DAO Startups Now Selling NFTs for Operational Funding
LinksDAO is a startup golf venture that claims it is on a mission to create the modern golf and leisure club. That is so vague. Perhaps we should just pay attention to this company’s actions instead of its words? In December the decentralized autonomous organization (DAO) held an NFT sale that generated $10.4 million dollars selling over 9,000 unique membership NFTs. On Monday of this week, LinksDAO inked basketball legend and golf nut Steph Curry as an investor and the price of those purchased NFTs increased significantly. Then on Tuesday it announced a partnership with Five Iron Golf, a growing indoor golf and entertainment company.
That’s a lot of noise in one month!! Let’s back things up a bit for those of you who are not quite sure what a DAO actually is, or does. As I said above, DAO stands for decentralized autonomous organization, which means it is an organization with no central leadership. The organization is run by a like-minded community that is governed by a set of rules enforced through a blockchain. Any decisions that need to be made are voted on by the community before being enforced. In order to become part of one of these communities, such as with LinksDAO, one has to invest in some sort of token or NFT offering.
The central player in the exploding DAO trend is, of course, cryptocurrency. Minus the existence of decentralized crypto coins like Bitcoin and Ethereum, DAOs simply do not exist. With no central government regulations in place, how are the crypto funds raised by DAOs taxed? Are they? Will they be retroactively someday? As I have shown over the past six months, crypto is the perfect money laundering vehicle. DAOs could find themselves in a financial dust devil if the US government follows through with its talk of centralizing cryptocurrency and then decides to walk things back with its Crypto Cops and the IRS.
CEO of the Alacer Group. Sharing the latest news in financial crimes and best practices that enable financial institutions to prevent money laundering.