Crypto Powers the Largest Crowdfund Ever
In September 1787, printers made 500 copies of the U.S. Constitution.
Only 13 out of the 500 copies remain.
Of those remaining 13, 11 of them are at places like the Library of Congress.
That leaves only two in private collections.
It’s been decades since one of these copies went up for sale.
So when Sotheby’s announced its intention to auction a copy of the U.S. Constitution, the world took notice.
And a group of crypto entrepreneurs hatched a brilliant plan to purchase it.
The Next Big Trend in Crypto
ConstitutionDAO formed to crowdfund the purchase of a copy of the U.S. Constitution.
The crypto network raised over $42 million in a matter of days from 17,000 participants, who each contributed an average of $206.26 in Ethereum.
This seemed more than enough given that Sotheby’s estimated the copy would sell between $10 million to $15 million.
Sotheby’s said: “This is the largest crowdfund for a physical object that we are aware of — crypto or fiat.”
But “we the people” of the DAO didn’t win the bidding war.
Unfortunately, Citadel founder Ken Griffin outbid it.
You might recognize his hedge fund’s name. Some people have accused it of partnering with Robinhood and profiting off the little guy’s orders.
So, the DAO was unsuccessful.
But this could be the next big trend in crypto…
Like an LLC for the Internet Age
A DAO (pronounced “dow”) is short for decentralized autonomous organization.
It’s an online organization founded for a common purpose.
It allows for the formation of an online community that can pool funds. Computer code can govern those funds.
Think of DAOs like an LLC for the internet age.
There are DAOs dedicated to purchasing rare NFTs (such as CryptoPunks or Bored Apes).
Members can have a stake in these rare digital items for a small investment.
There are DAOs that invest in decentralized finance to earn higher yields.
There are also DAOs that purchase real-world items.
For example, PleasrDAO bought a rare Wu-Tang Clan album for $4 million.
(Your editor would have liked to be a part of this one!)
A New Form of Online Governance
Sometimes, DAOs require ownership of a specific NFT.
This is possible with new apps that use your digital wallet to verify access to a website or Discord server.
And some of these NFTs are more expensive than the ritziest golf club in Palm Beach, Florida.
There’s a lot of excitement around DAOs right now.
One nearly purchased a copy of the U.S. Constitution!
Even though it failed, a new form of online governance was born.
Editor, Strategic Fortunes
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My career on Wall Street started while I was in college. I spent a summer interning for Merrill Lynch in the middle of the ‘90s bull market. I was fascinated with trading, and as a result, after college, I joined Salomon Brothers in the famed mortgage bond trading department. Later, I spent time at Citigroup working with credit derivatives. Eventually, I needed to walk away from the excess of Wall Street. That’s when I joined Banyan Hill in 2017. Now I help readers get ahead of the market and build their retirements.