Crypto for advisors: Investing in Web3

Crypto for advisors: Investing in Web3

Crypto for advisors: Investing in Web3 PlatoBlockchain Data Intelligence. Vertical Search. Ai.

These technologies are not separate but related. Just as the term ‘internet’ went from describing a narrow set of technologies to encompassing a range of technologies, business models, cultural upheavals, and social transformations, so too will the term Web3 come to capture this next era of progress.

Advisors and investors are searching for the best ways to gain exposure to these disruptive technologies. In the mid-1990s, we could choose among many emerging internet companies or other firms like Cisco that were seen to be capital on that first era of the web. Other legacy businesses deemed safe bets, such as Blockbuster, Borders, Compaq, JCPenney and Xerox, didn’t fare so well. Those companies had one thing in common: they were about to be disrupted or disintermediated by the first era of the web.

If viewed through the lens of the internet, investors would have evaluated them differently. Today Web3 requires a new lens on the markets. As with the early web of the 90s, Web3 will become an integral technology for business and will create winners and losers. So far, most of the value has been created in blockchains like Ethereum or private enterprises like OpenAI. But what about the public markets? Can investors gain exposure to Web3 by buying stocks?

We believe the answer is yes. Today, dozens of great companies are reaching into the Web3 toolkit to create new products and services, target new customers and unleash new capabilities.

Consider U.S. dollar stablecoins, which we believe will become ubiquitous payment tools, with companies like PayPal (PYPL), which recently launched its own stablecoin, PYUSD. So far, PYUSD is a small part of the overall stablecoin market, but it is growing very quickly, having increased the total supply in the first 100 or so days to around $150 million in circulating supply (Figure 1).

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