Hi there, 👋
Hundreds of you have been waiting for this news!
Travis announced yesterday that we’re finally opening up our investing community again for new members.
If you’ve been sitting on the waitlist, then expect to receive a message from us soon.
We can’t wait to see you in the forum - and hanging out in our busy Discord.
In this issue:
- Illicit crypto activity is "miniscule"
- Buying digital assets in Europe
- WTF is .xyz?
- Advice from a domain investor
From the snippets: Joining a business as a co-founder, Alts predictions from the experts, Amazon FBA stats, and the top threat to investors in 2022.
As always, thanks for being here.
P.S. We’ve featured a contribution from one of our members today. We’d love to feature you too! If you’ve got insights or information to share, send us an email at hey @ investing.io.
The Amount of Illicit Crypto Activity Is Actually Miniscule
Here’s a lesson in being way, way, way, way, off the mark. Last year, testifying before the Senate, US Treasury Secretary Janet Yellen suggested cryptocurrency transactions were used "mainly for illicit financing."
But according to new research, the amount of crypto transactions involving illicit activity isn’t just tiny, it’s practically microscopic.
Only 0.15% of all crypto transactions in 2021 were tied to activities like cybercrime, money laundering and terrorist financing, a significantly lower percentage than fiat currency.
The study by data firm Chainalysis concluded that the handful of high profile legal cases involving crypto represent a declining share of all activity, one that was already very small to begin with:
• Since 2017, the share of crypto transactions involving illicit activity has fallen from 1.4% to 0.15%, suggesting crime has progressively decreased in the crypto economy.
• The total volume of cryptocurrency-based crime hit a raw numerical high of $14 billion in 2021, up from $7.8 billion in 2020, but the growth of legitimate usage is leaving it in the dust.
How About Regular Money? Pitted against traditional cash, crypto transactions look like a virtual moral compass. The United Nations estimates that every year 2% to 5% of global GDP ($1.6 to $4 trillion) is tied to money laundering and illicit activity.
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👉 WTF Is .xyz?
xyz has become the go-to URL ending for many Web 3.0 companies. But what does it mean, and why has it caught on in the Web 3.0 space?
👉 100k in Year One
A little advice from a domain investor who reported six figures in domain name sales during his first year.
👉 Gone for the Third Time
DAO.co sold for $45,000 at Sedo prior to the New Year. The domain name previously sold in 2018 for $5,000 and that was a nice R.O.I. from the 2013 acquisition price of just $155 at GoDaddy auctions.
👉 December Keyword Sales
Raymond Hackney is back with a roundup of the December 2021 Keyword domain sales. 'Meta' stayed strong with 43 sales.
👉 The Final Tally
A complete picture of the 2021 domain name sales. Namebio was the source for all reported sales of the most popular extensions.
Buying Online Businesses in Europe
In our last newsletter of 2021, we discussed what you need to know about the opportunities for Ecommerce investors in the EU.
This prompted an insightful response from one of our community members, Kévin Jourdan.
Kévin is the founder of DOTMARKET, a French marketplace for buying and selling all kinds of online businesses.
Here's what Kevin had to say about the EU market - and France in particular:
"Western marketplace brokers often make it sound simple to buy a business from abroad.
The reality is otherwise.
I speak with foreign investors increasingly regularly and observe 2 trends:
- A growing interest in businesses located outside of the US. This is stimulated by increasing prices within the US market, and the competition to acquire those businesses
- The element of surprise when buyers realize how different, for example, the French market is, and how uniquely sellers behave in Europe.
Prices are definitely attractive, and the goal of stepping into a growing market is exciting. What foreign buyers usually underestimate is the complexity of negotiating with non-English speakers across various cultures.
Complicating the situation is that Westerners tend to negotiate differently, and the fiscal and legal requirements are fundamentally distinct.
One major difference
You can't easily buy a digital asset (e-commerce type) without purchasing the entire structure behind it.
There's a good chance that selling your e-commerce site alone might be requalified as a goodwill or company sale down the track. You would then need to buy a French company, and either close it or operate it to make sure you keep all the related suppliers, warehouse, and other important contracts.
Forget about using escrow .com for payments.
"Escrow" actually sounds like the French word for scammer so no seller will use this service. The alternative is to play with local lawyers and notaries which may lead to unexpected costs, and delays with processing paperwork.
My intention is not to scare away buyers!
The E.U. market definitely needs a shake-up by foreign investors who will bring fresh cash and new energy to European Ecommerce.
I'd simply say that choosing the right people to partner with in the process will become a major point of attention for buyers, and will help to smooth the way to a successful purchase."
If you're interested in opportunities that match your investing criteria, Kévin has provided a short form (in English:)) for you to complete.
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✅ Snippets to Send You on Your Way
🔷 Amazon FBA Stats: Did you know that Amazon records an average of 3.767 billion monthly visits? If you’re looking to start an FBA business on Amazon, it helps to arm yourself with relevant statistics to help position you for success. Flippa put together an extensive list of Amazon FBA Stats from 2021.
🔷 Partnering up: Starting a business is one matter, but joining a business as a co-founder is a whole different ball game. James Fleischmann takes a look at creating a founders' agreement, splitting equity, dividing partnership income, vesting schedules, and more.
🔷 Alts Predictions: Alts are exploding and 2022 looks to be another hot year for the market. Here are a few comments from some of the biggest names in alts about their predictions for 2022 and beyond.
🔷 LinksDAO is crowdfunding a golf course: LinksDAO sold out a collection of over 9,000 NFTs to amass $10.5 million towards buying an actual golf course. Their mission is to “create the modern golf and leisure club” and “reimagine the country club,” offering a sports-centric experiment amid a burgeoning DAO ecosystem.
🔷 The Hulk flexed his muscles: A private collector dropped $490k on a rare copy of the Incredible Hulk No. 1 comic. The copy is unique in that it shows the Hulk in grey, not green. Marvel realized the grey printed inconsistently, and decided to swap it with green. (good idea). h/t The Hustle.
🔷 The top threat to investors: No, it's not inflation. Investments related to cryptocurrencies and digital assets are the top threat to investors “by far,” according to a survey of securities regulators.
🧸 Weirdly fascinating:
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Not financial, investing or tax advice. This newsletter is strictly for information, entertainment and education purposes. Nothing in here is investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This newsletter is not tax advice. Talk to your professional advisors. Do your own research.