Founder of ArtBlocks, Erick Calderon currently concerns about buying a rare set of 150 popular NFT’s CryptoPunks. Calderon is one of the 59 Flamingo investors who would potentially buy a product from his producer, Larva Labs.
Is CryptoPunk risky move?
Trying opportunities in CryptoPunk, a Decentralized Autonomous Organization (DAO) or known as Flamingo figured this out via Zoom. But the discussion seemed fishy, many members only turned on their audio only to protect anonymity. It gets worse when someone all of sudden is going to buy all 150 punks alone for himself. With a pseudonym ‘Pranksy’, he tries to back channel Larva Labs and front-run the deal. By the end of agreement, Flamingo members decided to share at $30 million for the punks. Pranksy on the other hand left DAO by mutual agreement.
That uncertainty tends to appear in investment’s leaderless collectives. But Aaron Wright, CEO and co-founder of Tribute Labs who initially set Flamingo calls DAO as a sub-reddit with a bank account. No matter how silly news headlines are doubting about what they are doing, DAO’s model is a real alternative investment.
Started as Illionis ‘investment club’ back in a quarter century ago, DAO have modernized the concept. It incorporates many traits making blockchain possible. By allowing votes, DAO believes that it could empower profit sharing and profit liquidity. DAO’s leaderless model or anarchy by definition, can play alternative assets without having to outrun the 20% profit share from hedge fund.
Based on Forbes’ analysis, even though Flamingo hides in pseudonym they have done better than just CryptoPunk NFTs. This is because its curve calls have helped the members turned $10 million into nearly $1 billion in 15 months.
