How crypto actually works:
0. Sale “to the moon” to hamsters for fiat.
1. Crush “to the moon” to zero, ’cause of xyz..
2. Buy a lambo, spend hamsters fiat.
3. Goto 0.
Flip the Funnel // hamsters should sale to hamsters
Three things // ofcourse 3
Allow them create your product // perfect
Community matters // ofcourse again
Bright future: Trillions of Dollars, 10% GDP // Boston consulting group
Tokenization of global illiquid assets estimated to be a $16 trillion business opportunity by 2030
A large chunk of the world’s wealth today is locked in illiquid assets. In a survey conducted in the U.S. in 1997, 56%+ of assets held by taxpayers with a net-worth of between $600,000 and $1 million were illiquid11. All else being equal, illiquid assets typically trade at a discount vs. liquid assets, and are characterized by a high stock-to-flow ratio, lower trading volumes and imperfect price discovery vs liquid assets.
For example, illiquid physical art assets have a stock-to-flow ratio of 28.3 as opposed to 1.11 for liquid Real Estate Investment Trusts13 (REITs)14. Primary examples of illiquid assets include real estate (incl. home equity), natural resources, land, commodities, public infrastructure like mines/ports, fine art, computing infrastructure, private equity etc.
On top of that, there are multiple other asset classes which are only accessible to limited wealthy investors/institutions due to constraints on ticket size, e.g., pre-IPO stocks, hedge funds, infrastructure projects, commodities and alternate investment instruments, private credit. The total size of illiquid asset tokenization globally would be $16 trillion by 2030 (Exhibit 5).
Key reasons for asset illiquidity include:
a) limited affordability of mass investors given high ticket size ranging between $250,000 and $5 million, depending on the asset type (e.g., real estate, bonds, hedge funds)
b) inability to fractionalize inherent utility (e.g., sharing living space in a house by 100 investors)
c) lack of information to retail/high net-worth individual investors given the lack of wealth manager expertise (e.g., assets like livestock, plantation, alternate investments)
d) limited access, restricted to elite cliques (e.g., fine art, vintage cars, vineyard etc.)
e) regulatory hurdles (e.g., limitations on investments in certain asset classes to only accredited investors, complicated process of tokenization & custody transfer of assets, strict guardrails on allowing foreign investors in capital markets of certain geographies e.g. Indonesia, and also asset classes that require ownership proof in governmental registers such as real estate where the ownership is recorded in the land register)
f) complex user journeys for obtaining access (e.g., KYC and payment set up across multiple platforms with no single interface for the customers)
g) lack of existing, scaled technological solutions to unlock liquidity in such assets.
