The Crypto Gold Rush
(Source: forbes.com)

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(Original link: forbes.com)

Disclaimer: I am not an expert on cryptocurrency, but I can tell you this much: Neither are most of the people at the Consensus conference at the Hilton Midtown this week. There's another thing. The crypto gold rush is not entirely global. Not yet. Most of the serious money players and developers come from a handful of nations—the U.S., China, Russia, Japan, South Korea and Israel. European money is flowing into projects, with wealth managers putting money into crypto funds. Latin America hasn’t really discovered the blockchain, though Brazil has hopped on the bandwagon and will be the leader there.
It’s Blockchain Week in New York. Blame the traffic on the rain, and those guys with badges around their necks.
Startups are touting their next genius idea—a new real estate project, a new mining app, a new coin pegged to the euro. These are the people I met there. This is what they are dreaming about, how they hope to make it happen and what they think about their rivals.
Names have been changed to protect the innocent.
“If Mockba goes to the party, I’m not going to the party,” one tech reporter tells me about a Russian founder I have never met. I ask him why he wouldn’t go to one of the myriad parties being thrown in Manhattan this week. He used choice words and dropped F-bombs. “I spent a half hour listening to this joker try to sell me on his project and how he was going to raise $200 million.”
I get it. One Russian the other week told me he was hoping to raise a few hundred million in an initial coin offering, based on a fintech company he was only just building. Worth noting, Russian messaging app Telegram raised about a billion dollars recently from accredited investors. Telegram has been around for years and has an actual product, but makes no money.
We're at the Baccarat bar—an interview set up by a foreign PR rep for off-record sources and on-record sources who do not live here. It's Russian style, with baccarat crystal chandeliers, and a crystal candleholder on the table keeping the flame. The cocktail waitress tells me someone stole their candleholder from this very table just the other day. “We put it on her tab. She got mad and said she didn’t take it. Then we told her we had her on camera.” I look up … there are cameras everywhere.
KMR Rapper Snoop Dogg performing at the XRP Community Night on Tuesday May 15. He asked the crowd if they wanted to smoke pot with him and the crowd erupted in cheers. That was a yes.
The three people I am sitting with are basically conspiring against the global financial system and working to build a cashless society. They are raising millions for startups issuing new currencies. There’s the Emirati. There’s the Russian. And there’s a Japanese woman. She finds out I write for Forbes . She wants to take selfies with me. We will call her Jane. She's a fundraiser. She puts hungry startups in front of gambling Japanese. She has learned, perhaps unconciously, that the easiest way to make money is to sell people on the idea that you can help them realize their dreams. Jane claims she raised over $40 million in a year by herself, and that it was easier than she imagined, and that prior to discovering this new beat, she was a struggling actress in Los Angeles.
The Emirati is leaning over the table, speaking almost in a whisper. He has gold cufflings. I say, "So it's like black bags full of money flown around in private jets. Only you put it on this thing called a blockchain." Yes, the Emirati says about his particular project, "though I would never say it's exactly like that."
On Monday, the first day of the Coindesk-organized forum, there is a guy in a tie-dyed hoodie standing on the street corner complaining about losing money in some blockchain platform called NEM. He claims to have lost the equivalent of around $1.4 million in their cryptocurrrency. That's got to suck.
Three Lamborghinis pull up to the curb outside the Hilton, almost as if they were rubbing it in his face. One has Montana plates. The other one has Florida plates. The drive of the Montana-registered Lambo revs his engine curbside, marking his territory. It could be rented out by one of those people someone like Jane raised $20 million for, for some dating app for escorts or some such thing.
Inside, the line snakes, hundreds of people deep. A Hilton employee dressed in black tells me he has never seen a single event so crowded at the hotel.
At the event, a media company under your name on your Consensus registration badge makes you a man-magnet. It's best just to be nice. Some come up to you like they know you. They are from all over the world. They do everything, though most of the things they do you have never heard of or understand why someone or some industry would want it. But that is why you are not a millionaire and they are—or will be, I guess.
I meet a crypto-fund manager from LA. He is just dressed in a T-shirt and jeans and a gold chain. We talk off the record. He's advising a new Brazilian crypto...

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