The technology industry is building its own (automated) capital markets

Leo Zhang

By Leo Zhang

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Editor's note

Microsoft's acquisition of Github suggests that traditional, hierarchical tech giants are beginning to embrace open source software--and perhaps with it, open allocation governance. Meanwhile, Coinbase and Circle are making moves to become licensed financial institutions in order to issue public-blockchain-based securities on their own exchanges. Technology firms of the near future might have access to global capital markets to which they can connect directly (and programmatically) without Wall Street's permission, insulating themselves (to some extent) from the need to track macro-economic or fiat money concerns.

The next two weeks are critical in the traditional investment world. The Fed, ECB, and BOJ are all gearing up for big meetings. On track to raise interest rates, the Fed is continuing its retreat from a decade of money-printing. The ECB sounds hawkish, owing its optimism in part to rising wages and inflation, and party to a desire to show strength in the face of Italy's right-wing resurgence. The Bank of Japan is still loading its balance sheet, which will soon surpass the value of the nation’s annual economic output. But there is some cause for worry about a liquidity crisis in emerging markets, where sharp sell-offs racked Brazil, Mexico, and South Africa.

This week's news recap

Monday: Is this how "open source" goes mainstream?
Tuesday: The ERC-20 token with the backdoor
Wednesday: The crypto decacorns are going into mainstream finance
Thursday: Is sharding really a solution to Ethereum's woes?
Friday: What did we learn from the first quarter sell-off?

Further readings

The psychology of money
(Collaborative Fund, by Morgan Housel)

"Accepting that everything involving money is driven by illogical emotions and has more moving parts than anyone can grasp is a good start to remembering that history is the study of things happening that people didn’t think would or could happen. This is especially true with money."

A nonfungible token stampede is coming
(Coinmonks)

"Even more apparent to me is the fact that Companies and Individual developers alike will benefit from the consequences of this standard by benefiting from interoperability on marketplaces designed and developed by the growing community. We are about to see marketplaces pop up for items that will empower individuals to trade items with each other, that were not even created by the site owners."

Observations on EOS mainnet launch

Bitcoin investment thesis (Part 1)
(Pierre Rochard)

"We can classify the investment theses for (and against) investing in Bitcoin into categories. This helps clarify how much of an impact a given narrative could have to Bitcoin’s valuation. Investment theses that have a short holding period are less meaningful for investors than ones with a long holding period. Likewise, theses with a large number of potential adopters are more meaningful for investors than ones with a small number of potential adopters. This is an imperfect heuristic that should be debated and refined."

Excellent discussion thread on mining cross-chain