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Health, Wealth, and Happiness

September 29, 2023

“Working because you want to, not because you have to, is financial freedom.”

- Tony Robbins

Howdy investors!

Today's column is a journey into therecently-released "Tokenization: Overview and Financial Stability Implications" paper from the Federal Reserve. It looks at the potential implications of tokenizing real-world assets, and we unpack what it means for investors.

While the Fed is typically the biggest market mover, that's not been the case this week. Instead, all eyes are on Congress to see if they can - once again - avoid a government shutdown. As faith is shaken in traditional government, crypto may once again stand to benefit.

The Fed is one of many groups looking at tokenization. A recent piece from Decrypt suggests that tokenization could be the next catalyst for massive crypto adoption, particularly where it provides a bridge between online and offline lives.

And finally, Coinbase CEO Brian Armstrong is joining with other crypto entrepreneurs on Capitol Hill to continue to push for regulatory clarity in the crypto industry.

Keep reading to learn more.

Everything is Going to be Tokenized. Here’s What It Means.

by Steve Walters

TL;DR: Tokenization is where we bundle commodities, real estate, or other financial assets into blockchain-based tokens, so they can be traded on crypto exchanges. It’s a way to transform real-world assets into crypto assets; another way that DeFi is becoming integrated with TradFi.

Our view is that everything is going to get tokenized. Anything of value will get turned into crypto tokens that can be bought, sold and traded, which has huge implications for investors.

I’ve written before about the tokenization of real-world assets, so it only made sense for me to delve more deeply into the recent Federal Reserve paper on tokenization (read it here). I found a narrative that shows the Fed is taking tokenization seriously, as well as its transformative potential for investors.

In today’s piece, I unravel the implications of tokenization for crypto investors, the opportunities it presents, and the speculative future hinted at by the Fed.

Click here to read the full story >>

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New Webinar: A Five-Year Review of Bitcoin Market Journal Scorecard Analysis

When we started our Blockchain Investor Scorecards in 2018, we saw them as a way to support research, due diligence, and investment best practices in crypto.

We even published our evaluation framework in an academic journal.

But the proof is always in the pudding. Simply put - do our scorecards work?

You're about to find out.

Join us on Thursday, October 5th, to see the results of our research. In this members-only Zoom workshop, we'll cover our scorecard ratings, and whether they've predicted higher token prices.

Premium Members: Click to reserve your spot before October 5th.

Not yet a Premium member? Sign up and get access to this exclusive webinar as well as our library of scorecards.

Must Read

Today's most important stories for crypto investors.

Bitcoin Rises as Crypto Traders Turn Bullish on Government Shutdown (Barron's)

Investor takeaway:Bitcoin and other cryptocurrencies are experiencing a surge, with Bitcoin rising 2% to over $27,000, as traders speculate on the potential impact of a U.S. government shutdown.

Some traders view such a shutdown as favorable for cryptocurrencies, reinforcing the value proposition of decentralized currencies as unaffected by government procedures and reflecting the periodic dysfunction of governmental processes. However, there are associated risks, as a shutdown could drain market liquidity.

For investors, the situation certainly bears watching to see how markets react if a shutdown becomes a reality.

Real-World Passions will Onboard the Next Wave of Crypto Adopters (Decrypt)

Investor takeaway: In the Web3 space, there's a shift towards integrating real-world experiences to enrich digital identity to bridge online and offline lives. This approach, focusing on user-centric and experience-driven solutions, is crucial for mainstream crypto adoption, offering tangible value to consumers beyond complicated tech narratives.

The evolution of NFTs reflects this trend, moving towards tokenizing real-world experiences and adding depth to digital identity. This development holds promise for attracting new crypto adopters and represents a potential growth area in the crypto and Web3 space for investors.

Coinbase CEO Joins Entrepreneurs on Capitol Hill to Push for Clear Crypto Rules (CNBC)

Investor's Takeaway: Coinbase CEO Brian Armstrong has traveled to Washington to join with other crypto entrepreneurs to get increased regulatory clarity from Washington lawmakers. It's part of Coinbase's "Stand with Crypto" campaign, which seeks to advocate for pro-crypto policies and crypto innovation worldwide.

Armstrong has been critical of the SEC's seeming war on crypto and the slow pace at which lawmakers are working on regulatory frameworks for the industry. We are sure that he is making a difference and that Washington's stance on crypto will improve.

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