The amusingly named Big Brain Capital DAO (BBC DAO) is attracting attention. In fact, Big Brain was the fifth most trending cryptocurrency on 5 December 2021.
So what is the Big Brain Capital DAO and why are speculators interested in it? Essentially, Big Brain (BBC DAO) is an investment fund managed by BBC DAO tokenholders. A decentralized autonomous organization (DAO) manages the fund or pool.
A decentralized autonomous organization (DAO) is a blockchain entity that is collectively organized and managed by its members. A DAO has a built-in treasury no member can access without a vote of the group.
Every member of the DAO owns tokens. Additionally, each tokenholder gets a vote on the operation of the DAO. At Big Brain, they call this the HIVE Mind.
Ideally, a DAO will have no executives or leaders. Instead, the tokenholders decide by voting. The hope is that a DAO will be 100% transparent and verifiable by anybody.
The Big Brain Capital DAO
In the Big Brain Capital DAO, tokenholders they call APES invest money in a Treasury. BBC DAO token holders then vote on which DeFi protocols, tokens, and nonfungible tokens (NFTs) to invest in. The token holders will also vote on Big Brain’s investments strategy.
Big Brain will swap the revenues the investments generate for Ethereum (ETH) and distribute the ETH to BBC DAO Token holders. Big Brain will base the payouts on the number of BBC DAO tokens a person owns.
Interestingly, they claim Big Brain has a protocol that does not boost the token price with buybacks. Hence, they base the BBC DAO token price on the investments rather than the token price. Moreover BBC DAO does not burn tokens to boost its price.
So what is the Big Brain Capital DAO? One way to describe Big Brain is as a hedge fund a DAO owns and administers. Hence, you can consider Big Brain a crypto hedge fund ordinary people can invest in.
So What Value Does Big Brain Capital Have?
It is impossible to tell if Big Brain’s investment strategies will work because the Treasury is not up and running yet.
Mr. Market, however, already gives Big Brain some value. For example, Coin Market Cap gave the Big Brain Capital DAO (BBC DAO) a Coin Price of $0.000008962, a Fully Diluted Market Cap of $8.962 million, a Market Capitalization of $8.697 million, and a 24-Hour Market Cap of $627,991. They based those numbers on a Self-Reported Circulating Supply of one billion BBC DAO, a Maximum Supply of one billion BBC DAO, and a Total Supply of one billion BBC DAO. Big Brain was CoinMarketCap’s 3,446th largest cryptocurrency on 9 December 2021.
In contrast, CoinGecko gave the Big Brain Capital DAO a Coin Price of $0.00000887, a 24-Hour Trading Volume of $621401, and a Fully Diluted Valuation of $8.916 million on 9 December 2021. They base those numbers on a Total Supply of one billion BBC DAO.
Hence, Big Brain is a DAO with some value, even though it is not operating yet. If you are interested in DAOs, I think Big Brain Capital is worth watching because this token could show us if DAOs can make money by running investment pools.