Deregulated Disruption

Dr Caesar J's Digital Business Opportunities Management periodicals

Season II, episode v of Deep Tech matching summary outlines

January 2025

As we start a new year very hopeful to recover from the inflicted bruises, we see that the AI strides keep getting faster, deeper, stronger and better. I am still hopeful to keep producing my newsletter regardless, matching deeptechs, this time Disruptive Entrepreneurship with #cryptography. The September Article, opening Season 2, matched BaaS #Banking-as-a-Servicer with Disruptive Entrepreneurship with Regulations in between. After removing regulations, some new digital business opportunities emerge for DeFi. I have selected four areas: the Loyalty, the Wallet, KashYou and how crypto serves entrepreneurs.

?

Loyalty programs is the lowest hanging fruit for crypto points convertibility, to incentivize merchants and their suppliers, all in helping to improve customer engagement. The digital business opportunities are plenty. From the merchant acquiring standpoint, because entrepreneurs are basically merchants, disruption will only be limited by #UX, customer journey and road to scalability. It is basically building on the crypto for customer engagement through merchants, who in turn will scale the crypto brand.

Points convertibility is equivalent to crypto trading, frictionless because within #defi environment. Once the loyalty point is recognized to be pegged to another coin or a basket, all the heavy lifting would be done. The digital business opportunity is in finding the convertibility benchmark towards the loyalty partners and external stakeholders. Users will earn points proportionately to their UX satisfaction amidst the crypto brands competition.

Merchants are the main generators of #crypto loyalty points; they have a license to mint. If we position ourselves as the loyalty or the customer engagement program provider, the merchants being our customers or distribution channel, the digital business opportunity will be in how to use the disruptive entrepreneurship for the User to perceive the value of the crypto loyalty token. One notable opportunity is that conventional loyalty points need to have a regulatory maturity date.

Suppliers of merchants are a target niche for crypto loyalty programs solution providers. The idea is to expand the crypto foothold upstream and downstream of the supply chain. The disruption is in scaling where competitors least expect. Moving upstream strengthens the roots of the crypto loyalty program. This B2B crypto loyalty approach should be a pure digital business opportunity, it is a #disruptive crypto payment gateway solution.

Customer engagement is fertile ground for #disruptiveentrepreneurship, especially in the crypto space. Generosity is one easy customer engagement approach, but granting too many coins reduces its value. In bullish crypto markets, not only all customers will be glad to benefit from the loyalty program, but it will be easier to cooperate with partners and agree on the compensation rates. Creative disruption for customer engagement becomes challenging in crypto when the market gets depressed.

?

The Wallet is another promising digital business opportunity for disruptive entrepreneurship using #crypto deeptech. The advantage is in bypassing regulations in forex, cross-border, investments and in providing credit. All these activities cripple the regulated digital wallets by expensive licensing and capital requirements. We are still within the legal, the legitimate and the honest business, minus the regulator’s influence. A separate additional use case would be the super-App wallet.

Fiat exchange is regulated, except in #defi crypto. The condition is that the wallet should be a pure crypto native wallet. It cannot be part DeFi part not. Crypto exchanges do exist since Satoshi days. The #usdt stablecoin is a very successful use case. The disruptive entrepreneurship will find its limits with liquidity, gas and risk. As long as the crypto exchange has limited open position exposure on exotic crypto coins, liquidity and risk are manageable.

Remittances carry the highest profit margin per transaction because they include forex and cashing-out. Normally, #crypto is supposed to have wiped away all of the theoretical worldwide conventional 10% remittances cost. Billions. The digital business opportunity is in extending the remittance arms end-to-end, from payor to wallet to spend or wealth. Historically, the remittance use case was the most ethical crypto activity when bitcoin was smeared by the dark web illegal trading and trafficking, taking down with it the disruptive entrepreneurship.

Wealth vertical in the crypto wallet is open for disruption. Crypto is technically fiduciary. Any fiduciary credit balance can be turned into a wealth product. The disruption is in creating the products that would maximize the #crypto investors’ appetite. It is a no-brainer when crypto is on a rising spree, but the digital business opportunity is in the absolute or normal crypto market cases. Investment baskets now all contain a crypto exposure in every wealth proposal.

P2P lending is a very profitable crypto service, the challenge is that it is also risky. If you were a commercial bank is an emerging country, would you lend in foreign or local currency? In P2P, the risk is borne by the lender. The risk is reputational when the wallet is providing the risk assessment credit rating. It is obvious that the p2p lending should be in the same #crypto currency and the disruption is blending the debtor’s basket for the lenders.

?

The KashYou use case can embody all possible digital business opportunities. It is a designed to be a native disruptive #deeptech super-App. The disruption opportunities can be at least in these four angles of approach: The unit of exchange to be used inside the app then to scale it outside, the possibility to recourse toward the crypto market makers, the ICO fund raising potential, all keeping in mind that disruption does not imply disrespecting ethics.

Unit of exchange policy within the KashYou ecosystem is the #crypto entry for disruptive entrepreneurship. You own the money printing press. At some point in time, this home-grown KashYou crypto will find its way outside the ecosystem. The disruptive entrepreneurship is in both the setting the floor inside the ecosystem and in exporting the coin for uses outside, the scaling phase. The disruption is in the level of risk appetite reflected in the marketing campaigns.

Market Makers for scaling new coins is an exclusive digital business opportunity. It is difficult to prove crypto whaling, but we are seeing on the specialized news the existence of coalitions and consolidations of hodlers. Once the product description is validated by the minting party, let’s say KashYou, there will be the possibility of obtaining the exclusive services of a #crypto market maker, believed to be under 20 of them that can deliver. I consider this activity as the perfect example of disruptive crypto entrepreneurship.

Fund raising is the third digital business opportunity for KashYou under the crypto disruptive entrepreneurship #deeptech match. The ICO or any comparable crypto funding has matured into a vertical on its own right. The angle and scope of the disruption cannot be used in attracting the funding. DeFi cannot trespass ethics and UX. The disruption therefore should be focused on how the investment proceeds will be used, in which service or product, why and how.

Ethics is the most reliable regulator; it is measured by the UX reactions and appreciations. Customer empowerment. Disruptive entrepreneurship does not imply unethical behavior. KashYou is cross-border, therefore cross-cultural, therefore universally ethical if customer centric. One approach that I recommend is to be disruptive is being over ethical; it could be a way to capture a niche, but also helps at the level of governance and compliance.

?

Crypto was created by disruptive entrepreneurs for disruptive entrepreneurs. The digital business opportunities are embedded. The disruption field will be in the traditional and digital industries. A combination of out-of-the-box and below-the-belt creative digital marketing. All you need is to add a qualifier before using the words banks and credit. All #FinTech public communications should be run by regulatory compliance before publishing, the advantage is that in DeFi this burden is not a hindrance.

Disruption is expected in the crypto world. Crypto disrupted digital as much as digital disrupted the conventional. Disruption is not supposed to be a business strategy, it could be tactical. We are describing the situation where we have to use #disruptiveentrepreneurship as a business strategy. This means more flexibility, faster market reaction, closer watch to what competitors are doing, deeper R&D, owning the source code, coders aligned onto the disruptive product or service, finance conceiving the wider picture and opportunity.

Scaling is really where the #disruptiveentrepreneurship can make an impact. The #crypto market is bullish as I write, it will take the talent of disruption to exceed and surpass. The crypto coins market went through the roof and continues since last quarter. If a disruptive entrepreneur has the scaling talent, there is nowhere better than in the crypto space. Bullish markets aside, the digital business opportunity for scaling is here no matter how the market is going.

Cross-border or the Ripple model, is a major crypto disruption success story. The target digital business opportunity is in disrupting #Ripple. Compliance is the border that cross-border transfers cannot cross. Ripple’s coin XRP has also grown to a success. It is true that crypto is not tolerated, admitted, allowed, let alone licensed, in all regulatory jurisdictions. A Ripple generic can be produced anywhere, the technology border can be crossed. The ripple effect can continue if the end-to-end transaction owners are compliant, and the transaction is traceable and compliant.

Funding is necessary for any enterprise and entrepreneur. For a disruptive entrepreneur, funders will need to embrace the story and trust that the entrepreneur can deliver. Disruption means the shaking of the existent market situation. Normally, we would expect the persona of the #crypto investor to be open to disruptive ideas because his / her money is already there, or more inclined to fund more crypto disruptive enterprises than in investing in ordinary or less disruptive crypto ventures.

?

Digital had disrupted the conventional. Deeptech disrupted digital. Crypto disrupted digital and FinTech. We saw that Crypto can be disrupted by entrepreneurship. Disruptive entrepreneurship deep seeks AI for support and assistance; but AI will not be able to replace entrepreneurship. The next II episode matches Banking-as-a-Service #BaaS with the SuperComputer. What digital business opportunities happen when you equip a bank with better brains?

?

?

Dr. Caesar J.

?