Context

For users of the Genesis Vision (GV) platform: as previously announced on twitter, to celebrate the addition of GVT to the GV fund asset allocation options, all 'Hedge' funds have now been re-allocated to have GVT as the '2nd' asset as opposed to BTC.

See link to view funds and programs: https://genesis.vision/investor/managers/jay-ell

Upon further reflection, this will be extended to all the GV funds (and potentially, programs) in the future; i.e. to have at least some allocation to GVT across programs and funds, in order to help further align the GV platform with the GVT token economics.

Analysis

GV managers who have an interest in the positive price action of GVT and an interest in the growth of the GV platform ought also to consider incorporating some kind of allocation of GVT into their program and/or fund strategies. This ought not necessarily be imposed by the GV developers, but an initiative from its users - particularly its managers. For if managers collectively demonstrate that they are willing to foster the growth of the platform and the token in this way, this will commend the use case of GVT to the wider population far more effectively than an imposition from a centralised authority; this sort of decentralised advocacy is far more in the spirit of cryptocurrencies generally. If managers collectively do not choose to do this, then it shall speak strongly to the suggestion that GVT does not have a compelling use case to begin with, and therefore the token should be set aside. It remains to be seen which direction the community will take on this matter.

Currently, early adopters of the platform are investing using GVT that is market sold in order to convert into the base currencies required to enter into funds and programs. As the platform matures, this will change. More investors will enter into programs/funds using BTC, ETH or USDT instead of GVT. GVT itself will be used less and less as the currency used to enter into programs/funds; rather GVT will become the GV platform utility/profit token that investors and managers will have an incentive to hold. This will take time, and a significant proportion of GVT will need to change hands from pure token speculators to platform users before this use case is realised. Therefore platform adoption by actual end-users is key. Without adoption of the GV platform, GVT will continue to be subject to speculators who have no interest in utilising the platform, and whose interests are therefore not aligned with GV investors and managers. The negative price action over the past several months is indicative that the force of speculative interest in GVT is waning while the utility interest in GVT is beginning to take over - although at this early stage, the negative speculative interest appears to far outweigh the positive utility interest.

By incorporating a small allocation to GVT across all funds and programs, this ensures that it is in the interest of both managers and investors (i.e., GV platform users) to see that the price of GVT grows, not just HODLers.

Should GV grow to about 10,000 active users (managers & investors) and beyond, given the current incentive structure for holding GVT (especially in the form of fee discounts - maximum discount for 500 tokens held - and future copy-trading subscription services), GVT should become a lucrative token to hold as a rough proxy for the profitability of the underlying platform and its managers.

10,000 active users represents a memorable round number target for platform adoption that is relatively modest yet also extremely promising with regard to the potential future price action of the token. This therefore ought to be a key target that GV platform proponents ought to strive for when promoting platform adoption.

Thanks for reading.

JL

This blog is not financial advice. This is an independent blog. Please do your own research. You are responsible for your own investment decisions. The views and opinions expressed in this article are those of the author(s), and do not necessarily reflect the views and opinions of Genesis Vision or its affiliates.