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Ethereum (ETH) Users to Fund Startups via DAO-Like Instrument: Bloomberg

News
Thu, 06/11/2020 - 14:45
Vladislav Sopov
Bloomberg, a top-notch financial media company has revealed a concept for funding startups with Ethereum (ETH) and a Limited Liability Autonomous Organization, or LAO
Ethereum (ETH) Users to Fund Startups via DAO-Like Instrument: Bloomberg
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Contents

Matthew Leising of Bloomberg Crypto published an article about the new Ether-based investment vehicle, the LAO or Limited Liability Autonomous Organization.

DAO 2.0?

The analyst highlights that this way of fundraising has some limitations that were not common for DAOs (decentralized autonomous organizations) of the blessed era of 2016-2017. For instance, participation in the LAO-powered investment rounds is limited, as is the amount of Ether one holder can invest.

Bloomberg introduces the LAO
Image via Twitter

The LAO has already managed to raise $878,000 and funded its first startup. This is the Ethereum (ETH) mixer Tornado Cash, a privacy-focused instrument designed to enhance the level of anonymity in Ethereum (ETH) transactions. The Tornado Cash team received 244 Ether, worth about $59,000.

According to Aaron Wright, a co-founder of Open Law, the firm behind the initial design and codebase of the LAO, the participants within this community interact like partners. Each of them can contribute 120 ETH maximum.

Then, startup representatives pitch their products to the LAO investors. At press time, LAO has received 42 proposals for valuation and fundraising.

Reinventing the ideology of decentralization

Mr. Wright outlines that the LAO is much more mature than its ultimately decentralized predecessor. Great progress was made in terms of compliance with strict U.S. legal requirements. 

Now, every LAO transaction is tied to legal documents. Also, the ecosystem carries out thorough 'know-your-customer' and 'anti-money-laundering' checks. The level of security within LAO also can't be compared to that of DAO.

One percent of the LAO is owned by Christoph Jentzsch, who developed a codebase for the DAO four years ago. Mr. Jentzsch believes that the idea of limited liability is definitely what DAO missed.

At the same time, every participant of the LAO has a small amount of Ethereum (ETH) at stake, so, the interest in vetting the project is significantly smaller than it was with the DAO, Mr. Jentzsch admits.

About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

Ethereum (ETH) Market Cap May Become Equal to Bitcoin's (BTC): ConsenSys Director

News
Mon, 07/13/2020 - 14:38
Vladislav Sopov
John Lilic, managing director at ConsenSys decentralized development studio, has shared an over-bullish prediction for Ethereum (ETH) progress
Ethereum (ETH) Market Cap May Become Equal to Bitcoin's (BTC): ConsenSys Director
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Contents

John Lilic leads international business development in the ConsenSys leading blockchain development studio. He is also an expert in energy markets and cryptocurrency segments. He tracked the progress of Bitcoin's (BTC) and Ethereum's (ETH) market capitalization statistics, coming up with an extravagant prediction.

Bitcoin (BTC) should get ready for parity

Mr. Lilic outlined that Ethereum (ETH) is showcasing much healthier dynamics than its competitor is. For instance, the flagship cryptocurrency still surpasses Ethereum (ETH) by 6.3x in terms of market capitalization, while simultaneously collecting 20% fewer fees than Ethereum (ETH).

John Lilic of ConSensys foresees parity of Bitcoin (BTC) and Ethereum (ETH) market capitalizations
Image via Twitter

Also, Ethereum (ETH) is demonstrating much more impressive price dynamics this year. It gained almost 37% against Bitcoin (BTC) in 2020. That said, Ethereum (ETH) looks severely undervalued to the top manager of ConsenSys.

However, Ether is on the path to eliminating this discrepancy. Eventually, the top two cryptocurrencies may reach market capitalization parity, concludes Mr. Lilic.

Related Bitcoin (BTC) and Ethereum Have (ETH) Recovered From Black Thursday, Who Else? Coinmetrics Explains
Related
Bitcoin (BTC) and Ethereum Have (ETH) Recovered From Black Thursday, Who Else? Coinmetrics Explains

As covered by U.Today Crypto News recently, Coinmetrics on-chain research team called Bitcoin (BTC) and Ethereum (ETH) the unique crypto behemoths that have managed to recover from Black Thursday.

Bitcoin (BTC) is losing supremacy in "fee race"

Should Ethereum (ETH) overcome its undervaluation, its price may be over $1,550 based on liquid supply and current Bitcoin (BTC) market capitalization.

Recently, it was unveiled that Ethereum (ETH) blockchain continues to surpass Bitcoin (BTC) in terms of network fees for more than 30 days in a row. Ethereum (ETH) is seeing this advantage for the first time in its history.

As U.Today Crypto News reported previously, ex-Messari analyst and angel investor Qiao Wang identifies two main catalysts of Ethereum's (ETH) price run in the mid-term perspective.

Related Ethereum (ETH) Price Two Bullish Signals, According to Investor Qiao Wang
Related
Ethereum (ETH) Price Two Bullish Signals, According to Investor Qiao Wang

According to Wang, the upcoming rally may be fueled by a long-awaited transition to Proof of Stake and fixing the monetary policy of Ether token.

About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)