Want to know why Bitcoin price is down for the first week in September in addition to the wider macro tide lowering all boats in the sea? The biggest story in Web3 this week, other than the pace and quality of development and activity on these networks, is the French government’s arrest of Telegram and TON currency founder Pavel Durov.
These events have prompted me to look closer into new Web3 developments like FLOCK.
More on why in a moment, because the import of the government in Europe’s attempt to criminalize, harass, intimidate, hamper, and hustle Mr. Durov with the full force of the government’s police and courts, and to mar his character and the reputation of his business— cannot be understated, out of fairness to Mr. Durov.
Toncoin founder’s arrest gives markets pause.
Now this is a policy conversation that the European government and U.S. have had regarding massive telecommunications platforms using the Internet for plenty of time now. They have usually had no such difficulty as this separating out the platform from users who abuse the platform to commit crimes.
They have not arrested any famous U.S. tech founders whose companies are traded on Wall Street. But because of Durov’s nationality and the global political tension surrounding Russia’s aggressive war in Ukraine, and because Mr. Durov is a leader in the Web3’s borderless finance movement powered by the programmable press, he is being treated differently and unfairly by the government.
The very forward move by a major world government has a wide swath of investors with less knowledge and conviction about the crypto markets skittish about participating.
The shock has depressed prices to a bargain discount for the growing number of crypto industry diehards who understand how far this industry has yet to change the world and how fast it’s going to do it even by Internet standards of progress many have become accustomed to.
BTC’s ultra ROI days are behind us.
Now that BTC returns are dramatically lower on each super cycle (dwindling from 12 – 18-month bull rallies delivering 50,000%, to 8,500%, to 1,000%, to 437% at four year intervals), though they’re still unbelievable by even tech stock standards, the establishment is willing to let Wall Street take the risk.
Want crypto exposure? Here, buy a Bitcoin from Fidelity or Blackrock. They’re going to continue shepherding their flock away from the parts of Web3 that are delivering that ‘12, ‘16 BTC ROI. It might change too many people’s lives too fast for the corporate layer of the organization to keep up.
Accelerate the brain drain and capital flight Wall St. fears.
The establishment doesn’t want to lose all that human capital, their surplus financial capital that they invest, all those working hours they spend moving the market, all that talent— in an enormous brain drain to Web3. Don’t forget it’s a competitive labor market out there and Americans have a powerful competitive/team spirit and upskilling/ladder climbing ethos.
So they crowd into Bitcoin, antagonize the current ROI-delivering disruptors in Web3 like Toncoin, and don’t even know about the Internet retail side of capital injection for their beloved Ethereum smart contract network. Wall Street likes Ethereum, but they diffuse their capital in the main pool of ETH where there isn’t enough pressure to deliver ROI.
Coins like the new Ethereum Flockerz token, an ERC20 meme currency with staking, governance, vote-to-earn, an ad pool, an exchange liquidity pool, and a discounted presale token pool are on the edges of Web3 developing its capital, methodically aligning Wall Street’s economics with Web3’s, raising the stakes for a highly organized economy of specified, autonomous applications. Now is the perfect time to put some Flockerz in your wallet.
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