Opinion: Tom Bruni, editor-in-chief and vice president of community, Tom Bruni
Since the dawn of the internet boom, it’s almost impossible to hear the term “VC” (VC) without immediately calling out the image of Sandhill Road, and the super fair air surrounding the famous land of Northern California, which pours billions of dollars into tech startups every year.
Silicon Valley VCs and their global counterparts have been sitting in a literal and metaphorical closed situation for decades. Only a few people decide which innovators and trends have received important funding.
While it is obvious that millions of outstanding founders are excluded from capital received every year, what is not understood is systemic exclude Countless potential investors can completely change the game.
That’s why crypto influencers flip scripts and complete what VCs have claimed to do for years: Democratization Right to use To early investment opportunities. Tradfi may use them as “big hype businessmen.” Nevertheless, the fact is that by sharing cutting-edge research and maintaining incentives with followers, crypto influencers have become one of the most responsible investors in the field.
From hype businessman to revolutionary
While critics fear influencers are simply planning to manipulate markets and pump operators of unskilled retail investors, the argument ignores the mechanism of responsibility that influencer-driven investments automatically achieve. Traditional venture capitalists hide behind NDA and other walled gardens, but the advice of bad influencers undermines credibility and receives direct feedback from the community.
Operating in a permanently transparent environment creates permanent accountability. When every trade and outcome is public, influencers must maintain higher standards. At the same time, it is important to note that staying away from “no access” models does not automatically lead to “risk-free” models. Even under the guidance of crypto influencers or online communities, investors will always have to conduct due diligence and act responsibly.
Decompose VC exclusivity issues
Before understanding how this new influencer crushes the venture capital model, it is important to explain why traditional systems are so unique in the first place. In the United States, it is necessary to meet recognized investors Require Legal investment. This includes strict thresholds such as having a net worth over $1 million (excluding a person’s residence) or an annual income of at least $200,000. Most importantly, top-tier funds require personal contact and high minimum commitment. Fees and liquidity are a feature, not a bug.
As a result, less than 2% of U.S. citizens (even fewer globally) can use investment in early stage projects, the highest return period in history. And if you’re not from a big investment hub like Silicon Valley, New York City, or Boston, you’re unlikely to break the mold.
Apart from exclusivity, the system inherently leverages those who have capital and network success, and venture capital has no incentives to initiate changes. By delaying IPOs, companies are building huge valuations in private ways that were once only possible in public markets, limiting the lucrative opportunities for everyday investors to buy.
Influential people open the door to better access
Crypto influencers have completely destroyed the model. Social platforms such as X, YouTube, Discord and Telegram create direct avenues between promising projects and retail investors. They highlighted emerging trends, protocols and founders, who once only retained their job as analysts at VCS.
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They also revealed the entire portfolio (as this information is easy to get onChain), which means that anyone who invests no longer needs to wait several months to disclose their position.
On the community investor platform, retail investors are sharing due diligence, collaborating on research, and highlighting opportunities that would otherwise not be discovered. Everything is public, crowdsourcing, and available to anyone with internet access.
Community due diligence beats closed door analysis
Critics who believe that crypto influencers lack VC-level strict critics fail to see the difference between information flows defi and Tradfi. Crypto communities are committed to fundamental transparency, eliminating intermediary and open technology ecosystems.
OnChain investments have nothing to do with auditable smart contracts, public tokens, and community members that can verify claims in real time. When an influencer recommends a project, thousands of people can immediately analyze the token learning and emphasize the product. Collective intelligence can also identify red flags that even the most experienced venture capital can be missed.
As influencers invest in capital and risk their reputation, they have real skins in the game. This is in stark contrast to traditional venture capitalists who often quietly invest other people’s money and interact with the public only when they benefit from their portfolio.
Each visit is better than exclusive
Although the current investor landscape does not include 98% of participants, influencers have paid a huge amount of money for true financial inclusion. And, as more traditional assets become tokenized and offered to new investors, investors who tend to education, community and personal responsibilities will have new opportunities to thrive.
Traditional VCs are welcome to adapt to this reality or continue to rally behind a system that serves a few. But one thing is clear: real innovation happens when opportunities and capital flow to anyone with the right idea, regardless of their network.
Crypto influencers make this vision real, at a time a transparent suggestion.
Opinion: Tom Bruni, Vice President of Tockettwitz Community.
This article is for general information purposes and is not intended to be considered legal or investment advice. The views, thoughts and opinions expressed here are the authors alone and do not necessarily reflect or represent Cointelegraph’s views and opinions.
