The greatest empires over the course of history have come and gone — the Romans, Greeks, Babylonians, Mongols, Persians, Egyptians, Ottomans and, most recently, the British. Much in the same way that history has recycled the powers of the world, so do cultural and economic institutions around us fall to the same fate.
Like these empires that governed their corners of the world, Hollywood dominated its own — the film industry. Audiences have enjoyed the fruits of this cultural empire just as they have enjoyed perks produced from other exclusive clubs. It’s time, however, to open Hollywood to these audiences just as an effort is underway to open industries such as traditional finance to the general public. And the same tools that financial liberation fighters have used also apply to film: decentralization and blockchain.
The film industry
Film, as an art form, is designed to touch, inspire and move people, whether provoking deep thought regarding the socio-economic climate or providing comic relief. Yet unlike other art forms, producing quality film worthy of mass distribution requires digging deep into pockets, a privilege belonging largely to investors and benefactors. In the typical Hollywood setting, these investors and their associates on the production side often work together in a limited, exclusive club that consequently limits the inflow of diversity (not the racial or gender-based kind, but the artistic kind).
Consequently, the exclusivity leaves many creators in the dark, who are unable to produce, distribute and promote their projects effectively. That’s not to suggest every film ever conceptualized is truly worthy of the silver screen, but surely, more creative ideas are out there in the sea of film aspirations. Allowing a select few to dictate what scripts are worthy of production, however, is not the answer either, as it restricts the flow of creative ideas.
Consider if paintings were treated the same way films are, and a closed club of investors was to choose what paintings get commissioned. It’s a scenario we would struggle to fathom, but it’s precisely what the current paradigm entails to a large degree. Films may be more expensive, but that doesn’t necessitate exclusivity in deciding what’s worthy.
Changes in Hollywood: Were they enough?
Movements since the 1960s have attempted to break down the high walls of Hollywood, with limited success. Indie films are lauded for their triumphs outside of the Hollywood hemisphere, inspired by movements like the Independent Cinema Movement and its associated festivals. But even these advances weren’t enough to break through.
Even on the accounting side of things, most films don’t make money — as many as 80%, according to entertainment lawyer Shuyler Moore’s insights. Although film is technically an art form and not purely produced for profit, studios still have some financial objectives with each creation. So, if films flop so often, why allow Hollywood executives to be the bottleneck? Let the viewers participate in the same way the masses opened the gates for mass participation in other spaces. And this road is paved with decentralization at its core.
Over the last 20 years, we’ve witnessed decentralization across a handful of sectors, most notably with journalism and finance. As media conglomerates have grown larger and stronger, the debates between John Dewey and Walter Lippmann of the 1920s took center stage over whether journalism should be bottom-up or top-down. Tech developments and the rise of social media networks have empowered individuals to report the news themselves, thereby circumventing mainstream media conglomerates as the only true source of news.
Now, thanks to these major strides in tech, coal miners in Pennsylvania, clay sculptors in New York and teachers in Maryland can all discuss the issues of the day in digital public forums. They can share information and report on news just like accredited journalists can.
Even more recently, the financial world has witnessed the decentralized revolution take hold. Similarly to the media landscape, via the invention of blockchain technology merely a decade ago, citizens could now invest on a platform that rested outside of the powers that be — powers that induced an economic recession. This alternative ecosystem to the traditional legacy institutions, also known as decentralized finance, took off over $24 billion in total locked value invested between June 2020 and January 2021, according to DeFi Pulse.
Decentralizing the film industry
In a decentralized world where the film industry would be, creators could upload their project concepts on a blockchain platform and promote them by interacting with fans and investors. A new decentralized social media app that incentivizes engagement is a model for how a decentralized film platform could encourage fans to engage.
In the same way that decentralized social media platforms offer tokens to influencers when they receive fan engagement, so would a decentralized platform incentivize users to engage with film content on the platform. Fans could theoretically engage with creator projects, voting on which film concepts are most interesting and receive utility tokens for doing so.
Accredited investors could then evaluate the data on fan engagement and feedback and then determine what films to invest in. Via tokenization, retail investors could also be free to invest and receive dividends for their financial contributions. The possibilities are endless in the means to induce fan–creator relations.
In this kind of ecosystem, creators would be empowered to raise capital for the production from not just the traditional channels but from multiple sources. Ultimately, the fans who pay tickets to see the films would be the ones green-lighting projects.
Projects on blockchains may be in their infancy, but their capacity to create change for the better is what will empower many sectors of society for the long haul.
The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Ian LeWinter is the co-founder and president of Film.io. He has over 30 years of experience in the creative industry and has managed communications in the technology and entertainment verticals. He previously led branding and promotional initiatives for industry heavyweights including Toshiba, Intuit, Tenet Healthcare and Kyocera. As a founder, Ian developed and implemented strategy for ID, which included the identification, engagement and conversion of key influencers for entertainment industry clientele, such as Cox Communications.
Former London Stock Exchange Group CEO Urges UK Government to Explore Cryptocurrencies
The former CEO of the London Stock Exchange Group, Xavier Rolet, has advised the UK government to look into cryptocurrencies and SPACs to minimize the adverse impact of Brexit. In a recent report, Rolet claimed that the UK has trailed behind other countries in both aspects.
The UK Should Turn To Crypto And SPACs?
Born in France, Rolet is a businessman and the Chief Executive Officer of the London-based credit-focused asset management firm CQS. Before assuming this position, though, he served as the CEO of the London Stock Exchange Group and was named as one of the 100 best CEOs in the world in 2017 by the Harvard Business Review.
In a report cited by Bloomberg, Rolet touched upon the potential consequences to the UK economy following the withdrawal from the European Union and the European Atomic Energy Community, better known as Brexit.
The executive believes that the UK has two viable options to consider if it wants to minimize the risks and help the nation flourish.
In the first one, he urged the government to “promptly consider the SPAC revolution.” Also referred to as “blank check companies,” these special purpose acquisition companies (SPAC) operate as shell corporations listed on a stock exchange with the idea of buying out a private company, thus making it public. Ultimately, this strategy eliminates the need to go through a traditional initial public offering (IPO).
While the US has seen significant adoption in the past year with a 10x increase in the raised funds compared to 2019’s results, the UK regulators have halted their progress on the London markets.
Rolet’s second advice involved digital assets as he noted that “all relevant UK government agencies should be resourced to thoroughly understand cryptocurrencies.”
With proper regulations, the crypto ecosystem could “place London and the UK at the center of a reputable and safe financial market.”
The UK’s Regulatory Approach To Cryptocurrencies
While UK’s regulators have hindered SPACs’ progress within the country, the nation’s financial watchdog, the FCA, has also been rather harsh against the cryptocurrency industry.
As of the start of this year, the Financial Conduct Authority banned crypto derivatives and exchange-traded notes (ETNs) to retail customers.
Additionally, the watchdog has issued several warnings to investors that they could lose all their funds if allocated in digital assets.
The regulator also announced that all UK-based digital asset businesses need to be registered with it but extended the deadline for applications to July 9th, 2021.
Featured Image Courtesy of TheGuardian
Traders remain bullish even as DeFi’s TVL falls to $54.4 billion
Decentralized finance and the numerous platforms offering investment services have been the talk of the cryptocurrency sector for several months and this has resulted in investors capturing spectacular gains for some of the top DeFi tokens like Uniswap (UNI) and AAVE.
The fast-moving prices and 1,000% APY on staked tokens elicited cheers from investors when the market was going up, but the recent selling pressure seen as Bitcoin price dropped below $45,000 shows that the highest fliers are often the quickest to fall as traders rush to exit their positions and lock in their gains.
On Feb. 22 Bitcoin (BTC) price entered a sharp corrective phase which saw the top digital asset pullback by more than 20% from its all-time high of $58,274. As this occurred, the majority altcoins also saw double-digit corrections and DeFi tokens like PancakeSwap (CAKE) fell as much as 55%.
Total value locked in DeFi shows resilience
The total value locked in DeFi platforms also took a hit as Bitcoin and altcoins corrected. Data from DeFi Llama shows the combined TVL of all DeFi platforms fell from $64.89 billion to $54.22 billion on Feb. 24. Cointelegraph also reported that this week’s correction led to the second-largest day of DeFi loan liquidations in history.
The decline in TVL is a result of decreasing token values rather than protocol outflows, indicating that token holders remain committed to the continued expansion of decentralized finance and that the current yields are still incentivizing investors to rem engaged.
Market analysis indicates that despite the recent $5.8 billion Bitcoin and altcoin liquidation, bulls remain optimistic and see this price pullback as a sign of a healthy market.
The same goes for the DeFi sector, which has been in a strong uptrend since the start of the year. Increasing DEX volume as well as a rising TVL show that DeFi is still in the early stages of growth, and while pullbacks are to be expected, the overall trend is positive as institutional and retail investors increasingly gain exposure to this emerging asset class.
Global crypto population surpasses 100 million; Boomers and Gen X now ‘keen on Bitcoin’
A survey from digital asset exchange Crypto.com estimated a 15.7% increase in the global crypto population, in January alone. Overall, there are 106 million global crypto users as of January 2021.
According to researcher Kevin Wang, at Crypto.com, strong growth in Bitcoin adoption happened to be the main driver for the peak. Major events last year, such as PayPal’s decision to integrate crypto into its payment network and institutional adoption of cryptocurrencies fueled the surge. Other than BTC, the growth of DeFi allowed Ethereum to lead the crypto market’s growth in August 2020.
The months of June and August last year and January 2021 “were exceptionally strong months” in terms of a surge in crypto population. Wang noted that such periods of strong growth in adoption accompanied periods of strong price performance in Bitcoin.
To estimate the number of global crypto owners, the calculations were made through BTC and ETH on-chain data, separately, and combined with other parameters. Crypto.com stated that the findings were subject to some limitations and caveats.
The analysis is also built on Crypto.com’s own internal data, as well as on-chain data and survey analysis. But, this may not estimate OTC users and off-chain transactions effectively. The fact that sub-accounts in exchanges may not be reflected accurately was also noted. However, researchers assumed that all on-chain users still own crypto today, while others could have sold their holdings already.
Meanwhile, another survey revealed that Baby boomers and Gen X are “piling” into Bitcoin and other cryptocurrencies.
Nigel Green, CEO and founder of deVere Group said that the company’s global poll found that 70% of clients aged over 55 have already invested in cryptocurrencies or are planning to do so this year.
Green explained that while the crypto rally captured the attention of ‘digital native’ younger generations; older generations such as Boomers and Gen X recognized that “digital, borderless money is the way forward.”
“Social media hype and clickbait headlines” happened to be a catalyst for millennials and Gen Z to invest in Bitcoin. But respondents aged over 55 were interested in crypto due to a fear of currency devaluation – as central banks have historically printed more money to boost economies. Especially in wake of the pandemic. Green further commented:
They’re [older generations are] aware that if you are flooding the market with extra money, then in fact you are devaluing traditional currencies – and this, and the threat of inflation, are legitimate concerns, prompting them to seek out alternatives.
Sign Up For Our Newsletter
Ankr adds Eth2 futures (fETH) to its staking system
Are Bitcoin’s long-term hodlers entering the seller’s market?
Elon Musk Explains to Peter Schiff What Money Is
Litecoin, Cosmos, Tezos Price Analysis: 21 February
Ripple now registered as a Wyoming business
Former BoE, BoC Governor Mark Carney joins Stripe board of directors
A Review of BTCGOSU — Reviewer of Crypto Casinos
Kraken Daily Market Report for February 21 2021
DeFi Protocol Primitive Finance Self Hacks to Prevent Exploit
Peter Schiff Now Discusses Bitcoin More Often Than His Beloved Gold
Is Ethereum heading to another ATH?
The Many Theories Of Elon Musk Being Satoshi Nakamoto
NFT Platform Ethernity to Launch IDO on Polkastarter
Long Blockchain Corp has officially been delisted by SEC
3 key factors that propelled Ethereum to $2,000 for the first time ever
Banks will be required to work with crypto, e-money and CBDCs to survive
Bitcoin Payments Make 20% of the Revenue of a UK Private Jet Company
Today 11:40 am EST: First Bitcoin Elite NFT Art Drop
MoneyGram suspends Ripple partnership, citing SEC lawsuit
Kraken Daily Market Report for February 20 2021
Blockchain1 week ago
Thai SEC schedules hearings to address crypto investor qualifications
Blockchain7 days ago
Motley Fool adding $5M in Bitcoin to its ‘10X portfolio’ — Has a $500K price target
Blockchain2 days ago
Ankr adds Eth2 futures (fETH) to its staking system
Blockchain6 days ago
The Graph adds support for Polkadot, NEAR, Solana and Celo
Blockchain1 week ago
International payment giant Visa considers adding crypto to its network.
Blockchain7 days ago
Blockchain1 week ago
Ripple’s XRP Has Shown A Great Deal Of Resilience In The Midst Of Legal Troubles
Blockchain1 week ago
Nigerians bounce back with a defiant response to the government’s Bitcoin ban