It’s a family affair! Elon Musk’s brother launches DeFi project
The intrepid eccentric inventor Elon Musk has spent most of this year rising from the status he enjoyed during the 2010s as a disruptor of traditional industries to being the world’s richest man.
Add to the mix that he is now one of the most vocal social media commentators in the world and that Tesla, the disruptive company that he founded, is now valued at an astonishing ten times the market capitalization of Ford Motor Company, and the outlandish, otherworldly nature of his projects has been proven.
How can a small, niche car manufacturer which came from outside of the polished, long-established automobile industry suddenly arrive at 10 times the market capitalization of the company which put the majority of Americans on the road over 110 years ago and is still a well-oiled machine? Go figure!
Well, it has more to do with the potential and the ideology, just as Elon Musk’s popularity relies on exactly the same thing.
In May this year, Elon Musk played his ace card by taking to Twitter and publishing his disdain for the high electricity usage required to mine Bitcoin, which crashed the price of 5 cryptocurrencies by an astonishing $700 million, only to shortly afterwards post another tweet which stated that he had spoken to miners and there was a distinct plan in place to reduce power usage and that his firm would accept Bitcoin agian.
Soon after that, the price rose back to where it had been before the flash crash, bringing with it a whole new influx of cryptocurrency investors. Elon Musk became the self-styled cryptocurrency influencer, and due to his own crypto endeavors, he is by far the richest man in the world.
Now, his brother Kimbal Musk, is launching a decentralized finance (DeFi) project, which is based around the company which he founded, Big Green.
The project is a DAO, which stands for Decentralized Autonomous Organization, is scheduled to be launched under the moniker Big Green DAO.
The idea of it is to decentralize philanthropy, which is a very interesting direction given that philanthropy relies on absolute trust and honesty among custodians of funds raised for charitable and benevolent purposes.
By decentralizing the method that lending and fund raising uses for philanthropic purposes, Kimbal Musk’s idea would take away the inherent doubt that many philanthropists have when using the traditional centralized system including banks, wealth managers and lending systems for the custodianship of their efforts.
Big Green has been around for 10 years already, and the company which was founded by Kimbal Musk focuses on providing resources to plant gardens in city schools and teach children how to grow food, which in itself is a benevolent effort.
At the moment, there are no further details relating to the launch date of this DAO or how it will be funded and distributed, but if Elon Musk’s efforts in cryptocurrency can be taken as a yardstick, it is entirely possible that Kimbal Musk’s venture may appear innocuous, but it is also very likely that he is onto a very big thing here.
Perhaps the entire method in which philanthropic donations by large corporation takes place may be totally disrupted, as the removal of intermediaries, greater transparency and peer-to-peer nature of DAOs suit this cause extremely well.