Token Advice

By now, most people have heard of the word “crypto”. This word itself can mean vastly different things to each individual. What first few things come to mind when you hear the word? Based on many conversations with people about the topic over the last seven years, here are a few that I’ve heard:

It’s a scam and very high-risk

It’s the future of finance

It’s volatile and can make or break you

It provides financial access to those without it

Thieves use it and has no intrinsic value

It’s a new asset class with high potential

There are too many answers to this question to count and believe me we have plenty of thoughts that would take up hundreds of pages. The reality is, “crypto” has become an umbrella term for an entire ecosystem, while the pieces within that ecosystem are substantially unique. This makes it incredibly challenging for those looking to learn about the space to know where to start. As with any new technology, it’s natural to rely on mental models from what already exists to try to describe it. But what we have onchain is unique. It takes principles from previous technologies, yet it does something that has never been done before.

At 401, we often use the words onchain or self-custody in replacement of the word “crypto”, because those better describe the actual technology we’re referring to. We may say that we’re building onchain or that we value self-custody. We may refer to an asset itself such as Bitcoin or Ether. Encompassing an entirely new ecosystem as one word would be like saying the word “stock” refers to Apple, the company, AAPL stock, the iPhone, the App Store, Google the company, GOOGL stock, etc. You get the point. It sounds silly, right? So, what are the underlying things people refer to with the word crypto? Here are a few tangible things people might think of when I say the word:

Bitcoin

Ethereum

Blockchain

Coinbase

FTX

Dogecoin

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The list goes on. First and foremost, these tangible things listed are all unique. Some are assets, some are blockchains, some are sectors, some are companies, etc. More importantly, not all of these fit into the onchain category. For example, when we think of FTX, we don’t think of crypto, self-custody, or onchain. We think of a failed and fraudulent centralized company that doesn’t allow users to self-custody and is not on a blockchain. It’s precisely the opposite of onchain.

At 401, one of our core goals is to help educate clients on all things related to finance. Our niche is in the space many call “crypto,” and we can’t wait to break this down for you throughout this Onchain Series. One of the best ways to learn (and teach) is to use the tools yourself. This is precisely what we do at 401. We’re not just investors, advocates, etc. We use the tools this technology enables daily. We have a core thesis at 401 that these technologies will likely continue to empower people globally with access, ownership, and control over their digital lives. We’ll break down what self-custody means, solutions you can use today, and opportunities for the future.

Stay tuned for our first edition of the series next week, Self-custody 101, where we’ll go into detail about how to download a wallet, how to fund it, safety tips, how wallets are evolving, and more.

Until Next time,

This newsletter is copyrighted by 401 Financial, Inc. It is published and provided for informational and entertainment purposes only and not for individualized investment advice.  Please go to our website, www.401financial.co for additional information.