Opinion by: Tom Bruni, Editor-in-Chief and Vice President of the Community, Stocktwits
Since dot-com boom dawn, it is almost impossible to hear the word “VC” (venture capitalist) without immediately linking an image of the sandhill road-and the ultra-exclusive wind surrounding the famous land stripes in northern California responsible for pouring billions in tech startups each year.
The Silicon Valley VCS and their global counterparts have been sitting behind the literal and metaphorical closed doors for decades. Only a few people decide which innovations and trends receive access to important funds.
While it is clear that millions of brilliant founders are not included in the acceptance of capital each year, the less understood is the systematic Exclusion of countless potential investors that can completely change the game.
That is why crypto influencers are flowing in the script, which has done what VCs have been doing for years: Democratizing Access in early stage investment opportunities. Tradfi could brush them as “Hype entrepreneurs.” In fact, by sharing research on cutting and aligning their incentives with their followers, crypto influencers have become some of the most responsible investors in space.
From the Hype entrepreneurs to the revolutionaries
While critics are concerned with influencers are only pump-and-dump operators who are planning to manipulate markets and undisputed investors, this argument ignores the mechanisms of liability automatically placed by investment driven by the influencer. Traditional VCs have a luxury of hiding behind NDA and other walls, but the bad recommendations of the influencer destroy the credentials and receive immediate community feedback.
Running in a permanent transparent environment creates permanent responsibility. Influencers should maintain higher standards than VCs operating with limited supervision when each trade and outcome is public. At the same time, it is important to note that moving from a “unaccompanied” model will not automatically result in a “risk” model. Investors always have to do their right diligence and act responsible, even under the guide of a crypto influencer or online community.
Incision — Separate the problem exclusively by VC
Before understanding how the new breed of these influencers has fallen into the VC model, it is important to explain why the traditional system is exclusively in the first place. In the US, one must meet the accredited investor requirements to legal to invest. This includes strict thresholds such as having more than $ 1 million in net value (excluding basic accommodation) or an annual income of at least $ 200,000. On top of that, top-tier funds require personal connections and extremely significant minimum promises. Fees and immortality are a feature, not a bug.
As a result, less than 2% of United States citizens-and even fewer people around the world-have access to invest in early stage projects, the historical period of the highest return. And if you are not from major investment hubs like Silicon Valley, New York City or Boston, you are more likely to ruin the mold.
Adding to being exclusive, the system naturally favors those with capital and networks to succeed, and VCs do not have incentives to start the change. By delaying the IPOs, companies build immense private values that used to be only possible in public markets, limiting the day -to -day investors from purchasing to useful opportunities.
Influencers have opened the doors to better access
Crypto influencers completely break this model. Social platforms like X, YouTube, Discord and Telegram have created direct paths between projects and retail investors. They emphasize the emerging trends, protocols and founders, the analyst working ethic work is sometimes reserved only for VCs.
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They also exposed their entire portfolios (as this information is readily available on onchain), which means anyone who has been investing about investment will not have to wait months for VCs to disclose their positions.
On community investor platforms, retail investors share appropriate efforts, research cooperation and highlighting opportunities that are not impossible to discover. Everything is public, most resources, and available to anyone with access to the Internet.
Community Due to the exam of the closed door review
Critics that argue that crypto influencers lack VC-level levels of disagreement to see the difference of information flow between Defi and tradfi. The crypto community focuses on radical transparency, removal of mediators, and open tech ecosystems.
Onchain investment cannot be tied to auditable intelligent contracts, public tokenomics, and community members who can prove claims in real time. When an influencer recommends a project, thousands of people can immediately study tokenomics and stress-test the product. Collective intelligence can identify red flags even when the most experienced VC can miss.
Because influencers invested in their capital and risk their reputations, they have real skin in the game. This is in contrast to traditional VCs, who often quietly invest in other people’s money and only interact with the public when it benefits from their portfolios.
I -access the exclusivity of trumpets each time
While the current investor landscape does not include 98% of participants, influencers have led the way for real financial integration. And, because more traditional possessions have become a sign and available to a new class of investors, those who depend on education, community, and personal responsibilities will have new opportunities to thrive.
The traditional VCs are welcome to adapt to this fact or to continue ranging behind a system that serves a few at the expense of many. However, one thing is clear: real change occurs when capital opportunities and flow to anyone with the right idea, regardless of their network.
Crypto influencers make that vision true, a clear recommendation at a time.
Opinion by: Tom Bruni, editor-in-chief and vice president of the community, stocktwits.
This article is for general information purposes and is not intended to be and should not be done as legal or investment advice. The views, attitudes, and opinions expressed here are unique and do not necessarily reflect or represent the views and opinions of the cointelegraph.
