The Token Disconnect: Bridging the Gap Between Blockchain and Finance

Hatched by Kazuki
Aug 30, 2023
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The Token Disconnect: Bridging the Gap Between Blockchain and Finance
In the world of blockchain technology, there seems to be a disconnect between its potential and real-world applications. Many view blockchain as a solution in search of a problem, with limited use cases and niche applications. The question of "For what?" remains unanswered as the decades pass by without significant progress. However, venture capitalists see crypto in a different light. For them, the focus is on returning money to their LPs, and crypto offers an exciting new financial tool for achieving that goal.
The key to understanding the venture capitalist perspective lies in the accreditation divide. The Valley's obsession with crypto tokens and the 2017 ICO mania can be attributed to the fact that these assets resemble securities without being regulated as such. This opens up opportunities for arbitraging securities regulation and provides a new avenue for financial engineering. It's like creating an option contract on a startup, allowing investors to exercise it early by selling their shares directly to the public, independent of the company's success.
The innovation in crypto assets lies not in software engineering but in financial engineering. This new financial product allows for immediate liquidity and the ability to cash out without the need for a traditional initial public offering. It's a license to print free money, with little to no enforcement against practices like insider trading, wash trading, and pump and dump schemes. This newfound freedom is enticing for LPs in large funds who see the potential for substantial returns.
On the other hand, the world of content marketing has its own set of challenges and requirements. The Content Marketing Handbook emphasizes the importance of creating great content that resonates with the audience. It's not just about publishing for the sake of it; content should serve a purpose and drive results. Companies should focus on bringing new information to the world, being interesting, and being right.
One of the key points in content marketing is the need to have a distribution channel and specific target in mind. It's not enough to create great content; it needs to reach the right people. The Priceonomics Blog found that publishing popular blog posts on their own website attracted more visitors than trying to get coverage from external sources. By focusing on their own platform, they were able to establish themselves as experts and attract their own crowd.
Authentic information is the currency of valuable content marketing. Companies have access to unique data and insights that can be valuable to others. By sharing this information, companies can not only attract potential customers but also establish themselves as leaders in their industry. The goal is to create content that helps others achieve their goals while making the company look good.
Creating successful content requires effort and a focused approach. The Effort-Performance-Outcome theory states that people will only put in the necessary effort if they believe it will pay off. In the crowded online world, average content goes unnoticed, so it's crucial to aim for greatness. Mediocre content will be ignored, while exceptional content has the potential to go viral and reach a wider audience.
To increase the chances of success, it's important to understand what makes content shareable. People share content that resonates with them, evokes emotions, and aligns with their values. Content should be interesting, valuable, and unique. It should provide information that others find useful and want to share with their network. By understanding the motivations behind sharing, companies can create content that strikes a chord with their audience.
When it comes to distribution, having a plan is essential. Publishing great content is just the first step; it also needs to be strategically distributed to reach the intended audience. This involves reaching out to journalists, leveraging social news sites, and participating in relevant communities. By focusing on a handful of key people who can act as gateways to a larger audience, companies can increase their chances of success.
In content marketing, the introduction and conclusion are crucial. The introduction needs to grab the reader's attention and convince them to keep reading. The conclusion serves as a reminder of the main points and provides shareable nuggets of information. The language used throughout the article should be chosen carefully to circumscribe the scope of the argument and convey the intended message.
It's important to note that content marketing requires a long-term commitment. It's not about writing every day, but rather about creating high-quality content that resonates with the audience. Investing time and effort in creating valuable content will yield better results than churning out average content. Companies should leverage their unique knowledge base and industry expertise to create content that stands out.
In conclusion, bridging the gap between blockchain and finance requires a deep understanding of both worlds. While blockchain technology may still be searching for its purpose, it presents exciting opportunities for financial engineering. On the other hand, content marketing provides a way for companies to showcase their expertise and attract an audience. By creating valuable, unique content and strategically distributing it, companies can establish themselves as leaders in their industry. The key is to focus on creating great content that resonates with the audience, and to have a plan for how it will be distributed.
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