- Cryptocurrency is more powerful than ever
- Groups of crypto investors are joining forces
- Cryptocurrency is becoming more accepted than ever before
Crypto buying power is stronger than ever before. A group of cryptocurrency investors has recently made a bold move that got the town talking, and also gained a significant insight.
This group of crypto investors or maybe what may be described best as “enthusiasts” has a goal of buying an NBA franchise with their pooled cryptocurrency. This group of crypto enthusiasts and the crucial steps they’ve taken and their impact are discussed below in more detail.
Not so long ago, Sotheby’s auctioned off 11 surviving copies of the 1787 US Constitution. This same group, officially known as the decentralized autonomous organization (DAO), “made history” as the group organizer puts it. The organization, organized under ConstitutionDAO, attempted to purchase a historic copy (“one of 13 copies of the first printing” according to Sotheby’s) of the US Constitution.
To achieve this, over 17,000 people donated to the group using a cryptocurrency called Ether. The group raised the equivalent of more than $40 million to purchase the document within 24 hours. However, the group did not have the winning bid as Kenneth Griffin, founder, and CEO of the Citadel hedge fund Kenneth Griffin outbid them. Griffin offered $43.2 million for the document.
The group has again raised the equivalent of $4 million US in six days, using Ether to fund their mission. This time, it calls itself Krause House DAO, “Krause” derived from Jerry Krause, late Chicago Bulls general manager, with a new goal to buy an NBA team. The crowdfunding, in the form of an NFT sale, ended Thursday morning.
This isn’t going to be a piece of cake.
For a start, the NBA team is a valuable team, according to the Memphis Grizzlies, the team is estimated to be worth around $1.3 billion. Additionally, no one knows how the DAO intends to convince the NBA to be open to collectively-controlled crypto investment. Crypto buying power may have reached its limits.
Organizers of Krause House DAO think that the public will scorn this move and have tried to discourage it. The group’s flight paper reads “We understand the reader’s first instinct may be to scoff at this and say owners will never let this happen.”
The flight paper stressed the power of cooperation and said that if fans can be organized, they can achieve a task.
It says “It’s important to understand that there was a time not too long ago where players were at the same place on the totem pole where fans are today.” Furthermore, “There’s no reason fans can’t do the same if organized correctly.”
DAO Krause House’s co-creator insists that even if the group is unable to achieve its target this time, they will keep the money for the future. These future projects will still focus on becoming a key NBA team bidder. The ultimate goal is to prove to NBA franchise owners that DAO can be an effective way to manage a professional basketball team.
Crypto investing and Non-fungible tokens (NFTs) were not truly popular until the pandemic. Possibly people sought another means to spend their money that blends with the dictates of the restrictions. Crypto buying power has certainly expanded during the pandemic lockdowns.
But, recently, the idea has broadened and now integrates other initiatives. For instance, an attempt to create an improved version of the Internet, that will feature a collective control of major online sites by the crypto community. DAOs are a major player in such a move, to allow users to own real-world things such as the NBA team or Constitution.
According to a key contributor in the Krause House DAO, Lewkowitz, in an interview, “Kraus House is absolutely serious.” “We’re used to thinking about a billionaire buying a team as a one-time event. But this will be different” he continued. And, “It’s about people coming together and taking ownership of something they’re really passionate about. Sports should be in the hands of people who care most about it.”
Although even investors see the ConstitutionDAO mission as a flop and trying to see how to gather some money from the spoils, Lewkowitz thinks it’s not a total waste. He says:
“You can see it as a bid that was lost, or you can view it as thousands of people who came together around a common cause and almost doing something amazing.”
If not for anything, the group’s members do now own NFTs, and this has amassed voting power to the community via the $KRAUSE token.
When people come together with a passionate common goal, their activities usually leave a mark. Even if they weren’t able to secure a feat, they leave prints in the sand of time. DAO has just unveiled the crypto buying power.