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Tag: Cryptocurrency / Blockchain

  • Streaming Free: ‘Uncensored Crypto’ Explores the Future of Money | Entrepreneur

    Streaming Free: ‘Uncensored Crypto’ Explores the Future of Money | Entrepreneur

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    This week on EntrepreneurTV, the Uncensored Crypto show gets you up to speed on Web3.

    Blockchain has disrupted everything from how we work, vote, earn, and invest, to how we communicate and play. Yet, most people are unaware of the transformation taking place on a global scale.

    Related: What the Director of ‘Burt’s Buzz’ Learned While Making His Movie About a Reluctant Business Genius

    Uncensored Crypto podcast changes that, delivering viewers straight talk about cryptocurrencies, Web3, blockchain, DeFi, NFTs, and more. On each episode, host Michael Hearne interviews the disruptors at the forefront of the crypto revolution who are shaping our economic, financial, and political future. You’ll hear them chat openly about their successes, failures, and wealth-building strategies. With their help, you can harness the power of crypto and the blockchain to change your life and help transform the world.

    Watch now

    About EntrepreneurTV

    EntrepreneurTV’s original programming is built to inspire, inform and fire up the minds of people like you who are on a mission to launch and grow their dream businesses. Watch new docu-series and insightful interviews streaming now on Entrepreneur, Galaxy TV, FreeCast, and Plex.

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    Entrepreneur Staff

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  • Why the War Against Digital Currencies is Being Lost | Entrepreneur

    Why the War Against Digital Currencies is Being Lost | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    You don’t have to be a media professional to notice the barrage of commentary in the press regarding digital currencies like Bitcoin and Ethereum. And at least of late, it certainly appears tilted to the negative. It’s human nature to be afraid of change and evolution: We all like to be mollycoddled — warm, undisturbed in our cribs and averse to change and innovation.

    The actual market data in the crypto space, however, suggests that trends are anything but negative, with Bloomberg recently publishing an article postulating a $100,000 Bitcoin valuation as the year progresses.

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    Jonny Caplan

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  • How Cognitive Biases Can Impact Your Trading Career | Entrepreneur

    How Cognitive Biases Can Impact Your Trading Career | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Are you a trader looking to improve your trading skills and increase your profits? Did you know that cognitive biases can have a significant impact on your trading decisions? Cognitive biases are inherent thinking errors that occur as humans process information, and they prevent us from accurately understanding reality, even when we are presented with the necessary data and evidence to form a more accurate view.

    Let’s see some of the cognitive biases traders and investors are prone to, and then I’ll tell you what you need to do to limit them.

    Negativity bias: This bias refers to the tendency to give more weight to negative information than positive information.

    Loss aversion bias: This refers to the tendency for traders to prefer avoiding losses to acquiring equivalent gains. In other words, the pain of losing is psychologically about twice as powerful as the pleasure you get from profits. And this bias can cause traders to behave irrationally.

    Gambler’s fallacy: This bias refers to the belief that future events are affected by past events when, in fact, they are independent.

    Confirmation bias: This bias refers to the tendency to seek out information that confirms preexisting beliefs and ignore information that contradicts them.

    Hindsight bias: This bias refers to the tendency to believe that past events were more predictable than they actually were.

    Anchoring bias: This bias refers to the tendency to rely too heavily on the first piece of information encountered when making decisions.

    Bandwagon effect: This bias refers to the tendency to do or believe things because many other people do or believe the same.

    Overconfidence bias: This bias refers to the tendency to overestimate one’s abilities or the accuracy of one’s beliefs and judgments.

    Recency bias: This bias refers to the tendency to weigh recent events more heavily than earlier events.

    Self-serving bias: This bias refers to the tendency to attribute positive events to one’s own character or actions and negative events to external factors.

    There are many more cognitive biases, but those are just some that are relevant in a field like trading. They come into the picture and structure the way we perceive market information, very often in ways that aren’t helpful to our bottom line.

    Related: How to Account for Cognitive Biases as an Entrepreneur

    Why you can’t completely eliminate biases

    Cognitive biases are intrinsic to human thought and perception, and it’s important to remember that just knowing about these biases doesn’t necessarily free you from them. As a trader, your trading approach has to include mechanisms to limit such biases, or else you’re just going to repeatedly shoot yourself in the foot — and you won’t go anywhere in terms of consistency.

    Once again, you cannot just rid yourself of biases. Some people appear to think you can, but to that, I’ll say this: Not seeing your biases is itself a bias (blind spot bias — the tendency to recognize biases in others, while failing to see biases in ourselves)

    Biases dumb down for us the complexity of the world — they’re just how we see the world and think. They’re inevitable. That being said, they can be mitigated. For instance, it is useful to remember that our brains have evolved these biases to deal with information overload.

    The world is a complex place, and we’re constantly bombarded with all kinds of information coming to our five senses. The best estimate I’ve read on this is that there is about 11 million bits per second worth of information available to our senses on a moment-to-moment basis. The research also tells us that our brain has a limited amount of information it can perceive at a conscious level, and that number is about 50 bits per second. That’s a big difference, isn’t it? 11 million are available, and only 50 get in …

    So, unsurprisingly what this means is that there is a huge amount of filtering going on in our brains, and that takes the form of habits in the way we perceive and think about things. We are constantly filtering information and selecting the ones that already fit our worldview.

    And that’s not all. Within that mess of information available to our senses, there’s uncertainty. What do I mean by this? Well, there are many deep and important questions about reality that we don’t know the answers to, and that lack of “knowing” and lack of certainty is confusing; it troubles us, so we fill in the gaps with our own stories and map it all to our existing mental models.

    But some of the information we filter out is actually useful and important, so what does the mind do? Well, it fills in the gap with information it already knows, and sometimes this is good enough, but often it’s not.

    In order to act fast in a world fraught with all sorts of dangers, our brain needs to make split-second decisions that could impact our chances of survival. But quick decisions and reactions are often counter-productive because most of the time they’re rooted in short-term emotional gratification. And short-term emotional gratifications often go against our long-term goals — what we know rationally is better for us.

    Related: 13 Cognitive Biases That Really Screw Things Up For You

    How to limit the effects of cognitive biases

    Now, there are ways to limit the consequences of cognitive biases and improve your trading performance. The keyword here is “limit.” Once again, biases are an inevitable part of human thought and perception, and we can only mitigate the extent to which they impact our results as traders.

    You can use tools like meditation to become more aware of your inherent biases, thoughts and emotions. I’m really big on meditation, given my background as a meditation teacher, and I’ve found it to be very impactful in helping us develop self-awareness and emotional maturity. Living an examined life like that also helps us better accept that we are permanently biased creatures and that despite that, there’s room for improvement. We can get better … not be perfect, but better.

    So, meditation is one way to limit the role of biases in your trading process. Another way is to adopt a rule-based approach to trading. “If X happens, I’ll do Y;” “if Y happens, I’ll do Z.” You don’t need to have hard rules for everything — just for the hard decisions where there’s a lot of uncertainty and potential risk. Examples of hard decisions would be in terms of your position size, stop-loss placement and what you need to do in case of a gap below your stop-loss.

    Soft rules will generally do for all the other lighter decisions, like your profit target or when to trade.

    In conclusion, by understanding the ways in which cognitive biases can impact your trading decisions, you can develop effective strategies to mitigate their effects and improve your bottom line. Just keep in mind that our brains have evolved these biases to deal with information overload and the complexity of the world. But by coupling self-awareness with a rule-based approach to trading, you can make more informed decisions based on objective criteria and increase your chances of success in trading.

    Related: Trading Psychology 101 — How Traders Can Manage Their Emotions and Achieve Success

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    Yvan Byeajee

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  • How to Crowdfund $1 Million For Your Web3 Startup | Entrepreneur

    How to Crowdfund $1 Million For Your Web3 Startup | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    When you think of startup funding, you may envision contests with almost no chance of winning or solid venture capitalists who will not be surprised by your concept. “Those who raise millions for their ideas’ implementation are just lucky ones,” you may think. It sounds surprising, but a strong community can help you achieve success much faster and easier.

    The explanation is simple: The less a person has to contribute or “risk,” the more likely you are to receive a contribution. In this article, I’d like to share some tips from my own experience that may help you pique the interest of your audience in your solution and turn them into its backers. Each worthwhile idea will find supporters. Believe me.

    Related: Who Needs Venture Capitalists When You Can Crowdfund?

    1. Make sure your idea is providing a solution

    In today’s world, no idea can be completely original, but it’s better if you can come up with a unique solution or significantly improve on something that’s already been made. How did we manage it? We saw the benefits and drawbacks of working in the music industry for a long time and wanted to develop something that would truly bring innovation to the space we know.

    We carried out market research prior to building the platform. We researched whether similar initiatives already exist, what they do and the errors they made. Along with estimating the lifetime value of the product, we contrasted our idea with the needs of our target audience. It’s critical to understand whether our project has a solid foundation for the long term.

    In our case, we saw the lack of including the fans on the journey and how the number of independent artists skyrocketed, but the way of getting funding for your projects was still limited to signing a label deal. Artists can invite their fans to be part of the journey while giving back to the community of people who have supported them along the way.

    2. Show the audience a clear strategy

    Be ready to tell the truth. Explain in detail how your platform works, say at least a few words about any possible risks, and show how the money you raise through the power of the community will be used to improve the project and make it more useful for this audience. It’s very important to give people a strong reason to support you.

    Why am I emphasizing it so strongly? People are always reluctant to part with money when there is no obvious use for it. Once it is made clear to participants how their money will be used, what features they will have access to and what the ultimate goal is, a significant part of them will be ready to help you crowdfund.

    Keeping in touch with your audience is not only about keeping them interested but also about showing how much you value their continuous support.

    3. Make it easy to support you

    The more clicks required, the less likely people are to join you. So, make the funding mechanism user-friendly. It determines the stability and success of your monetization. Prepare a brief registration instruction, and ensure that the website navigation is simple to understand. People in 2023 value their time and expect everything they use to be convenient.

    There are numerous crowdfunding platforms available that are tailored specifically for startups or projects in the Web3 niche. Patreon, SeedInvest Technology, GoFundMe and other similar sites are examples. I will not recommend any particular platform, but I will share some criteria that will assist you in selecting the most convenient instrument.

    First, look for a solution that can be directly integrated into your platform in the form of a button or direct link on the main page. Again, convenience is one of the top priorities for successful and predictable funding. Second, choose the one with the most payment methods integrated. Even the most ardent supporters of your idea may abandon you if they have to make multiple transactions to pay you. Third, because there are so many fake website versions out there, don’t forget to educate your users on how to spot a fraudulent link or platform page.

    Related: 9 Steps to Launching a Successful Crowdfunding Campaign

    4. Don’t forget to spread the word

    When choosing the best way to share your initiative, think about which social media networks or media outlets your target audience uses to get ideas. Participate in networking and exhibitions. Making connections with thought leaders and others in the field of the industry you’re looking to enter multiplies your chances of success tenfold.

    We played more than one instrument at once. We worked hard to improve our social media, pitched our idea to top journalists and went to events where we could meet potential investors on a regular basis.

    The specific marketing plan you use will depend on the market you are trying to reach, your target audience and the services you plan to offer, but the following tools will come in handy 99% of the time:

    Develop your media relations: Promotion through news releases in global and specialized media is beneficial at both the project’s infancy and maturity stage. They will create “hype” in the first instance and enhance your expertise in the second. Create articles for publications, comment on current events, participate in interviews, and share announcements in the media and on the project website.

    Utilize advertising services: Set up targeted ads on social networks trusted by your primary audience, use retargeting, and connect with influencers. Brand ambassadors who are thought leaders in your chosen niche will lend credibility to your project.

    Educational content: Blockchain, Web3 and other complex topics require user education. This task can be easily completed with high-quality content: a site blog, FAQ, research, whitepaper, videos (both long and short, like TikToks), podcasts, AMAs and case studies. In this case, the user interaction path with your product might look like this: reading a blog post, visiting a landing page, and finally, requesting a demo of your product or leaving a request.

    Effective social media marketing: Over time, it contributes to the formation of a community of devoted brand fans. Share news, solicit feedback, introduce the team, post behind-the-scenes content, employ various forms of storytelling, use memes or niche-related jokes and so on. A funnel could look like this: clicking on ads, subscribing to a channel, visiting the site and requesting a demo.

    Affiliate marketing: Startup founders frequently do not have enough time to promote their businesses, which is understandable given their other responsibilities. That is why it can be a great option to outsource promotion or launch affiliate programs. The latter allows you to get a predictable result at a predictable price, which is especially important in the early stages when resources are scarce.

    Related: 12 Key Strategies to a Successful Crowdfunding Campaign

    As you can see, an idea lays the groundwork for a project but does not guarantee its success. Even ideas that aren’t very original can sometimes work because the people who came up with them did a good job of assessing their resources, chose the best ways to market them, and perhaps most importantly, didn’t give up.

    My goal was to show you that angel and venture capital investors are not the only sources of multimillion-dollar funding. Millions can be earned through creativity and consistency. You can design your own strategy that will ultimately produce excellent results using the resources I provided from personal experience.

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    Mattias Tengblad

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  • How NFT Marketplaces Will Onboard the Next Mass Wave of Users to Crypto | Entrepreneur

    How NFT Marketplaces Will Onboard the Next Mass Wave of Users to Crypto | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Is there life beyond the bear? While crypto Twitter and mainstream media are expressing varying levels of hope and skepticism, a lot of teams are working hard to bring the future of Web3 closer. And this time — it’s not only crypto, folks.

    This is the main difference between this “crypto winter” and the one of 2018-2020, when Ethereum was available for less than 200 dollars. Drastic decreases in prices and market capitalization caused a lot of debates on the legitimacy of the industry from traditional outsiders but couldn’t scare off the Web3-native believers who just continued building. Whether it’s because of the precedent they set or anticipation of the bigger market, traditional players doubled down on the bear builder party this time.

    Related: How Crypto, Blockchain and Web3 Institutions Can Accelerate Mass Adoption

    NFTs to lead the way

    The spotlight here is once again on NFTs. Not intimidated by the market conditions, quite a few future-oriented brands have been releasing pilot NFT projects to test the waters (McFarlane, Fox, Starbucks) or working on robust digital asset-based community campaigns behind closed doors. It’s obvious to anybody that it’s not a race for quick gain, but a well-thought-out long-term game.

    “Why now?” you’re probably wondering. First and foremost, the technology, UX and education frameworks have finally reached the level that significantly lowers the entry barrier to the NFT ecosystem. Arguably, for the first time ever, Web3 is close to being ready to onboard millions of mass users.

    “How does it look in practice?” you might ask. Loyalty programs, community engagements and unlockable content are among the brands’ favorites. Big companies are starting to consider NFTs as a base for a variety of activities, giving an inspiring hint at what the next bull run can look like.

    Such a spike in credibility and the prospects of mass adoption can’t help influence the current shape of the industry and the trajectory of its development. To date, the heart of the Web3 movement has been NFT marketplaces — platforms with different levels of decentralization where users can mint (create), display, buy and sell their collectibles. For quite a few brands, these marketplaces have been the entry point into the NFT world.

    With this trend clearly unfolding, we can’t but ask ourselves: What role will NFT marketplaces play in this big movement? Will they stay the same or evolve to boost mass adoption in collaboration with brands?

    Related: Make Your Brand a Household Name Using the Power of NFTs

    Rethinking NFT marketplaces

    What is the first thing that comes to mind when you think about an online marketplace? Quite likely, the likes of Amazon will be there: a one-stop-shop environment where users can find literally anything they want. Offered goods vary in price, but one thing stays the same: High-end brands have very limited representation there. You might find an expensive perfume or a pair of glasses, but that’s about it. And who would go shop for Chanel bags on Amazon anyway?

    This analogy is key to understanding the brand’s strategy as they come into Web3 with their massive user bases. Does this traditional marketplace model appeal to brands? I’d argue not. Since NFTs are shaping up to power next-gen gamified loyalty programs for communities, one-size-fits-all does not look like a good match.

    Brands dipping their toes into NFT are looking to offer a safe, uniquely branded experience for their customers — with controllable monetization on top.

    Adoption issues and solutions

    When directing users to a third-party NFT marketplace, there are several problems a brand can encounter:

    1. Safety and IP protection: Unfortunately, there are malicious players on the market, and NFT marketplaces do not always do a timely job eliminating collection copycats to make sure that a new user does not purchase a wrong NFT by accident.

    2. Monetization: With the recent market development and “race to the bottom,” the trend moves towards not respecting creator royalties, which could serve as a major revenue stream for popular collections. On top of that, using a third-party NFT marketplace always means paying fees that can be changed at any point of time. In other words, not controlling your revenue stream fully.

    This is where the Shopify model is entering the scene. Unlike traditional Web2 marketplaces, NFT marketplaces can take different forms — and verticalized, custom community marketplaces are a very promising route.

    Creating and fully controlling its own community marketplace allows a brand to enforce royalties, set custom fees and ensure the proven authenticity of digital collectibles with a branded look and feel, all in the spirit of decentralization.

    On top of that, NFT community marketplaces can be powered by shared orderbooks, meaning that buy and sell orders can be aggregated from other marketplaces from the start to help bootstrap the liquidity.

    All that said, on-brand community NFT marketplaces can truly become the gateway to onboard the next mass wave of users to crypto in a safer and more accessible way. Will this be the case in the next bull run? Time will tell.

    Related: Why Community Is Key in Web 3.0

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    Masha Vyazemskaya

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  • What the Rise and Fall of Crypto Can Teach Us About Managing Distributed Teams | Entrepreneur

    What the Rise and Fall of Crypto Can Teach Us About Managing Distributed Teams | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    The crypto industry has had a very exciting and tumultuous run over the past decade. Major corporations were founded using blockchain technology, and the promise of Web3 created a market currently valued at $2.86 billion.

    While many look at the 2022 crypto bust as a strictly monetary pit of doom, there are some very interesting distributed team management lessons to take away from the industry’s six-year bull run. Decentralized autonomous organizations (DAO) presented a new way to organize teams, new blockchain tools sprung up to enable greater collaboration, and the crypto boom proved that caffeine-fueled nerds can execute common ideas in ways that even Wall Street had trouble understanding.

    Despite the misfallings of the Web3 market, you shouldn’t write these accomplishments off as Web3 fairy dust. Business leaders and innovation-minded entrepreneurs should take note of the outlined workflows and processes that supported the Web3 growth of the last six years. Whether you believe in the underlying technology or not, these lessons provide insights on what entrepreneurs can replicate in the ever-evolving dynamics of team management.

    Related: How DAOS Are Changing Leadership

    What is a DAO?

    One of the most interesting things to come out of the crypto boom — in terms of team management — is the Decentralized Autonomous Organization (DAO). A DAO is a democratized organizational structure running on the blockchain network. It is a collective of like-minded people with a shared financial account, working on a shared goal. It is similar to a digital cooperative, but instead of having select leaders on the board, every member has voting rights. DAOs can have equal governance for each member or weighted votes depending on how many tokens each member holds.

    This type of organization presented a new way to organize and manage distributed teams around the world. It utilizes an automated and democratic system that blockchain technology can provide. Let’s dive into some of the management lessons from crypto and Web3 companies, especially DAOs, that can be applied outside the blockchain industry.

    Managing fractional workers

    DAOs succeeded in bringing together thousands (even hundreds of thousands) of anonymous people to achieve a common goal. While this isn’t a realistic or necessary goal for traditional organizations, business leaders can learn a lot about managing fractional workers in the future of work.

    Web3 startups led the industry’s growth vs. established enterprises because they were able to scale up and down easily to rapidly meet the demands of the market. Outside of the Web3 industry, every business is contending more and more with disruptive technologies. You can’t expect your competition to give you six months to build a new team in order to capitalize on a new trend, you need to be able to act quickly.

    Project-based or fractional hiring is a way to rapidly scale to meet new demands while also attracting top talent that is interested in working on a challenging project and doesn’t want to get tied into a long-term agreement.

    Related: How DAOs Can Transform the Business World

    Leveraging peer-to-peer recognition

    Peer-to-peer (P2P) recognition is super important in distributed and remote teams for helping to build culture and accountability and act as an incentive driver beyond monetary compensation.

    Web3 companies did this really well because all data and transactions are publicly recorded on the blockchain and can be accessed by everyone. This ensured all recognition was public, inclusive and decentralized. P2P recognition could also be tied into incentive programs, which leveraged social and monetary recognition. Blockchains and smart contracts go hand-in-hand in promoting transparency and efficiency in governance and management that elicits trust from its members and community. However, every organization can endeavor to become more transparent with their employees and with the public.

    Non-Web3 companies should endeavor to create a similarly transparent and public P2P recognition program. One study found that when an employee is recognized once per month, their employee engagement increases by 43%.

    Offering shared ownership

    Engaging employees and making them feel that they have some ownership in the project is another big driver in the future of work. DAOs achieved this because every member of the DAO was literally invested in the organization. Many companies also experimented with NFTs as a way to unlock benefits or as a reward containing a unique value that is aligned with the brand’s vision, mission and strategy.

    Companies can align their incentives for teams by looking at both the interests of team members and the goals and objectives of the organization. Examples of this can be profit sharing, equity ownership or performance-based incentive or benefit.

    However, monetary incentives aren’t the only way to offer shared ownership. They aren’t even the most important.

    It is more important for today’s workers to feel like they have a voice and some stake in the game. Including employees in the decision-making process (especially during product ideation) and ensuring there is transparency in decision-making goes a long way toward making employees feel included and engaged.

    Distributed decision-making

    Beyond engagement and ownership, distributed decision-making is simply better decision-making. Good leadership involves giving up sole ownership over decisions and valuing inputs from team members, which can lead to better decisions. This concept is built into the structure of a DAO as it directly applies the inputs and votes of all members in the decision-making process.

    Even without DAO, businesses can adopt DAO-inspired procedures such as decentralized and democratic governance that can create a culture of collaboration that empowers distributed teams to be more effective and productive. Distributed decision-making allows you to scale and react faster by leveraging diverse backgrounds and inputs, A/B testing ideas quickly and getting feedback from larger groups.

    Consider adopting a democratized organization, either by gathering smaller teams with like-minded members to achieve certain goals or even company-wide, to forward a singular mission or objective and include team members who believe in the same principles.

    Related: 4 Reasons Decentralized Business Management Is Booming

    We aren’t recommending your organization make the switch to becoming fully decentralized. One of the big things that we see coming in the future for organizational management is the idea of hybrid DAOs, where there’s a melding between traditional business structure supplemented with DAO mechanics.

    While the massive growth of the crypto and Web3 industry changed considerably last year, the principles used to reach those heights are valuable for any organization. Blockchain technology isn’t going anywhere, and companies will have to deal with a much more automated, agile and transparent marketplace full of disruptors going forward. Whether your venture uses blockchain or not, these principles will help you compete in an increasingly decentralized world.

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    Cory Hymel

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  • 5 Reasons Why Crypto Projects Need PR in a Downturn | Entrepreneur

    5 Reasons Why Crypto Projects Need PR in a Downturn | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    In economic downturns, companies will cut costs, tighten the belt and retreat. It’s ingrained in human DNA, because those who didn’t adapt didn’t survive. But with both the personal and the economic, merely shrinking or hiding is not enough.

    The data is in. Research proves that those who maintain — or even increase — their PR spends do best in such times. They are also best positioned for the better times, too. Some of the biggest changes in crypto have come in bear markets. For those positioned to take advantage, there are opportunities in the lean times.

    Related: How To Utilize PR During A Recession

    1. Don’t cut your signal when sailing in choppy waters

    For those responding to such moments as if truly a crisis or emergency, the last thing you want to do is reduce ties to the world. Cutting PR at such times is a little like being stranded and ignoring the radio or flare sitting next to you. PR pros are a lifeline — a crucial resource to be tapped, not saved for another time.

    It is at such times that evolutionary pressures come most into play, such as the “survival of the fittest.” This includes the concept of “adaptation.” It may not be enough to sit still until the storm passes, relying on previously amassed “fitness.” It’s a time when selective pressures are brought to bear, sorting the reactive and dynamic from the complacent. And that process can be a brutal one, rewarding only a few.

    2. Ensure the glass is seen as half full

    It may also be a time when it becomes necessary, due to market pressures, to relay bad news to audiences. This could be about enforced price increases, reductions in headcount, lengthening delivery times and so on.

    Delivering such messages is fraught with reputational risk, including giving the accidental impression of going out of business. PR pros can help navigate with strategies and storylines that deliver difficult messages within broader contexts that emphasize a more optimistic long-term positioning.

    Difficult messaging can be delivered within the context of milestones, positioning the information within a wider context of development and progress. As ever, care should be taken to avoid the insincere and the contrived. But such well-crafted campaigns in such times can ensure that the “glass” is at least seen as half full.

    Related: Why Maintaining a Strong Media Presence is Key to Succeeding in an Economic Downturn

    3. The opportunity to boost “share of voice”

    Much more than crisis management and sweetening difficult pills, PR can unlock opportunities in such times. Bear markets and recessions trigger cuts in PR and marketing budgets, which reduces industry noise. For those happy not to cut, this is an opportunity to stand out, with far less effort than usual.

    The added association for your audience is that, unlike your competitors, you are transmitting the message of going strong. It’s an opportunity to leave a lasting impression, overtake competing narratives and establish your project as an industry leader. As others cut their PR efforts, journalists will also be on the lookout for content.

    Like the “cash is king” strategy of those investors who avoid taking positions when prices are high and conserve their cash for market dips, PR likewise can go a lot further at such times. At such quieter times, without changing a thing in PR spend or strategy, a project or company’s share of voice (SOV) instantly grows as competitors cut costs. Such times are opportunities for those more willing, or better positioned, to adopt proactive tactics.

    4. Brand loyalty fends off the bear

    Crypto projects in a bear market are susceptible to losing a section of supporters who are apt to sell their currency and disappear. This causes many problems, not least low liquidity. To retain supporters, long-term brand loyalty must be established.

    Creating and maintaining a community of supporters is one of the best strategies for weathering downturns. One need only look at Ethereum’s online community. Even when token value has plummeted or the developer team missed crucial deadlines, the community remained strong. Hiring a PR team to build and maintain such a community may be vital to surviving bear markets, as well as optimizing at other times.

    Ensuring your brand is protected means being smart about budgetary changes and being open to variations in the usual strategy. PR is actually a budget-friendly strategy for maintaining relevance during downturns. While PR and marketing are often grouped together, the distinction becomes crucial at such times. PR can yield earned media, for example, rather than the paid media of marketing. Sacrificing PR at such times means going silent to your audience, potentially also sacrificing essential lifelines of trust and brand loyalty.

    Unlike with advertising, earned media is an evergreen investment, potentially living on far past the bear market, perhaps for years on end. Those who maintain PR at such times tend to not just survive the downturns, but come out stronger than competitors when the good times return.

    Related: How Great Entrepreneurs Find Ways to Win During Economic Downturns

    5. The data is clear

    Though it may seem counterintuitive, the companies that maintain their PR investment during downturns, even those who increase it, tend to be the winners. There’s also plenty of research to prove it.

    Those cutting costs more than competitors have the lowest probability (just 21%) of pulling ahead of rivals when times improve, according to a recession study published in a 2010 Harvard Business Review article. The same study shows that 9% of companies actually come out stronger than ever from such times.

    In another study (Field & Binet, 2008), researchers found that cutting budgets may help safeguard short-term profits, but it comes at a post-recession cost to brand and profits. Once again, they found that it’s those increasing investments that are best positioned to achieve long-term profitability, gaining a larger share of voice against their competitors.

    A measured and balanced approach

    It’s easy to attract attention in a bull market, but bear markets sort the wheat from the chaff. The right PR professionals are skilled in securing vital coverage at such times. This is the time when the audience needs to hear from projects the most.

    The decision to reduce, maintain or increase PR efforts during such times should be based on a careful analysis of the project’s financial situation, market position and long-term goals. An adaptive, measured approach that balances resources with the need to maintain a strong brand presence is proven to be the best strategy in tough times.

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    Valeriya Minaeva

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  • How to Adjust Your Mindset to Succeed in Your Trading Career | Entrepreneur

    How to Adjust Your Mindset to Succeed in Your Trading Career | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    Every trader’s goal is to achieve greater success. They want more consistency, more profits and more time to enjoy life. These goals are very worthy, but few traders achieve them. Do you relate to this?

    Every day, week, month or year, you set profit goals (I’ll earn “x” amount of profits), you set rules (I’ll follow my trading strategy to a tee), and you set desires (I won’t let emotions cloud my judgment), yet somehow you never seem to achieve these objectives. Even with the best of intentions and the best trading strategy, somewhere down the line, you find a way to lose your stability of mind, and your plan goes out of the window. It’s like living in the movie Groundhog Day — you relive the same stuff over and over again.

    Related: Grow Your Wealth by Mastering Trading Techniques

    Why is that?

    Well, the reason that happens is that “we can’t solve problems by using the same kind of thinking we used when we created them.” You’ve probably heard this quote before — it’s from the great Albert Einstein. Another variant of it is: “What got you here won’t get you there.” And that makes complete sense if you think about it. How can you possibly expect to be successful in trading if you remain the same person that’s generating the results you’re currently getting? I’m not suggesting that you need to become a completely different person, but at the very least, some things have got to change — your trading psychology!

    The next level in your trading will come with the next level in your mindset. What do I mean by this? Well, you’ll need to introspect and search within yourself to investigate the beliefs, stories and patterns that make you the person you are today, but which don’t serve you well in trading.

    I’m talking about things like:

    1. The stubborn clinging to certainty: The reality of trading is that it doesn’t give you the kind of security that you get with a time-clock-punching job. The market doesn’t hand timely paychecks, it delivers rewards and bonuses to those who are proficient at strategic risk-taking.

    2. The fear of failure: Failure is a critically important part of any successful life because it’s how you grow. And so, when you fear to fail, you fail to reach your full potential.

    3. The inability to see one’s own biases: As a trader, you need a greater ability and readiness to see through your own illusions and delusions and self-correct immediately.

    Related: How Mindfulness Can Help Traders Succeed

    Ask yourself these questions

    There are other systems of beliefs and behavioral inclinations to discover about yourself, but those are the main ones, I’d say. Here are some questions you can ask yourself to uncover what’s holding you back:

    • What are my biggest fears and doubts when it comes to trading and investing?

    • Am I being too conservative or too risky in my approach to trading? Why?

    • What are my strengths and weaknesses as a trader, but more broadly, as a human being?

    • What limiting beliefs do I have about myself, the market or trading in general that might be holding me back?

    • What external factors, such as market conditions or economic events, am I using as an excuse for not achieving my trading goals?

    • What is in my control to change? What isn’t?

    • What steps can I take to improve my trading psychology and technical skills?

    • Am I setting realistic and achievable trading goals?

    • What is it about losses that upset me so much? Why? What would happen if I wasn’t so afraid of losses?

    • Am I being consistent in my trading approach, or am I constantly changing strategies?

    • What personal or life factors are affecting my ability to focus on trading and make sound decisions?

    Reflecting on these questions and being honest with yourself is key. Your answers will help you identify beliefs, excuses, patterns and stories that aren’t conducive to market success. And reflecting on those answers will kickstart real change in your trading psychology.

    From there, I invite you to contemplate these next series of questions:

    • What do I want to achieve in trading starting right now?

    • What belief do I want to internalize as of today?

    • What will I no longer tolerate in my trading?

    • What are three objective and measurable action steps that I can take every day or week or month that will keep me moving in the direction of my trading goals?

    • How can I stick with those steps through thick and thin?

    Related: Trading Psychology 101 — How Traders Can Manage Their Emotions and Achieve Success

    Look within yourself

    As of today, reject mediocrity; reject the mindless path! Most traders are living on autopilot, acting out their pre-conditioned beliefs and patterns in the market. Once again, the next level in your trading will come with the next level of in your mindset. I’m asking you to reject what doesn’t work and focus all your attention, energy and time on developing the beliefs, habits and behaviors that do work. If you’re serious about trading, you must do that — you must look within yourself and take control of your own life because the status quo won’t cut it! It doesn’t work!

    Now, I understand: Looking within can be a difficult process because not everything we discover about ourselves is beautiful, shiny and polished. There are a lot of unskillful aspects to our being; there is also a lot of pain that resides in our minds and hearts because life isn’t exactly fair. And facing all of that requires a lot of courage because it’s uncomfortable. However, it is ultimately a rewarding journey, as it allows us to overcome the internal obstacles that are hindering our success in trading and in life. “Face your fear and the death of fear is assured.” Ever heard this saying? That’s exactly what I’m trying to express here.

    Let me give you a concrete example to make things more vivid. I’ve worked with a trader, a high net worth individual, who trades U.S. stocks, basically the first hour of the NY opening. He has a very rudimentary trading strategy — he identifies the long-term trend (weekly), zooms in on the 5-minute and places his trade in the direction of the long-term trend with a tight stop right under the first hour low.

    As you can imagine, given how tight his stop is, he spends his time reaping losses, day after day after day. When he’s wrong, he’s wrong fast, but when he’s right, he can stay in that trade for months and ride that sucker to Valhalla.

    But this trader was constantly plagued by the fear of giving back his open profits, which often led him to exit his positions prematurely. With such a low win percentage, small profits just don’t cut it — he needs those occasional monster profits to nullify those many small losses.

    So, our work together consisted of identifying his limiting beliefs and emotional triggers. And through a series of coaching sessions, I helped him reframe his mindset, de-energize some unproductive beliefs he had about the market and develop a more positive and carefree approach to trade outcomes. I introduced specific techniques to help him manage his emotions and reduce stress, and now he’s much more confident and disciplined amidst the uncertainty.

    If he had continued to trade with the same kind of behavior and mindset that were getting him the results he got, he would have still been stuck at the same level year after year. So, this isn’t platitude — the next level in your trading will come with the next level in your mindset!

    What beliefs, stories, and patterns are you consciously or unconsciously holding onto? Ponder this question and the above ones. Take some time to reflect and write down your answers. Take charge today because so much more is possible, and so much more awaits you in terms of growth and trading success.

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    Yvan Byeajee

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  • Don’t Let the ChatGPT Boom Go to Waste | Entrepreneur

    Don’t Let the ChatGPT Boom Go to Waste | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    We’re on the cusp of a technological revolution not seen since the dotcom boom of the ’90s. Microsoft and Google are racing to launch competing products based on the tech driving it. All that’s left is for smaller startups to rebrand themselves to ride the hype and boom! We’ve landed ourselves in a bubble.

    Everyone who was around during the NFT golden era of 2021 knows exactly where I’m going with this. The hype surrounding OpenAI’s generative AI chatbot, ChatGPT, is giving us all a dose of deja vu. Luckily, there are key differences between the AI paradigm shift we’re currently experiencing and the NFT bubble from a year and a half ago.

    It’s crucial to separate fact from fiction and ensure AI innovators seize on this moment to push the boundaries of the technology efficiently and ethically.

    Related: What Is ChatGPT? Google, Siri and Even ChatGPT Are Confused About Its Existence

    The technology itself

    While we can draw lessons from the NFT boom of 2021, from a strictly technological standpoint, ChatGPT simply blows the Ethereum wallet on which you store NFT jpegs out of the water.

    We’re talking about a complex Language Learning Model (LLM) that digests massive quantities of text data and infers relationships between words within the text. Essentially, LLMs fill in the blank with the most statistically probable word given the surrounding context — and ChatGPT is doing this on a scale never seen before to write poems, movies and essays.

    Conversely, NFTs are stored on blockchain-based wallets to represent digital ownership over a particular asset — whether digital or physical. This could be a painting, a car or a meme. So the “NFT technology” we’re talking about is really just code for “blockchain.”

    That’s not to downplay the potential of blockchain, and particularly NFTs, to solve the digital ownership problem. For example, a world in which musicians regain the ability to own and sell their music online sounds promising for creators who have drawn the shorter stick in the democratization of information spurred by the internet. It does mean, however, that its potential to radically transform industries was massively exaggerated by many of the companies selling themselves as “Metaverse” and “NFT” platforms. And it’s certainly limited when compared with the potential of AI.

    After years of determination, blockchain enthusiasts are still trying to find a use case that will spark mass adoption. Sure, some average people invest in bitcoin and bought NFTs in 2021. But compare that to the number of offices that started using ChatGPT days after its launch, and we have a clear winner.

    Related: Does AI Deserve All the Hype? Here’s How You Can Actually Use AI in Your Business

    The challenges ahead

    It’s a lot harder to convincingly “fake” being an AI company. The blockchain industry is so intentionally confusing that companies in 2021 were trying to pass off digital art that wasn’t even blockchain-based as “NFTs,” and standard Play-to-Earn (P2E) games were adding “Metaverse” to their messaging.

    That simply won’t be a problem for AI. Instead, the AI industry has more serious challenges with which to contend. Companies across virtually every industry will integrate and build on top of ChatGPT and other successful generative AI tools, finding new and interesting use cases for them.

    For that to happen, AI innovators will have to spot ChatGPT’s flaws and leverage its strengths. Dr. Michal Tzuchman-Katz, Co-Founder and Chief Medical Officer at Kahun Medical, points to the improvements an AI model like ChatGPT would need to make a dent in healthcare and better serve doctors. The company built an AI tool that “thinks like a doctor” and offers doctors clinical intake before patient visits.

    While ChatGPT might be able to make textual interaction with patients smoother, it can’t think clinically like Kahun, which consults with its own database of peer-reviewed medical literature to produce responses and traces back to its originating sources.

    ChatGPT, on the other hand, produces answers based on comparing the user’s input with the input of thousands of others and isn’t as transparent regarding its sources. That’s a problem for other industries, too. There’s talk about students using ChatGPT to write essays and answer homework questions. But professional journalists and authors won’t be able to utilize the model beyond ideation and outline building if it can’t cite its sources thoroughly enough.

    And then there’s the bias problem. Conservative commentators have reveled in tweeting about examples of ChatGPT showing an obvious left-leaning bias. AI more broadly is also riddled with racial bias. Finding a solution to this will be one of the biggest challenges AI innovators face in expanding the technology’s use.

    As far as accuracy, we can, of course, expect ChatGPT to improve quite rapidly. The goal going forward for AI innovators is to take part in its expansion and improve upon it. Adding a transparency layer and tackling the bias problem will be key to ensuring it becomes more ethical and practical overall.

    Related: How Will ChatGPT Change Education and Teaching?

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    Ariel Shapira

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  • 5 Essential Tips for Starting a Successful Web 3.0 Business | Entrepreneur

    5 Essential Tips for Starting a Successful Web 3.0 Business | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    The internet has undergone significant changes since its inception, and we are now on the verge of the next significant revolution in digital technology — Web 3.0. Web 3.0, also known as the decentralized web, is poised to revolutionize online interactions by providing a more secure, efficient and decentralized online experience. As entrepreneurs, it’s essential to keep up with the times and adapt to this new environment to stay ahead of the competition. This article will explore some tips to help you build a successful Web 3.0 business.

    Related: 3 Tips to Take Advantage of the Future Web 3.0 Decentralized Infrastructure

    Learn about Web 3.0

    To start a Web 3.0 business, it’s essential to understand the underlying technologies that make it possible. Web 3.0 is built on blockchain technology, a decentralized, distributed ledger that enables secure and transparent transactions. Additionally, Web 3.0 includes other emerging technologies, such as decentralized finance (DeFi), non-fungible tokens (NFTs) and decentralized autonomous organizations (DAOs).

    To begin your Web 3.0 journey, it’s essential to immerse yourself in the community. By participating in online forums and social media platforms, you can engage with like-minded individuals, learn about the latest trends and stay up-to-date with developments in the Web 3.0 space. Reading industry publications such as CoinDesk, The Block and Decrypt can also be incredibly valuable. These resources can help you understand the challenges and opportunities of Web 3.0 and provide insights into the emerging use cases that are gaining traction.

    As you learn more about Web 3.0, you’ll discover that it’s not just a technological revolution but a cultural and social movement as well. Web 3.0 is about putting control back into the hands of individuals, creating a more equitable and decentralized internet. By understanding the values and principles that underpin Web 3.0, you can build a business that aligns with these ideals and make a meaningful impact.

    Here are a few essential tips for starting a successful Web 3.0 venture:

    1. Choose a niche

    Like any business, choosing a niche for your Web 3.0 business is essential. The decentralized web is still in its infancy, with numerous opportunities for innovation and disruption. You can focus on a specific industry, such as gaming, finance or social media, or a particular use case, such as identity verification or supply chain management.
    When selecting a niche, it’s essential to consider several factors. For instance, you should examine the potential market size, the competitive landscape and the regulatory framework. You should also consider the technical requirements of your chosen niche and ensure that you have the necessary skills and resources to build a successful Web 3 solution.

    2. Build a strong team

    To thrive in Web 3.0, you’ll need a talented team with diverse skills. Building a Web 3.0 business requires technical expertise in blockchain development, smart contract programming and decentralized application (dApp) design. However, having team members with expertise in business development, marketing and user experience design is also critical. When assembling your team, it’s essential to seek out individuals passionate about Web 3.0 and share your vision for the future. It would be best if you also looked for team members open to learning and adapting to new technologies and comfortable working in a fast-paced, rapidly evolving environment.

    Related: Entrepreneurs Should Embrace Web 3.0

    3. Focus on user experience

    Web 3.0 technologies are still in their early stages, and many users need to become familiar with them. To succeed in Web 3.0, focusing on user experience and making your product as user-friendly as possible is crucial. One way to improve the user experience is to create intuitive user interfaces that are easy to navigate. You can also use gamification and other engagement strategies to incentivize users to engage with your product. Additionally, providing clear and concise instructions and tutorials is vital to help users understand how to use your product.

    4. Embrace decentralization

    One of the defining features of Web 3.0 is decentralization, which allows for more secure and transparent interactions online. To succeed in Web 3.0, embracing decentralization and building your product with a decentralized architecture is essential.

    5. Stay up-to-date with regulations

    As with any emerging industry, regulations for Web 3.0 are still in their early stages. It’s crucial to stay up-to-date with the latest regulatory developments to ensure your Web 3.0 business complies with applicable laws and regulations. In some cases, regulatory requirements may differ significantly from traditional industries. For instance, the regulatory framework for cryptocurrencies and token sales is still evolving and can vary widely by jurisdiction. As such, it’s essential to consult with legal experts specializing in Web 3.0 and blockchain to ensure your business is on the right side of the law.

    In conclusion, starting a successful Web 3.0 business requires a deep understanding of the underlying technologies, a strong team with diverse skills, a user-friendly product and an embrace of decentralization. By choosing a niche, staying up-to-date with regulations and focusing on user experience, you can set your Web 3.0 business up for success in this exciting new era of digital technology.

    Related: Web 3.0, the Metaverse and the New Digital Economy — Are You Prepared?

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    Winfred K. Mandela

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  • The Pros and Cons of Big Brands Launching Web3 Projects | Entrepreneur

    The Pros and Cons of Big Brands Launching Web3 Projects | Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    If you’ve been watching blockchain news, you likely saw the troubling figure that Web3 startup funding fell 74% in 2022. Yet megabrands such as Starbucks, Mastercard and Nike, all launching Web3 or Metaverse projects this year paints a conflicting image of Web3’s current status and future development.

    This may seem like deja-vu from the big-brand NFT craze in 2021 and early 2022, but these projects seem to be much more grounded in providing tangible value instead of manufacturing exclusivity. Major mainstream companies clearly see value in certain aspects of Web3, but with larger infrastructure still a work in progress, is this grand re-entry premature?

    Related: 4 Things to Consider Before Investing in Web3

    Big brand benevolence

    Large companies debuting and re-entering Web3 benefit the space by granting an undeniable cachet to the industry as a whole. Where blockchain-based developments have often been marked as gimmicks or marketing ploys, lower-profile launches show that Web3 technology can function with less fanfare by putting concrete user benefits at the forefront of product launches.

    A stamp of approval from companies outside the blockchain realm, and even the tech bubble, can solidify which Web3 use cases are viable. Gamer outrage drove gaming companies to backpedal on NFT integrations seriously, but we’ve seen virtually no public backlash to Starbucks transitioning its already incredibly successful rewards program to an NFT-based framework. Yes, it is essentially the same technology, but utilized in a way that enhances a service that non-crypto users already love instead of a useless distraction from a main product.

    Another key point of difference this time is the focus on the more tech and innovation-centered aspects of Web3, such as augmented reality (AR). Yes, Meta has long been the leader in this space with Oculus, but the details surrounding Apple launching its own “mixed reality” headset this spring gives a new level of prestige to AR progress. This news creates an even bigger splash considering Apple’s reputation for observing tech developments from the sidelines until it’s a clear win.

    If we’re measuring Web3 progress by a constant influx of VC dollars, then the state of the industry doesn’t look rosy in the short term. But the clear sustained interest from giants outside the industry shows that there is a solid curiosity and desire for Web3 technology. That being said, with big players entering the fold, there is room to question if Web3’s skeletal infrastructure and limited interoperability are ready for it.

    Related: Venture Capitalists are Pouring Money into Web3. Here’s Why.

    Too much too soon?

    A vote of confidence is vital for any industry’s growth, especially for smaller projects looking to get off the ground and build something revolutionary. But outside support doesn’t always guarantee that a platform or industry can succeed in the long term. Just look at the number of companies with an outpost in the primordial Metaverse project Second Life.

    Large-scale Metaverse infrastructures are still more of a sketch than a completed portrait. While big brand investment certainly fuels more frameworks to exist, it might not always have the best interests of a community at heart. What could end up happening is brands painting themselves into a corner, developing siloed Web3 worlds that only serve their customers and mimic the type of “walled garden” ecosystem that describes many internet platforms now.

    Companies that ignore the need for community-based frameworks do so to their detriment. Silicon Valley’s infamous “move fast and break things” mentality somewhat backfired on Web3 projects that didn’t realize you need an infrastructure to exist first before breaking it.

    By creating ecosystems that are not conducive to community growth, Web3 development and infrastructures become a black box, inaccessible to other projects or developers. This is where projects such as SendingNetwork, a software development kit (SDK) with tools that Web3 developers of all sizes can use to create community-centric platforms, step in to form an interconnected digital landscape. These sector-crossing initiatives are just as vital to creating a common Web3 foundation with projects trying to form the industry in its image.

    Related: They Say Web3 Is the Future of the Internet. But How?

    Making sure Web3 infrastructures are solid before courting larger projects can also help secure their interest in the long term. Companies of a certain stature have no qualms about experimenting in a new, potentially revenue-driving space, only to retreat after one bad quarter or plateaued growth. We’ve seen this happen in the blockchain space before, so it would be wise not to retread this path.

    Ultimately, there are clear benefits and drawbacks to megabrands hauling Web3 back into the mainstream. Where certain companies can lend legitimacy to the Web3 space, it’s important not to disregard the less glamorous yet vital strides smaller projects are taking to create common ground. Essentially, while brands invest in their projects, they should consider taking a big-picture approach to become fixtures in Web3 that bring in new communities outside their own corporatized space.

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    Ariel Shapira

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  • 4 Lessons We All Should Learn from the Crypto Implosion

    4 Lessons We All Should Learn from the Crypto Implosion

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    I recently opened an office in Miami, and I love it. It’s simple — just a common area and a conference room — but modern and right by the water. It has a big storage area at the entrance, which I first considered converting into another conference room. But it had an odd electrical setup, so I asked my contractor about its history.

    According to him, between the electrical work, air conditioning units and security, the space had likely been a crypto trading office. He was sure of it. Then, I realized I had seen that setup before.

    In Miami, crypto is everywhere, with servers running so much data they require their own air conditioning units. When FTX collapsed, and the crypto market lost billions, Miami felt its impact. I knew a lot of people — friends and business associates — who went from making so much money on paper to now, hurting.

    Fortunately, I managed to stay out of it. Sure, I was interested. A few people I knew made a lot of money on crypto, which made it tempting. Still, I could hear my dad’s voice, chiming in with that old chestnut, “when in doubt, don’t.”

    These are the lessons I learned from this crypto collapse by following his sage advice.

    Related: ‘I’m Sorry. That’s The Biggest Thing.’ Sam Bankman-Fried and Cryptoworld Lose Big in FTX Meltdown, Company Files For Bankruptcy.

    Count the doubts

    I was never against the idea of crypto. Some of the fundamentals I find attractive — the blockchain creating supposed self-control rather than a Big Brother-ish federal banking agency. In the same way Web 3.0 promises to keep the Googles of the world from tracking our every digital move, crypto has its positives.

    But I was also wary of the negatives. While I knew many people in Miami personally involved in crypto, there were always enough people in my life not accepting it that I never fully understood how it could be trading at such high values. The process of cashing out seemed too complicated, and it reminded me of the old “pump-and-dump” stock trading scams.

    I also heeded Warren Buffett’s many doubts about the future of cryptocurrency, calling it “rat poison squared.” His arguments made sense: Apartments produce rent, land produces food, but crypto produces nothing tangible. If an expert like Buffett would turn down all of the bitcoin in the world for $25, a less experienced investor should certainly take inventory of their doubts before making any significant investments.

    Related: Now That Crypto Has Crashed, What’s Next for the Metaverse?

    Invest in what you know

    Let’s compare crypto with AI: I was uncomfortable exploring both technologies at first because I didn’t fully understand them. As the AI trend grew into a direction business was inevitably heading, I made efforts to learn about it. I found people who were able to give me straightforward explanations that allowed me to understand the technology. Since I could understand it, that made it easier for me to confidently invest in it.

    Crypto specialists, on the other hand, never came close to providing such clarity. Mining crypto is an abstract process, so I called upon the best person I knew in the field to explain it to me. Even still, the details were fuzzy and I would unlikely be able to re-explain it to anyone else. What I did understand was how much energy it required, which sounded crazy and unsustainable to me. Since that was my primary takeaway, I decided against investing.

    Crypto is notoriously difficult to understand. Yet still, without a full picture of what they are buying, people are willing to invest. A 2021 survey of 750 investors found that only 16.9% “fully understood” its value and potential, while 33.5% had “zero knowledge” or a level of understanding they described as “emerging.” Many simply invested because it seemed popular and they feared missing out.

    Trust me, I understand how easy it can be to jump on a bandwagon. I remember one new technology starting to take off — though I barely remember what it was anymore — but it was so hot that a friend insisted I get in on it. So, I did. Without even knowing what the company produced, I put money into it. I didn’t want to be left out of the next big thing. So what happened? I lost big. Fortunately, it wasn’t that much money, but it taught me never to invest in what I didn’t fully understand.

    Related: 5 Ways to Navigate Today’s Investing Challenges

    Pay attention to the people most involved

    Something about Sam Bankman-Fried, founder and former FTX CEO, put me off from the start. To me, SBF had all the markings of a scammer. He was dishing out financial support to the most prominent political names and getting his company’s name atop the Miami Heat stadium. He came into an industry full of what I saw as so many doubts with too much money, swagger, and confidence.

    I may not know who was using my office for crypto mining before I moved in, but I know someone did, and I wonder if they contributed to the industry’s increased rate of cyber attacks, scams and bankruptcies. Bad characters have been around forever — from the northern carpetbaggers taking advantage of the war-torn south to the Ponzi scheme record-holder, Bernie Madoff — but in crypto, they seem abundant. If you don’t feel comfortable with the people behind something, don’t invest in it.

    Related: 7 Things to Know Before Investing in Cryptocurrencies

    When risk is everywhere, be more careful

    When someone asks for guidance toward a safe investment, I always recommend land. No one is making any more of it, and it’s tangible property that, unlike stocks, we can make use of while holding its value. But still, land can lose value or suffer damage. A couple of weeks ago, I was driving down the west coast of Florida, where so many people who had lost their homes were rebuilding after hurricane Ian.

    In some form or another, everything comes with risk, so when an investment seems extra risky from the start, we should be even more careful about our decisions. Invest in understanding the fundamentals of a new technology first and take a more calculated risk. Learn as much as possible and write out any doubts throughout the process. If the doubts are all you understand by the end, then maybe you should rethink your investment.

    This crash may not be the death of crypto, but the industry certainly has a rough time ahead. It will be even harder now to get people on the bandwagon, and the federal government will likely increase its efforts to control it. But it should be a big wake-up call to investors to be warier of technological allure. This crypto implosion will not be the last to burn investors, but by learning lessons from it, we can better avoid this kind of massive damage the next time.

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    Jan Risi

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  • How NFTs Work — and How They Could Prove Profitable for Your Business

    How NFTs Work — and How They Could Prove Profitable for Your Business

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    Opinions expressed by Entrepreneur contributors are their own.

    2022 was an interesting year for NFTs (non-fungible tokens), to say the least. This was the year that saw public knowledge of NFTs go beyond Bitcoin and other cryptocurrencies to the field of digital collectibles, such as art and photographs.

    But while buying art and other collectibles may be getting most of the attention from the general public, they result in some of the more practical (and profitable) business applications getting overlooked. In reality, NFTs can have a variety of practical applications that help organizations achieve their existing business goals.

    First things first: How do NFTs work?

    NFTs are is cryptographic assets that are based on blockchain technology. The non-fungible aspect is important, as it gives NFTs distinctive properties that mean they cannot be replaced or replicated. They are unique, and can’t be manipulated or forged. Most often, we see NFTs in connection with digital assets, such as art, sports cards, games and other collectibles, where the blockchain provides a certificate of authenticity.

    NFTs can be bought and sold on the market, with pricing based on market demand, just like a physical product. However, the unique data that is part of the NFT makes it easy to validate ownership and verify the authenticity of the token.

    NFTs are also used to represent ownership details, memberships and more — and these varied use cases have proven key to business applications.

    Related: Here’s a Beginner’s Guide to Crypto, NFTs, and the Metaverse

    Linking digital tokens to physical benefits

    One key to generating business growth via NFTs is linking the tokens to a physical, real-world product or experience. As the report Brands in Web3 Q3 2022 by NFT Tech highlights, fashion brand Tiffany & Co. was able to turn NFTs into a set of exclusive physical goods. The company partnered with CryptoPunks to create an exclusive line of 250 “NFTiffs” pendants. Priced for 30 ETH (roughly $50,000 at the time), the unique pendants sold out in 22 minutes.

    Another example comes from the Australian Open. In 2022, the Australian Open launched a highly successful metaverse initiative of minting AO Art Ball NFTs that linked to data from live matches. This was paired with virtually hosting the Australian Open in a 3D virtual reality platform to provide an unprecedented level of access to one of tennis’s largest events.

    While the initial launch was successful in and of itself, the Australian Open’s commitment to this NFT initiative is poised to be even greater in 2023, with the announcement that holders of each Art Ball NFT will receive two complimentary seven-day Ground Passes to AO23’s finals week. Art Ball holders also gain access to additional exclusive experiences, such as streams and viewing suites through the “SuperSight” fan experience and access to other United Cup matches.

    With both Tiffany & Co. and the Australian Open, linking NFTs to real-world products or experiences proved to be a highly successful method for deepening relationships with their target audience.

    In addition, when NFTs are used in this way, they invite mass market participation, turning fans into financially-incentivized brand ambassadors who enjoy a high level of utility — and of course, can seamlessly trade their digital assets for real-world cash.

    Related: Putting the Intangible Into Your NFT Project

    Reaching new demographics

    NFTs don’t just help brands strengthen relationships with their existing customers — quite often, they can prove key to reaching a new audience entirely.

    Case in point: For quite some time, clothing brand Polo Ralph Lauren has seen its primary customer base largely concentrated among older adults, while younger demographics like millennials and Gen Z have been less interested in the clothing brand.

    In 2021 and 2022, however, Ralph Lauren made a full-fledged commitment to digital initiatives such as NFTs and the metaverse. These included launching a “phygital” fashion collection in Fortnite, as well as an exclusive digital clothing connection through the game Roblox.

    These digitally-focused efforts were a major success for the brand. As reported by Vogue Business, Polo Ralph Lauren saw its third-quarter revenue increase by 27% after the launch of its Roblox collection — with that growth largely driven by a 58% increase in the acquisition of new digital customers.

    In this case, strategic implementation of digital assets allowed Ralph Lauren to reach a younger target demographic in metaverse-style spaces where they would have the greatest appeal and potential impact.

    When done right, NFT initiatives can help revive sales and reinvigorate a brand’s image, making it more relevant and appealing in today’s competitive market.

    Using NFTs wisely for your business goals

    As these examples illustrate, the potential use cases for NFTs go well beyond selling digital art. With a strategic approach, businesses can use NFTs to find new ways to engage with younger, more tech-oriented demographics. NFT-based projects can help position your company as an innovator at the forefront of disrupting the marketplace.

    That being said, any business investment in NFTs should be done strategically. Major NFT failures in 2022 garnered a lot of media attention, and should serve as a powerful reminder for businesses as they enter this space. All investments in NFT should be done with the interests of the end customer in mind.

    When you focus on how your target audience could realistically benefit from your use of NFTs, you will be able to identify strategies that have true staying power, and that will build greater rapport between your brand and its most tech-savvy customers.

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    Lucas Miller

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  • There’s So Much More to NFTs and Web3 Than the FTX Crash

    There’s So Much More to NFTs and Web3 Than the FTX Crash

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    Opinions expressed by Entrepreneur contributors are their own.

    When was the last time you looked at a work of art online and thought, even for a second, about what file type it was? Whether the image you see is a JPEG or GIF rarely matters to anyone except for professionals in the media industry, where file types have different properties, qualities and sizes. For the average content consumer, it doesn’t matter at all.

    Now ask yourself: Why are NFTs any different?

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    Matt Cimaglia

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  • Who Is Ruja Ignatova? The FBI’s Most Wanted ‘Crypto Queen’

    Who Is Ruja Ignatova? The FBI’s Most Wanted ‘Crypto Queen’

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    Disgraced “Crypto Queen” Ruja Ignatova’s time on the run may be coming to an end.


    Cryptoqueen via Facebook

    Ignatova, 42, a German citizen born in Bulgaria, is a former crypto pioneer who vanished in October 2017 after over-promising high returns on her OneCoin crypto token in a $4 billion Ponzi Scheme. She’s now facing several charges of fraud and has been on the run from the FBI for five years.

    Although she hasn’t been seen since her disappearance, a new London apartment listing suggests she’s alive and evading arrest.

    Ignatova, the only woman on the FBI’s most wanted list, was recently found to be connected to an £11 million [$13.6 million] penthouse apartment for sale in Kensington, England, thanks to a new rule change by the UK’s Companies House, which acts similarly to the U.S’s Public Company Accounting Oversight Board.

    The rule now requires properties purchased by companies to also list a beneficiary, and while it is believed Ignatova originally purchased the home under a shell company, a new court filing to the UK’s financial regulators lists Ignatova as the “beneficial owner” of the property – inadvertently exposing her whereabouts.

    Ignatova’s connection to the home was first spotted by the host of “The Missing Cryptoqueen” podcast, Jamie Bartlett.

    “[The document] suggests she is still alive, and there are documents out there somewhere which contain vital clues as to her recent whereabouts,” Bartlett told iNews.

    Since Ignatova’s link to the home, which was listed on Knight Frank real estate website, was confirmed, the listing has been removed.

    Here’s what to know about the disgraced “Crypto Queen.”

    RELATED: Who Is FTX Founder Sam Bankman-Fried and What Did He Do? Everything You Need to Know About the Disgraced Crypto King

    Who is Ruja Ignatova?

    Before Ruja Ignatova become one of 11 women to be on the FBI’s most wanted list in its 72-year history, she was regarded as a rising star in the crypto industry.

    Ignatova was known for liking glitz and glamour, per CNN, and was revered for growing from her humble beginnings in Germany to success as a consultant and then a crypto entrepreneur.

    Together with her business partner Sebastian Greenwood, the pair convinced investors to back their OneCoin crypto token which they said would be more valuable than Bitcoin. However, authorities found that OneCoin defrauded investors out of $4 billion in one of the largest international fraud schemes of all time.

    “OneCoins were entirely worthless … (Their) lies were designed with one goal, to get everyday people all over the world to part with their hard-earned money,” U.S. prosecutors said, according to court documents.

    Furthermore, the court documents reveal that Ignatova and Greenwood intended to deceive their clients from the get-go, calling their own token a “trashy coin” and discussing an exit strategy in private emails.

    Their scheme imploded in 2016 when investors struggled to sell their OneCoins to recoup their investments, alerting the media and investigators to look into the business.

    Then in October 2017, the U.S. Department of Justice charged Ignatova with one count of wire fraud, conspiracy to commit wire fraud, securities fraud, conspiracy to commit securities fraud, and conspiracy to commit money laundering, with a federal judge issuing a warrant for her arrest, court documents state.

    But Ignatova fled on a flight from Sofia, Bulgaria, to Athens, Greece, just two weeks after the warrant was issued and she hasn’t been seen since.

    The FBI has offered a $100,000 reward for information leading to her arrest. Additionally, they said: “Ignatova is believed to travel with armed guards and/or associates. Ignatova may have had plastic surgery or otherwise altered her appearance.”

    What Happened to OneCoin?

    Ruja Ignatova and her cofounder lured people to their OneCoin scheme beginning in 2014 by promising investors around the world a fivefold or tenfold return on their investments.

    Taking advantage of the crypto frenzy at the time, investors gave them $4 billion between 2014 and 2016. However, OneCoin’s value was manipulated by the company and it was never mined like other cryptocurrencies, despite telling investors otherwise, according to CNN.

    Once regulators uncovered the scheme and Ignatova vanished, she left her partners to deal with the fallout.

    Cofounder Sebastian Greenwood was arrested in July 2018. He’s currently in jail after pleading guilty to wire fraud, conspiracy to commit wire fraud, and conspiracy to launder money. He is set to be sentenced in April.

    Ignatova’s brother, Konstantin Ignatov, who was also a part of the business scheme, was arrested in March 2019 and is set to be sentenced in February after pleading guilty to wire fraud conspiracy, money laundering, and fraud charges.

    Since the scandal unraveled, OneCoin has been shut down and its website is no longer active.

    RELATED: What Did Bernie Madoff Do? Everything to Know About the Disgraced Financier Ahead of Netflix’s ‘Madoff: The Monster of Wall’

    What Is Ruja Ignatova’s Net Worth?

    A lawsuit filed by the victims against OneCoin revealed that Ignatova had $500 million in Dubai bank accounts as of 2021, per a report by Financial Finds. It’s unknown how much crypto she holds, but the outlet found that she was paid 230,000 Bitcoins by a member of the Emirati royal family in 2015.

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    Sam Silverman

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  • Why the FTX Scandal Will Be Good for Crypto and NFTs

    Why the FTX Scandal Will Be Good for Crypto and NFTs

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    Opinions expressed by Entrepreneur contributors are their own.

    While navigating a tragedy, few people welcome a comment like, “It was all for the best.” Too often we hear this pep talk from compassionate friends or family, as we quietly think to ourselves, They just don’t understand what I’m going through.

    But do they? A recent investment scandal might offer some insights into why that cliché can be spot-on after all.

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    Jonny Caplan

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  • 5 Bear Market Lessons From a Crypto Entrepreneur

    5 Bear Market Lessons From a Crypto Entrepreneur

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    Opinions expressed by Entrepreneur contributors are their own.

    2022 was an important year for the crypto space. We will all remember the bankruptcies of major global companies: Luna, Celsius Network, FTX, BlockFi and others that left investors with massive losses. The bear market has dramatically affected the crypto economy and investors’ portfolios.

    Just like in 2013 and 2017, the market moves in cycles. First, we had the crypto summer, where everybody was hyped about their profits and gains. Then came the crypto autumn, and investors started to see red in their portfolios. But investors’ portfolios started bleeding when the crypto winter got underway, and even some big reliable companies went underwater.

    In this article, I want to focus on some of the most important lessons I have taken for myself and my company after living through one more winter of the crypto market.

    Related: Will Crypto Make a Comeback in 2023?

    1. Money management strategies are everything

    2022 is the year of fallen legends. Companies believed to be reliable borrowers, like Alameda Research, borrowed funds without collateral and ultimately went bankrupt due to improper money management. On top of that, other standout names in the crypto space, such as Luna, Celsius Network, FTX, and BlockFi, also went bankrupt against all market expectations.

    2022 showed that different approaches need to be used to track company assets, oversee their liquidity and provide collateral for obligations. The mistake many made was blindly placing faith in a company because of its size and reputation instead of analyzing the fundamentals.

    Related: How to Manage Your Money With Confidence

    2. Stay away from toxic assets

    The future market leaders are the companies who survived unscratched problems related to Luna, Celsius Network, FTX or BlockFi and do not hold toxic assets. These are the companies with the potential to launch new products and ideas.

    From personal experience, I can say that 2022 was when my company delved into exploring new directions. It proved that the standard earning tools on the market just recently have no future. So we chose to focus on developing new products that can fix the ongoing problems of the crypto market. I believe that doing this — answering a pain point of the sector and providing a reliable service to alleviate it — is a crucial step in maintaining your company’s viability in tumultuous market conditions.

    3. Watch out for tokenomics

    When looking at a company, all performance indicators are important. What good is it to have great management and a business model if the tokenomics are not good? People are first and foremost investing in the token itself, making tokenomics an essential piece of providing a stable development.

    Bad tokenomics often gives valuable insight into whether the company’s business model is sustainable over the long term. Look for projects with tokenomics designed to serve the investors, not the developers. Watch out for high inflation rates and other red flags, which are often signs of an unsustainable business model designed to enrich the very few.

    Related: 8 Smart Ways to Analyze Crypto Token Before Investing in It

    4. Don’t follow the hype

    This year proves that the market is often wrong. During the crypto summer, many coins and companies grew on hype. Investors hopped on the train and followed the crowd ignoring the lack of solid fundamentals and prospects of future growth. However, when the bubble popped, their portfolio suffered.

    Luna, for example. The company had $50 million in assets but still promised 20% interest payments in its own stablecoin currency. That meant $10 billion in payouts to people holding funds in its protocols. The business plan was too good to be true, but tons of people fell for it and lost everything when the stablecoin proved not to be that stable after all.

    Related: Is Crypto and NFTs a Passing Fad?

    5. Teamwork is essential

    In times of market turmoil, teamwork is more important than ever. The keyword is flexibility; the market is unpredictable, so it’s the team’s job to adapt to any changes rapidly.

    The market has very short business phases meaning that companies need to be highly flexible and able to adapt to new realities. Bear markets often make it impossible to plan too far ahead. Focus on what’s in front of you, prioritize clients’ objectives, predict what products the next phase of the market will be interested in, and prepare them in advance.

    Furthermore, the bear market can also be a great time to generate revenue and offer products that alleviate investors’ fears. Additionally, with the right money management skills, companies can alleviate clients’ anxiety by investing their funds in discounted assets.

    Stay positive. The bear market will be over soon

    The bear market is not easy, but staying optimistic is essential. Take a step back and realize that earning on the crypto market is a long-term game; that’s the wealth-building secret.

    My opinion is based on analyzing past phases, where typically, the crypto winter lasts 4-6 months, then comes the spring. It will be essential for companies to enter with a big user base, good products and opportunities to scale up their own business.

    Companies need to pay attention to the costs and build teams out of people who believe in the market more than ever. Teams should have crypto enthusiasts that understand the market and products well. Having pros on the team is essential, so do not let them slip through your fingers.

    Related: The Bear Market is A Blessing For Web3’s Future. Here’s Why.

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    Vladimir Gorbunov

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  • Web3 in 2023: 6 Trends Towards The Path of Sanity

    Web3 in 2023: 6 Trends Towards The Path of Sanity

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    Opinions expressed by Entrepreneur contributors are their own.

    We came off a euphoric bull run in 2021 to an epic bear market in 2022. A lot has changed in this period, with protocol collapses, regulatory bans, code sanctions, CeFi obliteration, heightened FUD and bad actors causing an industry-wide contagion through acts of fraud.

    There have been many positive developments in this period that lay the platform for blockchain adoption, like venture capitalist posture maturity and new technologies like Optimism and Arbitrum that address scaling issues with blockchain, the emergence of new categories like decentralized platforms and regulatory clarity in many countries. A few notable and likely trends for 2023 are shaping up.

    Related: Web3, Crypto, Cybersecurity, Rural Fintech: Trends To Look Out For

    Stand-alone value matters

    Liquid tokens on a project’s balance sheet cannot drive valuations anymore; companies and projects must show tangible value to create free cash flow and harness network effects. Lately, the focus has been on the standalone ability to generate value versus buying growth using tokens in the short term.

    Emphasis is shifting to user monetization from bought-out growth that has proven unsustainable as market cycles change. Investors view equity as claims to future cash flows and profits (minus liabilities) and tokens as value created from future utility or services delivered by the protocol.

    Given the relative maturity of the market, many protocols have not charted a clear path to sustain value through future delivery of utility, causing a shift in investor mindset. Investors are now emphasizing the quality of revenue, which can raise the value of their equity profile while eventually accruing token value.

    A “Tokuity” model evolves

    Investors like the liquidity associated with the token; its volatility and longevity have been concerning to many. There seems to be a shift from pure short-term and liquidity-driven posture to long-term, value-creating models.

    Investors would like long-term value creation incentivized by a combination of tokens (short-term liquidity) and equity (long-term incentives), reducing volatility and ensuring long-term thinking, i.e., a new model Tokuity (Tokens + Equity).

    Related: Why Your Business Assets Belong on the Blockchain

    ETH killers are unviable

    It was once possible that multiple new players would emerge to overcome Ethereum’s technical shortcomings, slow execution and market dominance. Many Layer 1 protocols squandered their windows of opportunity, failing to drive adoption at scale.

    It may be difficult for a new platform to unseat Ethereum as the dominant player anymore as it embarks on many improvements in the months ahead. Ethereum and Polygon dominate use cases, consumers, enterprises and ecosystems. Users and enterprises will trade off minor technical advantages of other blockchains for security, interoperability and network effects.

    Ethereum, the blockchain everyone loved to hate in the bull market, now has the last laugh for “ETH killers.” Most Ethereum-hating chains have completed or are racing to become EVM compliant (Hedera, Solana, Algorand, Near, etc.). Others like Phantom wallet (Solana’s wallet) and Trader Joe (Avalanche’s DEX) also extend support to the Ethereum ecosystem.

    The future is still multichain

    Even though ETH-killers will not likely deliver the advantages amassed by the Ethereum ecosystem (including Polygon, Optimism, Arbitrum, etc.), the future will still be multichain.

    The concept of a “multi-chain” system refers to using multiple independent blockchain networks that can interoperate with each other allowing flexibility in application deployment for different transactions or processes. For example, one blockchain might focus on high-speed, low-cost transactions, while another might focus on security and immutability. For Defi, users will want their collateral on one chain and borrow on another. The portability of gaming assets across metaverses is another use case. A multi-chain system could offer the best of both worlds by allowing different blockchains to work together.

    Related: The Future Role of Ethereum in Multi-Chain Technology

    Interoperability is a critical capability required for a true multichain world to manifest. However, the current bridge technology is fragile, leading to security risks and hacks. Blockchains using bridges to Ethereum create more risk and less value with enterprise use cases.

    While niche chains, e.g., Hedera (optimized for enterprise) or Flow (optimized for metaverse and gaming), may co-exist, the market simply cannot afford the number of Layer 1 protocols/blockchains in existence today. The L1 space is crowded, differentiation is limited, and the market is finite. A multichain future requires mature interoperability solutions.

    Layer 2 is the new frontier

    After the Ethereum ‘merge,’ the blockchain landscape is significantly altered by negating competitive differentiation for the ETH-killers. Ethereum is repositioned as the base layer for settlement under multiple Layer 2 protocols, forming a scalable ecosystem.

    Blockchain’s scaling problems are unfolding. As enterprise adoption of blockchains grows, we will enter a magnitude of multi-billion daily transactions, and even baked Layer 2 solutions may not be enough. We will see the rapid evolution of new categories like decentralized platforms and new forms of roll-ups. These will migrate action up the blockchain stack while letting the base protocol accrue its own value. The last few cycles were about Layer 1 and infrastructure; it will now be about scaling, interoperability, and ecosystem maturity. Layer 1 battlefield is now empty with a handful of survivors; layer 2 is the new frontier.

    Decentralized platforms will accelerate ecosystem adoption

    For adoption scale, technology must make it easy by reducing barriers for non-technical users, deploying faster Decentralized Applications (dapp) deployment and faster routes to value creation. The new category of decentralized platforms sits between Layer 2 chains (layer 1 chains) and the fractured landscape of dapps and use cases driving a vibrant ecosystem.

    A dPlat (decentralized platform) can simulate an iOS or Android-like effect, shielding the Layer 1 and Layer 2 chain complexities and abstracting blockchain features to enable ease of development for uses. Many users will not realize the complexities of the layer-one protocol underneath, and protocols will become easier to build on. The dPlat space is one to watch closely.

    Concluding thoughts

    Layer 2 technologies, robust network effects, regulatory considerations, decentralized platforms, and investment outlook changes will help the inherently raw protocols to scale adoption and transactions. The next 12 months bring a lot of positive changes to the ecosystem despite a bull or bear market; let us prepare for the new paradigms.

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    Nitin Kumar

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  • Why It’s Time For You To Accept Crypto

    Why It’s Time For You To Accept Crypto

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    Opinions expressed by Entrepreneur contributors are their own.

    Cryptocurrency is nothing new. While many people discuss the digital asset as an enigma, it is a medium of exchange worth significant value. True, digital coins do not have the same tangible backing as cash, but the security of design, and the blockchain setup, create (or should create) a level of confidence.

    If your business has yet to embrace crypto as a form of payment, it is falling behind and missing valuable opportunities to thrive. While not all companies yet embrace crypto, those that do experience unparalleled access to otherwise distant consumer pools.

    The number of companies embracing crypto is rising, including such names as Gucci, Paypal and Visa. Permitting crypto payment options can expand your market share and improve your position in the marketplace; it can also demystify this legitimate form of payment.

    The reasons crypto is right for your business model

    It is easy to look at the failings of FTX and lose confidence in the system, but investors and businesses need to review the market’s otherwise successful history. Bitcoin is only one asset out of thousands that continues to outperform investor expectations. The folly of one digital coin should not deter innovative businesses from embracing a payment option that proves time and time again its ability to persevere.

    If your company wants to look toward the future, it must embrace crypto because it isn’t going anywhere. The financial “new normal” demands that businesses adapt and embrace changing structures. Besides the need to adjust, there are many reasons businesses benefit from accepting crypto payments.

    Related: 5 Tips for Using Cryptocurrency in Your Small Business

    1. Decrease fraudulent chargebacks

    Many companies are victims of friendly fraud or mistaken consumers. In the digital subscription age, many consumers don’t remember all their purchases and may report an issue of credit card fraud where there is none. Unfortunately, whether friendly mistakes or criminal, chargebacks cost businesses billions yearly.

    Embracing bitcoin payments can reduce fraudulent chargeback risks. Crypto payments report to an immutable public ledger. The payment method does not allow for alteration, meaning once a transaction is complete, nothing can reverse it, eliminating the false claims of fraud on the purchase end.

    Related: The Benefits of Crypto Education for Your Business

    2. Increase security

    Cryptocurrencies exist within the blockchain — a decentralized, distributed digital ledger. All transactions are permanent, unmodifiable, and impossible to delete. The entire crypto concept is a vision for secure monetary assets.

    A business can improve the security and usability of crypto by partnering with blockchain monitoring services. Some payment processors will offer additional security measures; however, even bare-bones, cryptocurrency is more secure than credit cards and other payment methods.

    Accepting crypto shows your consumers that you care about their security and yours. The additional security and finality of digital coins also provide assurances for businesses providing subscriptions or other services in a techno-focused era.

    Related: Crypto vs. Banking: Which Is a Better Choice?

    3. Lower transaction fees

    Credit card fees present a significant thorn in the side of many merchants. Fees represent a profit loss on individual transactions. Besides the on-top percentage taken from the sale, many credit card processors also charge a nominal fee per incoming transaction.

    Cryptocurrency transactions eliminate any additional fee structures when handled on the business end. If you decide to use a payment processor (recommended), you will need to pay a service fee, typically less than traditional processors will charge.

    4. Improve transaction speed, regardless of country of origin

    Besides transaction fees, credit card transactions take time to process. As a business owner, you do not have time to waste. Most cryptocurrency transactions occur in real-time — one of the many perks of a decentralized system.

    Traditional credit card or debit card payments can take several days, depending on a consumer’s location. Crypto is borderless, so location does not affect or inhibit transaction speed. Also, because the digital asset does not involve cross-country settlements or obstacles, there are no costly currency conversions.

    Related: 10 Ways You Can Learn More About Crypto and Blockchain

    5. Improve growth potential

    The growth potential of crypto is twofold for business owners: financial and market share. Any crypto investor can tell you about the exponential growth of digital assets in recent years. For a business owner, the potential valuation increases for some cryptocurrencies are enough to embrace the payment method. Permitting crypto payments means you can potentially earn greater profits from the same volume of purchases.

    Besides the monetary gains, permitting crypto also opens your business to a wealthier consumer pool and buyers who may not have considered your company before. Crypto allows for a level of anonymity and privacy that other payment forms do not. Newer, more private consumers will appreciate your business’s steps to secure their privacy.

    6. Taking crypto means getting cash

    You get cash, not crypto, for your payment by dealing with a reputable payment platform. Trusted platforms will convert crypto payments into cash. And by taking crypto, you’re making it easy for crypto holders to buy products and services, all while receiving cash in your bank account. It’s a win-win and a great cost-effective opportunity to increase your revenue.

    Crypto is the future and the future is now

    Whether a high-end, established retailer or a small, young business, it is time to use cryptocurrency, permitting it as a payment option. Digital currency is more secure than other transaction methods and allows for growth opportunities while maintaining consumer privacy. Embrace crypto and embrace the future of your business.

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    Richard Iamunno

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  • How CBDCs Will Transform The World As We Know It

    How CBDCs Will Transform The World As We Know It

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    Opinions expressed by Entrepreneur contributors are their own.

    Over the past couple of years, I have been working with my team at Broxus to develop the infrastructure necessary for central banks to deploy digital versions of their currencies. While we have been doing this work, and other projects have been engaged in similar endeavors, the dialogue around CBDCs has taken on something of a life of its own, colored by misconceptions about what Central Bank Digital Currencies (CBDCs) are and their purpose.

    At their essence, CBDCs are digital versions of a country’s fiat currency that are pegged at a 1-1 ratio with the original currency. For example, if the US were to release a CBDC, that would be in the form of a digital dollar that is always equal to its fiat counterpart. While CBDCs are related to cryptocurrencies and blockchain technology, some key distinctions exist.

    CBDCs are, by definition, recognized digital legal tender. That means that, unlike other similar digital assets like stablecoins, CBDCs carry the equivalent legal weight as fiat currencies. This is important as one of the main drivers of CBDC expansion is the shift occurring globally to cashless societies. As more societies become increasingly cashless, the current economic infrastructure has struggled to support local and international economies. CBDCs are a potential way of solving these issues.

    Much of the disconnect has arisen from many’s perceptions concerning cryptocurrencies, and the association CBDCs have in the public’s eye with cryptocurrencies. The truth is, while cryptocurrencies remain primarily speculative, CBDCs are something else entirely. Here, speculation plays no role. CBDCs, if instituted correctly, would be able to optimize financial systems that have grown outdated and been failing to meet the needs of the world’s most vulnerable demographics from a financial perspective.

    While the value of cryptocurrency is often tied to future developments and use cases, with CBDCs, the value is in the here and now. The utility of these digital currencies is something real, something that addresses shortcomings that are palpable around the world right now. I believe that the framework in which we discuss CBDCs needs to change so that ongoing efforts to integrate this technology into the fabric of the world economy may come to fruition.

    Related: $465 Million of Robinhood Shares Linked to FTX’s Sam Bankman-Fried Are in Question — What Now?

    CBDCs and universal basic income

    Social security systems of the 19th and 20th centuries have all required the construction of a significant state body to redistribute wealth. These bloated governance structures have generally not been able to adequately assist the people who find themselves in the more vulnerable spheres of society. To address this issue, an experiment was conducted in Finland that sought to provide a Universal Basic Income (UBI) to generally unemployed people. Rather than using a welfare model, benefits were given out in Finland through a €560 direct cash deposit each month. On the one hand, this provided direct support to those in need and, on the other hand, reduced the costs of collecting, accounting and spending funds that run high in welfare programs.

    The final results of the Finnish experiment are now in, and the findings are intriguing: the UBI in Finland led to a modest increase in employment, greatly improved results in the material well-being of recipients, and increased positive individual and societal feedback.

    CBDCs can be uniquely positioned to improve the performance of Universal Basic Income (UBI) programs. Since most of the launched pilot projects and prototypes for CBDCs are focused on a 0% deposit rate, i.e., a situation where CBDCs are subject to inflation and depreciation, central banks could gain more effective leverage in managing aggregate demand in the economy by collecting taxes and distributing part of them to UBI recipients. By issuing currency in digital form, central banks will be able to radically reduce the costs of the state to ensure the circulation of the national currency and social support for the population.

    Related: Regulated Blockchain: A New Dawn in Technological Advancement

    Reaching the unbanked

    In 2021, according to the World Bank Group, 1.4 billion adults were still unbanked. That is a massive portion of the world’s population, and the failure to provide these people with adequate banking services is likely to prolong poverty cycles and have a stunting effect on global economic growth.

    This problem is acute in South East Asia, and a good example of it can be seen in The Philippines, an area that we have focused on in our work. Just over half of the adult population in The Philippines has access to banking services. In a healthy economy, small and medium-sized businesses need access to banking services to thrive. With just over half of the population having access to those services, the Filipino economy cannot flourish, leaving the less affluent to bear most of the brunt.

    Related: Crypto vs. Banking: Which Is a Better Choice?

    Lowering the cost of money transfers

    The lack of banking services has led Filipinos to utilize alternative financial methods and seek work in other countries. Nowadays, remittances from Filipinos working overseas and sending money home account for 10% of the Philippine GDP or roughly 70-80 billion dollars. At the same time, the cost of money transfers is approximately 8-10% of the total amount of the transaction.

    Even here, CBDC technology can be effective in improving the situation. As part of our work in CBDC development, we have established a partnership between the Everscale network and DA5, one of the leading authorized direct agents of Western Union in the Philippines. The blockchain remittance service created by Everscale and DA5 will be the first technology in the Philippines capable of speeding up and lowering the cost of this process. As a result, people will no longer have to pay such high fees on their transactions once the service is launched.

    The first phase of the partnership will see the launch of Everscale’s new stablecoin, which will be tied to the Philippine peso. After the stablecoin is released, users in the Philippines can immediately exchange fiat for its digital counterpart at industry-low rates. But this is just a stablecoin; if The Philippines were to launch a CBDC, there would be benefits for all sectors of the economy.

    The privacy debate

    A common argument against CBDCs is their lack of privacy. However, this is only partially true: it can be shown that more centralized systems can allow more privacy than decentralized protocols. The bad privacy properties of Ethereum, in which states are made up of reused addresses, are widely known. In addition, users sometimes use uniquely linked domain names, making their transactions transparent to outside observers.

    There is a trade-off when designing decentralized protocols: complete on-chain privacy can lead to an inflation problem within the protocol that cannot be tracked – because the recipient and quantities are not known. A sidechain like Liquid gets around this problem quite simply: no more bitcoins can be created inside the protocol than were received at the input. In a centralized system, one trusted oracle can be provided that determines the boundaries of the issue.

    Centralized solutions based on Chaumian e-cash could use more advanced cryptographic methods to hide counterparties and quantities and selectively disclose this information at the request of the parties involved in transactions. In addition, there is no limitation on how privacy-enhancing features can be implemented since they are not bound to decentralized protocols with limited network resources and free space on the blockchain.

    Related: Web3, Crypto, Cybersecurity, Rural Fintech: Trends To Look Out For In 2023

    CBDCs as a vehicle for real and necessary economic change

    The issues above are not going away, and as countries worldwide continue to develop, the people affected by them are likely to continue to suffer. Quite simply, governments have never had the tools necessary to implement adequate benefits programs for those who need them. Now, however, that opportunity is here.

    That is the real utility that all of the efforts towards developing CBDCs are based upon, and that should be at the center of the discussion around this new technology.

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    Sergey Shashev

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