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This Week in Fintech ending 7 January

Welcome to 2022.

This week our experts brought you the following insights based on their experience as investors, entrepreneurs & executives.

Monday Ilias Hatzis our Greece-based crypto entrepreneur (Founder & CEO at  Kryptonio a “keyless” non-custodial bitcoin and cryptocurrency wallet, that lets users manage bitcoin and crypto, without private keys or passwords and Weekly Columnist at Daily Fintech) @iliashatzis wrote Ethereum will shape the global app economy

With the Christmas holidays, you may have missed all the hubbub that followed Jack Dorsey’s tweet that basically said that Web3 is not the decentralized dream that everyone claims it is, and instead is a hustle pushed by venture capitalists to line their pockets. Dorsey wrote“You don’t own Web3. The VCs and their LPs do. It will never escape their incentives. It’s ultimately a centralized entity with a different label. Know what you’re getting into…” A few days later Jimmy Song wrote an interesting piece and said “The advent of the token sale allowed VCs to get into a token at an early stage, but get liquidity on their assets much earlier than the 7-10 year windows typically needed in a VC-funded firm. Sure, you end up selling useless junk to the broader public, but who cares if you make money?” He also added that VCs are “middlemen that capture lots of value while not adding much.” As you can imagine this caused a big stir and exposed a deep rift over the direction of crypto.

Editor note: is there a sustainable revenue model for the decentralized Web 3? If not we will get centralization dressed up as decentralization to keep investors happy.

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Tuesday Bernard Lunn, CEO of Daily Fintech and author of The Blockchain Economy wrote: Democratization of “Wall Street” Part 1: Wealth inequality is a big problem that is easy to fix.

The fix for wealth inequality is the democratization of “Wall Street” which is the subject of this 4-parter to kick off 2022.

“Wall Street” is short hand for the global financial system, which includes many other cities such as London, Zürich, Geneva, Amsterdam, Berlin, Hong Kong, Singapore, San Francisco.

Wealth Inequality is behind a lot of problems in our world, pushing people into the arms of authoritarian leaders of both right and left. The hyper-capitalism behind the authoritarian right benefits only the 1% as did the only communism ever attempted (in the Soviet Union). Free markets with some element of capitalism is the best formula for wealth-producing innovation – and authoritarianism is very bad at this job.A more inclusive form of capitalism that works for the 99% is the best answer for people, but it is hard to reduce that to political sound bites. So my hope is that the free market will create inclusive capitalism by democratizing Wall Street.

Editor note: Some subjects are too complex for our short attention spans, so we do 4 posts one week apart, each one short enough not to lose your attention but in aggregate doing justice to the complexity of the subject. Stay tuned by subscribing.

Wednesday Alan Scott Managing Director EMEA at 24 Exchange @Alan_SmartMoney wrote his weekly roundup of Stablecoin news.

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Thursday

Rintu Patnaik, an Insurtech expert based in India, wrote: Insurtechs Need to Ace Customer Acquisition Cost (CAC) Optimization

Across industries, it’s generally accepted that it costs about five times as much to attract a new customer as it does to sell to an existing one. In insurance, the cost of acquiring customers (CAC) is higher, at seven to nine times that of selling to an existing customer. On average, that’s paying between $487 and $900 for each new customer.

Editor note: Almost any business can be evaluated on CAC/LTV (Long Term Value). In this post Rintu describes how Insurtech ventures do it.

Christian Dreyer @x3er, the Swiss based CFA who focusses on how XBRL changes our world wrote his weekly roundup of XBRL news.

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Friday Howard Tolman, a well-known banker, technologist and entrepreneur in London, wrote his weekly roundup of Alt Lending news.

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