So they didn't win the auction. Cue Nick Cage freaking out video...
The next step is the complicated business of returning money to the contributors, minus gas fees.
According to this Techcrunch article, this event is still quite remarkable despite the setback.
- it attracted a lot of novice crypto users. This means it is an effective method to introduce more people to crypto.
- in about a week, over 40 million dollars was raised from about 19,000 people (including Elon Musk's ex-wife Grimes). That's a very fast way of pooling resources.
There are drawbacks of course. DAOs provide a quick way of raising funds fast, but oversight and regulatory structures are lacking. DAOs are also "not governed by a concrete legal structure, so protocol developers and participants hold heightened liability compared to shareholders of regulated corporations."
Quick and easy ways of moving large amounts of money around might will attract fraud and conmen.
This looks like a space with potential development and room to grow. However, interested observers might wish to see how the aftermath of the failed bid is handled..
If you liked the Get in the Cage video from yesterday's post, here's more Nick Cage for you:
None of the above should be construed as investment advice. Do your own due diligence as I will not be responsible for any loss/risk.
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