Digital technologies are a maze of new nomenclature. Investors love rattling off all the key buzz words and acronyms, demonstrating their understanding of space as logic for jumping in ahead of the masses. Think about the internet and the look on your face and the words from your mouth the first time you heard about it. “It’s what? And, it’s going to do what?” Little did most know at that time what an integral part of the world the internet would become in only a few decades.
Those that “got it” and invested early in the dotcom boom were rewarded handsomely. That was web 1. Web 2, the current version of the internet, was highlighted by the emergence of social media. Now, we’re at the emergence of web 3 and many people have the same blank stare on their face as to the difference between iterations and the future of the web. A common way to describe the difference is through their primary function. Web1 is the “read” web. Web 2 is the “read and write” web. Web3 builds on web 2 with a main function of execution and privacy.
To really comprehend the direction of web 3, get to understand the word %Decentralized. Web1 was highly fragmented and web 2 was extremely centralized and structured for communities. Nobody is exactly sure what web 3 will look like, but it is nearly certain that it will re-imagine many of the ways the world transacts with new decentralized technologies, as well as cater to individuals strong desire to not feel like they are constantly being tracked and targeted by marketing companies.
%Blockchain, an immutable decentralized ledger, will be instrumental in the evolution of web3. Blockchain is the data keeping technology that undergirds cryptocurrencies and has countless real-world applications that will spearhead the transition of economies from arcane transaction processes into the digital age.
%Metavesco ($MVCO) is a web 3 enterprise pioneering a unique business model to capitalize on the next-generation internet. In fact, Metavesco is the only publicly traded, SEC-reporting %CryptoLiquidityProvider based in the United States. The company is focused on the crypto-related areas of liquidity pools and staking in the decentralized finance (%DeFi) segment, with other interests in metaverse and non-fungible tokens (NFTs).
While Metavesco is the first crypto liquidity provider, it benefits from some bigger peers investing heavily in the same markets. Facebook sees the writing on the wall for a significant shift in communications with web 3, a dedication that it put on full display over the years, buying Oculus VR for $2 billion in 2014 and in June changing its name to %MetaPlatforms ($META). %Coinbase Global ($COIN) was one the most highly anticipated direct listings when it came public last April, as investors wanted to get a piece of the world’s biggest cryptocurrency exchange. A crypto winter has crumpled shares of COIN, which should have investors looking at it given its depressed valuation. On the mining front, companies have gone through a bit of a washout themselves, with some industry consolidation and smaller firms closing up shop, as they just couldn’t compete. %RiotBlockchain ($RIOT) is the household name in the mining space. Shares remain under pressure after it reported underwhelming revenue and a bigger-than-expected net loss for the second quarter, although the company is holding a strong growth trajectory with regards to capacity and the amount of $BTC mined each quarter.
Liquidity pools are where MVCO generates its primary revenue. An example lends some color as to how this works. Simply put, if a person owns %Chainlink and wants to buy/swap it for Ethereum, they can go through a service such as Coinbase (and pay their high fees) or they can turn to a decentralized exchange like %Uniswap, where liquidity pools are run by a company like Metavesco and facilitate trading for Uniswap users. For facilitating the action, MVCO takes a percentage of the trade as part of the fee arrangement with the decentralized exchange.
To make a correlation to stocks, Metavesco is effectively acting as a market maker for cryptocurrencies. There are several advantages to this service. One, MVCO can pick and choose which cryptos it wants to deal with, a means of de-risking the business to a certain extent. To be fair, there is always risk in cryptos, but by acting as the market maker, Metavesco is paid for facilitating each trade, so volume is what is important, arguably more so than price fluctuations. In a perfect world, the cryptos are appreciating amid heavy trading volumes, building value simultaneously for the liquidity pool and transactional values.
Staking is different than liquidity pools and critical to cryptocurrencies in both creating a long-term investor base and creating the blocks of data that make up the blockchain. Proof-of-Work PoW) versus Proof-of-Stake (PoS) has become a hot cryptocurrency topic recently owing to controversies regarding energy consumption, security, and cost. This can be a bit complicated to those without a deeper understanding of crypto, but understand that Bitcoin is PoW, meaning that crypto miners are what keeps the network functioning by providing computing power. Miners are rewarded in Bitcoin for being the first to solve extremely complex mathematical puzzles to create a data block and add it to the Bitcoin blockchain. It’s hardware-centric and scrutinized for being extremely energy intensive.
Staking is akin to being a crypto miner without any of the mining equipment or operations. In PoS, there is no competition to solve a math problem, though, as the block creator is selected by an algorithm based upon the user’s ownership (stake) of the crypto. Those staking a crypto have agreed to hold said crypto for an extended period of time (usually at least one year). Instead of competition and reward for making the data block, the chosen block creator is given a transaction fee in the crypto, effectively rewarding them for holding the crypto in the first place. PoS is software-centric, requires minimal energy, and a far more environmentally friendly method for consensus than PoW, which is why it has become a subject of debate as to implement at scale.
Long term, Metavesco sees value in the metaverse and %NFT assets. These are nascent markets that recently saw a spike in attention and valuations against the backdrop of Facebook changing its name to Meta, a signal of its belief web 3 is the future of the web. Opportunities are already cropping up in these markets, with people gobbling up properties on digital communities like Sandbox. Expectations are that getting premium digital real estate on the popular platform will be something like buying a storefront ahead of Time Square becoming what it is today.
Most people have at least a limited knowledge of NFTs, a market that has exploded in trading activity of digital art and collectibles. The world of NFTs is only scratching the surface of its potential. Right off, there are royalties and licensing income possibilities.
This is where there is some overlap in Metavesco’s focuses. It’s no secret that all things digital (crypto, metaverse, NFTs, etc.) experienced a huge drop over the last year. Bitcoin has slumped from a high around $69,000 in November 2021 to as low as $17,600 in June. While that can seem discouraging, the reality is that this is a just a typical washout that happens with every emerging market after an extended rally. The decline always reveals opportunities.
For Metavesco CEO Ryan Schadel, the drop provided additional upside for assets like ApeCoin and Otherside. In a recent interview, he didn’t go into great detail, but made it known publicly that his company owns a “pretty good amount” of ApeCoin and Ethereum, mostly held in its liquidity pools. Again, the company chooses which cryptos to invest in and volume is critical to the business model to build value. To that point, some of the most actively traded cryptos every day are ones that Metavesco deals with (i.e., ApeCoin, Ethereum, Bitcoin, Chainlink).
Why ApeCoin? Because everything done through Yuga Labs – the creator of the Otherside metaverse project and the famous Bored Ape Yacht Club franchise – is transacted in ApeCoin. So, if you believe in what Yuga is doing, then you need to own ApeCoin. Schadel believes Yuga will become the Walt Disney of the metaverse and if you don’t own APE, you can’t participate.
Right now, about 80,000 crypto wallets contain ApeCoin, indicating the company has a strong, loyal base. The upside? Consider that an estimated 114 million accounts hold Bitcoin worldwide.
Another massive opportunity resides outside entertainment and trading with NFTs leading a transition to digital economies, as the world changes how it transacts. This means that digital currency will continue to move into the mainstream and NFTs will begin to realize their potential. Understand that anything can become an NFT, or digital version of itself. Applications abound to abort byzantine, time-consuming processes, such as buying a house, to make the world far more efficient (and without all the paperwork).
This isn’t Schadel’s first time building a business. Over about 36 months he took Labor Smart from zero revenue to dozens of staffing locations across the country and $24+ million in annual revenue. He learned a hard lesson about toxic debt, though, which seriously crushed the stock when lenders converted debt to equity and sold mercilessly. Labor Smart managed to survive the toxic sellers and the COVID-19 pandemic, but Schadel was presented a new opportunity to step aside and shift the business focus to consumer beverages, which he did. With some superstar names floated around in possible connection to the new business and the perfect storm of the stock meme craze, the stock went ballistic, running from $0.0005 to a high of nearly 9 cents. At one point, Schadel was on the list of the top 25,000 richest people on the planet (on paper; he wasn’t allowed to sell his stock).
Schadel, the consummate entrepreneur, parlayed the knowledge learned about being a public entity and came at it with a different approach with Metavesco. He found Waterside Capital Corporation, an ultra-clean shell – ex-NASDAQ company, limited shareholders, no old debt hidden anywhere – and acquired it. He didn’t do a reverse merger; he simply changed the business model and name and filed all the proper paperwork with the SEC and OTC Markets.
As such, Schadel owns about 70% of the common stock of MVCO and is running a very lean operation as he looks to get the revenue stream going from liquidity pools and staking. To launch these initiatives, Metavesco raised $1.1 million in April. The company also has a handful of NFT assets and last month launched a weekly Twitter Spaces series that will help draw some attention to the company and stock. Hosted by Schadel (@CRyanSchadel) and web3 influencers @christinebarnum and @VoiceofDefi, the series is focused on entertainment and education in the new world of bridging stocks and the metaverse. The weekly space will be broadcast from the Metavesco Official Twitter Account, (@metavesco) and will be recorded for later distribution on the company’s website.
Metavesco is an upstart in an emerging market. That makes it both risky and gives it exponential upside. The environment is ripe. Decentralization is a growing theme globally. Cryptocurrency can help a large percentage of the world population that is un-banked or under-banked. In the U.S., we tend to take the USD for granted as the world’s reserve currency. Ex-US, many countries would relish the opportunity for a decentralized currency, such as Bitcoin.
To that point, DeFi is still in its infancy; it wasn’t even a phrase until a few years ago. It hearkens memories of the dotcom boom where there was so much hype and bloated valuations at first before the market started ironing itself out. Good companies survived to pave the way for web 2 and now web 3, while bad companies became the rubble under the road. The same thing is going to happen with cryptocurrencies, blockchain, and associated technologies. Metavesco wants to become a big player in these emerging capital markets and is the very first to give investors the opportunity to get exposure across multiple verticals simultaneously.
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