Token Economics and Raising Crypto Capital with Jill Carlson
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“For the first time there is no longer a monopoly on the creation of value or monetary systems, that is really What Bitcoin Did.”
Interview location: London, UK
Interview date: Tue 22nd May 2018
The crazy world of Crypto is building a new borderless financial system with different rules. The creation of entirely new forms of money has resulted in a new global liquidity pool, and the traditional world of finance is watching.
Furthermore, entirely new token based business models are evolving. These token based projects are raising $millions on the promise of utility or equity, yet much of this new economy is untested:
Are utility tokens a wise investment?
Are equity tokens a better way of issuing stock?
With utility tokens, the velocity theory is yet to be economically proven with a single product. Velocity is no different to traction, something most startups find hard, even with great ideas. If traction is slow, then the value of most of these tokens will go to $0 very quickly.
With equity tokens, the promise is different and arguably more practical. Rather than a new economic model, these tokens represent a way of improving a legacy system.
Blockchains are changing what money is and how it moves, and there is undoubtedly an opportunity for innovators to create new business models, but many questions remain over how practical and realistic much of this is. Most projects do not need a blockchain, most are raising too much money too early, and many of the difficulties which tech startups face are being ignored:
What problem is being solved?
Where will traction come from?
Will these projects become economically viable?
Jill Carlson represents a small but influential group of realists in the space, writing about and questioning many of the challenges the market is facing. In our interview we discuss token economics, raising capital for Crypto projects compared to traditional startups and the general state of the market.
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SHOW NOTES
Connect with Jill:
Her website: http://jill-carlson.com/
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Important articles:
BREAKDOWN OF THE SHOW
00:05:27: Introductions
00:08:30: Jill's background
00:14:06: Financing tokens
00:21:13: The native token model
00:26:08: Atomic swaps
00:29:28: The concern over liquidity
00:32:49: Token use cases
00:35:09: Bitcoin use cases
00:39:59: Bitcoin maximalism
00:43:18: Stablecoins
00:49:42: Stablecoins use cases
00:53:08: Understanding the crypto space
00:57:15: Crypto disasters
01:04:26: Accredited investor rules
01:06:34: Wall Street entering the crypto space
01:08:52: Current and future projects for Jill
01:11:33: Final comments
THANKS
Jason Camiolo for audio production, his website is at http://www.jasoncamiolo.com/
James Parkin for helping me with admin and trading
Paul Edmonds for graphic design
