obsolete, smart contract removes the risk of contract defaults because it will execute autonomously and transparently.

🤣Just of Laughs

That's all, folks. 👋

Remember, if you're enjoying this content, please do tell all your friends to check it out and hit the subscribe button. Hope everyone has a great weekend.🚀🙏🏻

Help me grow and improve with your feedback

🚨Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your accountant. Do your own research.

Subscribe now