Is Web3 the Investment Opportunity of a Lifetime?
Investing in Web3 is more than a stake in new technology. It’s an investment in a better future.
It's not often that a single technology has the potential to completely change the world – but that's exactly what Web3’s doing.?
With the rise of DeFi (decentralised finance), the power to disrupt industries and systems, a growing sentiment among users, and a potential for significant value appreciation – Web3 is the investment opportunity of a lifetime.?
We’ll be breaking down four reasons why, as an investor, you should care about the development and success of Web3.?
First, who’s investing in Web3 and why?
There’s a diverse range of investors backing Web3 and its development, from Silicon Valley titans to crypto venture capitalists. See who's backing Web3 and why, below.
?? Venture Capital (VC) Firms
They see the potential for high growth and returns in a nascent industry still in its early stages. Additionally, the emergence of DeFi protocols and the potential for liquidity in the market are factors that make Web3 an attractive investment opportunity.
?? Crypto Investment Firms?
They see the potential for blockchain technology to disrupt traditional industries, unlock new opportunities for #tokenization, and drive growth in DeFi.
?? Angel Investors
From its disruptive potential and decentralised trust to new business models and the creator economy – Web3 offers a wide range of opportunities for value creation and innovation that appeal to #angelinvestors.?
?? Corporations
Corporations are drawn to Web3's potential for innovative business solutions. This includes increased transparency and trust which is especially beneficial in the supply chain management and finance industries. On top of this, they're interested in creating new revenue streams, tapping into emerging markets, and leveraging #NFTs (non-fungible tokens) and the creator economy to connect with consumers in newfound ways.
?? Crypto Traders
They’re investing in Web3 for its potential to yield high returns on investment, the opportunity to trade inventive new assets, and the chance to participate in DeFi ecosystems that provide new ways to profit from digital assets. Web3's decentralised nature also aligns with the values of the crypto community and offers an alternative to traditional financial systems.
?? Non-profit Organisations
Web3 tech offers new avenues for NGOs to promote social impact work and achieve their goals. It can be leveraged to create more transparent and decentralised systems for addressing issues like poverty, inequality, and corruption. Additionally, DeFi provides opportunities for fundraising and community building that can help non-profits engage with their supporters in more meaningful ways.
It's clear that Web3 technology offers a wealth of opportunities for investors. Here are four key reasons why investing in Web3 could be a smart move for you.?
4 Reasons to Invest in Web3?
The rise of DeFi
At its core, DeFi is a harbinger of change, offering high yields and the potential for financial inclusion on a global scale. It’s a veritable revolution in the world of finance, one that promises to democratise financial systems and usher in a new era of financial empowerment.
For example, unlike traditional banking, DeFi doesn’t require a minimum balance. Or discriminate against things like someone’s location or socioeconomic status. The only requirement to access the ecosystem is an internet connection. This makes DeFi way more accessible to billions of people.??
And because DeFi transactions are processed in real-time and require minimal mediation, they’re faster and more efficient than traditional financial transactions. For example, someone in the US can use a DeFi protocol to send funds to a person in Japan instantly, without third parties or the high fees associated with traditional cross-border payments.
Plus, #DeFi smart contracts can be programmed with specific conditions that must be met before releasing funds.?
This ensures companies fulfill their obligations and meet their milestones before receiving funding. If the conditions aren’t met, the funds can be returned to the investors automatically. This creates accountability and transparency difficult to achieve in traditional financial systems.
It’s an industry disruptor
Web3 has the potential to disrupt existing industries and create new ones, leading to significant value creation. It’s also paving new ways for brands to reach audiences.?
In the PwC 2023 Metaverse Predictions report, they describe Web3 and the metaverse as something that will “redefine every business leader’s agenda.” In their survey, they claim that up to 82% of executives expect metaverse plans to be part of their business activities within three years.
Wondering how? Check out some of the services we offer #brands looking to reach new audiences and move into Web3.?
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And we’re already seeing this disruption happen across industries. Here are a couple of instances of this in action.?
Medrec, healthcare industry
MedRec is a #blockchain-based platform that allows patients to securely access and control their medical records. Their services also include medication plans and pill reminders for users and an image diagnostics module for clinics.?
Positive ways this impacts healthcare:?
Overall, this improves the quality of care provided and saves both time and money for the clinic and patients.?
And secondly, a recent Nicework client…?
Zarp Stablecoin, fintech industry
Zarp is a cryptocurrency pegged to the South African Rand. With the use of #Web3technology, Zarp aims to solve the problem of hyperinflation and currency devaluation faced by many African countries.?
Their impact??
By providing a #stablecoin that’s not subject to the same volatility and inflationary pressures as traditional fiat currencies, Zarp Stablecoin can help individuals and businesses in these regions protect their wealth and conduct transactions with greater stability.
You can read more about this on our website.?
Value appreciation and high returns?
In the past, early investors in Web2 companies like Google and Facebook made massive returns on their investments.?
Sequoia Capital reportedly invested $12.5 million in Google in 1999, which turned into a whopping $3 billion by 2004. Similarly, Peter Thiel invested $500,000 in Facebook in 2004, which later turned into over $1 billion.
Now, in Web3, we're seeing a similar trend. Early investors in #cryptocurrencies like #Bitcoin and #Ethereum have also experienced significant returns. For instance, Bitcoin's price went from less than $1 in 2010 to over $60,000 in 2021, while Ethereum's value surged from under $1 in 2015 to over $4,000 in 2021.
Moreover, #token economics are at play in Web3.?
Web3 projects often employ native tokens that represent ownership in the project or provide access to its services. These tokens' value can increase as the project gains adoption and usage. For instance, the governance token for Uniswap, a decentralised exchange, has seen a massive increase in value as the platform gains more users.?
Other factors to consider include outside returns, liquidity, and #passiveincome.
It’s a force for good
Did you know that the first ever recorded charter of #humanrights – The Cyrus Cylinder – goes all the way back to ancient Roman times? Globally, we’ve been advocating and fighting for human rights ever since.?
Despite this, human rights abuses continue to occur around the world. According to the UN, more than 89.3 million people are forcibly displaced due to conflict, persecution, and human rights violations.
Web3 has the potential to facilitate positive change in various domains, including human rights.?
Here are some possible applications:
For #NGOs, social enterprises, and grassroots and activist movements, Web3 could be the key to advancing their goals and missions to achieve a more equitable and just world.
“Blockchains have the potential to create a new layer of global social contracts, in which human peers, more than territorial governments, are the protagonists.” — NOEMA
Web3 technology is not just a new wave of innovation, it's a revolutionary leap towards a more transparent, secure, and fair world.?
By leveraging the power of #blockchaintechnology, #Web3 offers endless investment opportunities to build trust, enable #decentralized decision-making processes, and promote social and environmental justice.