The FAQs section accesible from the website home page is an important means of recruiting sophisticated investors into the PowerPool community. This material can also be repurposed for marketing via social media and paid advertising, and is important to make available in a wide range of languages.
Q1: Is crypto investment really investment?
A1: Distributed network computing (blockchain/distributed ledger) is an historic technological innovation that will have major implications for economic activity and the distribution of revenue/value/rents in the very near future. The infrastructure itself is generalized and can and will be used for any and all financial products into the future including real-world assets. In the end, only protocols that find a true revenue model for token holders will survive because they can’t issue new coins forever. Many DeFi protocols are chasing short-term circular games for vanity metrics like TVL/AUM. But innovations such as computers, spreadsheets, databases, the Internet and social media were all derided for years as niche games for techies. We all know how that turned out. Investing in crypto tokens at this stage is basically taking a position in future options on crypto-primitive DAO-managed revenues.
Defi has already disrupted early-stage VC paradigms with fair launches and permission-less listings. In TradFi the average investor is legally barred from investing on lucrative early-stage pricing and terms. Investing in serious, responsible, revenue-generating crypto tokens via DeFi enables anyone to be a VC, no matter how small the investment. This is an historic and important advance, because VCs do not invest in a single venture, they invest in many, hoping that at least one will generate the out-size returns to more than offset the many investments that decline in value or fail totally. PowerPool makes this kind of pooled VC investing possible for the average investor at any scale. Not only is pooled early-stage/venture investing now possible, the resulting crypto assets held can also generate rewards/yield and be freely bought or sold, with no institutional/stock exchange listings or credit decisions required. This combination of early stage terms with 24/7 liquidity, leverage and the ability to hedge create an investment opportunity combination that has never existed before.
Q2: What about Bitcoin & Ethereum in pools?
Q3: Why create xCVP instead of just using CVP?
We need a good answer for this question...