The potential ripple effect of Bakkt’s success could reverberate across the Blockchain ecosystem by expediting commercial use and widespread institutional adoption. This is the first of several exciting projects the Pantera investment team has identified for Venture Fund III. In alignment with our Venture Funds I and II investment strategies, Bakkt, as well as the two other projects in our pipeline, reflect a continued focus on infrastructure.
Bakkt (pronounced “backed”) will develop open technology to connect existing market and merchant infrastructure to the blockchain, and create an integrated platform that enables consumers and institutions to seamlessly buy, sell, store, and spend digital assets on a global network.
Remember how the music industry turned a deaf ear to its challengers? Overly self-confident, it was unable to address the changes affecting music consumption. Today Spotify, Deezer or YouTube control music distribution across the globe. Same story with Kodak and digital photography. The risk is very real and potentially affects many sectors.
In July 2017, there was an upheaval in the ICO landscape, as the SEC issued a report stating that a cryptocurrency issued by a prominent ICO was a security, and as such, was subject to federal securities laws.¹ Although some ICOs had recognized the value of regulation prior to this, this SEC report was unsurprisingly the impetus for many ICOs to reconsider their position. Further disruption followed on February 6, 2018, when the Chairman of the SEC stated, “I believe every ICO I’ve seen is a security.”²
Google extended the reach of their virtual assistant by building it into Android, but doing so still didn’t provide an answer for how the technology would generate enough revenue to sustain Google’s expanding repertoire of expensive innovations.
“If you did have a million-dollar racehorse, would you let him stay up half the night drinking coffee and booze, smoking cigarettes and eating junk food?” Next question: “Would you treat a 10-dollar dog or a 5-dollar cat that way? What about a billion-dollar body?”