Headline: What is the Stellar Development Foundation and what do they do?
Body: During the day, I work for the Federal Government. And there is a very special group of people who work with the entities called foundations. As I was reading some cryptocurrency information, I ran into a reference to the “Stellar Development Foundation” (SDF) and I became very interested to find out what they have to do with cryptocurrency. Boy, is it an interesting story! And, just like the Bible, it all starts with Genesis.
OK, let’s first bust some pre-conceptions
The SDF I a non-profit group with the mission to help find development partners to promote the Stellar blockchain. ( Two of the founders of this blockchain were the ones who started Bitcoin.) Currently, they seem to be using a lot of money to incentivize developers to creates d’apps to take advantage of the new “smart contract” functionality on the Stellar blockchain. One of their promotions is a $30 Million matching fund to incentivize the developers to try to get money together themselves for their own projects. The match promises them that they will be supported in their efforts.
But, don’t get it twisted. SDF might be a “non-profit” but there is a LOT of money running thru it. I promise. If you have trouble remembering this, just pause a moment and realize that the NCAA is also a non-profit, even in view of the $Billions they deal with. Remember too, that the American Hospital Association is also a non-profit, and they do not have a charitable purpose, I am confident. Also, please bear in mind just how incestuous the whole cryptocurrency milieu seems to be. A few dozen high-net-worth individuals own a few business entities, and each of the cryptocurrency projects gives money to or gets money from these entwined entities. This happened here, as SDF was one of the largest creditors of Genesis (remember them from a previous entry??)
Stellar did really well when they went after Star Power
Actor Idris Elba was looking at the cryptocurrency space, and realized that many of his star colleagues were harnessing their star power and actively promoting different cryptocurrencies. He remained unconvinced, bought one NFT, and remained above the fray. He has come to seem to be a wise young man as many of the cryptocurrency projects implode in on themselves. In other news, many of the actors/celebrities who did use their fame to help promote cryptocurrencies are being sued by the U.S. Government for not publicizing that they were compensated to do so.
Even having seen the disaster that befell many of his friends and colleagues, Mr. Elba remains a fan of related technology. He seems especially taken with blockchain technology that he believes could solve some serious problems in West Africa. To his estimate, half of the adult population is unbanked, and blockchain could provide the trustless foundation that they need to provide financial opportunities. “When I think about Africa and other emerging markets,” says Elba, “I think about incredible minds ready to be let loose, but surrounded by walls.” In crypto, which sits on top of a blockchain—a decentralized ledger under no government or bank’s control—he sees a way to “break down those walls.”
The Verdict
SDF is a very interesting group. They seem to be backing some worthwhile projects, and the people involved seem to know how to promote their brand very effectively. But, this is only one of the problems. Assuming that their promotions are all successful, they also need to know enough “technical geeks” to fill their demand for labor. This seems like something not thought thru yet. We shall see.
REFERENCES
Stellar Foundation Nicked by Genesis Bankruptcy With $13M Claim (coindesk.com)
Idris Elba Is Ready to Talk About Crypto | WIRED
Stellar Development Foundation Launches $30M Investment Fund (yahoo.com)
Editor’s Note: Please note that the information contained herein is meant only for general education: This should not be construed as Tax Advice. Personal attributes could make a material difference in the advice given, so, before taking action, please consult your tax advisor or CPA.