Another bridge between the crypto and investment worlds has been built, this time by the Toronto-based firm, Ether Capital Corporation. Spearheaded by CEO Brian Mosoff, the investment company is vying to become the go-to resource for project funding within the Ethereum ecosystem. In line with its overarching goals, Ether Capital has just announced the acquisition of two key advisors in the form of Panashe Mahachi and Ethan Buchman.
Making the news public on August 7, Ether Capital has said it will use the two blockchain experts for technical advice and to forge new relationships within the crypto community. According to Mosoff, both Mahachi and Buchman are already entrenched in the Ethereum network and will bring a new level of expertise to the company.
“Ethan and Panashe are both working directly on complex and key improvements to the Ethereum ecosystem that are critical to the future success of the protocol. They bring an unparalleled breadth of knowledge, a deep understanding of the technology and strong reputations within the space. We look forward to their contributions to Ether Capital,” Mosoff said in the August 7 press release.
Ethereum Et Al Need to Fall in Line
The announcement should be another positive step forward for the Ethereum project. Having two “insiders” holding key roles inside an investment firm should provide the real-world connection it needs to grow. Indeed, as the crypto price charts continue to struggle, companies such as Ethereum are having to look outside of their bubbles and towards the wider world for money. With the general public failing to buy ETH like they did in 2017, other funding avenues have to be explored. However, as obvious as this may seem to some, there is still the feeling that some are opposed to adopting “traditional” financial models.
Whether project leaders, developers or investors make it explicit or not, the underlying goal of any cryptocurrency is to disrupt. In fact, for the majority of projects, the goal is to completely dismantle the current financial system and provide something completely different. Bitcoin would be a great example of this. When Satoshi Nakamoto published the original white paper in 2009, the intention was to create a decentralized world where governments had no control over money or payments. As time has gone on, goals such as these have had to be adapted in order to create a more palatable product for the masses.
In recent years, this has caused problems. As analysts at Goldman Sachs recently stated, the price of Bitcoin and other tokens is likely to suffer because their purpose isn’t clear. For seasoned investors, cryptos are “neither a medium of exchange, nor a unit of measurement, nor a store of value.” The message implicit in Goldman Sachs’ report is that cryptos need to find their place in the world and, in essence, link up with the financial world. To put it bluntly, the leading cryptocurrencies have to temper their disruptive attitude and fall in line with tradition if they want to grow.
Ether Capital Bridging the Gap
The Ether Capital announcement is clearly a drive to make this happen. By using ETH as a strategic asset for investing in Ethereum-based businesses, the company is combining traditional techniques with modern technology. Of course, Ether Capital isn’t the only company looking to facilitate crypto investments. German exchange Stuttgart Börse is planning to launch a regulated ICO exchange in 2019, while a new system for funding Dash projects known as DashDonates went live in August. However, with Ethereum being the second largest blockchain in the industry, a new investment vehicle could have wide-reaching effects.
As we move towards the end of 2018, a combination of bearish sentiments and a lack of casual investors has hurt price charts across the industry. At times like this, money from other quarters is necessary, which is why Ether Capital could inject some much-needed life back into the Ethereum network. By basing itself as an ETH investor instead of a traditional investment firm dabbling in cryptos, it should be able to placate the purists and offer a seamless bridge between two previously opposing worlds. Naturally, some may see this as succumbing to the financial system cryptos were once trying to disrupt. However, the reality is that finding common ground is the only way for projects to survive and cryptos to find a place within our social fabric.