Some breathing space on the blockchain
A couple of things happened yesterday that were at opposite ends of a spectrum.
News broke that boxer Floyd Mayweather and music producer DJ Khaled have settled with the SEC
for promoting initial coin offerings without disclosing that they were being paid to do so.
Coupled with cryptocurrency prices’ fall to mere shadows of their former glory, it feels like the much needed crypto-shakeout is in full swing.
Indeed, my former colleague Jon Russell wrote yesterday about how crypto doesn’t seem to set to kill venture capital
the way some claimed it would just a few months ago. The crypto hype bubble hasn’t quite popped entirely, but it’s resting on a needle.
Meanwhile, I had a call with a startup yesterday that reminded me that there is something worthwhile in blockchains and cryptocurrencies if you strip away all the overblown hyperventilating.
I won’t go into too much detail about what they do as they’re pre-launch, but this was a company with clear reason to use a blockchain (they needed a shared, indisputable record visible to their B2B customers), and even a legitimate reason to have a cryptocurrency attached that might actually work! It’s not ridiculously contrived or utterly pointless. A rare beast indeed.
Maybe with a bit of space and a lot less noise in the blockchain world, more startups like this will be able to surface.
The best thing the blockchain and cryptocurrency world can do is ditch the kids with their exclamations of ‘HODL!’ and obsession with 'lambos.’ Get rich slow.