Why building a company in the crypto space?
Regulatory uncertainty, widespread unprofessionalism and sheer scams, as well as an widely unstable market. Inspired by Li Jian’s article that summarizes his questions to entrepreneurs before investing in their projects, I want to reflect on the particularities of the crypto space and show why we decided to build a company in this crazy surrounding.
Why are you building this company?
For the background: Midas is the result of my experiences as day-trader/investor in the traditional finance world and the opportunities provided by the blockchain technology to finally shake up investment markets. With building a blockchain-based asset management system we tackle several deficits of the old world:
- high entry barriers in terms of money and time
- lack of competition
- lack of transparency and of accountability
- lack of retail investor protection (despite regulations)
With Midas we aim at creating a global, open and transparent investment system that allows everybody to invest and generate benefits regardless of starting capital but based on smart thinking and great ideas. We want to set free economic powers of those people who have been excluded from investment markets so far. In the end everybody should be able to use the platform: aunties, friends, neighbors and colleagues. Midas connects people in an open space and enables them to invest together.
Why do people want this product?
While investing has not been necessarily the most exciting activity, we provide an easy and playful access to investment markets. At the heart of the Midas app resides the idea of engaging in investment activities through a social network interface. We believe that social media is by now its own form of interface with built-in trust creation. Users instinctively know how to navigate this space. Community and collective investing experiences create common objectives and strengthen economic as well as social links among users which again reinforces their attachment to the platform.
So far, investing has a rather small appeal to average, non-rich people. This also derives from the limited set of available assets on the market. While most people don’t even know about ETFs, derivatives or index funds, they assume that requirements for investing in shares or other traditional assets like real estate or commodities exceed their private holdings. Today, basically every asset on the planet becomes available and affordable to anyone through tokenization. As a modular system, Midas is able to integrate any token-providing business and thereby offers the greatest variety of assets with a special focus on retail assets. Prediction markets or crypto collectibles are not located within the classical frame of investing and finance and have the chance to become assets that people actually care about.
Ultimately, Midas’ high level of transparency comes with a competitive moment: being able to see the performances of others at all time and getting opportunities to increase one’s own performance through competitions and challenges, produces a steady sense of excitement and the continuous possibility to improve. At the same time, the platform provides users with the basis for informed investment decisions and enables investments with positive impact while giving the chance to receive rewards. Gaining a fun and social connotation, with Midas investing becomes an everyday experience.
Why is now the right time to develop it?
Blockchain and smart contracts are powerful tools. They can increase security, transparency, control, while decreasing costs and other thresholds. The technology emerges at a time where more and more regions in the world are thriving to become equal participants in the global economy, creating a need for structures that work beyond borders and national issues. Bitcoin as a worldwide independent medium of exchange, even if still at an early stage, is one example for such a system.
We believe that the near future will be shaped by a massive increase in liquidity through tokenization. Midas is an ecosystem that connects people with this tokenized world and provides an ultimately comfortable and appealing way to participate in it and gain fortune by doing so. While the traditional finance world is still trying to get their head around the technology and sort their ways to integrate it in existing systems, alternative systems will not necessarily replace traditional ones, but provide a different, open and decentralized access.
Highlighting the promises of the technology, it is also important to note that the crypto state is still at an early stage. Blockchain-based solutions are far away from mainstream adoption which is good as many things are still uncertain and existing systems vulnerable in various ways. The ecosystem has to evolve, the tech has to be tested and projects have to mature. One of the most overlooked aspects at the moment is usability. With Midas we make a big step in this direction and pave the way for mass adoption. The Midas Touch and its underlying investment process takes away a lot of pain from users and makes investing on the blockchain actually as easy and fast as clicking the Like button.
Why is your team the one to do it?
Our team merges expertise from all relevant fields: cyber security/information security research, partnered with financial and investment expertise. The decision to deploy the Melon protocol is based on proficient knowledge and comprehension of financial market products, their benefits and disadvantages as well as their perspectives and potentials in a fully digital world.
In German there is the word “Fachidiot” which basically describes the one-track-specialist that is a genius in his field but doesn’t have the capability to look beyond his area of expertise. While knowledge, expertise and experience are indispensable to build a solid and successful project, these skills do not necessarily lead to success. What makes Midas special is our skill to see the greater picture. The diverse setup of the team brings together members from all over the globe and gives an impression of our broad perspective and the capability to see technology and markets in wider social and cultural contexts. We believe that our skills and our way to look at the world gives us the chance to create something truly innovative and unique, something that is build for the people.
Why is not everyone already working on this?
While existing platforms or services only offer parts or light versions of our service spectrum, all other platforms only focus on the crypto space as easy and fast way to access a booming market. Midas is built on long-term planning and a strong vision that certainly demands patience and persistence to sort all relevant elements, such as legal regulative obstacles. While others build short-term work-around solutions, we chose a cautious and secure way that already brought us strong partners who share our vision and effort. This is why in the end, Midas will provide a service that does not compete with existing platforms but exceeds their services and thereby becomes a key player in the ecosystem.
Why does this platform get more powerful over time?
As for any other platform-based business, the more users are convinced of the service the stronger the ecosystem becomes. We particularly focus in social experience through community functionalities and outstanding user experience to give retail investors a space for sharing, following, discussing, interacting and investing together. As more users sign up, incentives for business will increase to join and offer their products as tokens. Built as an open modular system, Midas is technically flexible to integrate new technologies or external services in order to steadily improve the service range and its user experience.
Why will you do this better than a bigger tech platform company would do?
While big players look on a big user base, they also look on a huge set of services, products and structures that people are used to. Changing them according to new technologies is often difficult, plus in many cases a potential strategy change is dominated by the fear of losing customers or endangering the overall business. A fresh venture like Midas comes with an open mind and thorough understanding for the current development. We are aware of challenges that big tech companies can represent towards new small players in the market, but at the same time we are convinced of our flexible and scalable business model, our team skills and capabilities, our passion and above all our product that will satisfy the market need for inclusive, transparent and modern investment systems.
BTW: Midas just launched a beta sign-up with airdrop!
