There is a new decentralized autonomous organization (DAO) on the scene, just like the one trying to buy a copy United States Constitution at Sotheby’s last month, this one has its eyes on an equally lofty, prestigious award: a closed film rental chain Blockbuster.
On Christmas Twitter nit, BlockbusterDAO, as the group is aptly known, has announced its intention to raise more than $ 5 million to snatch the brand from controlling Dish Network, which bought Blockbuster at auction in 2011 for $ 320 million. The ultimate goal, according to DAO tweets, is to bring Blockbuster into the Web3 space, turning it into the first decentralized movie streaming service and ultimately establish a brand as a taste creator capable of winning big awards and generating more than $ 1 billion in Annual Return (ARR). Sounds simple enough.
In tweets, BlockbusterDAO claims that the brand is a target mainly due to the fact that “… it is not only nostalgic, but also a historical landmark in the history of film.” According to the group, this brand recognition was not enough to save the company from “terrible leadership with the inability to turn around and make dynamic business decisions”, which makes Blockbuster make sense as a people-owned and people-run Web3 entity. thus very similar.
For the uninitiated, DAOs are more or less crypto hedge funds: they pool funds from the public, with individuals who can secure voting power and influence by buying tokens, NFTs, or others forms of cryptocurrency. Blockchain enthusiasts and meme investors increasingly prefer decentralized ownership schemes, which are structured to be democratically minded. than of traditional forms of ownership, but such investments are not without risk. It is worth noting that these groups are often loosely organized, and BlockbusterDAO does not even have a website. At this point, the group is just a Twitter account ia Discord server.
If you need a warning story, look no further than a thwarted conspiracy buy american constitution, which attracted nearly 20,000 investors before it set foot. Although the DAO, which supported the crowdsourcing efforts, initially promised a $ 47 million return, things got a little complicated after unsuccessful bidding on the Constitution. Tthe group decided to give donors option receive refunds as management tokens (PEOPLE) for their original value on the air, less gas fees, or as a newly created management token called We the People (WTP), which the ConstitutionDAO has compiled just now for reasons not specified, in the amount is proportional to the current value of their PEOPLE tokens.
It’s probably not a good idea to try to jump into this dubious scheme as an investor, but hey, we might see Blockbuster last laugh when Web3 revolutionizes the world.