What can Leofinance become? Have we thought about the potentiality that exists here?
Cryptocurrency offers enormous opportunities. We are at the epicenter of something being developed that could really make a difference going forward.
Blockchain is only starting to evolve. We are in the early stages, something that promises to generate even more opportunities. All of this leads into the possibility of Leofinance expanding the offering to the community.
Can Leofinance morph into something much bigger, in a direction few of us consider?
Let us explore the idea of Leofinance as a holding company.
One of the keys will be having a Decentralized Autonomous Organizatio (DAO) as a centerpiece. This could be done by issuing another token that is might be based upon the stake one has in LEO. It would be the ownership in the new entity.
As with all coins and tokens, it is vital to start the process of building value. This does not come from simply issuing out cryptocurrency. Here is where sensible business practices enter.
It is vital that we start to think like the major titans of finance and Wall Street. It is how we will be able to replicate what they produce, only in a decentralized and inclusive manner.
DAOs are still a rather new business structure that we have not really experimented with. Nonetheless, there are reasons to believe they will serve a valuable purpose for the world of decentralization.
In the future, we could have a Leofinance DAO as the epicenter of the future road map.
The DAO could then serve as a holding company.
What a holding company? It is an entity that owns the majority of stock in another company. The one that is owned operates separately and is considered a subsidiary of the holding company, also called parent.
Within Leofinance, the idea is to generate revene for the DAO. That is used to acquire other assets that could end up creating value for the DAO.
It is a simple strategy employed by the likes of Berkshire Hathaway and Honeywell. These conglomerates are worth hundreds of billions because of the holdings they have. Of course, those who benefit are the shareholders of the companies.
With Leofinance, the goal is to build something from the ground up, employing many of the same techniques as these companies.
Again, using basic business building skills.
A holding company is starkly different from an investment fund. With the latter, we see the purchase of stocks in an effort to build value. The idea is not to acquire control of the companies as is the case with subsidiaries.
Ultimately, an investment fund is looking for the appreciation in the price of the holdings. The underlying fundamentals of the companies are secondary.
With a holding company, the subsidiary has its own management that operates according to the goals laid out, most often by the parent.
So far, the world of cryptocurrency is filled with funds yet few are looking at building.
This is where Leofinance is different.
We see different applications and revenue flows starting to be created. As stated, we are still very early in this process. However, could that value be translated into something else?
Typically a company will use stock to help fund the acquisition of the subsidiary. Is this something that can be modeled by Leofinance?
We know that we have tokens that are being brought on the open market. Cubfinance is already doing this and Leo Ads is going to bring this to LEO. What else can be done?
These are questions we will have to ask ourselves in the future.
