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

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Thu, 06/11/2020 - 14:45
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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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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.

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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.)

Grayscale Assets Under Management Surge $300,000,000 in One Day. What Does This Mean?

News
Fri, 10/23/2020 - 09:24
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Vladislav Sopov
Grayscale, undisputed giant of institutional crypto investments, is celebrating another monstrous milestone, adding a nine-digit sum to AUM in 24 hours
Grayscale Assets Under Management Surge $300,000,000 in One Day. What Does This Mean?
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Grayscale is an investment company that provides the clients with an exposure to digital currency markets eliminating the need to buy tokens. The firm does it by selling shares of 'trusts' related to certain digital assets. The recently started FOMO has already brought Grayscale's 'asset under management' (AUM) values to previously unseen levels.

Grayscale assets are on steroids

In its most recent report shared in a tweet, Grayscale Investments stated that its net AUM now surpasses $7,300,000,000. Mostly, this upsurge should be attributed to the spikes of Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC) prices.

Grayscale adds $300M to its AUM in 24 hours
Image by Twitter

Its founder, CEO of Digital Currency Group Barry Silbert, unveiled that Grayscale’s holdings added a whopping amount of value in the last 24 hours.

Added a cool $300 million in AUM in one day

In terms of separate ‘trusts’, the most impressive increase is associated with Litecoin (LTC). Its value added almost 10% bringing its total to over $34 mln. 

Bitcoin (BTC) allocation surged above $6 bln with a 5% increase. Notorious Grayscale Ethereum Trust (ETHE) added 6% and now is valued at $942 mln.

PayPal assists Grayscale

By contrast, Stellar Lumens (XLM) and Bitcoin Cash (BCH) trusts witnessed mediocre increases of 2-3%. The only integral product of Grayscale, Large Cap Trust that unites the most valuable coins under its umbrella, therefore, added less than 4%.

The numbers of Grayscale Investments positions rocketed due to the rapid spike of crypto prices associated with PayPal’s decision to add major digital assets to its instrument toolkit.

As covered by U.Today previously, PayPal announced that Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) will be added as payment methods by the end of this year.

  

Following this surprising news, Bitcoin (BTC) revisited its multi-months high over $13,000. At press time, its price has slightly retraced and flirts with the $12,800 level.

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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.)