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Gooood morning, Rainmakers!
As always, I have two incredible topics for you to dive into:
1️⃣ Miami Accepts $5m+ in Crypto via CityCoins: The City of Miami claimed over $5m in proceeds from MiamiCoin mining rewards!
2️⃣ Exodus Goes Live and Pops the First Day: The exodus security token went live and skyrocketed 173% on its first day of trading!
Get liquid 💧
🏫 Miami Accepts $5M+ in Crypto via CityCoins
If Miami couldn't get more innovative, CityCoins just helped catapult them to a new level!
Miami prides itself on being the most innovative and forward-thinking city in the world.
CityCoins is an open-source blockchain protocol that aims to give communities the power to improve their cities while providing crypto rewards to individual contributors and city governments alike!
Miami was the first city to fall.
Confused? I was too! Let me break this down for you:
CityCoins are cryptocurrencies powered by the Stacks blockchain protocol.
MiamiCoin was the first CityCoin cryptocurrency to be developed.
There are two functions of MiamiCoin:
- The MiamiCoin did not have an ICO nor are they pre-mined - they are mined by forwarding the Stacks token, which is the token that powers the Stacks blockchain protocol, to the MiamiCoin smart contract.
- 70% of the proceeds from mining go to the MiamiCoin holders who locked up their MiamiCoins on the network.
- 30% of the proceeds are sent to the City of Miami's wallet, which is overseen by a 3rd party trusted custodian!
- Stacking is when MiamiCoin holders lock their MiamiCoin in the protocol, in order to earn STX coins.
- They are rewarded in STX coins from the 70% of forwarded STX from MiamiCoin miners.
It's been less than two months since the MiamiCoin project launched, and the value of the City of Miami wallet is worth over $5.7m!
This got Mayor Suarez's attention and decided to accept these funds on behalf of Miami!
The craziest part is when Miami decided to accept these funds, they were worth $4.3m.
Today, the $4.3m is worth over $5.7m!
"What are they going to do with the proceeds.”
Mayor Suarez and the City of Miami have already disclosed some of the initiatives they are going to fund:
Programs to mitigate the potential risks of climate change for Miami citizens
Funding new initiatives for underprivileged communities
Crypto education and incentives for tech entrepreneurs
That's just the beginning though.
As MiamiCoin and CryptoCoins blossom, the City of Miami is going to be in a very healthy financial position.
I would recommend more cities jumping on the bandwagon or Miami may leave everyone in the dust.
📈 Exodus Goes Live and Pops The First Day
The most anticipated security token of our time officially commenced trading on the tZERO ATS!
With over 1 million users and a valuation upwards of $700m, Exodus is seen as a premier digital wallet platform.
The first day of trading felt like an emotional rollercoaster. 🎢
In the first 90 minutes, it skyrocketed ˜173% from $27.42 to $75!
“Any reason it went this high?”
One of the key metrics that most people don't pay attention to when valuing a private company is liquidity.
If an asset has more liquidity, it is said to trade higher than a comparable illiquid asset.
Liquidity refers to the ease with which an asset can be converted into cash.
Traditionally, in the private investment world, trading is highly illiquid.
For instance, let's play out a scenario for Exodus.
Exodus decided not to tokenize their equity.
- This means that the equity holders would not have the ability to sell their stake on the open market.
- It also means that the valuation of the company would remain the same. The only way for Exodus to increase its valuation would be if they raised at a higher valuation.
Exodus decided to tokenize their equity (this is what actually happened).
- This means that equity holders of Exodus would now be able to trade their stake on the open market.
- Because the equity is now trading on the open market, the valuation of the company is up to the market forces (supply and demand).
In Scenario #2, Exodus raised $75m via tokenized equity from 6,800 investors. Because the trading price shot up 173%, the valuation of the company also increased by 173%!
This is a real-life example of liquidity impacting the valuation of a company.
It's important to note this goes for any type of asset.
If any high-quality real estate funds or properties became liquid, there's no telling how high the valuations would go.
The opposite is also true.
If an illiquid asset becomes tradable on a liquid market and the market determines it was valued too high - the valuation can also plummet!
What else is Drippin’💦
Jonah Schulman Interviewed the TreeBR Team & Digital Markets: Listen to how TreeBR is working to save the Amazon via carbon credits!
The August 2021 Security Token Real Estate Market Report is Live: Market cap held steady, yet volume surged!
Oasis Pro Markets & Anchorage Digital Sign Strategic Partnership: The partnership enables Oasis to leverage Anchorage for on-chain custody & settlement!
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Thanks for tuning in! Keep an eye out each Monday for the next security token adventure 🧗♀️
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Everything in this report is for informational and entertainment purposes only. Nothing in this report should be taken as financial advice or as an inducement to purchase or sell any security. Nothing in this market report should be used as legal advice. Always do your own research before making any decisions regarding financial transactions of securities.