Market Mad House

In individuals, insanity is rare; but in groups, parties, nations and epochs, it is the rule. Friedrich Nietzsche


Can Dark Matter make money from decentralized finance?

The people behind Dark Matter (DMT) hope to cash in on decentralized finance and investment.

To that end, Dark Matter allows users to create Decentralized Investment Organizations (DIOs). A DIO is a Decentralized Autonomous Organization (DAO) people and institutions can invest in.

A DAO is a blockchain platform that allows individuals to collaborate in an activity or task. For example, a game DAO allows players to participate in the game.

Dark Matter calls itself a decentralized investment organization. Its goal is to create teams that will bring unique projects to life. Each unique project will be a DAO that ordinary people can invest in.

Investing in Decentralized Finance

The plan at Dark Matter is to use DIOs to help people invest in DAOs. One hope at Dark Matter is to give DAO investors access to investors and investors access to DAOs.

For instance, Dark Matter is planning an investment in Tokenflip claims it can help developers create coinflip games that allow anybody to win Ethereum (ETH) and ERC20 tokens as prizes. Another planned Dark Matter project is a game they call Dark Voyage.

Beyond games, Dark Matter is developing decentralized financial solutions for industry and business. To that end, Dark Matter is promoting Auction House an auction solution that promises Ethereum and ERC20 auctions with no gas fees.

Similarly, Million Pixels could allow ordinary people to create and invest in Non-Fungible Token (NFT). Million Pixels allows individuals to buy a pixel of digital art for 0.001 ETH. Thus Million Pixels could allow ordinary people to invest in the booming digital art market and the NFT craze.

So what is Dark Matter?

Dark Matter bills itself as a Decentralized Investment Organization (DIO). The plan at Dark Matter is to give investors and speculators early access to product sneak peaks and token sales.

They built Dark Matter with Chainlink, Polygon; previously the Matic Network and The Graph. Polygon bills itself as Ethereum’s Internet of Blockchains. Hence, Polygon is a sidechain designed to connect Ethereum blockchains and ERC20 projects.

A sidechain is a less-encrypted shortcut between blockchains. The purpose of sidechains is to connect blockhains and speed up the blockchain.

Chainlink is a decentralized oracle network that will connect smart contracts. A smart contract or decentralized application is a digital robot that operates on the blockchain. The hope is that smart contracts will use Chainlink to communicate and conduct transactions. One hope at Chainlink is to build a universally connected smart contract.

The plan at The Graph is to create application programming interfaces (APIs) for blockchain networks such as Ethereum. The Graph’s website claims its APIs can eliminate the need for proprietary indexing servers.

Theoretically you could use The Graph’s APIs to build decentralized financial solutions such as DIOs without enormous amounts of physical infrastructure. For example, an investment bank could build DIOs with no its own servers and cloud storage solutions.

Thus a good way to think of Dark Matter is a package of Chainlink, Polygon, and the Graph. For instance, they designed one Dark Matter project Launchpad as a “unique launchpad for new projects on Polygon.”

The purpose of Dark Matter is to use those three solutions to build DIOs. Launchpad will be a Dark Matter DIO.

What Value Does Dark Matter have?

Mr. Market gives Dark Matter (DMT) enormous value. CoinMarketCap estimates that Dark Matter tokens had a $97.26 Coin Price on 2 June 2021.

Conversely, CoinMarketCap estimates Dark Matter had a Fully-Diluted Market Capitalization of $972,530 and a 24-Hour Market Volume of $111,566 on 2 June 2021. They based those numbers on a Maximum Supply of 9,999 DMT.

Dark Matter only has a high Coin Price because of its small supply. To explain, they keep the coin price high by limiting the number of DMT in the market.

What is Dark Matter?

I think Dark Matter (DMT) more like a stock rather than a traditional cryptocurrency. Thus, I suspect they designed Dark Matter as an investment or an equity rather than a currency.

One fascinating possibility is that Dark Matter as a DIO could pay dividends. For instance, they could build a smart contract that could pay automatically pay dividends on a scheduled basis. In fact, the DIO could pay dividends to anybody who owns a DIO.

In the final analysis, Dark Matter is a fascinating concept for a new investment. I think that investment will be a blockchain corporation similar to an Exchange Traded Fund (EFT). They design EFT to give ordinary people access to a wide variety of investments.

Hence, Dark Matter could be the first of a new class of blockchain investments that give ordinary people access to many investment markets. In particular, Dark Matter could serve as a blockchain venture company that gives ordinary investors access to new blockchain ventures.

I think it’s too early to tell if Dark Matter (DMT) is an excellent investment. However, Dark Matter is a cryptocurrency to watch because it could show us the future of investment.