Headline:  What is the Cointelegraph accelerator?

Body:  I don’t know if you have ever played any iteration of Grand Theft Auto, but they have radio stations wherein they parody 2 geeks being interviewed about the advantages of Web 3.0.   Although meant to be funny (and it is) it does display just how enthusiastic people are about the potential benefits of Web 3.0   Cointelegraph developed its own business accelerator to help entrepreneurs with a plan and a passion, to ground their ideas in good plans and sufficient funding.  This is really the aim of any business accelerator, but especially the ones focused on Web 3.0.  But, different from the accelerators of the past, they don’t have to co-habitate in the same building. (In a normal accelerator, several new-stage businesses in the same sector have offices in one building with access to support services, like financial resources and “brown-bags” which are lectures given at a lunch session, topics being those of interest to starting businesses.  In this accelerator, the HQ is in Estonia, while many of the other staff live in Bali.) This accelerator is virtual, and can stretch worldwide.

In fact, as I read about it, it seems that this program was aimed precisely at tech-savvy younger people who are likely to respond well to video-game references, as the program is referred to as a “booster” for startups.

Is this REALLY a big deal?

Yes.  Even in the midst of bad economic fortunes of 2022, $36 Billion was spent on developing Web 3.0 businesses.  This is on top of the $30 Billion spent in 2021.  This is a big deal and getting bigger.  As for the businesses themselves, this is a very big deal, as cointelegraph staff provide a plethora of media products for the businesses to enclude educational materials, advertorials and much more.  In return for these services, Cointelegraph will either take an equity stake or acquire a certain number of their tokens.  The program normally lasts from 9 to 24 months and the networking done here will continue to have benefits for much longer.

Are there other examples of cryptocurrency accelerators?

There are a few, and they basically work in a similar manner.  Pop Social, is one such example, and it has to interweave a few very challenging attributes.   They have to be Web 3.0 friendly (largely meaning that if one of their firms go big, they have to be able to have resources to support merchandise development.)   /They also have to have a facility with social media as that is the  most relatable form of marketing in many cases.   Connected with this, the accelerator needs to have some connections with resources for social financing, so that it can serve as a virtual broker, putting together a sort of underwriting syndicate if an idea really breaks through  Finally, they also have to have some ability to use AI tools to help members do research and move quickly on to rapid prototyping.    To support all of this activity, accelerators like Pop Social use  a subscription model, augmented by sales of NFTs and other digital assets.

One other thing that accelerators like Pop Social and the Coin Telegraph accelerator do is offer “awards.”  Now, I was likely to be kind of cynical at first blush, but upon reflection, this could really do some good.  On one hand, the cash infusion will do wonders for early stage ventures.  But, the awards also accomplish another goal: credibility.   In the future, when they go for more funding, the alums of these accelerators can point out any awards they have won, and get some credibility from the seal of approval by an external party.  This could be helpful when negotiating with banks or venture capitalists.

The Verdict

One word that I read over and over in this research was “eco-system.”  It’s entirely possible that this is done to cater to the high-ideals of many young entrepreneurs who are truly striving to make the world a better place.  Kudos to them, in all authenticity.  But, here’s the thing.  There is not one eco-system on this Earth that doesn’t have predators on it.  And when these predators migrate (naturally) across arbitrary borders, there can be problems.   (Like the wolves in Yellowstone.)  So, my question is this: what is to stop somebody with bad intentions from learning what they can about fleecing as many people as possible, and using the accelerator as a sort of finishing school for their fraudulent career?  I suspect that the honest answer is, “nothing.”  And we, as a society, have to determine whether or not this is an acceptable answer.

REFERENCES

Cointelegraph’s Accelerator Program launches and is seeking Web3 startups

Web3 social media to disrupt a $100B market: Pop Social joins Cointelegraph Accelerator

TradFi-friendly crypto portfolio management: MC² Finance joins Cointelegraph Accelerator

Community-powered crypto trading: CryptoRobotics joins Cointelegraph Accelerator

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.