The Dynamic Crypto Industry Building A Bitcoin-Backed Monetary System. Consider Banks Without Bankers 

One of the main advantages of cryptocurrency is the independence it offers by enabling individuals to become their own bank. With cryptocurrency, you have complete control and ownership of your assets, whereas traditional banks have technical ownership over the assets you store with them. While the concept of being your own bank is impressive, critics argue that specialized crypto banks may be necessary for crypto to compete effectively with the established financial system.

This article summarizes a report outlining a method for establishing financial institutions without the need for traditional bankers. This method utilizes Bitcoin to achieve this goal, and the approach aligns with the broader aim of revolutionizing the financial sector by harnessing the power of cryptocurrency to replace the existing flawed monetary system. 

Banks Without Bankers Prioritizing User Agency

Today's summary is of a report called "Banks without Bankers," released by AxiomBTC, a venture capital firm focused on Bitcoin. The report starts with a powerful quote from Hal Finney, a pioneering Bitcoin developer who received the first Bitcoin transaction.  In the quote, Hal Finney envisions a future where BTC is crucial in reshaping the banking system. 

Source: Axiom.BTC

In the report authored by Eric Yakes, he explores two potential outcomes for the future of Bitcoin. On one end of the spectrum, all BTC could be held in custody by third parties like banks, with individuals trading receipts instead. This is similar to the historical concept of fiat money, representing a gold claim held by a bank. On the other end of the spectrum, Bitcoin could become a widely-used medium of exchange, with individuals directly transacting with each other and BTC effectively replacing money and its associated functions.

The idea presented is impractical due to several factors. Bitcoin faces limitations in scaling at its core level and is missing the necessary smart contract capabilities for sophisticated financial operations. Similarly, the scenario where all BTC is held in custody is not feasible because some BTC holders prefer to maintain control over their cryptocurrency assets through self-custody and peer-to-peer transactions. Therefore, it can be reasoned that the future of Bitcoin lies in a balance between custody services and individual self-custody practices.

Eric points out in the report that advancing technologies in the Bitcoin sector will allow for striking this balance carefully, emphasizing prioritizing greater peer-to-peer interactions. This approach is logical, as Bitcoin was initially designed to distance itself from traditional financial institutions like banks. In other words, the primary goal of Bitcoin was to remove the reliance on third parties to safeguard assets, hence the inherent trustless quality of cryptocurrency.

Eric contends that not all trust is misplaced, as it's crucial to place confidence in the right individuals and ensure their motivations align. He reinforces this notion by highlighting evolutionary biology findings emphasizing communities' importance in survival and reproduction. He then draws parallels between these findings and the contemporary financial system, where community-oriented banks are less likely to fail.

Eric believes that community banks are restricted by their geographical reach, meaning those nearby can only access their benefits. This limitation stems from the physical constraints of the world. In contrast, the digital realm knows no boundaries or distances. Eric suggests that with the appropriate technology, Bitcoin could enable the establishment of a digital community bank that transcends geographical limitations.

A critical technological component is multi-signature (mult-sig) wallets, which enable multiple individuals to manage a single Bitcoin wallet. In essence, multi-sig wallets enable the creation of conditions that allow this shared wallet to spend BTC. This technology allows the establishment of a ‘federation,’ which Eric defines as a system where “multiple participants hold keys that are useless in isolation, but can be combined to produce a signature that is required to make a transaction.” 

Source: https://fedimint.org/

Fedimint: A Decentralized Solution

The first part of the report introduces a federated network called Fedimint. It’s designed to address issues related to trust in third parties and the complexities of self-custody. The concept is to rely on your community for trust rather than depending on external entities or solely yourself for technical matters of self-custody. A combination of four underlying technologies powers Fedimint;

1. Federations can be considered a collection of reliable, trusted nodes that work together to operate a network. These nodes are responsible for maintaining the integrity of the system. 
2. Multi-sig wallets, as previously mentioned above.
3. A privacy-preserving digital currency called eCash which is backed by BTC.
4. The Lightning Network: (LN) A layer two protocol on the Bitcoin Network.

At the protocol level, Fedimint consists of four participants; 

1. Users who can mint, redeem, and transfer eCash. 
2. Guardians that function as nodes on the network and facilitate the minting, redemption, and transfer of eCash.
3. Gateways that can be simply understood as nodes that make eCash transferable on the Lightning Network. 
4. Modules, which are the applications on Fedimint. 

Each Fedimint system has three built-in modules: BTC, eCash, and a connector for integrating with the Lightning Network. Users can expand the functionality of their Fediment system by adding extra modules like eCash payments and advanced eCash exchanges. Fedimint networks have the potential to function as virtual community banks, operate independently, and manage financial transactions without traditional bankers. The community-driven infrastructure allows seamless interaction with other Bitcoin-based Fedimint networks.

Source: Bitcoin magazine

Eric explores an alternative method in which Bitcoin could replace traditional banks, this time through utilizing a different protocol known as Cashu. Like Fedimint, Cashu utilizes a privacy-preserving eCash supported by Bitcoin, crypto’s store of value. However, Cashu is notably more centralized, operating on a single server. The trade-off is that the centralized aspect allows for efficient monitoring of the eCash circulation without jeopardizing user privacy, which contrasts with the challenge faced by Fedimints, where tracking the supply of eCash is hindered by its inherent privacy features.

Money and e-Cash

In the second part of the report, Eric asserts that a single form of money will eventually become the universal standard for transactions. He argues, “In theory, market participants converge upon a monetary standard. In a perfect world, there would only be one form of money. Yet, throughout history, this has never been the case.” Eric provides three explanations for the historical absence of a singular form of money.

The first is opacity or the general lack of information about other currencies available to the average person. Another reason is governments' desire to control their own currencies, a concept called sovereign coercion. The third factor to consider is the trade-offs associated with money. For instance, in today's world, real estate is often viewed as a more reliable store of value compared to the US dollar, as explained by Eric. 

For reference, the concept of money refers to a medium that holds value, while currency is a means of exchange used to purchase goods and services. This video clarifies the distinction between the two, highlighting how they were once equivalent when backed by gold. However, once currency was no longer tied to gold, it lost its value as a form of money. Despite this shift, we continue to operate under the belief that we are working for money through indoctrination, both explicitly and implicitly. 

Eric explains we are not out of the woods regarding BTC being the complete solution to this problem. He notes that although BTC addresses numerous obstacles that have previously hindered the widespread adoption of a single currency, it faces its own obstacles regarding scalability (speed) and privacy. The Lightning Network is a potential remedy for Bitcoin's scalability issue, while eCash is a solution for enhancing Bitcoin's privacy.

The report recognizes that while each of these solutions has its own obstacles, they may still effectively address the issue. However, eCash's success in creating viable money markets depends on its ability to gain widespread acceptance and adoption. Without delving into complex details, this process would entail individuals or organizations with substantial financial resources engaging in arbitrage activities between various eCash systems, stabilizing their value relative to the underlying BTC. This positive feedback loop would boost eCash adoption, fostering more precise pricing, increased market-making, and further adoption. The cycle would repeat, driving up the use and reliance on eCash while maintaining a consistent global value.

Source: Axiom.BTC

The Potential Risks Of An eCash System

The report's third section highlights the potential risks involved with the eCash system, which is built on Bitcoin (BTC) and utilizes the Lightning Network and Fedimint technology. Eric explains that eCash is designed to be minted and redeemed for BTC on the Bitcoin blockchain or BTC on the Lightning Network using a Fedimint Network. This system should ensure that all types of eCash issued by different Fedimint networks are interchangeable and hold equal value. In other words, eCash minted for BTC using one Fedimint network's lightning Network BTC can be redeemed for Layer One BTC at another Fedimint network.

While Fedimints offers the benefit of privacy for eCash transactions, there is a potential drawback. Specifically, Fedimints can generate more eCash than the amount of BTC that backs it, which could result in an imbalance in the system. For instance, one Fedimint network might produce ten times more eCash than others, causing users to claim a disproportionate amount of BTC from other Fedimints. This issue arises because eCash is entirely private, making it difficult to keep track of the total amount in circulation. This issue is mitigated by using Cashu, which maintains a record of circulating eCash and ensures that BTC always backs it.

Now, there's already a precedent for how to solve this problem. It's called free banking, which is banking before central banks existed. In the free banking era, banks could issue currency at their own discretion. In theory, this currency was backed by gold; in practice, it wasn't always. Unfortunately, this led to a situation where customers were not always aware of the actual value of the currency they were using, as they were at the mercy of the banks' honesty. This information imbalance between banks and their customers can be compared to the privacy aspects of eCash issued by Fedimints, where the issuing authority can access more information than the users.

Source: AreaBitcoin

The caveat is that free banks did not have a widespread relationship with all individuals. Only a select few were privy to the financial workings of the free banks, and these were often the first to withdraw their funds before the system collapsed. The report highlights three such groups: competitors, brokers, and clearing houses. Eric suggests similar participants could provide comparable assurances in a decentralized eCash system. This could include entities such as Fedimints, Lightning Network gateways, eCash brokers, and even speculators who wager against unreliable Fedimints. The most crucial participant that could be introduced to an eCash system would be one capable of furnishing proof of reserves.

Those who have been involved in the crypto space since the downfall of FTX will be familiar with the emphasis placed on proof-of-reserves by exchanges aiming to enhance credibility. However, it's important to note that proof-of-reserves alone does not provide insight into a crypto exchange's obligations or debts. This means that an exchange could show evidence of holding $1 billion in BTC for its users who have deposited the same amount while simultaneously being $2 billion in debt, a detail unknown to users.

However, in an eCash system, the concept of liabilities doesn't apply in the traditional sense, as all eCash in circulation is supported by BTC held in a multi-signature wallet. The existence of this BTC collateral ensures the legitimacy of eCash minted by a Fediment, making it unnecessary to worry about liabilities.

Proof Of Liabilities

The fourth section of the report focuses on proof of liabilities. In this context, it alludes to the Cashu-created method for preserving the privacy of eCash users while monitoring the digital currency in circulation. Cashu's proof of liabilities protocol relies on three deliberate steps, which are crucial for its effectiveness.

1. To publicly commit to regularly rotating its eCash private keys over a predetermined period (“epoch”). This allows all eCash in circulation to recycle from old epochs to the current epoch.
2. Produce a publicly auditable list of all issued eCash tokens in the form of mint proofs.
3. Produce a publicly auditable list of all redeemed eCash tokens in the form of burn proofs.

A system with these properties can ensure that Fedimint users can verify whether a mint has issued unbacked eCash during a previous epoch. This system sets an expiration date on user eCash, which prompts users to update their eCash to the latest epoch. The expiration of eCash compels users (through automated processes in their wallet software) to take actions that will lead to the mint disclosing past eCash issuance and redemptions.

The intriguing aspect is that the periodic alteration of eCash private keys is designed to mimic a bank run on the Fedimint. If the Fedimint is unable to modify the private keys used for eCash minting, it suggests that the eCash they've issued is not supported by the BTC reserves they claim.

In the fifth section of the report, Eric examines the possibility of a Bitcoin eCash system being impervious to political influence, provided that there is a sufficient number of decentralized financial networks, known as Fedimint networks. The report speculates that up to 10 million digital community banks could be in the future. Additionally, the report highlights that Fedimint networks are also resistant to politics because they are currently exempt from financial regulations but admit that this could change. If you’ve followed the crypto regulation saga, you would know that the authorities’ goal is ending all custodial crypto. 

The sixth section of the report analyzes why Bitcoin and the Lightning Network are deemed inadequate. The report then shifts its focus back to comparing free banking with the eCash system in the seventh section. The risks associated with each system are highlighted in a diagram presented below.

Source: Axiom.BTC

The report then discusses the potential for Fedimints to start practicing fractional reserve banking. For those unfamiliar with the concept, fractional reserve banking refers to retaining only a portion of the funds backing a currency in circulation. Most financial institutions worldwide maintain a reserve requirement of less than 30%, meaning they must hold 30 cents for every dollar they have issued.

Significantly, the Federal Reserve eliminated all reserve requirements for American banks at the onset of the pandemic and has seemingly yet to reinstate them. Eric highlights that this has raised concerns that Fedimint networks may begin operating like fractional reserve banks, meaning they would issue more eCash than BTC in reserve. However, competition among Fedimints is believed to help mitigate this risk, with those maintaining full reserves coming out on top.

Emerging Technologies

In the latter section of the report, the discussion revolves around new technologies that can bring the eCash concept to life. Eric highlights a novel protocol named Ark, currently in its conceptual phase and can be viewed as a mixing service and an onboarding mechanism that minimizes on-chain activity. Like the Lightning Network (LN) has LSPs, Ark will have Ark Service Providers (ASPs). This is a solution to the onboarding problem and a trustless custodial solution.

Interestingly, Ark's main limitation is that it can only support up to 10.5 million BTC due to technical reasons outlined in the report. Despite this, Eric believes this inherent restriction could be advantageous in the long run. The main point to remember is that Ark has the potential to overcome the technical challenges faced by the eCash system. As noted by Eric, “The Arc protocol could provide the necessary infrastructure for a trustless free banking system of service providers to emerge, removing agency from fundamental economic functions.” 

Next, Eric synthesizes the information in the concluding section of the report, presenting a comprehensive overview as follows:

“Imagine a system where users dollar-cost-average into Bitcoin via Ark, use federated technology for custody, use eCash as the private cash balance for everyday transactions, and on the backend, all service providers are clearing balances between one another via the Lightning Network. Fedimints and ASPs could act as banking infrastructure, and the LN could act as the clearing houses amongst them as a hub and spoke model.”

In essence, it is a monetary framework of decentralized, community-owned, and operated digital Bitcoin banks.

What It Means For BTC

The potential impact on Bitcoin (BTC) is significant, assuming the implementation of the eCash system as described. Such a system would generate substantial demand for BTC, thereby boosting its value. In essence, the eCash aspect of this alternative financial system would serve as a powerful catalyst for BTC's growth.

The more significant concern is how this trend might impact both the financial system and your personal financial autonomy. It's important to remember that economic freedom doesn't equate to having a large sum of money. Instead, it means having the flexibility and control to make choices about your money whenever you see fit. Unfortunately, this level of autonomy is becoming increasingly scarce in traditional financial circles.

As previously stated, having a large sum of money in your bank account may hold little value if you cannot use it. When encountering someone with significant wealth, inquire about the challenges of managing such funds. The process of transferring large sums of money is complex and increasingly so. This difficulty may be attributed to the fractional reserve banking system's ongoing trend towards extreme fractionalization. Put simply, banks are putting up hurdles that make it harder to move your money around because the cash you have there doesn't even really exist. 

The banking crisis from last year highlighted how convenient it is to transfer money in today's world. In the past, customers would have to physically line up at the bank to withdraw their money in the event of a problem, which is the classical definition of a bank run. Nowadays, all you need to do is click a button, which is a big problem for banks. 

In any case, the growing sentiment globally is towards a financial framework that enables individuals to possess their assets and maintain their financial autonomy. The system examined in this report may or may not be the ultimate answer, but it's undoubtedly a move in the right direction toward a future where such a system will be imperative.

Image: Markethive Wallet

On The Right Side Of History

Markethive is also on the right side of history regarding financial sovereignty and keeping the entrepreneurial spirit alive. It is a domain where the individual can thrive in an expanding community of critical thinkers who uphold liberty and free expression, prioritize financial autonomy, and foster an environment where ingenuity and independence can flourish. These aspiring and seasoned entrepreneurs alike reject the constraints established financial systems impose and embrace the potential of decentralized technology. 

In response to the autocracy of governments and mega-corporations on a global level, Markethive has developed its own comprehensive financial accounting hub that can be likened to a bank. This system provides users with a secure platform for financial transactions, including merchant accounts, free from the risk of account closure or seizure by authorities seeking to restrict freedom of expression for any reason.

Markethive’s evolution will include multiple sovereign servers to avoid being censured or shut down and a dynamic and innovative crypto exchange that leverages the platform's unique strengths, including innovative inbound marketing strategies, blogcasting capabilities, dynamic social engagement, and community-driven support. These endeavors are a natural progression for Markethive, allowing it to expand its reach and provide users with a seamless trading experience that integrates the platform's proven features.

With divine guidance, we will resist the oppressive totalitarian regimes that seek to subjugate humanity. Despite the power wielded by the elite, tech titans, government, and mega-corporations, a higher authority exists that eludes their control. The discerning individual cannot help but perceive the larger forces at play.

This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Trad-Fi Wants To Dominate Crypto. Is It succeeding? What Does It Mean For Crypto?

Charles Hoskinson, the founder of Cardano, is a prominent figure in the cryptocurrency industry and is known for his unwavering belief in its potential to revolutionize the financial system, much like Markethive. Throughout the years, I have documented the evolution of Cardano creator Charles Hoskinson's efforts in developing the Cardano protocol and his humanitarian quest. 

In a recent video, Hoskinson expressed his concern that the traditional financial system is slowly but surely taking over the crypto industry, a notion that has sparked a heated debate among experts. While cryptocurrency's original intention was to supplant traditional financial systems, some fear that if it continues on its current path, it may ultimately become even more dystopian than any central bank digital currency.

In a live video broadcast on February 13, 2024, Charles passionately shared his thoughts on the intersection of legacy finance and the crypto world, titled "Legacy is Eating Crypto." This article summarizes Charles' insights, supplemented by perspectives from Coin Bureau's crypto experts. We will also explore ways in which the crypto industry can safeguard itself from being overtaken by traditional financial institutions, commonly referred to as "Trad-Fi."

Stablecoins

Charles started by mentioning that he has been discussing the significance of decentralized algorithmic stablecoins in various recent interviews and how they differ from centralized asset-backed stablecoins, which he believes could threaten the cryptocurrency industry. 

A stablecoin that relies on algorithms to maintain its value relative to a traditional currency is known as an algorithmic stablecoin. The most well-known example of such a stablecoin is Terra's UST, which suffered a collapse around May of 2022. However, Charles had a different type of algorithmic stablecoin in mind; he was referring to a stablecoin that is backed by another cryptocurrency, such as MakerDAO’s DAI, which can be minted by locking up another crypto as collateral, such as ETH. 

The issue is that DAI may not be genuinely decentralized anymore, as it is now primarily backed by centralized assets. This makes it similar to other centralized stablecoins, such as Circle’s USDC and USDT, which Charles categorizes as asset-backed. Like USDC and USDT, DAI's value is supported by real-world assets, specifically US government debt and US dollars, which are susceptible to seizure.

For context, Charles shared some key facts. Firstly, he mentioned that centralized stablecoins constitute approximately 10% of the total market capitalization of cryptocurrencies. While this may not seem significant initially, it becomes notable when considering the second statistic: about 70% of all cryptocurrency transaction volume involves a centralized stablecoin. Charles emphasized that centralized stablecoins such as USDC and USDT are minted and redeemed by centralized companies that are typically subject to strict regulations. He explained that while these regulations are not inherently harmful, they imply that these entities are under government oversight, unlike cryptocurrencies.

Moreover, these entities are restricted in their ability to drive innovation in stablecoins, as they must operate within the boundaries of regulatory compliance. Additionally, they cannot issue stablecoins in a fractionalized manner, meaning that an equivalent value of US dollars or bonds must fully back each stablecoin in circulation. This poses a significant challenge, as it enables centralized stablecoin issuers to potentially influence the outcome of a hard fork by deciding which chain becomes the dominant one.

Source: Investopedia

In other words, they would have to select which chain to transfer all their stablecoins to, as doubling the supply isn't an option. Interestingly, Vitalik Buterin, the creator of Ethereum, acknowledged this reality in 2022. He opined that Circle, the issuer of USDC, could dictate which chain emerges victorious in the event of an Ethereum fork.  It is worth mentioning that Cardano is not exposed to this threat since it does not currently support any centralized stablecoins. 

Bitcoin ETFs

Charles then pointed out the possibility of centralized stablecoin issuers implementing KYC at the blockchain level. He also highlighted criticisms regarding the absence of centralized stablecoins on the Cardano blockchain. Charles emphasized that those advocating for centralized stablecoins on Cardano without considering the associated risks are solely focused on increasing the value of the ADA token.  He also drew parallels to the situation with spot Bitcoin ETFs, highlighting that these ETFs now hold over 200,000 BTC valued at over $10 billion, and argued that asset managers operating these ETFs wield a similar level of influence over Bitcoin as Circle does over select smart contract cryptocurrencies.

This stance is both intriguing and controversial. On the one hand, it suggests that the forecast about Circle's rise to prominence in cryptocurrency is materializing. On the other hand, there is room for debate as asserting control over Bitcoin involves more than just influencing its price.  While Charles posits that the growth of spot Bitcoin ETFs could allow them to control Bitcoin in the event of a fork, this argument is not without its critics. Some argue that controlling Bitcoin requires more than just price manipulation. However, Charles suggested that with the ongoing absorption of BTC by spot Bitcoin ETFs, there is a possibility for these entities to amass enough control to potentially dominate Bitcoin in case of a fork.

For reference, in its ETF filing, BlackRock clearly mentioned that it would decide which Bitcoin fork to back in the event of one. Consider a situation where Bitcoin splits into proof-of-stake and proof-of-work networks. The likelihood is high that BlackRock and other asset managers would choose to support the proof-of-stake fork because their significant BTC holdings would essentially give them control over the new Bitcoin blockchain through their spot ETFs.

The irony is that ESG-obsessed asset managers are more concerned about the government's control over Bitcoin rather than its environmental impact. While proof of stake is praised for its eco-friendliness, the control aspect truly holds significance. Moreover, asset managers like BlackRock could offload their proof-of-work BTC holdings after a fork, causing the price to plummet and making it unprofitable for miners to continue validating transactions. This could ultimately lead to the demise of the proof-of-work chain.

Source: Coinmarketcap

Charles emphasized that the dominance in the crypto industry lies not only with stablecoin issuers and asset managers but also with centralized exchanges where the top three control the majority of trading volume. According to Charles, there are just ten entities that have the potential to control the crypto market.  However, considering Blackrock's partnership with Coinbase and its management of USDC's reserves, it's likely that the number of entities with such control is even smaller. Furthermore, Blackrock's influence extends to the US government, as evidenced by a recent lawsuit settlement with Binance granting it extensive oversight over the exchange.

In any event, Charles proceeded to make an intriguing statement, highlighting that if you ignore the advice of these organizations, they will not add your cryptocurrency to their list, and they will not introduce a stablecoin on your blockchain. This brings up the question of whether this is the reason Cardano lacks a centralized stablecoin – due to their unwillingness to adhere to such requirements.

Cardano

Charles noted that Cardano has successfully avoided being controlled by centralized stablecoin issuers and their associates, which has led to it being overlooked and undervalued. He pointed out an explicit prejudice against Cardano within certain industry circles. Charles reiterated that many in the Cardano community are growing impatient with ADA's price action and are “trying to invite the vampires in so that ADA's price will pump.” 

Charles expressed that it's not his place to make a decision, but he felt others needed to understand the implications of their choices. He emphasized that if vampires are allowed to enter, they will eventually hold power over everything related to Cardano. However, he also suggested that ADA could be delisted if it doesn't meet the standards of trad-fi-backed crypto elites. Charles stressed that every decision in crypto comes with a trade-off; nothing is free. He posed the question of whether the purpose of crypto is to perpetuate existing inequalities or to stop them.

He questioned whether the goal of cryptocurrency was to conform to the institutions responsible for economic disparity or to break free from their control. To emphasize his point, he noted that increasing centralization in crypto mirrors the corrupt financial system it seeks to challenge, encompassing centralized infrastructure, centralized exchanges, and centralized stablecoins. Eventually, there will be wallet-wide KYC and CBDC integrations. 

During a podcast with Bankless, Circle CEO Jeremy Allaire indirectly acknowledged that Circle's USDC ultimately aims to evolve into a central bank digital currency (CBDC). As you may already know, CBDCs will give governments and central banks complete authority over individual saving and spending habits. In fact, some argue that stablecoin issuers already wield such power.

The end result of this shift towards centralization will be identical to the permission systems and de-platforming present in the financial sector today. One needs to look no further than the COVID-19 protests in Canada for proof of this. Protesters and their supporters found their bank accounts frozen. Charles emphasized that cryptocurrency will become inconsequential if it integrates with trad-fi and that they will do everything in their power to ensure that it does, whether by influencing regulations or using other means.

Finally, Charles explained that Satoshi Nakamoto's motivation for creating Bitcoin was a response to the extraordinary measures taken during the 2008 financial crisis and the concerning precedents they established. Satoshi believed that cryptocurrency could offer a unique alternative, but first, it's essential to recognize how it's still mirroring the same patterns as traditional finance. Unfortunately, Charles did not elaborate on how cryptocurrency could diverge from these patterns, whether through algorithmic stablecoins or other means, to avoid falling under the control of traditional financial systems.

Why BTC Could Be Unscathed

Thankfully, the task is relatively simple, although implementing it will be challenging and involve tradeoffs, as Charles pointed out. Your viewpoint will ultimately determine the approach. To elaborate, let's revisit the premise of Charles's video, which suggests that ‘legacy’ or trad-fi is ‘eating’ or integrating cryptocurrency rather than vice versa. Some believe that incorporating crypto, to some extent, is crucial for promoting awareness, acceptance, and progress in the field.

The current state of crypto privacy regulations is a prime illustration of this issue. Globally, regulations surrounding cryptocurrency are heavily leaned against privacy, with the supposed reasoning being that it creates an environment conducive to illicit financial activities. However, the true motivation behind this stance is that powerful financial institutions desire total visibility into all transactions, allowing them to maintain control over the economy and suppress any potential competition.

The main point is that these influential financial organizations' primary desire for privacy comes from them. This is evident in Blackrock's and other companies offering Bitcoin ETFs' decision to keep the wallets containing the BTC supporting their ETFs undisclosed. In contrast, Bitwise chose to reveal this information preemptively rather than waiting for blockchain analysts to uncover it. 

Consider the possibility that stablecoin payments will become widespread globally, thanks to the lobbying efforts of stablecoin issuers like Circle. It won't take long for individuals to realize that their stablecoin transactions and balances are transparent to everyone, which may raise concerns among trad-fi elites. Moreover, with central banks permitted to hold cryptocurrencies on their balance sheets starting from January 2025, there will likely be growing pressure on regulators to enhance privacy in the crypto space.

The rise in crypto privacy use will lead to the creation of additional privacy solutions. Cryptocurrency operates on universal principles, applying the same rules to all blockchain users. As long as this remains true, influential individuals and organizations will likely advocate for crypto values as they align with their self-interests.

If you are still in the process of being convinced, consider that various central banks globally are in the stages of creating their individual digital currencies. Given their ease of seizure or freezing, will these central banks rely on each other's digital currencies? The answer is no. Consequently, there'll be a significant need for a reliable, mutually accepted digital currency, especially as the world becomes increasingly geopolitically divided.

Coinbureau believes that Bitcoin's BTC is well-suited to serve this purpose and is currently used for trading by certain countries. Moreover, there are reports of countries engaging in Bitcoin mining activities. This could lead to a situation where nations using BTC for trade may compete in mining to maintain the neutrality of the Bitcoin blockchain. Fidelity, a different asset manager, has made a similar prediction.

This relates to Charles' assertions regarding asset managers' influence over Bitcoin through controlling its value. Recognizing that BTC's main advantage is its status as a trustworthy and impartial digital currency beyond anyone's control, it becomes clear that attempting to control Bitcoin would have negative consequences. To clarify, if Blackrock and other asset managers were to gain control of Bitcoin, its fundamental appeal would cease to exist.

The potential outcome of this situation is substantial funds being redirected to alternative assets, such as gold and other cryptocurrencies, which are beyond the control of asset managers. Notably, these outflows could potentially include investments in the proof-of-work BTC fork. It's important to remember that Blackrock's significant wealth and influence are largely predicated on the dominance of the US and its currency.

As explained in this article, the emergence of a new commodity cycle could potentially elevate the influence of the BRICS nations. Consider a scenario where one of these countries introduces a Bitcoin exchange-traded fund (ETF) that tracks the price of the proof-of-work version of Bitcoin derived from Blackrock's proof-of-stake fork. If this were to happen, it could attract tens of billions of dollars in investments.

Image: Markethive.com

How Crypto Strikes Back

This scenario is conjecture right now, and it is essential to take a broader view. This analysis considers long-term aspects and does not encompass the entire cryptocurrency market. In the shorter term, there is a possibility of integration between the rest of the crypto market and trad-fi in a manner that may present challenges. Small Blockers actually predicted this during the block size wars. 

Notably, trad-fi investors attempted to take control of Bitcoin by increasing its block size. However, they were unsuccessful in their efforts and shifted their focus to other cryptocurrencies, such as Ethereum. Since then, events have unfolded as predicted by proponents of Small Blockers. Essentially, if crypto aims to rival trad-fi in aspects like speed and cost, it will ultimately result in greater centralization, as it becomes a race to the bottom.

In the past ten years, we have witnessed a trend where each new generation of cryptocurrencies has become increasingly centralized. This has made them vulnerable to regulatory capture. As with Blackrock potentially controlling Bitcoin, centralized cryptos becoming subject to trad-fi regulations will essentially make them the same as existing traditional financial solutions, leading to decreased user adoption, with no one using them. Recognizing this risk, investors in these cryptocurrency projects are now shifting their focus toward achieving maximum decentralization.

Decentralization goes beyond just the quantity of nodes and validators. It encompasses the level of developer involvement in the blockchain, the dispersal of the coin or token, particularly in proof-of-stake blockchains, and even the infrastructure utilized by miners and validators, as detailed in this article.

The decentralized nature of cryptocurrency comes with inherent trade-offs, such as slower transaction speeds and higher costs. This brings us back to the root problem: that most crypto companies are attempting to compete with traditional finance in terms of cost and speed.  However, this has created a problematic trend towards centralization, which risks undermining the fundamental principles of decentralization that define cryptocurrency. If left unchecked, this race to the bottom could result in the most widely adopted cryptocurrency being managed by a single entity, such as the Federal Reserve. This outcome would be at odds with the vision of crypto enthusiasts, who seek to maintain the decentralized nature of cryptocurrency. So, what steps can be taken to address this issue?

As opined by Coinbureau, the solution is to let the crypto industry learn the importance of decentralization the hard way. As with most things in modern society, the only way you'll get change is with some kind of shock. In this case, it could be Circle deciding which Solana fork we could see in the future. It could be Tether freezing everyone's USDT holdings until they complete KYC. It could be Coinbase banning crypto transfers to and from personal wallets like many regulators want to do. It could be Blackrock’s spot Ethereum ETF taking control of Ethereum with all the ETH it will inevitably hold.

The average investor and user will likely realize the significance of decentralization in the crypto space only when confronted with situations that highlight its importance. As previously mentioned, this realization will also dawn on influential individuals and organizations. Subsequently, new cryptocurrencies that prioritize decentralization will emerge, hopefully without the need for a catalyzing event.

The cryptocurrency sector is anticipating potential threats and adapting accordingly. Early indicators of this trend include the emergence of decentralized privacy protocols and venture capitalists' financial support for algorithmic stablecoins. Initially, this may come as a surprise. Still, upon closer examination, it aligns with the motivations of major players like BlackRock, Coinbase, and Circle, who are ultimately driven by the desire to generate profits, just like many others in the cryptocurrency space. By investing in innovation, they will likely yield financial gains, which explains their support for pro-crypto regulations.

It's interesting to note that the institutions that have been perceived as obstacles to the growth of cryptocurrency are actually the ones that stand to benefit the most from its innovation. Governments, megabanks, and central banks are feeling the pressure of competition from crypto, and they are the ones hindering the progress of cryptocurrencies and working against it to maintain their power and control. It may seem far-fetched, but major players like Blackrock & Co. could be aligned with the interests of cryptocurrency enthusiasts in this battle despite their questionable reputation and difficulty in trusting them. Consider the potential profitability of displacing governments, megabanks, and central banks – it's food for thought.

The Next Crypto Bull Market Is At Hand. Ten Essential Tips For Investing In Cryptocurrency.

The recent green light for Bitcoin ETFs has thrust cryptocurrency back into the limelight, and with 2024 shaping up to be a pivotal year for the financial markets, many investors are pondering whether they should tap into the asset class that has delivered the most impressive returns over the past decade, as per Black Rock's analysis. 

The SEC's approval of spot Bitcoin ETFs marks a notable milestone, giving a significant regulatory stamp of approval to the most prominent cryptocurrency in the world while also providing exposure to the rapidly growing crypto market. This development will likely alleviate some concerns investors may have had about investing in the space, making it more accessible and appealing to a broader range of investors.

Before diving into the world of cryptocurrency, there are ten essential tips to remember. This article aims to provide investors with valuable insights by highlighting ten critical factors to consider when investing in cryptocurrency.

Image source: ishares.com.pdf

Ten Key Tips To Know Before Investing In Crypto 

#1. Exchanges

First and foremost, it's important to understand the various types of exchanges, platforms, and products available that offer crypto. Exchange-traded funds (ETFs) have recently gained popularity, providing crypto exposure and a secure and regulated way to invest in cryptocurrency. However, ETFs and similar products face three main issues. 

One concern is that their trading hours are limited to regular stock market hours, unlike the continuous 24/7 trading of cryptocurrencies. As a result, there may be discrepancies in pricing between the ETFs and the actual assets, as well as challenges in entering or exiting positions before significant price fluctuations occur.

Another issue is that they do not permit you to possess the actual asset outright. In cryptocurrency, taking custody of your own funds is typical among seasoned investors. While the self-custody approach may not suit everyone and carries its own set of risks, the advantage is that it removes the counterparty risk associated with ETFs.

The third issue is the limited availability of exchange-traded products that allow investors to invest in altcoins, which are cryptocurrencies other than Bitcoin. While some investors may be content with Bitcoin (BTC) exposure, others seek opportunities in alternative cryptocurrencies that offer the potential for significantly higher returns, ranging from 10 to 100 times.

Image source: Investopedia

#2. Volatility

Before investing in cryptocurrency, it's crucial to understand that prices can fluctuate rapidly and unpredictably, especially for alternative coins. Price swings of 10% or more in a short period are common for Bitcoin, while altcoins can experience even more significant fluctuations, with price changes of 20% or more in minutes. This high level of volatility can be stressful and may lead to impulsive decisions based on emotions rather than sound investment strategies. Consequently, many investors tend to buy during strong market upswings and sell during sudden downturns.

Cryptocurrencies experience significant price fluctuations primarily due to their speculative nature. The main reason behind this volatility is that cryptocurrencies are designed to challenge and potentially replace traditional financial systems. Each crypto project aims to address specific aspects of the financial system. Tokens that provide real-world utility within a particular niche may be less speculative.

An additional factor that plays a role is the significant use of leverage trading within the cryptocurrency environment. During bearish periods, minor price declines can snowball into substantial crashes as leveraged traders are forced to liquidate their positions, while in bullish markets, small price increases can rapidly escalate into massive price surges as leveraged traders scramble to maintain their positions.

Fortunately, two strategies can help mitigate the impact of volatility in cryptocurrency trading. Firstly, investing in cryptocurrencies with a larger market cap can provide a lower-risk option, as they tend to experience less price fluctuation than smaller-cap cryptocurrencies. However, this stability comes at the cost of potentially lower returns. Secondly, traders can reduce their exposure to volatility by using less leverage or setting stop losses at prudent levels, informed by technical analysis. Being knowledgeable about chart patterns and trends can aid in making informed decisions.

#3. Categories of Cryptocurrencies

This relates to the third essential aspect to consider before investing in cryptocurrency. It is crucial to understand that not all cryptocurrencies are the same. Generally, there are two main categories of cryptocurrencies – coins and tokens. Coins are digital currencies utilized to cover transaction costs within their respective blockchain networks, like BTC within the Bitcoin blockchain. On the other hand, tokens are digital assets that can be created through smart contracts on specific cryptocurrency blockchains, such as Ethereum or Solana.

The value of coins is typically tied to the blockchain they are a part of. In contrast, tokens often derive value from their usefulness or utility within a specific decentralized application (dApp) or protocol. This distinction is noteworthy because coins tend to perform better than tokens in the cryptocurrency market, likely due to the greater level of effort and investment required to create a new blockchain from scratch.

It is possible for anyone to generate a cryptocurrency token quickly using specific decentralized applications. This has led to a proliferation of tokens, with millions available, while only a select few cryptocurrency coins have gained widespread recognition and utility. Most tokens lack practical use or value, whereas those that serve a purpose tend to exhibit more significant potential for success.

The success of a coin or token is ultimately determined by the narrative it's associated with. Take Bitcoin's BTC, for instance, which is widely regarded as the digital equivalent of gold. This narrative is just one of many that can impact price movements. This article delves into other significant narratives that can shape the performance of coins and tokens.

#4. Quality Information

Finding reliable information about cryptocurrency projects can be a significant challenge. This is due to a shortage of educational resources, the intricate nature of most crypto projects, and a general lack of information available. As a result, it can take time and effort to make informed investment decisions in the cryptocurrency market.

The lack of understanding surrounding cryptocurrency has led to significant financial losses for many investors. Many have sought to solve this issue through online publications and transparent crypto platforms’ blogs and videos, which aim to educate the public about the nature of cryptocurrency and the scams that have plagued the industry conceived by nefarious opportunists seeking to exploit others' ignorance.

Image source: Coinmarketcap

#5. Market Cap

Before investing in cryptocurrency, it's essential to understand the distinction between a crypto's market cap and its price. Many people assume that a crypto's price determines its potential for growth, but in reality, the market capitalization holds greater significance. Many first-time investors in the cryptocurrency market are unaware of this fact. Consequently, some cryptocurrencies with lower price tags tend to perform better than those with higher price tags. 

This is because new investors often assume that a low-priced cryptocurrency has more room for growth and will eventually reach the same level as Bitcoin, making them rich in the process. Practically speaking, it is essential to consider both the price tag, which is attractive to new and inexperienced investors, and the market cap, as it ultimately influences a cryptocurrency's potential increase or decrease in percentage terms.

You can gauge the potential growth of a coin or token by comparing it to more established cryptocurrencies within the same niche or category and observing their growth during previous market upswings. Setting realistic expectations and understanding that smaller-cap assets are unlikely to surpass the dominance of BTC or ETH in the foreseeable future is essential.

#6. Self Custody

Before investing in cryptocurrency, it's crucial to understand the importance of self-custody. In the crypto space, a famous saying goes, "Not your keys, not your crypto." This means that if you don't possess the private keys to your crypto wallet, you don't truly own the cryptocurrency inside it. Self-custody is crucial because it ensures that you have complete control over your digital assets and that they're securely stored in a wallet that only you can access.

So, if you're not given a 12 or 24-word seed phrase, also known as a private key, when creating an account and are required to copy and secure that key in a safe place, you're likely using a custodial service. In other words, your cryptocurrency is being held by a third party, similar to how a bank holds your money. Interestingly, the money in your bank doesn't technically belong to you either, as explained in this article.

It is essential to take control of your own cryptocurrency to achieve true financial independence, which means having the freedom to use your assets as you please and when you please. You need to establish a cryptocurrency wallet and consistently store the coins or tokens you are not currently trading in that wallet.

Cryptocurrency wallets come in various forms, including mobile, browser, and desktop versions. However, a hardware wallet is advised for optimal security, especially for significant crypto holdings. This physical device allows you to store your cryptocurrency offline, providing additional protection.

#7. Portfolio Diversification 

Creating a diversified crypto portfolio is an important consideration before investing in cryptocurrency. While all coins and tokens are part of the crypto market, it is essential to understand that they come with different levels of risk, rewards, and utility.

Bitcoin’s BTC is viewed as a secure investment haven within the cryptocurrency sector. During market downturns, investors often flock to BTC as a safe haven, causing its value to increase. On the other hand, when the markets are thriving, investors tend to move their funds from BTC into more speculative cryptos, starting with Ethereum (ETH) and then to other smaller cryptocurrencies down the list.

Furthermore, stablecoins, which are cryptocurrencies supported by and pegged to traditional currencies, particularly the US dollar, are also considered safe options during times of turbulence in the cryptocurrency market. However, not all stablecoins are created equal, and some are considered safer than others due to their unique characteristics and uses.

A diversified cryptocurrency portfolio should include a mix of established large-cap assets, mid-sized coins with growth potential, and a few small-cap projects with promising futures. It's crucial to avoid over-investing in too many cryptocurrencies, as managing and tracking their performance can become challenging. Instead, focus on gaining exposure to a range of narratives that are likely to drive the next bull market in the crypto space.

Image source: Cwallet.com

#8. Time Horizon

Before investing in crypto, it's essential to consider your investment time frame, and this is closely related to the seventh factor. Cryptocurrency markets tend to fluctuate in a predictable four-year cycle, with the first one to two years typically experiencing a bull market, followed by a bear market during the final two to three years. Understanding this pattern can help you make informed investment decisions and maximize your returns.

These crypto cycles are believed to be influenced by the Bitcoin halving event, which occurs every four years and involves reducing the number of BTC coins given to Bitcoin miners by half. The next halving is anticipated to take place in April 2024.

The cryptocurrency market has traditionally experienced a significant upswing a few months following the halving event. If history is any guide, the next bull run is expected to begin around August or shortly after that, with Bitcoin and most alternative coins reaching new record highs during this time. However, it's important to note that the peak of this cycle may not occur until mid to late 2025, according to recent reports.

If you have been investing in cryptocurrencies before the market reaches its peak frenzy, you will likely see significant profits when it reaches its highest point. Surprisingly, you may not feel inclined to sell your holdings at that point.

As highlighted in the introduction, Crypto has emerged as the best-performing investment category in the past ten years. Retaining and building up significant amounts of well-known cryptocurrencies, such as BTC, during various market fluctuations would have yielded more significant profits than selling them.

This emphasizes that your personal time frame is the key consideration. If you aim for significant profits in the short term, it's advisable to align with the four-year pattern. Yet, if your goal is long-term wealth accumulation, it may be wiser to focus on steady accumulation without overanalyzing the process.

#9. HODL

The ninth key fact to consider before investing in cryptocurrency is that only two assets have consistently outperformed inflation over the past few decades: technology and finance. Notably, cryptocurrency represents a fusion of these two domains and boasts a unique advantage – it cannot be seized or confiscated. This attribute contributes to its value and potential for long-term growth.

This statement applies only to genuinely decentralized cryptocurrencies, as only those can uphold these characteristics. Bitcoin's BTC is considered the most decentralized cryptocurrency, serving as a safeguard or hedge against the entire existing financial system.

Considering the unpredictability of the financial system, it's a good idea to diversify your investments and protect your wealth in case of uncertainty. One way to do this is by investing in an asset that can't be easily seized, such as Bitcoin. Unlike gold, which requires physical storage and security, Bitcoin can be readily stored and transferred using just a seed phrase, which can be memorized for added convenience.

It’s salient to note here that every Bitcoin transaction is recorded on a public ledger and, therefore, is traceable. This transparency can concern individuals who want to distance themselves from the traditional financial system. However, despite this limitation, Bitcoin remains a viable alternative to conventional currencies, apart from gold, particularly for those who value freedom and decentralization.

For emphasis, the notion that central banks aspire to establish a financial system characterized by universal surveillance and control is not a far-fetched conspiracy theory. In fact, various reports have been published explicitly outlining such intentions. This system would enable comprehensive monitoring of all assets, ensuring that every item of value is accounted for and exists within a network that central authorities govern.

In any case, while it may be thrilling to consider the potential earnings in cryptocurrency, it's crucial to bear in mind that preserving these funds could prove challenging if the financial landscape follows its current path. Securing a portion of these profits in a tangible asset for long-term stability is prudent.

Image source: X

#10. Scams

It is crucial to be aware that the world of cryptocurrency investing is rife with scams. The various factors discussed earlier create an environment where misinformation about crypto is prevalent and highly persuasive. Deceptive practices can take the form of fraudulent airdrops and giveaways, with the latter becoming increasingly widespread due to advancements in deep fake technology.

Fraudulent accounts posing as well-known figures in the cryptocurrency space are widespread during periods of market growth. Trying to report or remove all of their comments is futile, and it's crucial to exercise caution when engaging with unsolicited messages or investment opportunities. 

A general guideline is to be cautious of offers that seem too good to be true because they likely are. Additionally, any direct message claiming to be from a prominent crypto personality should be met with skepticism. When interacting with decentralized applications and protocols, it's essential to do your due diligence to avoid losing funds. Finally, storing any coins or tokens not currently being traded on a secure hardware wallet is vital to protect them from potential threats.

This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Which Crypto Narratives Will Dominate The Next Bull Market? Cryptos To Watch In 2024

The key to achieving success in the cryptocurrency realm is to invest in narratives, not just statistics. During the previous bull market, the most captivating narratives were Decentralized Finance (DeFi), Non-Fungible Tokens (NFTs), and the Metaverse. These narratives propelled certain cryptocurrencies to astronomical heights, with some experiencing growth of over 500 times their original value. The question now is what narratives will dominate the next crypto bull market and when they will experience a similar explosion in growth.

These projections are provided by key figures in the cryptocurrency industry and should be taken as speculative. This article focuses on the key narratives likely to shape the cryptocurrency landscape, their anticipated increase in popularity, and the projects linked to them that are worth keeping an eye on. The ongoing development of crypto regulations will largely influence the sequence in which these narratives gain prominence.

The rise of decentralized finance (DeFi) was a dominant force in the 2020 crypto bull market, with DeFi tokens experiencing remarkable growth, including Yearn Finance's YFI token, which at one point surpassed the value of Bitcoin. However, recent regulatory proposals aimed at DeFi suggest it may not be the dominant narrative in the current market cycle. Instead, other crypto narratives with fewer DeFi elements may gain more traction.

The success of crypto narratives may depend on the regulatory landscape, but some experts suggest that those with minimal DeFi integrations will have an advantage. This is because they will face fewer regulatory obstacles and enjoy greater adoption. Non-fungible tokens (NFTs) are the crypto technology with the least regulatory scrutiny, making it likely that narratives centered around NFTs will dominate.

Crypto Narratives Most Likely To Explode

Decentralized Social Media

The rise of decentralized social media (DESO) is anticipated to gain significant traction thanks to a convergence of factors. Growing censorship on traditional social media platforms, potential failures of popular networks, and challenges with monetization in a high-interest-rate environment have created an opportune landscape for DESO's growth. Governments worldwide have implemented laws to restrict social media content following the impact of the pandemic, as highlighted in this article on online censorship.

The implementation of various regulations, including the Digital Services Act (DSA) of the European Union, is causing a noticeable impact. Consequently, engaging in open and unrestricted conversations on major social media platforms is becoming increasingly challenging. An example of one leading social media platform, such as X, is now prioritizing free speech. Unfortunately, the resistance by these platforms may lead to their eventual downfall. X, for instance, has recently lost advertisers and is expected to incur significant financial losses.

The supposed economic downturn has led to a universal decrease in advertising revenue. In response, Google has taken measures to restrict the use of ad blockers on YouTube and has increased the frequency of advertisements in an effort to boost its ad revenue.

Upon initial consideration, it may appear improbable that the typical individual would transition to utilizing a decentralized social media platform due to concerns regarding censorship and advertisements. Nevertheless, upon further examination, it becomes evident that the adoption of decentralized social media is gaining momentum, with decentralized streaming experiencing remarkably rapid growth, as illustrated in the graph below.

Image source: Coingecko

Put in perspective, Odysee boasts a substantial user base exceeding 5 million individuals monthly, which continues to grow. As a decentralized social media protocol, Odysee outshines its competitors significantly. It is worth noting that Odysee is powered by LBRY, a cryptocurrency initiative that faced legal action from the SEC and was subsequently forced to cease operations. Nevertheless, Odysee remains the most prized possession of LBRY, Inc.

Odysee’s assets were recently sold at auction. According to LBRY’s report, while it’s nearly certain the Odysee assets will be assumed by someone interested in resuming its growth, it’s unclear if Odysee will continue to use the LBRY network in the future, switch to another crypto network, or switch to being a traditional web2 platform. 

If another crypto network acquires Odysee, you can bet that the crypto project will see explosive growth. Additionally, there is growing interest in decentralized platforms that replicate the functionality of traditional social media platforms like Twitter, as shown in the graph. These platforms concentrate on specific aspects of digital media, such as decentralized streaming and microblogging, and are designed to operate vertically. 

One decentralized platform that is not on that list yet encompasses all of the above and more. Markethive and its community are dedicated to building an entire ecosystem for entrepreneurs, including marketing, blogging, curation, email autoresponders, page-making systems, video feed, conference facilities, e-commerce, broadcasting, press releases, social network integration, etc.

Having established a comprehensive financial center for all its users and utilizing the Solana network for its Hivecoin token, Markethive is now preparing to introduce its platform to a global audience. Markethive has also removed itself from the centralized cloud services that continue to stifle platforms at the mercy of third-party APIs serving their interests. Currently, several user interface (UI) and UX components of Markethive's arsenal are being integrated in tandem to provide a sanctuary and empower individuals to regain control of their sovereignty. This year, 2024, is shaping up to be a pivotal time for Markethive, as it aims to reach unparalleled success and give back to the community that has embraced its vision.

GameFi

GameFi, the second prominent crypto narrative, is poised to experience immense growth, with some arguing that it's already underway. A glance at DappRadar reveals that the majority of the most well-liked decentralized applications (dApps) are connected to blockchain-based games. These games have amassed a considerable following, boasting millions of monthly active users. The surging popularity of blockchain games shouldn't come as a surprise, given that the traditional gaming industry grapples with challenges akin to those confronting centralized social media platforms.

To begin with, it seems that older video games are preferred over modern ones. This can be attributed to a variety of factors, such as disappointing visuals, weak storytelling, unnecessary infusion of politics, and overall unsatisfactory gameplay.

In 2022, the video game industry experienced its first year of losses in ten years, resulting in widespread layoffs among major developers. This downturn may be attributed to the pandemic-driven surge turning into a decline or developers ignoring their loyal player base. Regardless of the cause, the gaming industry is struggling financially. Similar to other technology leaders like Google, this situation may motivate game developers to explore alternative revenue streams.

Interestingly, it has been reported that players of Assassin's Creed encountered disruptive pop-up advertisements while playing the game. This occurrence was purportedly a technical glitch, but it shed light on the possibility that the gaming industry is attempting to impose advertisements on players in a similar manner to how YouTube is attempting to do so with its audience. While the typical YouTube viewer might tolerate this, it is highly probable that the average gamer would not welcome having their gameplay disrupted by pop-ups.

The outcome may be that game developers must incorporate GameFi elements to compensate for lost revenue, or players will seek out ad-free alternatives. A mixture of both scenarios will probably occur, which could be why blockchain games have gained significant popularity. If it is indeed the case that game developers are disregarding their primary audiences, then the adoption of blockchain games could even further increase.

This is because crypto technology, such as NFTs, enables gamers to influence the game's design instead of being controlled by ESG-obsessed asset managers like BlackRock. However, there is a limitation: these blockchain games must not involve excessive financialization. If they do, they may attract regulatory scrutiny, similar to what happened to Axi Infiniti in the Philippines.

The likelihood of this scrutiny is likely the reason why there have been limited GameFi integrations. Aside from regulatory hurdles, scalability and speed pose a significant challenge to widespread adoption, as seen in the case of Axi Infinity. Only a few blockchains can effectively accommodate millions of users simultaneously. 

In Axi's situation, they had to develop their specialized layer two solution called Ronan. This implies that you should prioritize the underlying layer one and layer two blockchains that support blockchain games rather than focusing on specific games. Thanks to its subnet architecture, Avalanche is notably gaining popularity as a preferred choice in this area.

Artificial Intelligence (AI)

The emergence of Artificial Intelligence (AI) as a dominant force in the tech industry is a narrative that has gained significant traction recently. While some argue that the AI explosion is already underway, others believe the real breakthrough is yet to come. The current AI hype in crypto and stocks is largely considered just hype, as there have been minimal actual changes thus far. It is widely believed that it will take at least two years for innovative AI companies to release their products and even longer for the general public to embrace and utilize them fully.

The current AI-fueled market frenzy may eventually subside as regulatory measures take effect or other factors come into play. If this bubble does burst, it may create a prime investment opportunity for crypto projects centered around AI technology. These projects will likely perform exceptionally well when the AI narrative regains momentum. Currently, everyday investors like us are unable to capitalize on AI innovation, making these cryptocurrency projects an attractive prospect.

While investing in established companies like Nvidia and Microsoft is possible, their massive valuations limit their potential for significant growth. As a result, private equity remains the most viable option for those seeking substantial returns on AI investments – but this avenue is only accessible to high-net-worth individuals. If this trend persists, investing in AI-related cryptocurrencies might be the only way for everyday investors to generate meaningful profits from the AI sector.

The emergence of new AI companies may be hindered if industry leaders such as Nvidia and Microsoft restrict access to their hardware and software. However, crypto tech's decentralized and open nature could provide an advantage in this scenario. Interestingly, some crypto projects have enabled individuals to access the previously exclusive hardware needed to run AI models, thereby promoting greater accessibility and competition in the field.

Among the projects in this category is the Akash Network. Additionally, numerous cryptocurrency initiatives have been making advancements in the software aspect of artificial intelligence. By merging this open-source progress with decentralized AI hardware, the result is a foundation for robust crypto AIs capable of rivaling those developed by Google and other companies.

In this instance, the main point to note is that if crypto AI were to become popular, the existing players would probably try to influence government regulators in order to prevent the development of decentralized artificial intelligence technology. It is important to note that these incumbents are already campaigning for policies that would hinder their centralized rivals from creating AI technology.

The upside is that AI in the crypto sector is still largely under the radar. This means there aren't many established factors to consider when evaluating its potential. Nobody knows yet whether the crypto industry can support the development of these models. Nevertheless, just as no one anticipated Bitcoin becoming the de facto digital gold, we find ourselves in that very situation. This demonstrates the potential for unexpected developments in the crypto landscape. 

Crypto Infrastructure

Infrastructure in the crypto industry is expected to experience significant growth, particularly in the areas of decentralized storage cryptocurrencies and crypto oracles that provide external data to the blockchain. It is important to note that infrastructure cryptos will play a crucial role in the success of other crypto narratives. For example, decentralized social media will likely demand substantial data storage capacity, while decentralized gaming will rely on extensive data feeds. Additionally, crypto AI will heavily rely on decentralized computing, which differs from decentralized storage regarding technical requirements.

Data storage, data feeds, and computing processes must be decentralized to ensure seamless operation and avoid potential regulatory or technical issues. This is particularly important given that a prominent centralized cloud platform banned crypto in August 2022. Moreover, Meta's use of Arweave for NFT storage demonstrates that decentralized infrastructure can be just as effective as its centralized counterpart. If discriminatory practices persist at the infrastructure level, such as app stores refusing to list certain apps, decentralized alternatives are likely to gain traction

In addition to Arweave, other cryptocurrencies worth keeping an eye on include cutting-edge oracle systems like Pyth, which may have a role in the gaming sector (GameFi); video encoding protocols such as Livepeer, which could have a role in decentralized social networks (DeSo); and data indexing protocols like The Graph, which could have a role in artificial intelligence (AI) development. It's important to note that this list is not exhaustive, and there may be other promising cryptocurrencies beyond these examples.

The level of adoption of the three previous narratives will influence the demand for these cryptocurrencies and their competitors. If there is significant adoption, there will be ample demand for these cryptos, potentially leading to an increase in price. However, it is essential to conduct thorough research on the tokenomics of these cryptocurrencies before investing, as this will determine whether the demand translates into a price surge.

Image source: Techopedia

Two More Narratives with Potential

Concluding the discussion, two additional crypto narratives may grow significantly. These narratives can potentially surpass the combined impact of the previous four. The first is the concept of crypto payments, while the second is the tokenization of real-world assets (RWAs), which has recently generated much hype. These two narratives are presented together as the final topics in this article due to the numerous regulatory challenges they face, specifically in the case of RWAs for crypto payments.

One of the main challenges involves the regulations surrounding stablecoins, which remain uncertain in numerous jurisdictions, especially in the United States. Congress is currently considering a proposed bill that could facilitate the use of stablecoins for payments, but its passage is unlikely until after the upcoming election due to the political divisions within the legislative body.

In the European Union, the Markets In Crypto Assets (MiCa) regulation technically allows stablecoins to be used for payments. However, the use of stablecoins will be restricted to Euro-backed stablecoins, which some argue are not all that popular. Despite this, regulatory clarity could lead to the adoption of crypto payments, positively impacting high-performance blockchains primed for payments, such as Solana and layer two solutions on Ethereum.

This relates to the regulations around RWAs, which are much further away. Some would say that this is debatable, given that stablecoins are technically RWAs; there are already tokenized fiat currencies and commodities. However, some argue that these differ from the RWAs on which the narrative truly focuses. The RWAs that most people have in mind involve tokenizing assets such as real estate, stocks, and bonds. If this is the situation, then tokenizing these assets on public blockchains is a distant prospect.

Significantly, major organizations and wealthy individuals would likely feel uneasy about revealing their RWA assets on transparent blockchains accessible to the public. As a result, they would opt for private and permissioned blockchains or public blockchains that ensure compliant privacy. When considering this, the transparency of cryptocurrency blockchains could pose a major challenge for narratives centered around institutional interests such as RWAs, which is why we're seeing growing interest in crypto privacy solutions. However, this particular market segment may not experience significant growth until the next cycle; it's an area that holds promise for the future.

This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

How Inbound Marketing Fuels Disruptive Innovation: A Guide for Forward-Thinking Entrepreneurs

In today's fast-paced and rapidly evolving business landscape, traditional marketing strategies are no longer sufficient to drive innovation. To stay ahead of the curve, forward-thinking businesses turn to inbound marketing as a powerful tool to fuel disruptive innovation. In this guide, we will explore the concept of inbound marketing, its role in fostering disruptive innovation, and the benefits it offers to entrepreneurs.

Inbound marketing is a strategic approach focusing on attracting, engaging, and delighting customers through valuable content and experiences. Unlike traditional outbound marketing, which relies on interruptive tactics like cold calling and advertising, inbound marketing aims to build long-term relationships with customers by providing them with relevant and helpful information. By leveraging content marketing, social media, and search engine optimization (SEO), inbound marketing creates a magnet-like effect, organically drawing customers to your business.

Understanding Disruptive Innovation

To understand how inbound marketing fuels disruptive innovation, we must first grasp the concept of disruptive innovation itself. Disruptive innovation refers to the process by which a new product or service disrupts an existing market by offering a unique value proposition. This innovation often starts at the fringes of the market, targeting underserved customers with a novel solution that addresses their unmet needs.

Disruptive innovation challenges the status quo, and forces established players to adapt or risk becoming obsolete. Examples of disruptive innovations include the advent of smartphones, which revolutionized the telecommunications industry, and online streaming services, which disrupted the traditional television and movie rental market. By leveraging inbound marketing, businesses can identify and capitalize on disruptive innovations that have the potential to shape the future.

Now, here's where inbound marketing steps in. Businesses can spot these disruptive innovations early on by using inbound marketing techniques, like creating engaging content or building strong relationships with potential customers. This means they can get in on the action and take advantage of these groundbreaking ideas before they become mainstream.
So, inbound marketing isn't just about attracting customers—it's also about staying ahead of the curve and spotting the next big thing that could shape the future.

The Role of Inbound Marketing in Fueling Disruptive Innovation

Inbound marketing is like the fuel for those game-changing, disruptive ideas. It gives them a stage to shine on and get noticed. Imagine you've got this amazing new solution to a problem nobody's really tackled yet. Inbound marketing helps you get the word out in a way that grabs people's attention.

First, you create content that speaks to the folks who are feeling the pain of that problem you're solving. This content pulls them in because it's all about their struggles and how your solution can improve their lives. So, those early adopters who are always eager to try something new are drawn to what you're offering.

Then, you've got this storytelling magic. You're not just selling a product; you're telling a story about how it can change lives. That storytelling creates a buzz, gets people talking, and excites them about what you're doing.

But it's not just about getting attention; it's about learning too. With inbound marketing, you're not just shouting into the void. You're having conversations with real people, your potential customers, on social media and other digital platforms. And those conversations? They're gold mines of information. You get to hear directly from the people you want to serve, understanding their needs and preferences better than ever before.

And here's the kicker: You can take all that feedback and use it to improve your idea. It's like having a direct line to your customers' brains. You tweak and refine your solution based on what they tell you, making it even more tailored to their needs. And that, my friend, increases your chances of hitting it big with your disruptive innovation.

Benefits of Using Inbound Marketing for Businesses

Businesses that embrace inbound marketing as a strategy to fuel disruptive innovation stand to gain numerous benefits. Firstly, inbound marketing provides a cost-effective alternative to traditional marketing methods. By focusing on creating valuable content and leveraging digital channels, businesses can reach their target audience at a fraction of the cost of conventional advertising. This is particularly advantageous for startups and early-stage ventures with limited marketing budgets.

Secondly, inbound marketing allows businesses to build a brand that resonates with their target audience. By consistently delivering valuable content and engaging with customers, companies can establish themselves as thought leaders and gain credibility in their respective industries. This brand equity not only attracts customers but also attracts potential partners, collaborators, and talent who align with the investor's vision for disruptive innovation.

Lastly, inbound marketing offers a long-term and sustainable approach to customer acquisition. By nurturing leads through valuable content and personalized experiences, businesses can build a loyal customer base that continues to support their disruptive innovations. This customer-centric approach fosters customer loyalty and advocacy, driving organic growth and reducing reliance on costly customer acquisition strategies.

Case Studies of Successful Disruptive Innovations Fueled by Inbound Marketing

TESLA
To illustrate the power of inbound marketing in fueling disruptive innovation, let's explore some real-world case studies. One such example is the electric vehicle manufacturer Tesla. Through their innovative electric cars and sustainable energy solutions, Tesla disrupted the automotive industry. By leveraging inbound marketing strategies through unconventional marketing strategies, Tesla created a passionate community of early adopters who championed their mission and helped propel the company to success.

Tesla is known for its innovative and unconventional marketing strategies that rely on creating an emotional connection with its audience and strengthening its brand presence. Tesla does not use traditional paid advertising but instead focuses on word-of-mouth, social media, influencer partnerships, and launch events to generate buzz and awareness. Tesla also leverages the popularity and influence of its CEO, Elon Musk, who often engages with his followers and fans on various platforms.

Tesla’s marketing strategy can be considered a form of inbound marketing, which is a method of attracting, engaging, and delighting customers by providing valuable and relevant content and experiences. Inbound marketing aims to build trust and loyalty with the audience rather than interrupting them with unwanted ads. Tesla’s marketing strategy is aligned with its mission and vision of creating a sustainable, clean-energy future.

AIRBNB
Airbnb shook up the traditional hotel industry by revolutionizing how people find places to stay when they travel. Instead of relying solely on hotels, Airbnb introduced a platform where regular folks could rent their homes or spare rooms to travelers. This concept opened up a whole new world of accommodation options, giving travelers a chance to experience local neighborhoods and immerse themselves in the culture of their destination.

One of the keys to Airbnb's success was harnessing the power of user-generated content (UGC). By allowing users to post reviews, photos, and stories about their stays, Airbnb built a sense of trust and transparency lacking in the traditional hotel booking process. People could see real-life experiences from other travelers, helping them make more informed decisions about where to stay.

Through clever inbound marketing strategies, Airbnb was able to spread the word about its platform and attract both hosts and guests. They leveraged partnerships to reach a broad audience and establish themselves as a trusted brand in the travel industry.

You can see how Airbnb's innovative approach to accommodation has transformed how people travel and opened up new opportunities for hosts and guests. By tapping into the sharing economy and prioritizing user-generated content, Airbnb has become a powerhouse in the travel industry, changing how people think about where they stay when they're away from home.

These case studies demonstrate how inbound marketing can drive awareness, generate excitement, and build a loyal customer base for disruptive innovations.

How to Implement Inbound Marketing Strategies for Your Business

Now that we understand the importance of inbound marketing in fueling disruptive innovation let's explore how businesses can implement these strategies effectively. Firstly, defining your target audience and understanding their pain points and needs is crucial. This will enable you to create valuable content that resonates with your audience and establishes your expertise in the field of disruptive innovation.

Next, develop a content marketing strategy that aligns with your target audience's preferences and habits. This may involve creating blog posts, videos, podcasts, or other types of content that provide insights, thought leadership, and solutions to their challenges. Distribute this content through various channels, such as your website, social media platforms, and industry publications, to maximize its reach and impact.

In addition to content marketing, leverage social media platforms to engage with your audience and build relationships. Actively participate in relevant industry discussions, respond to comments and inquiries, and share valuable insights. Being present and active on social media can establish yourself as a trusted resource and attract a community of like-minded individuals passionate about disruptive innovation.

Leveraging Markethive for Inbound Marketing in Disruptive Innovation

One powerful tool that businesses can leverage for inbound marketing in disruptive innovation is Markethive. Here at Markethive, we have built a comprehensive inbound marketing platform that provides a suite of tools and resources to help businesses attract, engage, and nurture leads. With content marketing, social media integration, and lead management features, Markethive empowers enterprises to implement inbound marketing strategies effectively and efficiently.

Markethive's intuitive interface and user-friendly features make it accessible to businesses of all levels of experience. Whether you are a seasoned business or just starting out, Markethive provides the tools you need to build a dynamic online presence and drive disruptive innovation.

Inbound marketing is a powerful strategy that aligns with the principles of disruptive innovation. This kind of marketing does not rely on interrupting or annoying customers with unwanted ads or messages but rather on earning their trust and loyalty by providing helpful information and experiences. Inbound marketing also enables businesses to measure and optimize their performance based on customer data and feedback.

Markethive leverages inbound marketing to create a gigantic and disruptive inbound marketing ecosystem. Markethive offers tools and services that empower entrepreneurs, businesses, and organizations to generate leads, build relationships, and grow their brands online. Markethive's ecosystem includes a social network, a blogging platform, an email marketing system, a video hosting service, a webinar service, a CRM system, a marketplace, and more. Markethive's ecosystem is designed to be accessible, affordable, and scalable for anyone who wants to benefit from the power of inbound marketing. Markethive's ecosystem is also driven by blockchain technology, which ensures security, transparency, and decentralization.

By using inbound marketing, Markethive is disrupting the traditional outbound marketing industry, dominated by expensive and ineffective advertising platforms. Markethive is creating a new paradigm of marketing that is customer-centric, value-driven, and innovation-oriented. Markethive is building not only a gigantic and disruptive inbound marketing ecosystem but also a community of like-minded entrepreneurs who share a vision of changing the world for the better.

Measuring the Success of Inbound Marketing in Fueling Disruptive Innovation

To assess the effectiveness of inbound marketing in driving disruptive innovation, it's essential to set up key performance indicators (KPIs) and track relevant metrics. These indicators help measure various aspects of inbound marketing efforts and their impact on innovation within a business. 

One crucial metric to monitor is website traffic. This includes tracking the number of visitors to the company's website over time. Increased website traffic can indicate successful inbound marketing efforts, as it suggests that more people are discovering and engaging with the brand online.

Lead conversion rates are another important KPI to consider. This metric measures the percentage of website visitors who take a desired action, such as signing up for a newsletter or requesting more information. Higher conversion rates suggest that the inbound marketing strategies effectively capture potential customers' interest and prompt them to take action.

Social media engagement is also vital in evaluating the effectiveness of inbound marketing. This includes metrics such as likes, shares, comments, and retweets on social media platforms. A high level of engagement indicates that the content being shared resonates with the audience and encourages interaction, which can lead to increased brand awareness and loyalty.

Customer retention rates provide insight into the long-term impact of inbound marketing efforts. By tracking the percentage of customers who continue to purchase from the company over time, businesses can assess the effectiveness of their marketing strategies in building lasting relationships with customers.

Regularly monitoring these metrics and analyzing the data allows businesses to gain valuable insights into the performance of their inbound marketing strategies. By identifying areas of strength and areas for improvement, companies can make informed decisions to optimize their marketing efforts and drive continuous innovation within their organization.

Conclusion and Key Takeaways

Inbound marketing has emerged as a powerful tool for forward-thinking businesses looking to fuel disruptive innovation. By attracting, engaging, and delighting customers through valuable content and experiences, inbound marketing creates a platform for disruptive ideas to gain traction. Through case studies and real-world examples, we have seen how inbound marketing can drive awareness, build a loyal customer base, and ultimately transform industries.

To implement inbound marketing strategies effectively, businesses can leverage the full suite of tools in Markethive. Businesses can continually refine their strategies and drive disruptive innovation by measuring the success of their inbound marketing efforts through relevant metrics.

In conclusion, embracing inbound marketing as a strategy for fueling disruptive innovation is a wise choice for forward-thinking entrepreneurs. By leveraging the power of inbound marketing, businesses can navigate the ever-changing business landscape and stay at the forefront of disruptive innovation.

Understanding The Cryptocurrency Token and Network Equity Within The Markethive Ecosystem And Beyond

Since the inception of Bitcoin, it has been regarded as the trailblazer and the gold standard of the cryptocurrency realm. Its influence extends beyond being a digital store of value, as it is often used as a reference point for other digital assets in the crypto finance industry. The emergence of thousands of crypto tokens has led to a plethora of use cases, but the Securities and Exchange Commission's (SEC) tendency to classify most tokens as securities might be misguided, as they have not fully appreciated the groundbreaking potential of these tokens.

The concept of tokens is a foundational permutation in blockchain technology, and it is essential to explain this new concept in a way that is easy to understand. Doing so increases the likelihood that the general public, regulators, and the myriad of established entities will grasp the importance of this paradigm shift. This article aims to demonstrate the various aspects of a cryptocurrency token and why it is crucial for those in positions of authority to gain a deeper understanding.

The complexity of understanding the token stems from its nature as a multi-functional abstract. We are not accustomed to encountering something that possesses multiple functional properties, represents diverse units of value, and exists in a digital form that unifies it all. Tokens are a relatively novel concept, and if we persist in attempting to categorize or categorize them using our previous frameworks, we will miss their potential. In essence, tokens can simultaneously embody the characteristics of currency, equity, financial instruments, rewards, rights, and, since blockchain, digital assets.

Traditional Thinking

Until now, we’ve only been familiar with fragmented structures to represent each of these roles. For example; 

CURRENCY: We have employed currencies such as the dollar, yen, euro, pound, and numerous other sovereign fiats for currency. 

EQUITY: In the equity realm, we have shares or stock units, commonly referred to as securities. 

FINANCIAL INSTRUMENTS: Regarding financial instruments, we have an array of options, such as derivatives, bonds, futures, options, swaps, and so on, which brokers, agents, custodians, or exchanges typically manage. 

REWARDS: For incentives or rewards, we have various companies doling out reward points, frequent flyers, loyalty cards, and the like. 

RIGHTS: For rights, we have government-issued identity cards or share proxies that enable us to participate in the governance of matters that concern us, effectively giving us a voice in decision-making processes.

However, introducing a token that combined all these facets into a single entity led to much confusion in traditional finance, corporate, private, and public arenas.

The advent of blockchain technology has created a distinct category of digital assets: non-fungible tokens. (NFTs) These tokens are unique and transferable units of value that can represent a wide range of items, including a digital artwork of a cat, such as CryptoKitties, a cartoon character, a virtual toy, or a rare in-game item. 

They can also represent real-world items like concert tickets or collectibles. This classification encompasses all the possible use cases for crypto tokens, opening up new possibilities for the future of digital ownership and exchange.

The Six Roles Of A Token

Currency can be exchanged for goods and services or utilized to access computer resources associated with blockchain technology, such as Ethereum’s gas, Bitcoin’s miner fees, transaction fees, etc. 

Equity signifies owning a tangible asset such as real estate or a representation of a commodity like gold.

Financial instruments encompass a wide range of financial services products, both existing and emerging that are destined to transition to a fully digital format in the future.

Rewards are work tokens, representing a tangible outcome that can be earned through various forms of human or computer-based effort. This can include active contributions, such as completing tasks or providing services, as well as passive contributions, such as sharing valuable data or content.

A Right may encompass the ability to participate in decision-making processes such as voting (governance-related) or the ability to access resources like digital content or services that offer tangible benefits.

The Digital Asset signifies a virtual entity, an NFT (non-fungible token) within the blockchain community. These tokens are unique digital objects that exist solely in a digital format and do not have a physical counterpart.

Additionally, tokens can also have a time-based restriction, meaning their usage is limited to a specific period. They can be locked or unlocked, which determines when they can be used.

A crypto token can potentially encompass all of these functions simultaneously, or only a few of them. Alternatively, it might initially serve one purpose and evolve into others. This challenges regulators and others as they struggle to comprehend and regulate this innovative concept that exists in multiple forms concurrently, contrary to our accustomed perception of them as separate entities.

Moreover, each token can have numerous variations in its lifecycle, including creation, acquisition, purchase, sale, granting, storage, and utilization. The most crucial aspect is that these tokens can be exchanged, traded, or transferred between individuals without the need for intermediaries, fostering a seamless and decentralized process.

The token embodies the adaptable spirit of a chameleon, utilizing cutting-edge technology to shatter various barriers imposed by society, government, and commercial entities. This versatile tool condenses numerous constructs into a single, potent symbol of innovation and progress.

This leads us back to the topic of regulation. The focus on securities regulation for governing tokens is misguided. It's like trying to force a square peg into a round hole or applying a solution where it's not needed. This approach not only hinders the development of new business models but also stifles the potential of token-based innovations.

Accordingly, it is essential to acknowledge that the token represents a distinct category of assets. To succinctly describe it, we can refer to it as a novel asset class that warrants its own legal and regulatory framework. Unlike the term "security," which regulators may use to classify it, a token does not always signify a personal financial stake or equity share in a larger financial entity. Instead, it serves as a novel representation of our progressively digital existence. 

William Mougayar's Blockchain Marketplace. Source: Coindesk 

Tokens Create Value Through User-Generated Work

Apart from tokens, protocols, and new forms of securities, there is a broader concept at play here. This concept revolves around the work that is indirectly symbolized by the tokens and its connection to the generation of value through user interactions. In other words, it pertains to the paradigm of creating value through work.

Tokens serve as a tool to achieve a goal. User actions yield tokens, which represent their value in the digital realm. These tokens are directly tied to the worth generated by users' efforts, benefiting both the network and other users.

Social networks have long been associated with user-generated content (UGC), which refers to creating and sharing original content by users. However, as the concept evolves, it may be more accurate to refer to it as user-generated work (UGW) in order to highlight the importance of diverse user participation that yields tangible financial benefits.

Categorizing Token Functions in Three Components

1. Tokens that enable a protocol's functionality, like Bitcoin or Ethereum, are primarily utilized for software development activities carried out by the network participants.

2. Tokens that are inherent to a vertical-specific area of operation, such as Steemit, Filecoin, and Storj, are used for tasks like curating or creating content, storing files, sharing data, etc. 

3. Tokens that expand existing businesses, such as loyalty points provided by established companies, have the potential to create an ecosystem that drives more transactions. We can refer to this as "hybrid models," which is the classification that Markethive belongs to.

The underlying principle is that users' behaviors and engagements within the platform create value, which in turn allows them to earn internal tokens that can be used to facilitate new transactions within the network, thereby generating further value.

► The tokens that are generated resemble the outcome of the user's activities.

► Tokens embody a multifaceted purpose, transcending their traditional role as a medium of exchange. They also serve as a measure of reputation, a reflection of engagement, a symbol of influence, and a gauge of activity within a given community or platform.

► Tokens serve as a representation of the economic activity occurring within the network.

► Acquiring tokens should be achieved honestly, not through manipulative gaming tactics.

► The more aligned the token is with a company's core values and business model, the greater its long-term viability will be.

► Value creation is aimed at various categories of individuals or customers, such as core developers, creators of applications, end-users, speculators, ecosystem collaborators, founders, buyers, sellers, readers, writers, investors, influencers, partners, and more.

The foundation of these tokenized structures is the principle that every participant is entitled to receive a portion of the total value generated through their combined efforts.

The Evolution Of Digital and Social Media

Facebook
Facebook's business model revolves around capitalizing on its users' attention and engagement, including likes, shares, posts, and comments, yet users don't receive any compensation for their contributions. If Facebook were structured as a decentralized entity with a token, users would earn tokens for their participation, which could be traded or redeemed through a liquid marketplace, both within and outside the platform.

Facebook does not engage in economic sharing. However, billions of individuals create and share content for them. Meanwhile, Facebook has been researching user data to understand how friendships on the platform are linked to economic opportunities. They have found that social connections greatly influence people's ability to secure employment, excel academically, and receive assistance in times of crisis. This behavior may harm Facebook as other business models centered around sharing network equity gain popularity.

X (formerly Twitter)
In contrast, Elon Musk's X has relaxed its censorship rules and is currently prioritizing the development of a peer-to-peer payment system. Musk envisions a platform where users can easily transfer funds to others and withdraw their money into verified bank accounts. Furthermore, there are plans to introduce a high-interest money market account to incentivize users to keep their funds within the X platform. This strategy would directly challenge PayPal's dominance in the market, as Musk aims to revolutionize the current banking system.

The payment system will also facilitate X's expansion into the creator economy, which rewards users with at least 500 followers and 5 million organic post impressions in the past three months. These users can now participate in X's Ads Revenue Sharing program, furthering the platform's commitment to empowering creators in the digital economy. 

It’s yet to be determined whether the payment system will include cryptocurrency even though Musk hinted at supporting crypto on the platform, briefly switching out Twitter's bird logo to dogecoin's dog before its rebranding to X.

Markethive
Markethive understands and has embraced the concept of "Tokenization of Work" and has leveraged cryptocurrency and blockchain technology to create a revolutionary platform that is trailblazing a new path in the digital media landscape. This groundbreaking project is the first to venture into uncharted territory that no other platform has dared to explore. Its innovative hybrid model serves as a benchmark for the future of digital media.

Markethive’s vision is a fully decentralized social network inbound marketing and broadcasting platform integrated and operated on a massively distributed database system (the internal giant blockchain), controlled by a smaller external blockchain Markethive’s dApp wallet will utilize. 

Essentially, the Markethive ecosystem has its own financial operating system with its native token, the Hivecoin (HVC), which is used as a medium of exchange and will continually be circulating, earned, and accumulated by users within the Markethive economy.  It allows us to be completely decentralized financially with complete autonomy and protection of our intellectual property, ascertaining a viable and comprehensive ecosystem.

Every member of Markethive, free or upgraded, is rewarded and can earn income with Hivecoin in many different ways daily. The only prerequisite is to refer three people to Markethive. Other opportunities include becoming a shareholder through its Founders Token representing the ILP or the Entrepreneur One Upgrade and using the staking advantage provided by our crypto wallet with Markethive Credits. 

Additionally, members can profit from the multiple cottage industries within the Markethive ecosystem. It is important to note that venture capitalists or corporations do not fund Markethive. Instead, it is the community itself that owns Markethive, with no hierarchy in place.

In Closing

We have come a long way since the advent of social media, and tokenization is just one of the ways to reward its users and promote a more equitable distribution of wealth. However, regulatory obstacles pose a significant challenge to the widespread adoption of tokens. So, to overcome these hurdles, it's crucial to facilitate open discussions about tokens and embrace the various applications that incorporate them. By doing so, we can create an environment conducive to the growth and acceptance of tokenization.

2023 Entrepreneur One Bonus Fulfilled. 2024 E1 Bonus Opportunity Closing Soon. Don’t Miss Out!  The Markethive Quest Will Make History. Will You Join Us? 

Markethive is unyielding in its pursuit of innovation, striving for excellence in creating a groundbreaking platform that surpasses conventional social media and marketing tools. By prioritizing user experience, Markethive integrates advanced technologies that enable efficient broadcasting, expanding your reach and influence. Markethive's newly introduced Wallet, which serves as a comprehensive financial and accounting center, draws comparisons to a bank due to its capabilities, assets within it, and high level of security. 

By embracing the cottage industry concept, Markethive creates opportunities for individuals to achieve financial independence within a sovereign and merit-based environment. This unique concept is entrepreneurial at its finest and is exclusive to Markethive, but its impact extends beyond the platform to the broader online community and cryptocurrency domain.

Markethive Has Delivered

Markethive, as promised, has delivered a highly complex, unique financial system unfathomable to most. This system is robust, impenetrable, and represents the future of serving entrepreneurs worldwide. Our progress has been made possible by the unwavering support and contributions of the Entrepreneur One community and ILP holders.
 
These individuals recognize the tumultuous state of the world and believe that Markethive's vision holds the key to freedom of speech and financial independence for those who embrace its framework. By leveraging Markethive's tools and systems, businesses can flourish, and individuals can secure a brighter future for themselves and their communities.

The Entrepreneur One members (E1) also gain advantages from Markethive's generosity through the Initial Loan Procurement or Incentivized Loan Program (ILP), positioning themselves for long-lasting financial prosperity through the income generated by Markethive's retail products. Markethive's various sources of revenue will supply the funds required to make interest payments to E1s and ILP participants.

Entrepreneur One Loyalty Bonuses

Accordingly, Markethive rewards the loyalty of Entrepreneur One members by granting them annual bonuses in the form of ILPs. Note that the 2023 bonus of one whole ILP to each E1 associate who has maintained their subscription for the past 12 months has been credited to your wallet. 

The 2024 bonus, which consists of one full ILP and 1000 Hivecoins, was recently announced. This reward will be given in January 2025 after a 12-month period. Only Entrepreneur Ones are eligible for this initiative, but for a short time, free members can upgrade to an E1 membership for $100 per month. To qualify for the bonus, members must maintain an active subscription for 12 consecutive months, and they will receive one complete ILP and 1000 HVC in January 2025.

You have until January 31st, 2024, to take advantage of this offer and secure an Entrepreneur One subscription, making you eligible for the bonus. Time is of the essence, as less than two weeks remain before this opportunity expires.

It’s important to note that Markethive does not engage with prominent venture capitalists to secure funding. Instead, we depend on our community, as we prefer to contribute back to the community. The ILP can be likened to shares in the company. The only difference is that it functions as a loan from you to Markethive, considered an assumable note. Since it is a debt instrument, it is not subject to taxation.

Despite the significant advancements we have achieved in the advancement of our system, there are still crucial elements that require completion before we can proceed into the retail products phase. These products will yield substantial profits for Markethive and its entrepreneurial contributors. Thus, your assistance is still vital to help us reach this goal. 

Entrepreneurship Threatened

Entrepreneurship is being threatened throughout the world by a collectivistic ideology of the 1%. The global elites are infiltrating governments globally with the imperative to assist them in their quest to fix the issues in the world, such as poverty (among other matters), with the notion of equality, diversity, and inclusiveness. 

However, they are killing the free market and pure capitalism. Not cronyism, which, unfortunately, many believe is capitalism, but true capitalism in which entrepreneurs thrive. An entrepreneurial world fosters growth of all kinds: personal, industrial, financial, and creative. It also encourages critical thinking, freedom of expression, sovereignty, and liberty for all. This attempt at oppression in Western countries, where freedom is sacrosanct, has been in execution for decades, with an awakened minority daring to stand up to them and their corruption.  
  
One Historic Speech That Says It All

Several speeches and quotes throughout history have deeply moved global society and invoked a sense of wisdom in an attempt to change the world. However, these speeches have been brushed aside by the evil globalists, who are virtue signaling well-being for humanity while actively devising the complete opposite.  

President John F Kennedy had a profound impact on citizens across the world as he stood against tyranny and fascism. He was a true leader and humanitarian who cared for society but couldn’t do it alone. He asked his fellow Americans, “We the people,” to join him in a stoic effort to defend Freedom so that civilization could enjoy the blessings of a fruitful life. The following is an excerpt from President Kennedy’s heartfelt speech in the Inaugural Address in 1961. 

"…Now, the trumpet summons us again. Not as a call to bear arms, though arms we need. Not as a call to battle, though in battle we are, but a call to bear the burden of a long twilight struggle year in and year out, rejoicing in hope, patient in tribulation, a struggle against the common enemies of man ― tyranny, poverty, disease, and war itself. Can we forge against these enemies, a grand and global alliance?  North and South, East and West that can assure a more fruitful life for all mankind. Will you join in that historic effort? 

In the long history of the world, only a few generations have been granted the role of defending freedom in its hour of maximum danger. I do not shrink from this responsibility; I welcome it. 

I do not believe that any of us would exchange places with any other people or any other generation. The energy, the faith, the devotion, which we bring to this endeavor will light our country and all who serve it, and the glow from that fire can truly light the world. 

And so, my fellow Americans, ask not what your country can do for you; ask what you can do for your country. My fellow citizens of the world, ask not what America will do for you but what together we can do for the freedom of man. 

Finally, whether you are citizens of America or citizens of the world, ask of us here the same high standard of strength and sacrifice which we ask of you. With a good conscience, our only sure reward with history, the final judge of our deeds, let us go forth to lead the land we love, asking His blessing and His help, but knowing that here on Earth, God's work must truly be our own."

– J F Kennedy. Inaugural Address, – January 20th 1961

The essence of the passage above correlates with Markethive and its Divinely inspired vision to provide a haven for freedom of speech, personal and financial sovereignty, and a God-given right to prosperity, abundance, and well-being.  We are the generation chosen to fight for and deliver this vision in these dark times. 

In the spirit of what President Kennedy said to his congregation, the energy, faith, and devotion we bring to Markethive’s endeavor will light our ecosystem and all who serve it, and the glow from that fire can truly light the world. Additionally, ask of us here at Markethive the same high standard of strength and sacrifice that we ask of you. 

Thomas Prendergast, founder and CEO, has dedicated his life and every last penny to the Markethive vision, a truly selfless undertaking to lift entrepreneurs and restore the spirit being stripped away by oppressive measures. We boldly declare our determination to remain unyielding against oppressive rulers in the international arena. We refuse to be deterred by the ideologies of communist regimes or the ambitions of the global elite seeking to establish a new global order. So we ask of you, will you join us in this historic effort? 

So, Will You Join Us In This Historic Effort? 

Every one of us is engaged in this shared vision of a global entrepreneurial sanctuary that champions individual freedom. Many of you have been indispensable in shaping our journey thus far. We've made tremendous strides in building this system and are now on the cusp of sharing it with the world. However, we require additional support to realize our vision fully.

We need more of you who possess the power to drive us forward by obtaining an Entrepreneur Account or reinstating your existing Entrepreneur One account. Alternatively, you can also purchase an extra Entrepreneur One account. Together, we can reach new heights and make a lasting impact on the world.   

Remember, by subscribing to Entrepreneur One, you are lending funds to Markethive and supporting its mission to create a cutting-edge platform that will revolutionize the way we network and do business. As a subscriber, you'll play a crucial role in shaping the future of entrepreneurship and reap substantial financial rewards for your commitment and perseverance.

We look forward to sharing the prosperity of this groundbreaking giant in the tech, social media, marketing, and crypto industries with all of you at Markethive. Providing financial support is to be a voice that persistently advocates for freedom, autonomy, critical thinking, and expression. Rather than surrendering to obscurity, we are constructing a realm that illuminates the path and unites entrepreneurs and fellow visionaries to establish a more ethical and transparent business environment. ― An ecosystem that contributes to your livelihood and empowers you with financial freedom.

May God grant us all with wisdom, faith, and serenity.  

Markethive Gearing Up To Launch Its ICO With A Difference

And It's Not an IEO, Not a STO, Not an IDO

Continuing from our previous article, the allure of Initial Coin Offerings (ICOs) has diminished in recent years. An ICO is a process in which a cryptocurrency startup endeavors to generate interest in its digital currency project by promoting it on its website. This was a new phenomenon in crypto and financial markets in general, allowing individuals to purchase the newly created crypto token directly from the company behind the project. 

No restrictions or regulations were involved, and speculation rather than substantial foundations drove the majority of ICOs. Much of the hype surrounding ICOs attracted casual investors who hoped to achieve significant financial gains despite these projects often being based solely on concepts.

Numerous ICOs faced issues with regulatory entities as their tokens were classified as securities rather than utility tokens, resulting in multiple cryptocurrency companies being required to pay fines and reimburse investors. In the United States, the Securities and Exchange Commission (SEC) has struggled to establish a legal definition for tokens in cryptocurrency since the emergence of Bitcoin.

While ICOs were initially created to generate funds in a space without regulations, many deceitful ICOs were launched to exploit unsuspecting investors. By the end of 2017, China enforced a ban on ICOs, causing the cryptocurrency industry to search for alternative methods to finance emerging enterprises. This article will explore the various alternatives for ICOs and delve into the plans for Markethive's utility token, Hivecoin, in the coming year.

Source: Binance Square

Initial Exchange Offering (IEO)

Initial Exchange Offerings (IEOs) are fundraising events for crypto start-ups to raise funds through a trading platform. They occur on a crypto exchange for the company launching new tokens. One advantage is that investors may have greater trust as they witness a crypto token sale on a reputable crypto exchange, which enhances the project's credibility.

To raise funds on the exchange, start-ups must pay a fee and give a percentage of the tokens they sell. Once the Initial Exchange Offering (IEO) is finished, the tokens are listed on the exchange, which increases the company's visibility to potential investors. Unlike Initial Coin Offerings (ICOs), where contributions are sent directly to smart contracts, participants in an IEO send their contributions through the hosting platform.

IEOs have gained traction among major cryptocurrency exchanges. Binance Launchpad was among the initial platforms to introduce IEOs in the market, leading to other exchanges quickly adopting the same approach. The primary benefit of these offerings is the enhanced transparency and trust they provide. Since a reputable cryptocurrency exchange carries out the token sale, the risk of fraudulent activities and scams is considerably lower than ICOs. Reputable platforms conduct thorough assessments of projects before making them available to users.

There is a contention that IEOs do not offer higher security compared to ICOs. In the worst case, they can be seen as centralized authorities that control the types of projects that emerge. Furthermore, projects must pay to be included on a centralized exchange, limiting the opportunity to be featured to moderately established projects, not just concepts. Additionally, they may be required to sign agreements restricting them from listing tokens on competing exchanges.

Source: Tokenminds

Security Token Offering (STO)

STOs, or Security Token Offerings, are a relatively new way of raising funds using blockchain and cryptocurrency. They provide an alternative to typical equity investment and are among the most exciting emerging trends in cryptocurrency. Security tokens serve as virtual representations of ownership in various entities such as companies, financial products, investments, securities, and commodities, granting individuals ownership rights in the underlying value of these assets.

The challenges and constraints of obtaining funding from conventional sources have led to the popularity of alternative methods, such as STOs, for sourcing capital. STOs fully comply with laws and regulations, providing a secure means for companies to secure funding. They serve as a platform for start-ups, established businesses, and traditional institutions to raise funds by issuing digital tokens.

STOs are a category of tokens that represent legal ownership of tangible assets in the real world. They provide the opportunity for individuals or entities to obtain ownership rights in digitally secure assets and symbolize ownership in valuable assets such as real estate or company shares. This contrasts the conventional Initial Public Offering (IPO) process, in which companies become listed on the stock exchange.

Instead, companies have the option to create a new enterprise or utilize an already established one with the assistance of smart contracts. These smart contracts are automated legal agreements between two parties stored on public blockchains. This minimizes the challenges encountered in transactions, including issues like fluctuating prices, fraudulent activities, and regulatory compliance complications.

Security tokens are also utilized in the practice of crypto-fractionalization, which involves securing real-world assets through the process of tokenization. Various real-world assets, including real estate, capital markets, commodities, and equity funds, can be tokenized. STOs are specifically designed to meet the regulations set forth by global regulatory bodies such as the U.S. Securities and Exchange Commission (SEC).

Source: Hackernoon

Initial DEX Offering (IDO)

An Initial DEX Offering (IDO) is a contemporary way of crowdfunding or fundraising that occurs on a decentralized exchange (DEX). Unlike previous methods, such as Initial Coin Offerings and Initial Exchange Offerings, where the sale of tokens was controlled on centralized platforms, IDOs offer a transparent platform on a DEX that enables crypto projects to issue and sell tokens to users directly.

The approach has transformed from ICOs, which were troubled by problems like fraud and inconsistencies, to more controlled formats, such as IEOs and STOs. In 2013, the first initial coin offering was held by Mastercoin Protocol, raising $500,000 worth of bitcoin (BTC). IDOs gained attention in 2019 when Raven Protocol made the announcement of the first IDO on Binance DEX.

IDOs have been improving their approaches since they were first introduced, becoming more popular because they are affordable, have fewer restrictions, and give power to individuals instead of central entities. As a result, they have significantly changed the way crypto fundraising is done. IDOs also provide a simpler and more affordable option for smaller projects to release their tokens instead of using more significant centralized exchanges. To ensure fairness, IDOs often have measures to prevent a single investor from purchasing a large quantity of tokens.

On the other hand, it is easier for projects with a questionable reputation to distribute their tokens via IDOs rather than through IEOs on regulated exchanges because there is less oversight on the projects. Moreover, IDOs bypass regulatory approval, increasing the risk of scams and fraudulent activities. Despite these risks, IDOs illustrate a promising advancement in crypto fundraising, demonstrating how the decentralized nature of the crypto ecosystem continues to evolve.

Source: Markethive

Markethive’s One-of-a-kind ICO for Hivecoin

As discussed in a previous article, many fall victim to ICOs. The hype and speculation of its newly minted crypto token are sold to wannabe investors on the promise of high returns and the revolutionary technology and purpose it claims to serve, even though no tangible evidence of its effectiveness exists. 99% of ICOs don’t do what they say they will do, resulting in the naive investor getting stuck “holding the bag” of worthless tokens. Meanwhile, the individuals responsible for the ICOs swiftly exit after amassing substantial funds, seemingly vanishing without a trace.

Markethive is in preparation to launch an ICO-like event, which differs from other coin offerings because it already has an operational system and delivers what other ICOs only promise to give when they commence their fundraising. It's worth noting that Markethive has never conducted an Initial Coin Offering. 

So far, Markethive’s progress has been made possible by utilizing small amounts of money in the form of a loan from members who have subscribed to the Entrepreneur One Upgrade (E1), earning portions of an ILP in return. Additionally, some members have directly purchased ILPs, which also contributes to the development. This method is significantly different from the traditional ICO approach.

As stated by CEO and founder Thomas Prendergast, 

“It’s time to raise money to market and promote Markethive and bring in the millions, if not billions, that can benefit from what Markethive offers. We will raise money not based on speculation but on fact. We’ve already built the system and have our coin with everything ready to go, making Markethive’s ICO very different from all others that have already done ICOs. That should actually have a significant impact on the industry.” 

Thomas also shared his deep concern about the growing population of individuals who are experiencing poverty and financial burden as a result of being deceived, manipulated, and defrauded by online scams. He stated that this concern serves as a driving force behind the development of Markethive, an extensive undertaking intended to establish a platform that can generate a genuine and sustainable income for its users. While Thomas prefers not to speculate on specific timelines, he maintains that despite the obstacles encountered by Markethive, 2024 appears to be the year when everything will come together.

Source: Markethive

So What’s Markethive Got Already?

Markethive offers various features and assets. It has a fully operational wallet and has introduced its cryptocurrency called Hivecoin. With a total quantity of 45 million, Hivecoin is currently used within the platform to make payments and provide incentives. The Markethive Wallet consists of multiple wallets serving different purposes.

• It’s an Accounting system.
• It houses The vault.
• It’s used for Payments.
• Incorporating a Bitcoin wallet, Solana wallet, and Hivecoin wallet

With its current operational platform, Markethive offers a range of tools and services currently being improved through iterations and UX enhancements. The fundamentals consist of;

• A full-blown marketing platform.
• Social network
• Inbound Marketing 
• Storefronts
• Promocodes
• Customer acquisition 
• Lead generation
• Marketing tools

Markethive’s iterations and UX enhancements will incorporate multiple feeds and be likened to;

• Twitter, a microblogging feed
• YouTube, a video feed
• Google Blogger, a blogging feed
• Scoop.it, a curation feed.

Markethive has been at the forefront of introducing unique initiatives and projects that remain unparalleled in the industry. It combines an automated marketing system, an inbound marketing platform, and a social network. By merging various types of social networks into one and transforming it into a broadcasting platform, Markethive has established itself as a pioneer. With a rapidly expanding community of over 200,000 members, Markethive continues to flourish. 

The Next Four Big Milestones

1: E1 Exchange. The EX1 permits the purchase and sale of Entrepreneur One subscriptions. E1 is an exclusive framework created to financially support Markethive and provide users access to all the platform's tools. Since the company will no longer offer E1 subscriptions, the only means of obtaining one is through the E1 marketplace, where existing E1 holders may choose to sell, making it a highly valuable and scarce asset.

2: Promocode System. The Markethive admin panel has a promocode system that generates unique codes for E1 members. These codes offer giveaways like Hivecoin, Markethive credits, Boosts, and Wheel of Fortune spins. Each E1 member will receive a specific promocode to promote Markethive on different websites and attract potential users. Any signups, bonuses, or airdrops resulting from these promotions will be credited to the person who acquired the prospect.

Entrepreneur One members will also be provided with a control panel where they can create their own Promocodes. They can select the rewards to offer, which can be purchased through the shopping cart. Additionally, Promocodes can be used for individual groups or storefront signups. For example, if someone joins your group, they will receive a gift. The Promocode is made for Markethive’s social network and has never been done in this industry. 
 
3: Premium Upgrade. The Premium upgrade will replace the E1 upgrade. Those with Premium upgrades will have access to all the features and benefits of the E1 package, except for ILPs or Banner Impressions. The cost for the Premium upgrade will be significantly lower than the E1, which is $100 per month and will be classified as a retail product that generates revenue.

4: Login Registration and Incentive. Upon signing up for Markethive, you will be required to complete the Know Your Customer (KYC) process. You will have 30 days to do this, as indicated by a countdown clock that will periodically remind you. After completing your KYC, you will receive a free 30-day Premium Upgrade. Additionally, you will be eligible for an HVC airdrop, and if you used a Promocode during registration, you will also receive all the incentives associated with that particular Promocode offer.

The KYC procedure has been streamlined and now involves recording a brief one-minute video of yourself to demonstrate your identity and provide your credit/debit card information. A small sum will be deducted as part of the verification process. It is worth mentioning that you do not need to submit any other forms of identification. Please be aware that you will only receive bonuses, airdrops, or promocode offers once you have successfully completed the KYC process.

An added bonus is that once KYC status is fulfilled, it will allow you to withdraw HVC from your Markethive wallet; however, in keeping with our security protocols, you must activate the 2FA authenticator to access your wallet. 

On completion of these milestones and the Markethive ICO websites to be used in the ICO campaign, Markethive will embark on an ICO-like event to fund the marketing of these milestones and increase Hivecoin awareness. The funds raised will also pay for the cost of an ICO-dedicated platform and employ it to launch Markethive’s ICO and to guide Markethive on the ICO journey. 

While it is unnecessary for Markethive to be listed on a cryptocurrency exchange to launch an ICO, it would be advantageous to have one. In addition to Markethive’s plans of establishing their own dedicated offshore crypto exchange, Markethive is vetting various crypto exchanges for listing Hivecoin and introducing Markethive to the global cryptocurrency market.

Exciting Update for Members of Entrepreneur One! 

Every single Entrepreneur One member will receive the signups resulting from the ICO campaign as well as the Promocode site to promote the ICO and with incentives such as Markethive giveaways. 

This is the year when Markethive becomes revenue-oriented and retail-oriented with the new dashboard, state-of-the-art capture page system, and autoresponders. These are retail products and are separate from the free marketing system provided to free members. 
 
Additionally, Markethive will promote its system and launch an ICO-style campaign to drive in the multitudes, with the aim of having hundreds of millions of members in the Markethive system. Markethive is expanding the scope and depth of its vision in what it's building for all humanity. 2024 really looks like the year Markethive will ascend to new unprecedented heights and give back to the community that has upheld the Markethive vision. 

Initial Coin Offerings: A Crypto Revolution. Whatever happened to the ICO?

Initial Coin Offerings (ICOs) gained immense popularity in 2017 and continued to thrive in 2018; however, they have become a bitter disappointment to many. Nowadays, alternative approaches for token offerings have become more favored due to various factors. A significant reason is that most ICOs have failed due to misdirection, hype, pump-and-dump manipulation, and even fraud. An ICO, which stands for Initial Coin Offering, is a method blockchain projects use to generate funds and introduce a new cryptocurrency. 

On the surface, ICOs may seem similar to Initial Public Offerings (IPOs), where companies sell shares to the public on the stock market. Many consider ICOs the cryptocurrency industry's equivalent to IPOs, although this perception is arguably not entirely accurate.

While IPOs are closely monitored by regulatory bodies, Initial Coin Offerings (ICOs) enjoy relatively more freedom, with fewer formalities and documents required. This freedom, however, comes at a cost, as investors must conduct extensive due diligence to separate fact from fiction.   Additionally, investing in crypto tokens through ICOs does not necessarily grant ownership in the company, unlike IPOs. The lack of regulation surrounding ICOs has led to some instances of non-compliance with federal securities laws, resulting in legal issues for specific tokens.

Many in the crypto industry would argue that it’s misguided to begin with a securities framework to govern the introduction of crypto tokens. This approach is incompatible and hinders the development of new business models arising from these token use cases. 

Hence, it is essential to acknowledge that tokens can represent a unique category of assets, necessitating a dedicated legal and regulatory framework. Unlike the restrictive "security" label often applied by regulators, tokens do not always signify a personal financial stake or equity share in a larger entity. Instead, they serve as a novel proxy for our digital existence, which is constantly evolving.

ICOs Are Predominantly Speculation 

In a token sale or Initial Coin Offering (ICO), a crypto startup sells its newly created digital tokens to raise funds for its future ecosystem. The startup's success depends on convincing potential investors of its concept or blueprint, showcasing credible engineers and a sound executive team. A key element of most coin offerings is a company’s “white paper,” a document that outlines the project's goals, technical specifications, and team credentials. 

Hardly any ICOs, if at all, can claim to have a working product, service, or protocol in place when the token sale begins. The promise of delivering the intended utility or purpose for its token and future crypto-based ecosystem, coupled with exaggerated promises of profits to unsuspecting investors, has resulted in fraudulent schemes and even exit plans. 

With the rise in popularity of utility tokens in 2017, scammers took advantage of the situation by creating fake ICOs. Numerous so-called tech companies managed to raise millions of dollars in the highly enthusiastic cryptocurrency market, employing misleading or dishonest methods to attract investors.

ICO Scams Prevalent

The Wall Street Journal reviewed 1,450 documents related to Initial Coin Offerings (ICOs) in 2018 and revealed several red flags in 271 instances. These red flags included plagiarized white papers, guarantees of returns, and absent or fabricated executive teams.

Investors have injected over $1 billion into 271 coin offerings that have raised red flags, per a review of company statements and online transaction records. Out of the 1,450 projects examined, which have primarily targeted English-speaking audiences since 2014, it’s claimed that they have collectively raised at least $5 billion. Research conducted by Satis Group, a firm specializing in data analysis, reveals that since 2017, cryptocurrency coin offerings have generated over $9 billion in overall proceeds worldwide.

Source: WSJ.com

A considerable number of projects, specifically 124, failed to provide any information regarding the personnel involved. Moreover, several projects listed team members who were either non-existent or real individuals unaware of their names being used. Additionally, 111 projects were found to have copied entire sections verbatim from other white papers, including descriptions of marketing strategies, security concerns, and technical details, such as database interaction methods for other developers.

Source: WSJ.com

Furthermore, it was discovered that several projects completed their white papers or websites by incorporating executive pictures taken directly from online stock photography or other platforms, such as LinkedIn. One of the most notable examples is Premium Trade, an investment startup. The images of its executive team, consisting of five members, were discovered to be used on almost 500 unrelated websites simultaneously. Interestingly, Premium's co-founder Andrew Ravitsky was also identified as "Dr. John Watsan" in an online cardiology course.

Source: WSJ.com

The Premium Trade website portrayed CEO Idan Cohen as an "experienced entrepreneur," but the depiction of Mr. Cohen is indeed Eduardo Carillo, a close acquaintance of the photographer. The images that supposedly depicted Premium Trade's executive team of five members were probably purchased from stock photography websites. In many instances, the photos used by Premium Trade are of individuals who have been seen on various other websites across the Internet.

Source: Wall Street Journal analysis of Google Image Search results
Photos: Designed by Freepik (stock images)
Premium Trade website (screenshot)

The United States has shown skepticism towards initial coin offerings (ICOs), regardless of their legitimacy. A primary concern is the lack of regulatory oversight, which makes it easy for inexperienced investors to get caught up in fraudulent schemes. The Securities and Exchange Commission (SEC) has issued warnings to investors, citing that many cryptocurrency deals in the private market may violate securities laws. To illustrate this point, the SEC created a fake coin offering website as an example of what to avoid.

As a result of this negative perception of ICOs, Initial Exchange Offerings (IEOs) and Security Token Offerings (STOs) have recently gained popularity as alternatives—more about these in an upcoming article. 

Token Utility Is Of Utmost Importance To ICO Startups

Source:  William Mougayar

Apart from the outright scams, most ICOs fail because entrepreneurs and developers neglect the three fundamental aspects of a successful ICO: Tokenomics, Utility, and Security. For the purpose of this article, we will focus on Utility, as proposed by William Mougayar, a prominent blockchain theorist and strategist. Mougayar's token utility framework consists of three tenets: Role, Features, and Purpose. Each role serves a specific purpose, as depicted in the accompanying chart.

Source:  William Mougayar

When assessing a token-based company, it is advantageous to have as many criteria met regarding the token's purpose. The function of tokens can be likened to nails that secure your business model. Having multiple nails to firmly establish and maintain its defensibility and sustainability is preferable.

Entrepreneurs' resourcefulness is showcased in the various practical applications they devise for tokens, effectively bridging the gap between concept and implementation. It's a display of ingenuity at the token level, where creative ideas come to life.

If the way the token is used is unclear, poorly described, or can be defended, then that model has a flaw. Listed below are questions to determine if an organization can be categorized as ICO-based.

1. Is the token tied to a product usage, i.e., does it give the user exclusive access to it or provide interaction rights to the product?
2. Does the token grant a governance action, like voting on consensus-related or other decision-making factors?
3. Does the token enable the user to contribute to a value-adding action for the network or market being built?
4. Does the token grant an ownership of sorts, whether it is real or a proxy to a value?
5. Does the token result in a monetizable reward based on an action by the user (active work)?
6. Does the token grant the user a value based on sharing or disclosing some data about them (passive work)?
7. Is buying something part of the business model?
8. Is selling something part of the business model?
9. Can users create a new product or service?
10. Is the token required to run a smart contract or to fund an Oracle? (an oracle is a source of information or data that other than a smart contract can use)
11. Is the token required as a security deposit to secure some aspect of the blockchain’s operation?
12. Is the token (or a derivative of it, like a stablecoin or gas unit) used to pay for some usage?
13. Is the token required to join a network or other related entity?
14. Does the token enable a real connection between users?
15. Is the token given away or offered at a discount as an incentive to encourage product trial or usage?
16. Is the token your principal payment unit, essentially functioning as an internal currency?
17. Is the token (or derivative of it) the principal accounting unit for all internal transactions?
18. Does your blockchain autonomously distribute profits to token holders?
19. Does your blockchain autonomously distribute other benefits to token holders?
20. Is there a related benefit to your users resulting from built-in currency inflation?

A company's success is likely assured if it confirms and implements the procedures for most items listed above. The more usage scenarios they can confirm, the stronger their Token-to-Market fit will likely be.

Evolutionary and Successful ICO-based Projects

Most ICOs fail to meet the expectations they initially generated or encounter difficulties during their implementation, so it’s crucial for potential investors to thoroughly scrutinize and evaluate these ventures before committing their resources. However, it should be noted that a few ICOs have successfully delivered on their promises.

ICO-based projects that have evolved and succeeded have utilized Initial Coin Offerings to secure the necessary funding to create the groundwork for a decentralized and digital future. These projects range from establishing extensive data storage systems to implementing more equitable payment systems for artists and creating innovative financial products.

The influence of prominent blockchain ventures such as Ethereum, EOS, Telegram, Tezos, and Filecoin cannot be overstated, as they have garnered substantial financial support and yielded significant impact. Projects like Cardano, Solana, TRON, and Polkadot have also achieved remarkable success in their ICOs, etching their names in the annals of history as some of the most successful ICOs ever. 

These pioneering initiatives have not only blazed a trail for nascent projects but have also offered valuable lessons in crowdfunding and decentralized platform development, demonstrating the vast potential of decentralized platforms and the innovative ways in which they can be financed, showcasing the enormous potential of blockchain technology. 

At the heart of these successful ICOs is a dedicated and driven team of talented developers who put in long hours to ensure their success. Also, their transparency and a genuine desire to contribute to an emerging industry and technology parallel to the centralized bodies that the broader community is now recognizing as corrupt and oppressive.

In Closing…

As previously stated, the majority of ICO startups merely possess an idea, a concept. They haven't even developed an alpha version of their final product; it is all founded on speculation and the project's potential. What if an emerging crypto industry project already had a working beta version? A platform and protocol that were already constructed, along with a robust community, and then decided to launch an ICO-like campaign for iterations, further development, and marketing strategies?

Markethive is gearing up to accomplish precisely that. This is a big deal as it’s never been done before, and it will propel Markethive and its Hivecoin token to unprecedented heights, making them a pioneering force in the industry. Introducing a cutting-edge crypto ecosystem and blockchain technology to the marketing, social networking, and broadcasting sectors is a trailblazer in this uncharted territory, revolutionizing how entrepreneurs approach marketing and communication.

I will provide more comprehensive information in my upcoming article. In the meantime, join us for the Markethive webinar on Sunday at 10 am MST, where we discuss the history, current status, and future developments of everything pertaining to Markethive.

This article is provided for informational purposes only and should not be relied upon as legal, business, investment, or tax advice. Furthermore, however plausible, the contents of this article may include speculative opinions. Of course, there is nothing wrong with speculation as long as its premises are made clear. Speculation is the customary way to begin the exploration of uncharted territory as it stimulates a search for evidence that will support or refute it.

Resources: WSJ.com, William Mougaya, Doubloin.com.

Markethive's HVC Token Poised for Crypto Market Triumph

As the crypto industry gears up for the next bull run, Markethive isn't just sitting on the sidelines – it's rolling up its sleeves and diving into the action, poised to shine on the high-performance stage of the Solana blockchain. At the heart of this venture is Markethive's native cryptocurrency, Hivecoin (HVC), a key player ready to unlock the industry's full potential. Solana's reputation for speed and scalability provides the perfect playground for Markethive's ambitious goals.

Cryptocurrency and blockchain have shaken the business world, creating a new era of possibilities. And Markethive? Well, it's not trailing behind; in fact, it's leading the charge. This unique platform, grounded in blockchain technology, caters to entrepreneurs, marketers, and business owners, offering them a suite of tools and services to navigate this brave new world.

Now, to make things even more exciting, Markethive has introduced the HVC into the mix. This token isn't just any token; it's intricately woven into the fabric of Markethive's ecosystem. And guess what? It's riding the Solana blockchain wave. Why does that matter? Buckle up because we're about to dive into the juicy details of why this move is a game-changer.

Ready to uncover the magic behind Markethive's strategic choice? Let's jump into the discussion and explore the manifold benefits of having the HVC token on the Solana blockchain. Shall we?

Source: Medium. Solana Labs

Why Markethive chose Solana as the blockchain for the HVC Token

As a decentralized platform aimed at creating a new social and economic paradigm, Markethive needed a blockchain that could seamlessly integrate with its design and vision while meeting specific requirements to ensure its efficiency and effectiveness. After a detailed analysis of various blockchain platforms in the market, the Markethive administrators led by CEO Thomas Prendergast settled on Solana, a high-performance, open-source blockchain designed to support global-scale decentralized applications (dApps).

Solana is a unique blockchain built on eight key technologies, popularly referred to as its "8 pillars of innovation." These pillars include Proof of History, Tower BFT, Turbine, Gulf Stream, Solana Runtime, Archivers, Cloudbreak, and Sealevel, which all work together to ensure the blockchain network's scalability, speed, and security.

How does Solana meet Markethive's requirements for a blockchain platform? Markethive requires fast and efficient transactions, low transaction fees, and a secure and scalable network capable of handling large volumes of data and users. Solana's high throughput of thousands of transactions per second, low transaction costs, and ability to manage multiple dApps make it the perfect fit for the Markethive ecosystem.

Several blockchain platforms offer benefits that have endeared them to various projects and developers. However, most of these platforms suffer from scalability and high transaction costs whenever there is a high volume of transactions on the network. Solana eliminates these challenges by utilizing a robust infrastructure capable of simultaneously handling multiple dApps on the network.

Solana boasts of innovative technology designed to enhance its performance and efficiency. Its Proof of History (PoH) allows for secure and efficient recording of transactions, while its support for smart contracts enables developers to create advanced and customized decentralized applications. Additionally, Solana has a vibrant community and developer network offering resources, tools, and collaborative opportunities for developers. In all, Solana's unique features and advantages make it a standout blockchain platform, offering a robust infrastructure for Markethive's HVC token development. The potential of HVC and the innovative Solana network will transform the Markethive community and create new possibilities for decentralized ecosystems.

Source: Markethive.com

How the HVC Token can Impact the Future of Markethive

The impact of HVC on the future of Markethive is poised to be transformative and far-reaching. This utility token, nestled within the Markethive ecosystem, holds the key to reshaping the dynamics of user interaction within the platform. It goes beyond being a mere transactional tool; the HVC serves as a catalyst for a paradigm shift in how users engage with Markethive.

One of the primary ways HVC will influence Markethive is by granting users access to premium services. This adds an element of exclusivity and enhanced features for token holders, creating a tiered experience within the platform. Armed with HVC, users can unlock a range of specialized services, contributing to a more tailored and personalized Markethive experience.

The HVC introduces a novel way to recognize and reward user participation. By actively engaging with the Markethive community, users can earn HVC, fostering a sense of appreciation and acknowledgment for their contributions. This incentive structure creates a positive feedback loop, where users are not only motivated to participate but also become integral contributors to the growth and vitality of the Markethive ecosystem.

Incentivizing user participation through HVC has the potential to breathe life into the Markethive community. A vibrant and engaged ecosystem emerges when users are rewarded for their contributions. This dynamic environment, fueled by the circulation of HVC, establishes a virtuous cycle of growth. Users are not just passive participants; they become active stakeholders in the platform's success, leading to a more robust and interconnected community.

The value of HVC is intricately tied to their utility and demand within the Markethive ecosystem. As more users actively participate in the platform, utilizing HVC for various transactions and interactions, the demand for the token naturally increases. This surge in demand has the potential to drive a significant appreciation in the token's value, presenting users with additional incentives to both use and hold onto their HVC.

Looking ahead, Markethive envisions expanding the utility of HVC within its platform. This could involve exploring new use cases and integration opportunities, potentially collaborating with other blockchain-based platforms. The goal is to broaden users' earning and spending avenues, making HVC tokens a versatile asset within the evolving digital landscape.

In essence, the future impact of HVC Token extends beyond being a mere transactional tool. It is a linchpin in Markethive's vision to cultivate a supportive, incentivized, and decentralized network where every user has a stake in the platform's success. The journey ahead holds the promise of a flourishing ecosystem where HVC tokens play a central role in shaping the collaborative and dynamic landscape of Markethive.

The Problem with Centralization in Crypto Projects

In recent times, there's been a noticeable trend in the crypto industry where projects prioritize quick returns and, in doing so, tend to centralize control. This focus on rapid investor rewards can lead to compromises on decentralization. Many coins and tokens have fallen prey to aggressive pump-and-dump cycles, and unfortunately, a significant portion of them fail to endure beyond a single crypto cycle.

The impact of centralization in crypto projects is profound. It not only impedes the industry's growth but also creates an environment susceptible to fraud, scams, data harvesting, and even political bias. This is a serious concern as it erodes the foundational principles of cryptocurrency – trust, transparency, and decentralization.

Decentralization emerges as a compelling solution to these issues. By decentralizing social market networks, crypto projects can break free from the control problems associated with centralized power structures. This move fosters an environment that encourages creativity, innovation, and community-driven initiatives.

Markethive stands out as a pioneer in this space by developing a decentralized platform incorporating a self-policing reputation system and Human Intelligence (HI). Unlike projects influenced by prominent venture capitalists, Markethive is solely community-funded. This means that the community is using the platform and actively building it. It is a platform of the people, by the people, and for the people, ensuring that the benefits of its success are shared across all levels of the community.

Supporting decentralization liberates crypto projects from the pitfalls of centralized control. It promotes a democratic and meritocratic environment where the community plays a pivotal role in decision-making. This approach is not only aligned with the fundamental principles of blockchain technology but also ensures the sustainability and longevity of the project.

Source: Markethive.com

Markethive’s Unique Approach to Decentralization

Markethive's embrace of decentralization empowers its entrepreneurial community to share content freely without fearing censorship or control from top-level management. This approach creates an environment where creativity can flourish, generating positive and beneficial content. By eliminating the constraints imposed by centralized authority, Markethive fosters an atmosphere conducive to innovation.

The absence of top-down control allows for the creation of more authentic and engaging content. With contributors free to express their ideas and perspectives, Markethive becomes a vibrant platform where a diverse range of voices can be heard. This authenticity resonates with the audience, attracting a larger and more engaged community.

Decentralizing funding is a key pillar of Markethive's approach. By relying on community funding rather than traditional venture capital, Markethive ensures that the community are not just users of the platform but active contributors to its success. This model aligns with the principles of decentralization, distributing decision-making power and financial support across the community.

Markethive incorporates self-policing systems to maintain a healthy and ethical community environment. This reduces the need for external oversight and places the responsibility of maintaining the platform's integrity in the hands of the community itself. By doing so, Markethive creates a system where users collectively contribute to the platform's well-being.

Markethive's commitment to decentralization extends beyond its individual model. It actively participates in the broader movement towards Web 3.0, a paradigm shift aiming to move away from the centralization of services on the Internet. This aligns with the evolving landscape of technology and user expectations, positioning Markethive at the forefront of progressive developments in the digital space.

As Markethive positions itself for the next crypto bull run, its native cryptocurrency, Hivecoin (HVC), plays a vital role in facilitating the full potential of the crypto space. Markethive's dedication to preventing scams and data harvesting ensures a secure environment for users to participate in the crypto revolution without fear of exploitation.

Users can actively contribute to Markethive's decentralization revolution by becoming an 'Entrepreneur One.' This membership not only supports the community-driven model but also allows users to reap the rewards of revenue returns through Markethive's Innovative ILP. It creates a symbiotic relationship where the success of the platform translates into benefits for its contributors.

Source:  Markethive.com

Markethive’s Readiness for the Crypto Bull Run

One of the reasons we're excited about the potential for Markethive's Hivecoin (HVC) is that we're ready for the next significant crypto bull run. HVC will be firmly established as a currency with purpose and utility in the free market. But it's more than just HVC's potential for success that makes us bullish about our readiness for the next crypto cycle. 

We've been hard at work creating an impregnable fortress against fraud and scams. As we've seen in recent years, the crypto industry has become a jungle and a cesspool of shady practices. Many crypto projects have been accused of scams and data harvesting, and even worse, have been used to advance political bias and dystopian ends. At Markethive, we've taken cybersecurity seriously from the start. We've implemented multiple servers, disengaged unreliable APIs, and crafted a reputable system that is secure and fair.

We're also fostering a creative and beneficial content breeding ground in which people's minds are prompted toward positive growth and critical thinking. All of these measures demonstrate our commitment to building a community that is not only profitable but secure and ethical. With Markethive, there won't be any hidden agendas or underhanded tactics. We're of and for the people and confident in our ability to deliver on our promises.

Another factor that makes us confident in the crypto bull run is that Markethive will actively participate in facilitating crypto's full potential. Our ecosystem is poised to be a breeding ground for positive change in the industry. As we grow, so too will our impact on the broader world of blockchain and cryptocurrency. We're all excited about the potential for a crypto bull run, and we believe that Markethive is uniquely positioned to thrive in this environment. 

Final Thoughts

With its high throughput, low latency, and seamless cross-chain compatibility, Solana provides an ideal platform for the launch of HVC token. The unique features of Solana make it a popular choice among developers and projects in the blockchain space. The HVC token could transform the Markethive community and encourage the growth of decentralized applications in general.

I am sure you are tired of being at the mercy of centralized services that control your data and limit your potential. Well, join the revolution towards decentralization and become part of Markethive's unique entrepreneurial ecosystem. By becoming an Entrepreneur One, you can enjoy all the benefits of Markethive's platform and earn revenue returns through the ILP. Plus, with Markethive's Hivecoin (HVC) poised for the next crypto bull run, you can facilitate the achievement of crypto's full potential.

Gone are the days of being at the mercy of venture capitalists and central authorities. With Markethive's decentralized funding model, you can invest in projects that truly align with your values and vision. So, what are you waiting for? Join the ranks of entrepreneurs who are taking control of their destiny and building a better future for themselves and their communities. Don't just watch from the sidelines; become part of the solution and reap the rewards of true decentralization.

This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.