What’s up, everyone! Today, I want to explain how NFTs will change the fund world!
But first, let’s review what a fund is…
Wait, What’s a Fund?
A fund is where investors put their money. Fund managers invest that money. The returns of the investment are distributed to the fund managers and investors.
In traditional funds, the investors have to be wealthy and accredited.
DAO (Decentralized Autonomous Organization)
However, a DAO fund has a similar structure but doesn’t require accredited investors.
Smart Contracts are used instead of fund managers. The Smart Contracts determine where the money goes (similar to an index fund).
Recently, a DAO fund was made to run the Denver Broncos! Individuals with more tokens in the fund have more of a say in the fund’s decisions.
Pros of NFT Funds?
- Liquidity – unlike regular funds, NFT funds are liquid
- Availability – every day people can invest
- Potential – will continue to grow in popularity
Will this do away with regular funds?
Like I said in my video…
” I don’t think so. Traditional venture capital and hedge funds will be necessary and still very valuable. These funds could possibly adopt the DAO fund model.”
I think there’s at least 10 years before these funds experience this adoption.
And that’s how NFTs will change the fund world!
Want to get direct guidance for your fund? Schedule a time with my Fund Advisors!
DISCLAIMER: This content is for educational and informational purposes only. It is not to be taken as tax, financial, or legal advice. You should always consult a legal professional before taking action. Furthermore, this is not a recommendation to buy or sell any security. The content is solely just the opinion of the authors.