The speakers explain how crypto tokens work using the "Internet Money Crank" metaphor, then map out a Web3 stack with AR/VR front-end, AI logic, and blockchain as database. They show how ownership incentives can drive 2.5× monthly growth, but warn that SEC rules on accredited investors, disclosure, and compliance exist to prevent scams and protect vulnerable users.
Hello. Well, the internet money crank. What in the Lord's name is that? Well, you know, I couldn't get out of here with talking a little bit about Web3, NFTs, cryptocurrency, etc. Been working on that. I think the whole crossover between AR/VR on the client front end side, the AI is the logic layer, application layer, and then blockchain is the database, is really the stack of the future. So I think the interesting thing about this internet money crank is used to be ICOs, then STOs, then it was NFTs. So I feel like the next thing is probably gonna have 3 letters, but I don't know, maybe we'll come up with 4 this time. So internet money crank, what's that about? Basically, we just pull the lever and out comes cash.
Um, yep. So pull a lever, get cash, right? I mean, that's essentially where we are in the crypto space, and that's why the SEC is coming down so hard on regulations and hiring so many people in the space, is we've got essentially 500-ish exchanges in the crypto space and about 21,000 different cryptocurrencies. So in the grand scheme of things, compare that to like stock or companies, private companies, it's tiny. And so, you know, I think it's really like the exchange of the internet. And so we'll see those numbers increase in the future. But a lot of the creators, the idea around tokenomics and incentive designs, the white papers that are out there, it's really about bootstrapping network effects by offering ownership in new things such that it attracts users. There's still a cold start problem for sure, but we've proven we can get out of the gate on that and get past that and start growing at 2.5x per month, which is crazy. So, you know, you start adding in things like tokenomics and the ability to have an ownership piece and growth at that steep scale, and, um, I think it would attract a lot of interest and excitement from a general population, but then you need to deal with United States SEC regulations, Reg D versus Reg A. Are you an accredited investor or non-accredited? General solicitation. There's a lot of disclosure requirements, compliance requirements if you want to do this in a legal and compliant way, which is what you should do. So, um, a lot of complexity, and I think a lot of the folks that just pop an NFT on OpenSea sort of miss all that. And, you know, the SEC is kind of coming down on it and some bad actors who essentially are soliciting funds from investors. And really, they're just trying to protect the general public from scams because there's a lot of them out there. So while the Internet Money Crank has a lot of value and potential, we do need to make sure that there's some safety and security mechanisms built in there so you don't have, for example, Kids just pulling down that lever on the slot machine. All right, little bit longer episode today, but, um, that's the first piece as we delve into our Web3 AR/VR blockchain future and AI. All right, have a great day.
