Who needs COP26 when we’ve got DAOs?

Happy Friday Everyone 👋

Did you catch Genevieve on FOX talking about the potential banning of payment for order flow (PFOF)? That’s the same PFOF that Robinhood relies on for 75% of its revenue! Check out the full video here!

SIX things you need to know this week in 60 seconds.

  1. Well, which one is it?

  2. Wanna be an NFL team owner?

  3. Quickest way to become the biggest automaker: don’t sell cars

  4. Who needs COP26 when we’ve got DAOs?

  5. Nic Cage would be proud

  6. Alpha Ape CEO

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1. MACRO

Well, which one is it?

“Things are literally worse than when we were in the middle of the pandemic.”

- Consumers

“Let’s go shopping!”

- Also consumers

Consumer sentiment is at its lowest in 10 years. Inflation is at its highest in 31 years. You’d never guess either of those things, though, after taking a look at retail sales (excl. auto), which jumped 1.7% in October.

The key driver for low sentiment has been inflation, which is puzzling because despite what they say, consumers have been more than willing to pay the higher prices.

So why haven’t we seen inflation curb demand yet? A few factors: approximately $2.5T in excess savings from the pandemic, a strengthening labor market, and wage growth (especially at lower-income levels).

GRIT’S TAKE: As Charlie points out, demand for goods and services remains strong and consumers haven’t pushed back on rising prices, but when they do, we could see stagflation.

GRIT’S ACTION: Long consumer discretionary stocks (like Home Depot!)


Under the Radar

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2. DEALS & IPOs

Wanna be an NFL team owner?

The Green Bay Packers are the only team in the NFL with a public ownership structure. They just announced a $90M “stock” offering to help raise cash to make stadium improvements.

This means that for only $300, you can become an NFL team owner! Along with 299,999 others, plus all the “owners” from previous offerings (6 in total).

What do you get for your cash? Besides a stock certificate and bragging rights, not much: the shares can’t be traded and they hold no financial value (doesn’t appreciate, pay dividends, not tax-deductible, etc).

GRIT’S TAKE: Being able to call yourself an NFL team owner is cool, but do you know what would be cooler? If you were part of a decentralized community of investors who came together around the common goal of actually buying an NFL team. I wonder how this could be done…

GRIT’S ACTION: GritNFLDAO coming to a decentralized exchange soon ; )

3. STOCK MARKET

Quickest way to become the biggest automaker: don’t sell cars

Ford Motor Company has been manufacturing and selling cars for a long time — since 1903. You could say they “paved the way” for the auto industry…

It turns out, however, that they’ve been doing things completely wrong this entire time.

Over the last 10 days or so, two new automakers (each less than 15 years into existence) have topped the 118-year-old industry cornerstone in market cap…and they managed to do it without selling a single car!

Last quarter, Lucid reported $232k in revenue, but none of it was from delivering vehicles. Rivian, on the other hand, is only in the early stages of delivering its first vehicles and revenue projections for the quarter are between zero and $1M.

GRIT’S TAKE: So what have we learned? It’s better to be pre-revenue and leave valuation to the imagination!

GRIT’S ACTION: Long Carbon Credits and Copper stocks. Leave the wacky EV stocks to the wacky investors. 

4. COMMODITIES

Who needs COP26 when we’ve got DAOs?

Over the first 2 weeks of November, members of the United Nations got together for their annual assessment of the global fight against climate change. One of the hottest topics from COP26 was centered around how to regulate the carbon markets.

While leaders of nations were busy making minimal progress, a climate-change-focused activist group called KlimaDAO was actually doing something about it. In total, the group has accumulated over 9 million tonnes of carbon offsets (+$100M)!

So what is Klima?

They are not a government entity and they do not have a physical headquarters. Klima lives on the blockchain in the form of a decentralized autonomous organization (DAO). This means its community of members vote to govern the group’s decisions and actions.

GRIT’S TAKE: KlimaDAO’s goal is to increase the price appreciation of carbon assets and become the single biggest disrupter of the carbon markets (after GRIT 😉).

GRIT’S ACTION: You know where I stand on this.

5. CRYPTO

Nic Cage would be proud

Nic Cage had to risk his life to get his hands on the U.S. Constitution. This week, a group tried obtaining (a copy of) the document in a very different, but equally heroic way (read: less Oscar-worthy acting and more Web3).

ConstitutionDAO was created by a community of crypto investors last week with the sole purpose of buying a copy of the founding document at a Sotheby auction held last night.

Why? “To put The Constitution in the hands of The People”.

In just 8 days, the DAO received a median donation size of $206.26 from 17,437 donors for a total of over $40M!

Though the group ultimately didn’t achieve their goal, they gave us a glimpse into the possibilities of Web3 and the effectiveness with which a decentralized autonomous organization can operate.

GRIT’S TAKE: Now a DAO to buy an NFL team doesn’t sound so silly, does it?

GRIT’S ACTION: GRITDAO is not an “if” it’s a “when”!

6. ENTERTAINMENT

Alpha Ape CEO

In sports, there are coaches who are considered “players’ coaches”. These are the ones who are in tune with their players’ wants and needs and tailor their coaching styles accordingly.

AMC CEO Adam Aron is the business equivalent of a players’ coach, except instead of a team, he has a movie theatre franchise, and instead of players, he has shareholders (read: apes). This makes Aron the “alpha ape”.

Aron recently announced that AMC is now proudly accepting Bitcoin, Ether, Bitcoin Cash, Litecoin, with Dogecoin and Shiba Inu coming soon.

Why?

GRIT’S TAKE: Because when the apes say they want to pay in cryptocurrency (including shitcoins), you let the apes pay in cryptocurrency (including shitcoins)!

GRIT’S ACTION: Love the mission ; )


*SOURCES
1. CNBC
2. CNBC
3. WSJ, Barron’s
4. CoinTelegraph, KlimaDAO
5. ConstitutionDAO
6. Coindesk, Business Insider

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