As Index continues to release more products and business materials, we need to spend time talking about our end customers. Understanding our investor’s needs will help us remain investor centric and help build a trust-based relationship.
Today we had a meeting regarding publishing a quarterly or equivalent report for our investors. To build this report, we need a conceptual understanding of who buys $DPI and $Index and why they buy it. This understanding should build on quantitative analysis and a qualitative discussion of who these investors are.
Imagine a nurse, or a factory worker, a student, a teacher, a construction worker. They may be digital natives and likely feel comfortable navigating the internet. They are comfortable enough to discover Eth and eventually $DPI. They may have some business or finance background, but probably not enough to feel comfortable navigating the vast DeFi ecosystem. They also may have some savings or money to invest, but not enough to participate in yield farming or wealth creation across multiple platforms.
This hypothetical investor understands the value of DeFi but lacks the financial resources to participate fully. Their investment of $1000 to $10,000 is a HUGE risk for them and needs to be carefully planned. Not only is it a big risk, but it is a significant emotional event. They will feel nervous, excited, and a little scared.
How do we give them confidence in this investment? How do we build trust?
Our first and most crucial step is ensuring that they have as much information as possible and that the information is presented professionally and in a way that they can understand.
These investors want to know a few things.
• How much money is their investment returning?
• How is there investment performing against the market as whole?
• Where is the investment going, is it growing or contracting?
• How is there money being spent? (Treasury)
• What do the true insiders know and what information are they acting on?
Currently DeFi is a space of tremendous information asymmetry. While the information is all public, the education and experience background needed to understand the system is massive. As crypto leaders we take for granted how big our information asymmetry is- hop on any of our community calls and you will be instantly blown away by both people’s background’s and understanding of the space. There are maybe 20,000 people in the world who really get it.
The onus is on us to reduce this information asymmetry and give our investors high quality and digestible information. $DPI is doing that right now, by giving retail investors access to the same returns as crypto natives. We need to make sure that the information we put out builds on the trust and transparency of our products.
Somewhere, someone is about to invest their savings in $DPI or $Index. Those savings have been ravaged and taken by Wall Street for decades. What are we doing to build back a century of destroyed trust?
Thanks to @DarkForestCapital for sparking this discussion