A digital currency investment bank focused on monetizing intangible assets.
A comment / Author: Zhiqiang / February 23, 2025
Building on the previous article (The New Era of Intangible Assets: Valuation of Celebrities, Political Parties, and Countries), whether it is celebrities, political parties, or nations, they have already existed in the crypto market and possess investment value. In an era based on the new Web3 market, these large intangible assets need their own 'investment bank', which is different from traditional investment companies (like Buffett's Berkshire Hathaway or BlackRock), instead focusing on the valuation, investment, and market operation of digital assets.
The intangible assets of celebrities have traditionally been difficult to quantify and trade. However, the emergence of digital currency investment banks (Crypto Investment Banks) provides a possible method to financialize these intangible assets and establish scientific measurement standards.
1. Definition and business model of digital currency investment banks
Concept:
The core business of traditional investment banks is investing in stocks, bonds, and enterprises, while digital currency investment banks will focus on the cryptocurrency market, especially meme coins, celebrity coins, and politically financialized tokens.
A large part of digital currency valuation methods are similar to traditional investment banks, but tokens like meme coins represent intangible assets. In modern society, intuitively, intangible assets hold significant value, but their exact measure remains unclear. There are few methods for monetizing intangible assets; could meme coins or celebrity coins represent a new way to measure intangible assets?
Business model:
1. Meme coins & celebrity coin investment banks: Establish a 'digital currency version of BlackRock'
· Establish a 'cryptocurrency venture capital fund' to invest in high-potential celebrity coins, community coins, and DAOs (decentralized autonomous organizations). · Incubate meme coin projects: Help enterprises, celebrities, KOLs, and politicians create personal tokens to achieve the monetization of personal brand assets. · Operate a 'digital currency index fund': · For example: Create a 'Celebrity Coin Index' (CCI) to track the market capitalization growth of all celebrity coins, providing trading references for investors.
2. Political Financialization: How can digital currency investment banks empower politics? · Support political figures in fundraising through cryptocurrency and provide funding management and market promotion support. · Invest in politicians, media, and Web3 social platforms through cryptocurrency to create a 'decentralized political financial alliance'. · Establish a 'political digital currency ETF': to track politically related crypto assets and create a decentralized political financial asset pool.
3. Market Makers in the Cryptocurrency Market · Traditional investment banks provide liquidity to the stock market, and digital currency investment banks can become market makers in the crypto market to enhance market depth. · Through algorithmic trading, quantitative investment, and other means, create new liquidity tools in the crypto space, such as: · Staking lending: Users stake meme coins/celebrity coins to borrow stablecoins. · Derivative trading: Launch celebrity coin options and futures to expand market size.
2. Valuation model of celebrity meme coins 1. Traditional assets VS. Celebrity coin valuation Asset class valuation methods Representative cases Traditional stocks Price-to-earnings ratio (P/E), discounted cash flow (DCF) Apple, Tesla Venture capital market Market share, growth rate OpenAI, SpaceX Celebrity coins Influence, social activity, political capital Trump Coin ($TRUMP), Musk Coin ( $ELON) Traditional companies rely on profitability, while celebrity coins rely on brand value and fan consensus:
1. Social media influence (number of fans, interaction rate)
2. The quality of the celebrity community includes size, mobilization, etc.
3. Market influence (whether statements affect the market, policies)
4. Political capital (ability to influence votes, capital flows)
5. The ability to monetize beyond trading includes brand monetization capability (business cooperation, endorsement income), whether it injects into the community, and the investment capability of utilizing tokens, etc. How do community mechanisms affect the development of celebrity coins? This remains to be discovered in practice.
2. How to create a new asset class · Traditional investment banks value stocks, while digital currency investment banks value celebrity coins, referencing: · Social media data: Activity levels of fans on X (formerly Twitter), Instagram, and YouTube. · Community consensus: Analyzing consensus through Web3 voting (DAO). · Community capability: Including size and mobilization assessment · Market trading conditions: The liquidity of celebrity coins and the number of holding addresses.
3. Digital currency investment banks VS. traditional investment institutions Dimension Traditional investment companies (like BlackRock) Digital currency investment banks (future model) Investment targets Stocks, bonds, real estate Celebrity coins, meme coins, politically financialized coins Valuation methods Cash flow, PE, PB Influence, social data, consensus, etc. Business models Invest in enterprises, earn profits Invest in personal brands, empower intangible assets Liquidity Limited by market time 24-hour crypto market Investment strategies Institution-led Community-led (DAO + DeFi) The core difference is that the assets of digital currency investment banks are not companies, but 'people'!
4. Potential Challenges and Solutions 1. Challenge: Market Bubble and Excessive Speculation Risk: · Too many celebrity coins may lead to market bubble burst. · Some celebrity coins lack practical applications and are purely speculative. Solutions: · Establish a Meme Coin Index to track a healthy market ecosystem. · Launch a Meme Coin rating system to ensure investors receive reliable information.
2. Challenge: Regulatory Risk: · Governments may restrict political figures from using cryptocurrency for fundraising. · Securities regulators (like the SEC) may intervene in the meme coin market. Solutions: · Adopt DAO governance to decentralize management and reduce legal risks for single entities. · Compliance: Register investment banking companies in friendly jurisdictions (such as Singapore, Dubai).
3. Challenge: Uncertainty of celebrity influence Risk: · The collapse of a celebrity's image can lead to a crash in their coin. · It is difficult to stabilize the valuation of influence. Solutions: · Index investment to reduce the impact of a single coin. · Use smart contracts to automatically adjust coin price mechanisms (such as burning mechanisms).
4. The contradiction between centralized celebrity coins and community theory The governance method of celebrity meme coins currently contradicts decentralized community theory: · Meme coins rely on celebrity influence, and decision-making is usually centralized. · Decentralized governance emphasizes consensus mechanisms and holder voting. · Currently, some meme coins (such as SHIB) have begun to adopt DAO and community voting methods, evolving towards decentralized governance models. In the future, if meme coins want to break free from the 'speculation-collapse' cycle, they must gradually introduce DAO mechanisms, transparent community governance, and long-term incentive models. This not only increases the project's credibility but also gives investors more long-term confidence. Otherwise, they will remain in a highly centralized model, heavily influenced by celebrities, far from genuine community governance. 5. Future Trends: Financialization of Meme Coins In the future, 'digital currency investment banks' may reshape the global investment system: · Personal brands become tradable assets, and everyone's influence has market value. · Traditional financial capitalism shifts to 'humanistic capitalism'. · Investment is no longer just in enterprises but also in 'influence'.
If this model holds, we might see: 1. Trump Coin, Musk Coin, etc., become mainstream asset classes. 2. Institutions like BlackRock and JPMorgan begin to invest in the celebrity coin market. 3. In the future, 'influence' becomes a new measure of global economy, as traditional GDP cannot explain national influence. If this trend continues, future investment logic may no longer be based on corporate profitability, but also include influence and consensus value, which serves as an intangible guarantee for the project's sustainable and secure profitability, allowing for accurate valuation.
6. The value and positioning of DW20 in digital currency investment banks DW20, as a gradually growing stablecoin, is developed based on the concept of Bitcoin, aimed at solving the problem of Bitcoin lacking a benchmark and providing a market-recognized value standard. Unlike traditional stablecoins (such as USDT, USDC), DW20 is not pegged to fiat currency but relies on the POP (Proof of People) algorithm and the value mechanism of a non-chain system. Therefore, the value representation of DW20 in the digital fund system can be summarized as follows:
1. As a value benchmark for digital asset funds · As DW20 grows in a decentralized manner and gradually gains market recognition, it could be viewed as a standard unit for measuring market value, similar to how gold or Bitcoin measures market trends. · In the digital currency investment bank system, DW20 can serve as a benchmark unit for calculating fund net value, thereby enhancing the transparency and stability of fund investments.
2. Combine with non-chain systems to become a liquidity tool for funds · The non-chain system serves as the trading platform for DW20, and if it develops into a DeFi fund management system in the future, then DW20 could become a core asset within that ecosystem, serving as a key tool for fund asset allocation, collateralization, and liquidity provision. · For example, a fund could hold DW20 and allow investors to use DW20 for fund subscriptions and redemptions, avoiding traditional fiat currency entry and exit issues. 3. Enter the investment portfolio of digital currency investment banks · Combining with the concept of digital currency investment banks in the attachment, DW20 could become: · Part of the investments of digital currency investment banks, serving as a stable investment target (like a 'risk-free return' tool in the crypto market). · A market-making tool: in the 'digital currency investment bank' system, DW20 could become one of the assets providing liquidity for derivative trading, staking, and lending, among others. 4. Solve the volatility issue of the Bitcoin market · Bitcoin's high volatility makes it difficult to serve as a stable investment asset, whereas DW20 can provide a more stable hedging tool during market growth. · For example, funds could convert some Bitcoin profits into DW20 to reduce risk exposure.
7. Future Direction of DW20 1. Combine 'digital currency investment banking' to build a new asset class · Through DW20 as a representative of a new asset class (stable growth stablecoin), it can become a fundamental financial tool in Web3. · For example: A DW20 Index Fund can be created to track DW20's performance in the market and allow investors to participate in the DW20 ecosystem through the index fund. 2. Enter mainstream financial markets through compliance · In the future, DW20 can explore legal and compliant ways (such as registering in the US, China, etc.) to enter broader financial markets and collaborate with traditional financial institutions. 3. Collaborate with celebrity meme coins and Web3 community · DW20 can also serve as a benchmark unit for celebrity coins or community tokens, providing a stable value anchor for the celebrity coin market, or by accepting celebrity coins as strategic shareholders through a share and coin mutual mode. · For instance, some DAO organizations can use DW20 as the main trading token, thereby enhancing market stability.
8. Summary DW20, as a new type of stablecoin, can play an important role in the digital currency investment bank and digital investment banking system: 1. Become a value benchmark for digital funds, providing a stable baseline for the market. 2. Act as a core trading asset in a non-chain system, promoting market ecosystem development. 3. Participate in asset management of digital currency investment banks, enhancing market liquidity. 4. Reduce volatility issues in the Bitcoin market, providing a more robust hedging tool. 5. Support the development of DAO and DeFi ecosystems, empowering the Web3 economic system. If DW20 can deeply integrate into DeFi, DAO, and digital currency investment banking in three directions, it could become an important part of the future Web3 financial system, truly fulfilling its role as a 'market benchmark'.
Original link #DW20 #meme @songht @zhuweisha2
