No girls and boys. That is not a typo.
It is Sunday so it is time for fun with numbers leading to outrageous claims. But is this an outrageous claim?
In this article, we will spell out the path to $1 billion for the entire Leofinance ecosystem. Remember, the idea going forward is the LEO will be the "umbrella" token for the entire platform.
Also, bear in mind that this is not saying that the LEO token itself will have a market cap of a billion dollars. Instead, this is the totality of what is going to take place.
Once again, I must state that this is speculation on my part and is not to be taken in any way as being condoned by the Leofinance team. These are simply thoughts (delusions) in my mind, not even qualifying as an unofficial announcement. In short, this is all stuff I made up.
Now that the disclaimer is out of the way, onto the road to a Billion.
So how do we get there?
The key is to look at Leo as a platform upon which all else is built. This is the foundation. From here will spring a host of applications, all of which can pull in users. Each one will have a targeted market meaning we can cater to the needs of the cross section of the online world.
Obviously, the starting point, from now, is the release of #projectblank. This is the microblogging application that expands the use cases on Leo. While Leofinance is long form content focusing upon crypto and finance, projectblank will be all inclusive. Titled Twitter on the blockchain, it is short form content that can be general in nature. Want to put up a picture of your cat? Projectblank. Want to call the President a fool? Projectblank. Want to share a chart of your favorite stock? Projectblank.
As we can see, this is a massive expansion of the potential for the ecosystem. The number of people who are interested in general short form content compared to financial blogging is enormous. Here we see where the network effect can really ascend the value of that token when it is released.
Something that is important to point out is the fact that the development team spent a lot of time building infrastructure. This not only applies to Leofinance.io but also LeoInfra and ultimately Leodex/LeoFi. The coding is in place from which to build more. That is vital since each new project is not starting from scratch.
For this reason, we are seeing Projectblank being released within a few months of making the decision to create it as its own standalone, general DApp. If this started from scratch, it likely would be a 6 month project.
The point is we can see this going forward.
So where can things go?
In my mind, once we hit upon a decentralized alternative to Dorsey's app, what about Zuckerberg? How about Hivebook (LeoBook)? Why couldn't a social media DApp be put together to model something like that? Here again, I am not saying it is on the agenda, just thinking out loud.
Whatever the next few applications after projectblank, we know they will be tokenized. This means that we will see many different markets opening up relating to the different aspect of Leofinance. More tokens will equate to greater overall value if the network effect is activated. This obviously only happens with more users.
Beyond social media, we also have to consider LeoFi. This is the idea that decentralized finance is brought to Leo. While we have few details, our understanding is that platform will be released shortly. The first aspect, we were told, is going to be leasing, followed by other forms of financial activities. We can only surmise what those are yet we can presume they will model some of what is taking place on Ethereum and Binance.
At present, we see Uniswap, an application on Ethereum, has a market cap of $6 billion for its governance token. This shows the value of a token tied to a successful project. Naturally, we could apply this same logic to the entire Leo ecosystem and the governance token which will be released there.
Am I claiming that it will rival what Uniswap achieved? Not at all. However, it does show the potential and, if the Leo ecosystem keeps growing, it could achieve a value maybe 1/10th of that.
In my last video I spelled out how there is going to be an unbelievable amount of wealth generated in this entire industry over the next 5 years. Leofinance is no exception. $1 billion sounds like a large number until you start breaking things down. With more pieces being added, how much success does each aspect require to drastically increase the overall value?
Of course, piecemeal is not where the big numbers come from. Rather, it is the interconnected network of all the parts, creating an ecosystem that offers opportunities to a large segment of the population. After all, Facebook is far move valuable because they have the native app, Instagram and WhatsApp. Facebook is for old people according to Gen Z. That is okay with Facebook since Instagram is where the younger ones are.
Leofinance can offer a similar model. Once someone enters the ecosystem, no matter where they are onboarding, they can have other aspects marketed to them. For example, some projectblank users could be ideal candidates for Leofinance.io since they are successful bloggers on LinkedIn, Wordpress, or wherever. Of course, many who enter the crypto space and get rewards will have some interest in DeFi. The idea of taking token and generating a return off them will appeal to most.
This is a proven model. Have you ever wondered by car dealerships tend to be grouped together? Why would they want to compete right next to each other? The answer is rather simple: you can say not to one dealer, you likely cannot say no to 5 of them. Thus, the chance of someone buying a car from one of the dealers is increased if they are all bunched together. They have no idea which dealership will get your business only that there is a good chance one of them will.
It is the same thing here. Once someone is in the ecosystem, we don't know what else they will be interested in, only that if we offer enough, they will be interested in something. Ergo, the same person will help the network effect for many different applications.
Ultimately, this all means a great deal more money remaining in the system. Part of the challenge that many projects have is people getting rewarded and then dumping the token for something else. Leofinance could potentially solve this. If a token is going to be dump by an individual, you prefer it swapped into something else on your platform. Then, you really do not care what token is wealth is held in because it is all still within the ecosystem (Facebook versus Instagram).
All this actually feeds into what is called Reed's Law. This is one of the mathematical ways that the value of networks is quantified. What makes Reed different from some of the others in this field is that he concluded that the value appreciation was actually greater because each individual could be a part of many subgroups. In layman's terms, one person can use many different applications on Leofinance.
Therefore, I am going to forecast that the path to $1 billion for the Leofinance ecosystem can be achieved by 2025. With the development that is taking place, we will see, perhaps a couple dozen tokens by then. All will be tied to a different aspect of the ecosystem. In addition to governance and utility, there might be tokens that are tied to access for subscriptions. We could see ones that denote different funds that are put together. We could see ones specifically designed for commerce. Whatever is being discussed out there could eventually end up on Leofinance.
In other words, look at some other projects/blockchains and envision some of that ending up on Leofinance.
That is what I foresee. Time will tell how delusional (or genius) I might be.
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