Olivier Stern, a 31-year-old French socialist with an appetite for risk, recently invested a third of his life savings — 10,000 euros, about $11,000 — in a cryptocurrency start-up that has no legal standing and runs head-on into regulatory obstacles, yet might very well upend the mysterious world of virtual investing.
The start-up, a sort of venture capital fund that calls itself the Decentralized Autonomous Organization, has essentially come out of nowhere in the last month and attracted about $152 million, at last count, from investors around the world like Mr. Stern — making it the most successful crowdfunded venture ever, by a significant margin.
The venture, like so many things related to the digital currencies that cryptographers are creating on the Internet, is difficult to describe, and it may not be legal. But thousands of mostly anonymous investors have already heard about it through word of mouth and sent money — in the form of Ether, a freshly coded form of currency that has held itself out as a new and improved version of Bitcoin, the most popular virtual scrip.
For these investors, in some sense it is the digital equivalent of buying into a bakery with no baker, no menu and no assurance that the ovens will even be delivered. But among the crowd that has invested, faith in the computer code that governs the project appears strong enough to override all those concerns.
After it collects Ether from investors — the deadline to buy in is May 28 — the D.A.O. aims to put the money into other digital currency start-ups. The investing decisions are to be made through online polling of shareholders like Mr. Stern, who has a day job dealing with parking policy in the town of Montreuil, just outside Paris.
“I think it is the beginning of something that could, in a way, make history,” said Mr. Stern, who previously lost a small sum of money he invested in Bitcoin when a major Bitcoin exchange — Mt. Gox — went bust. “Maybe it can fail, maybe it can succeed, but for sure it is an idea that is very interesting.”
The rise of the new venture comes at a time when the technology underlying virtual currencies is rapidly being embraced by the mainstream: Most Wall Street firms and many central banks are experimenting with the blockchain, the online ledger system that Bitcoin and Ether pioneered. Banks hope the blockchain, or something like it, can provide a faster, cheaper way of conducting transactions and storing data.
The Latest on: Decentralized Autonomous Organization
via Google News
The Latest on: Decentralized Autonomous Organization
- Why The 2020s Could See The Rise Of DAOs: Decentralized Autonomous Organizationson January 29, 2020 at 7:51 am
The world is run by organized people. CEOs organize talented workers and scarce resources to keep their customers happy. Politicians organize the constituents they serve and the machinery of ...
- Cryptocurrency in Focus: Aragon Aims for 'Cosmos' to Expand DAO Offeringson January 22, 2020 at 9:11 am
The team behind the Aragon Network is building software that allows for the creation of "decentralized" organizations -- known if the industry as Decentralized Autonomous Organizations -- that can be ...
- IOST (IOST) Node Operator PHI Launches DAO Project in Switzerlandon January 22, 2020 at 2:18 am
PHI, a Japanese distributed ledger technology (DLT) project that is part of the IOST (IOST) developer community, is co-hosting a blockchain summit with IOST in Switzerland, as part of plans to promote ...
- Cryptocurrency in Focus: Ethereum Classic Moves Closer to Sister Blockchainon January 15, 2020 at 4:20 pm
Ethereum Classic was created after the hacking of the Decentralized Autonomous Organization, a virtual venture capital fund. In the summer of 2016, an attacker stole $50 million in ETH -- Ethereum's ...
- FKEx, An Autonomous Mining Pool Trading Platform, Grandly Came into Existence in 2020on January 13, 2020 at 8:46 am
Headquartered in Singapore, FKEx is the world’s first autonomous mining pool trading platform. It aims to achieve decentralization through decentralized management of centralized exchanges.
- Lex Sokolinon January 8, 2020 at 10:19 am
Lex Sokolin is the Global Fintech Co-Head at ConsenSys, a blockchain technology company building the infrastructure, applications, and practices that enable a decentralized world. Lex focuses on ...
- Maker Foundation, Supporter of MakerDAO Project, to Transfer Maker and Dai Trademarks to Denmark-based Foundationon January 2, 2020 at 5:20 am
Maker, a Santa Cruz, California-headquartered creator of a decentralized autonomous organization, called MakerDAO, has contributed to the development of the world’s largest Ethereum-based ...
- BackPacker Coin Is Managed By DAMOon December 27, 2019 at 4:00 pm
BPC is a true decentralized system managed by DAMO, the first decentralized autonomous meritocratic organization. A decentralized autonomous meritocratic organization has the ability to use ...
- Traditional Banking Vs. Decentralized Financeon December 18, 2019 at 12:21 pm
Nor is it a corporation, partnership, society or NGO. It’s a DAO, a Decentralized Autonomous Organization. The ancient Chinese Daoists, who always sought to live in harmony with Dào (道 ...
- OKEx exchange to integrate Dai Savings Rate, allowing users to earn 4% returnon December 16, 2019 at 11:59 pm
MakerDAO, a decentralized autonomous organization behind the Dai stablecoin ecosystem, announced the news Tuesday, saying that OKEx will integrate the DSR on Dec. 23 for its “millions” of users. Once ...
via Bing News