How to Raise $100 Million in One Week

The Age of the ICO

Late 2017 saw the first big “blockchain boom.” At the heart of this boom was an explosion of Initial Coin Offerings (ICOs). In the typical ICO, an entrepreneur:

  • then sold tokens to the public,
  • then cashed out the tokens as seed money for the new business.
Courtesy Blockchain for Everyone
“Did I lose $1B? Yes. But I gained $2B in wisdom.”

The Age of DeFi

Behind all the ICO hype was a really innovative idea: a promising entrepreneur could raise money directly from investors, without begging for money from friends and family, or the bank. Conversely, investors could get access to early-stage investments, usually only available to well-connected VC firms. After all, this is the promise of blockchain technology: eliminating the middleman.

Blockchain tokens can be used to quickly raise funds for new projects. Courtesy Blockchain for Everyone
Remember: $100 million in one week. (Courtesy CoinGecko)

What is Big Data Protocol?

On the surface, the idea is simple: they’re tokenizing big data.

Rule of thumb: If it sounds too good to be true, it probably is.
Selena Gomez explains something different (CDOs), but the principle is the same.

Back to Basics

As blockchain value investors, we look for underlying value. (Our Blockchain Investor Scorecard can help.) The simple way to think about “value” is products or services that make a meaningful difference in people’s lives.

  • bootstrapping “liquidity pools,”
  • then trading peer-to-peer on DeFi exchanges.

Warning Signs for Blockchain Investors

Let’s try to identify a few “red flags” around the forthcoming flood of token offerings:

Note where 10% of BDP goes. Source: Big Data Protocol Medium page
Ryan Gosling explains the Jenga tower analogy to Steve Carrell.



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