Crypto 101: What in the World is a DAO?
2022 is probably going to be the year of them...
The other day, I read a startling headline.
Links DAO raised millions selling NFTs to buy a golf course, blared an article from CNBC from January. A golf course.
And not one in the metaverse, one here, in the real world.
Now, the Links DAO hasn’t bought the course yet, but it is gathering the momentum to do so. A quick glance of the DAO’s website outlines the roadmap, which includes a plan to acquire the course in mid 2022, then expand to additional course locations. Basically, this is a golf enthusiasts dream—to not just play on a golf course, but to own a piece of one.
So what the heck is a DAO, anyway? That’s one of the biggest questions of 2022.
Here’s a basic breakdown:
DAO stands for decentralized autonomous organization. Once again, this is a case of internet shortening. DAO is easier to pronounce and type. It’s simpler, just like how NFT is short for non-fungible token.
Transactions for a DAO are maintained on a blockchain. Many of the prominent DAOs use Ethereum, but it might not always stay that way.
Think of this as a type of crowdfunding. DAOs often use specific tokens or NFTs for governance, decision making, and proof of membership.
DAOs often rely on smart contracts. These smart contract then execute when conditions are met.
DAOs can have one purpose or multiple purposes. That’s the beauty of the structure, it can be made to fit the situation.
Legal standing for DAOs can be fuzzy. Before investing in one, make sure you’ve researched all aspects.
The bottom line—you’re going to hear about more of these in the coming months and years. DAOs are an emerging style of investment, and the possibilities are immense. If DAOs are already purchasing golf courses, what else might be coming?
We’re about to find out... and you want to read more on the topic, then you can go here.
Or, feel free to read this great primer on the topic.
Plus…
Talk about a bullish forecast— financial tracker FSInsight released a note saying Bitcoin could reach $200,000 before the end of 2022. The report also said Ethereum would reach $12,000 a coin in the same period.
Not to be outdone by the New York Post, The New York Times has profiled a number of people who say cryptocurrency has made them rich, particularly through their altcoin investments.
Use Cash App? Everyone who does can now send Bitcoin on the Lightning network. Cash App is a division of Block, the company run by Jack Dorsey.
Finally…
The latest episode of The Crypto Connection on Twitter Spaces is here! Check it out by clicking on this link!
The Crypto Connection is for entertainment purposes only and is not meant to be financial advice. Please do your own research before investing in any asset class. Sara Celi is not a financial advisor, and holds several cryptocurrencies. To purchase her books on Amazon, please click here.