Sunday, July 1, 2018

Crypto Case Study: Bamboo (Acorns, for Crypto)

If we want to talk about the crypto version of Acorns, we first need to know, what is Acorns?

That's Acorns. It's a very, very, very interesting way and tool to help people save small amounts of money without thinking about it, and also a way to invest recurring and even lump sum amounts.

The premise of Acorns is that brain-dead easy. I've talked about Acorns wayyyyyyyy back on my blog in 2014, so I'm actually a very big fan of this model. I think it's a really good and painless way to help people save and invest.

So, the reason why I talked about Acorns first is that there is actually going to be a crypto version of it, and it's called Bamboo.

Same concept - round up small purchases and help auto-invest into a basket of cryptocurrencies.

Acorns was founded in 2012, raised $100m and now is worth about $1.28b.

Bamboo is looking to raise $20m with a valuation of $40m. However, it is important to note that TOKENS ARE NOT EQUITY.

This is where I am kind of meh about the idea of Bamboo.

- Crypto markets are way smaller than traditional markets
- Token is not equity
- Token only has value if (big if) Bamboo takes off and generates so much fees that users want to offset them with Bamboo tokens.
- Barriers to entry is not high (Acorns can offer crypto when crypto ETFs finally come out)

To be very frank, there actually isn't a good reason for Bamboo to issue tokens at all. If they just raised traditional equity VC money and pushed out their product and services and charge fees in cryptocurrency or fiat, it'd be a mighty fine business model already.

This is not me recommending to invest into Bamboo tokens. I'm skeptical on the return to be had as an investor. However, would I use this as a user if this was available in Singapore? Yes, I would.

Anyway, just wanted to share about a rather interesting crypto project to show just how fast this space is developing and trying to catch up with traditional fintech companies.

You can be excited about a company and its products and services, but that does not mean that you have to invest in it.

That is something a lot of new investors fail to realize.

1 comment:

  1. Great information:) Thank you very much. Especially now when I'm planning to implement Microsoft dynamics ax - It will cost quite much (I'm medium company so it's a lot for me). But I know this system and I believe that all this money will be returned.


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