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Remembering Our Mentors – #95

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Twitch Bans Online Gambling

In edition #92 of this newsletter I talked about the very large problem of online gambling content on streaming service Twitch (owned by Amazon).

Well, this week Twitch made the decision to ban unlicensed online gambling content. Why now? It seems popular streamer Sliker (who did not create content around gambling) scammed other content creators and fans out of more than $200,000 to fund a gambling habit.

This led many popular streamers to announce that they were boycotting Twitch unless they did something about the gambling content, which they believed was partially to blame.

Who knows how long Twitch will keep this in place. Normally, I’m not for a company like Twitch banning certain kinds of content, but in this case I support it (read this issue if you want my take).

CEX 2023


Last week we announced that Creator Economy Expo 2023 (produced by our company The Tilt) will be held in my hometown of Cleveland, Ohio on May 1 – 3, 2023. I’m beyond excited to bring the event to The Land.

CEX is the event for anyone serious about content creation as a business, specifically for bloggers, newsletter writers, YouTubers, authors, speakers, coaches, podcasters and more.

I hope to see you in person at CEX next year. Prices are heavily discounted until mid-November.

Funny enough, last week my old company, Content Marketing Institute, announced that they were moving Content Marketing World from Cleveland to Washington DC next year.

In Memoriam…

Sunday night just didn’t feel right.

I’m normally a cold baby. For those of you who know me, my hands get cold in seventy degrees, and my feet go numb at the slightest cool breeze.

But on Sunday, I was burning up from the inside out. It wasn’t a fever or a sickness, just an intense, uncomfortable heat.

By two o’clock in the morning, I moved to the couch to give my wife respite from my tossing and turning. Two hours later I could hear her talking on the phone in the bedroom. It was her mother.

I knew what happened immediately. Her stepfather, and my friend, had just passed on.

I’ve met all sorts of amazing people in my day. More than most I’d say. I’ve been blessed.

I remember talking with William Shatner on the stage at Content Marketing World. It was just the two of us prepping before his speech. He made us feel like old friends. I cherish that moment.

Mark Hamill had a kind heart. You could sense it immediately. The immediate impact on others was palpable.

Don Schultz, the father of integrated marketing, became a good friend and mentor to me over the years. He was always good for a pep talk when the calling of marketing seemed to betray me.

I’m sure you can recall some special people in your life who’ve helped shape who you are.

But as I think of it at this moment, we all only get a handful of opportunities to meet truly extraordinary people. The kind of person that takes the dull clay that is you and helps sharpen the edges into who you ultimately become. Your full potential as they say.

For me, that person was Jim McDermott (pictured above).

I first met Jim in 1994. He paid the amount of attention necessary to me, only because I was getting married to his wife’s daughter. For the first few years, we chatted a handful of times. Mostly about the unimportant, as family situations go during the holidays.

Jim, from what I knew, was a successful business publisher. What I learned about Jim came mostly from other people. He rarely talked about himself.

In 1999 I was busy working internal communications at a Cleveland-based insurance company. Over my three years there I became adept at developing databases. I’m not sure how, but Jim got wind of it. As I later learned, he could always read the room.

Apparently one of his “custom media” projects needed a proprietary database. He asked if I’d be interested in helping them with a freelance project.

I was shocked. And honored. And scared to screw it up. But I was all in for the chance. I developed a detailed proposal for database services. Although the project never came through for Jim’s team, apparently, he was impressed with my work. Two months later there was a job opening at his company, Penton Media. It was a project management role in Penton’s Custom Media department.

Although Jim didn’t make the final decision, I’m sure he was persuasive in getting me the job.

So, in February of 2000, I began my career learning the art and science of what we all know today as content marketing.

From that day forward, Jim taught me the publishing business, and more importantly, how we (Penton) were going to teach and assist non-media companies in telling their own stories and developing their own audiences.

NOTE: This was truly innovative at the time. Almost no companies were doing this kind of work. Especially business media companies.

From Jim …

I learned how to sell … listen and ask questions.

I learned about editorial … talk to the readers every day and ask them their pain points.

I learned about management … give clear objectives and get out of the way. Give your employees a chance to succeed and fail on their own terms.

I learned about corporate politics … no one cares about you or what you do. You must show them why your department matters and do it consistently over time.

When I first started noodling around with the term “content marketing,” it was Jim who suggested using the term in sales meetings and see how it resonated (this strategy obviously worked).

When I first thought about starting a business on my own, it was Jim who helped give me the courage and support to take the risk.

Jim spent 37 years at Penton Media. No one was more important at Penton for turning the company into the largest independent business publisher in North America.

Most people aren’t aware of that.

Jim never played the political game. If he thought something was wrong, he told people at the highest levels. Most executives didn’t like Jim. Those executives didn’t understand how valuable he was.

After Jim left, Penton fell on hard times. If they only would have listened to Jim … I truly believe that.

But everyone Jim worked with was in awe of his energy, his passion, and his strategic mind. Penton employees from all over the globe would gush about Jim’s concepts and execution plans.

Where would I be without Jim? There would certainly be no Content Marketing Institute. Or Content Marketing World. There would be no content marketing books, podcasts … no content marketing speeches. Hundreds of thousands of marketers and creators were impacted about this new marketing philosophy because of Jim McDermott.

He never got any credit for that either …

A few days before he passed, I was able to chat with Jim about his favorite topic: publishing. We talked for an hour about Penton, what it takes to be a great publisher and even what future communications would look like. Oh, and a little bit of golf (his second favorite subject). It was the Jim I will always remember.

Thank you, Jim. Thank you for taking a young kid who knew nothing under your wing and teaching him without expecting anything in return. Thank you for your generosity and support. But mostly, thank you for your friendship. You will be missed.

Jim McDermott went to a better golf course on September 19th, 2022. Below is his formal obituary.

James McDermott (1935 – 2022)

James Patrick “Jim” McDermott, loving husband, father, grandfather and friend, left this world after a short battle with cancer on September 19, 2022 at the age of 87. Jim died peacefully at home in West End, North Carolina.

He was born to George and Katherine (Chiccone) McDermott on June 24, 1935. After graduating high school, Jim proudly served his country in the United States Navy, honorably discharged in 1962.

His writing and editing skills led him to the publishing industry, where he spent 37 years working for Penton Media, Inc. in Cleveland, Ohio. During his time at Penton, he helped transform the company into the largest business-to-business publisher in North America. Jim spent 27 of those years in the heating and air conditioning industry as publisher of Contracting Business, the leading HVACR contractor publication, and Heating/Piping/Air Conditioning, the top engineering publication in the market.

Jim was instrumental in what became known as the Dialogue Meetings with the Air Conditioning Contractors of America and led the task force that established a formal training program for HVAC contractors. By the end of his career, every manufacturing executive in the HVAC industry knew and respected Jim; his was a household name that stood for service, progress, and a relentless work ethic. In 1987, he was the first non-contractor awarded the ACCA’s Spirit of Independence award, the organization’s highest honor given to individuals who have made profound, lasting changes in the industry. Jim was further honored when eight of the biggest organizations in the HVAC industry came together to declare December 15, 2020 as ‘Jim McDermott Day’ in recognition of his tireless work in moving the industry forward for both contractors and manufacturers.

Before retiring from Penton Media in 2002, Jim led Penton’s internal training programs and helped launch Penton’s Custom Media operation, which became Penton’s fastest growing business area in the early 2000s. Upon retirement, Jim moved to the Pinehurst area in North Carolina, continuing to advise publishers and entrepreneurial startups while working on his golf game, actively assisting the Beacon Ridge Golf Club, and on April 18th, 2008, he celebrated his first and only hole-in-one.

Jim is survived by his loving wife Sandra, his children Stephen, John, Patrick, Thomas, Michael, Jeanne, and Robert, stepdaughter Pamela (Pulizzi), sister Jeanne (Curran), countless grandchildren, and an undeniable legacy of a life well lived.

Services will take place on Friday, September 30th at 11 AM at Our Lady of the Americas Church, 298 Farmers Market Road, Biscoe, North Carolina. Luncheon to follow. In lieu of flowers, contributions may be made to Orange Effect Foundation (speech therapy for children) at theorangeeffect.org.

Thank you for making it this far in The Random. This edition was obviously special to me. I hope you received some value from it.

Problems with your Personal Brand? – #94

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From Last Newsletter

In the last issue of The Random, I talked about the “Be Curious, Not Judgmental” signage around Erie, PA. Well, a big thanks goes to my friend John Chacona who advised me that those properties are owned by Rick Griffith Commercial Real Estate Properties.

Thank you John for the tip and thank you Mr. Griffith for keeping Erie, PA free of judgmental people.

See, the Internet can be used for good after all.

Announcing Next Week

On September 12th we will be announcing the date and location for Creator Economy Expo (CEX) 2023. It’s all very exciting. If you want to know before this next newsletter comes out, just subscribe over at TheTilt.com.

The Downside of a Personal Brand

Last week I posted this commentary at LinkedIn (you can see the original post here, which has over 50 comments now). Take a read and let me know what you think:

NOTE: the picture above is my opening keynote at the first Content Marketing World event in 2011. As you know, orange is part of my personal brand, which we worked into the business.

I was having a discussion with a marketer about acquiring content creators.

This marketer has been thinking about developing a real acquisition strategy and is deciding to go after small, independent content creators.

I thought this made sense, both with the rise of content creators literally everywhere and the fact, at least according to The Tilt research, that about 20 percent are actively thinking about selling their content businesses.

We first talked about what they were thinking about buying. Most of the creators either had a podcast or an email newsletter. Those creators with Instagram or TikTok as their main home were pretty much dismissed. I mean, you can’t buy their social media channels (they don’t own those), but you can buy a podcast feed of listeners and an email list.

The second, and maybe more important issue we were discussing, was the idea of a content brand. Any creator that had a content brand that was the name of the creator were summarily dismissed.

Think about that for a second.

Not even considered.

The learnings from my meeting are this.

First, you need actual assets to sell. Podcast brands with regular downloads, a website with SEO-indexed content, or an email newsletter with subscribers. Those can all be purchased by a media company or brand whether you have revenue or not.

Second, set your expectations if YOU are the content brand. Don’t get me wrong…there are a lot of advantages to everything being about you. Probably get better opportunities at book deals and speaking appearances…maybe sponsorships…but if you are trying to sell the asset someday, that is one situation where your name simply doesn’t help.

What do you all think? Is this right?

Pickleball Anyone?

I first heard about Pickleball on an international phone call in 2018. The person on the call told me about this game that was sweeping through Europe. He also said it was picking up steam throughout the United States.

“Pickle-what?” I said.

After that moment, I started seeing Pickleball courts everywhere, or the “court within a tennis court” at some parks in the area. Today there are more than 38,000 indoor and outdoor courts in the United States. Wow…did that happen fast or what?

It’s four years later and I still haven’t played yet, although I’ve watched my friends play a few times. I’m intrigued.

Last week I received this article about how good Pickleball is for you health wise and my friend, Carl Landau, just published a book on the topic called “Pickleball for Dummies” (you can pre-order the book here…just in time for holiday giving). NOTE: Carl also named his entire company Pickleball Media, so you can probably imagine how much he loves the sport.

I’ll have to make the leap to play very soon. Feels like a lot of pressure.

Writing Your Obituary

I was asked to write an obituary for a family member. Now I’ve written just about every kind of story before, from poems to essays to novels, but I’ve never penned an obituary before. To be honest, it feels like a lot of pressure. It’s important and I don’t want to mess it up.

As I started doing research on what makes a good obituary, I realized how bad most of them are. Maybe “bad” is not the word. Boring?

Most obituaries just state facts like where they were born, who is in the family, what they did for a living and where the funeral arrangements will take place. I guess all of that is fine, but it needs to be more.

Here’s a person who obviously has made an impact on the lives of many other people. That needs to be included. I think, by the end of the obituary, you want to reader to say, “wow, I would have liked to meet that person.”

As I’m going through this process, here’s my advice:

First, get the facts down. You’ll need the birth date, location, parents and all the loved ones you need to mention. Regardless of who might complain, I don’t believe you need to list EVERYONE. Just the key folks. I think listing grandchildren are a stretch.

Second, you need to gather key moments. Contact four or five key people in the person’s life and ask them what they remember most about the person. Most likely you’ll pick up on some themes.

For me, I tried to think of how the person truly made an impact on other people. Of course, this would include what the person would be proud of, but mostly about the small things they did that people didn’t know about. When writing this thing I needed to remind myself that an obituary is like a wedding…it’s really for the people attending…or in this case, it’s about the reader.

Third, tell one or two stories. This is not a book report. Make it real.

I’m close to being done, but my biggest takeaway is to write my own obituary and to keep it with the rest of my estate planning documents.

Be Curious, Not Judgmental (And Always Think About your Audience) – #93

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Moving from Mailchimp

Not sure exactly when, but this newsletter will be moving from Mailchimp to a new email provider in the next few months. Why you ask?

It seems Mailchimp (owned by financial-services provider Intuit) has a problem with cryptocurrency. A few weeks ago, Mailchimp suspended a group of crypto newsletters without warning. Professional publishers like Decrypt were completely shut out of their accounts.

The company’s Acceptable Use Policy states that “Cryptocurrencies, virtual currencies, and any digital assets related to an Initial Coin Offering…we do not allow businesses that offer these types of services, products, or content.”

I understand the uneasiness of companies like Mailchimp (and also Constant Contact) when it comes to crypto. There are indeed a good handful of scams out there. But there are also some amazing content products that serve wonderful communities (like us here at the Random). They are a private company and can serve whoever they want, but I’m horrified by the way they handled it (no warning or communication).

I’m assuming this newsletter has not been blocked because we are simply not big enough (we have 10,000 subscribers). But since I’m actively involved in my own cryptocurrency ($TILT coin), I figure it’s only a matter of time before they’ll shut us down.

So please be patient with me as I figure this thing out.

Be Curious, Not Judgmentalbe curious not judgmental street sign campaign

This phrase (misattributed to Walt Whitman) was made popular recently in a Ted Lasso episode (here’s the exact scene…one of my favorite parts of the AppleTV+ series).

Well, while driving our oldest back to Mercyhurst University in Erie, Pennsylvania this week we saw multiple sightings of this phrase throughout the city (see picture above). A quick search online netted me absolutely no intelligence about who is behind this.

It seems a group of Erie, PA small business owners have joined forces, uniting in this public showing of “be curious, not judgmental.”

If anyone knows the background information on this, please let me know ASAP.

And…here’s the copy from the Ted Lasso episode where it’s referenced.

Worth the read.

Guys have underestimated me my entire life and for years I never understood why – it used to really bother me. Then one day I was driving my little boy to school, and I saw a quote by Walt Whitman, it was painted on the wall there and it said, ‘Be curious, not judgmental.’ I like that.” (Ted throws a dart.)

So, I get back in my car and I’m driving to work and all of a sudden it hits me – all them fellas that used to belittle me, not a single one of them was curious. You know, they thought they had everything all figured out, so they judged everything, and they judged everyone. And I realized that their underestimating me – who I was had nothing to do with it. Because if they were curious, they would’ve asked questions. Questions like, ‘Have you played a lot of darts, Ted?’” (Ted throws another dart.)

To which I would have answered, ‘Yes sir. Every Sunday afternoon at a sports bar with my father from age ten until I was 16 when he passed away.’ Barbecue sauce.” (Ted throws a double bullseye to win the game.)

Woodstock 1999

My friend JK asked me to watch the Woodstock 1999 Netflix documentary Trainwreck (here’s the trailer). I don’t usually watch anything with multiple episodes (well, except Ted Lasso), but I considered the three episodes to this documentary like a longer movie. I can literally rationalize anything.

It’s been days and this documentary still disturbs me (btw, it’s NSFW).
If you’re not familiar, the organizers of the Woodstock event in 1969 put on the 1999 event, hoping for the same kind of love and peace spirit. Not sure what they were thinking by bringing out acts like Limp Bizkit, Korn and Kid Rock, but…

Anyway, the concert probably went down as the biggest cluster in the history of festivals (even more than Fyre Festival). In the aftermath (where literally everything was burned to the ground), the organizers blamed a few bad apples. Now don’t get me wrong, the kids attending did the damage and the behavior there was inexcusable, but I’m looking at it with the eyes of an event organizer.

The organizers first and number one goal was to make money off of this event. When they outsourced the food, merchandising, security and trash removal to contractors, they didn’t think about what this would do to the attendee experience. By the end of the event, some vendors were charging more than $10 per bottle of water (in 1999) because of the water shortage at the event. Security was a joke. Even after the first day, the entire concert area was a landfill.

When we put on events like Creator Economy Expo, or my former event Content Marketing World, we always asked if a change was going to positively or negatively impact the attendee experience. If we needed to cut a certain area (due to budget) that wouldn’t negatively impact the experience, then we were okay. If it did, we needed to think long and hard about making a decision like that.

But when you make budgetary decisions simply as a numbers game and don’t consider the audience, things always go wrong.

Watch this documentary at your own risk.

The State of the Cleveland Browns

As you know, I’m a life-long Cleveland Browns fan. So is my wife, Pam.
We have been struggling with the signing of their new Quarterback Deshawn Watson. TLDR; Watson was just served an 11-game suspension over sexual misconduct allegations.

Regardless of what you feel about the justice of this, the Browns’ front office knew about this situation in advance, and still decided to give Watson the largest guaranteed contract in the history of the NFL.

We have been season ticket holders for over 15 years. We attended Sunday’s preseason game against the Eagles. And it was exactly as I expected. Most fans are still in shock about the entire situation. But also, there were some Browns’ fans showing support for Watson in drastically inappropriate and harmful ways (one went viral).

I’m incredibly saddened by this whole issue, but my wife said it best. With her permission, below is her LinkedIn post stating her feelings about the situation.

I’m struggling with walking into First Energy Stadium today. I’m usually so excited, jumping out of bed like a kid at Christmas. But today, I’m just feeling kind of meh.

This spring, when my beloved Cleveland Browns made a decision to hire, and pay the largest salary in the world, to a morally controversial player, my enthusiasm started to waiver. I tried to get through it, ignore it even. Josh Cribbs said on a morning show that “business is business.” Okay yes, let’s look at it that way I thought. But then I couldn’t just look at the business, because the business has no respect for me, my girlfriends, our moms and daughters.

Many said, if he helps win a Super Bowl all will be forgiven. Probably true, but still with a disclaimer that we had to deal with the devil to get there.

I did love Baker by the way. But that all went wrong last season anyway. That’s for another day. I’m not upset he was replaced (maybe the how it happened was awful) but trades are something I can handle.

I tried to find ways that I thought I could get through this. I won’t buy concessions at the stadium for example. That way they don’t get any more of my money. (We had renewed our tickets paid in full before this acquisition). I roll my eyes even at myself because I am sure that $30 over 8 or 9 home games is going to break the management.

Overall though, the organization that has brought me joy over the last many years has now decided that I don’t matter. They have essentially said that it’s okay if people get hurt along the way. I know they aren’t the first team to do this, but they are my team, and as of today, they have ruined for me what is usually a really exciting time.

So I’ll be there. But my heart won’t.

Gambling and Taxes (and the Best Marketing Demo I Have Seen) – #92

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The IRS Can’t Keep Up

It looks like the Internal Revenue Service (IRS) is short on workers just like Qantas Airlines (Quantas is so short on baggage handlers that they’ve asked their executive team [gasp] to carry bags for three months).

The TL;DR

In February I helped a friend of mine do his taxes. I didn’t have the required information to submit it electronically, so we mailed it in. Good news…it was a refund.

Problem? Six months later and no refund check yet.

So…like a good friend I go to IRS.gov to find out the problem. Here’s what I found:

“As of July 29, 2022, we had 10.2 million unprocessed individual tax year 2021 returns. Of these, 1.8 million returns require error correction or other special handling, and 8.4 million are paper returns waiting to be reviewed and processed.”

Amazing, right?

In our case, the refund was just processed…a full six months after we submitted. I’m not complaining here…just another proof point that most companies in literally every industry is short on workers.

Also, make sure you electronically file your taxes.

So…despite the US going two consecutive quarters of negative GDP growth (generally points to a recession), the fact that we still have so many job openings and are still growing jobs at a staggering rate says no recession (July jobs in the US increased by over 500,000).

The Online Gambling Fallout

Unfortunately, this is your warning for bad things to come.

Let me explain.

A few years ago, my youngest son started watching Twitch streamers gamble online. Some of his favorite streamers would bet thousands of dollars at one time.

For example, Roshstein, a Twitch slots streamer since 2016, has over a million followers on Twitch and regular gets 500,000+ views of an online gambling stream (that lasts five hours or more). Roshstein regularly bets thousands of euros per spin. Online betting sites like Stake.com and Roobet pay streamers like Roshstein to bet. If the streamer loses big (which they do most of the time), it’s okay because the betting company is funding them.

Now, before I go on, it’s not all bad. I’ve read articles from recovering gamblers that watching online gambling is therapeutic. Also, if someone enjoys watching a person bet big on slots and doesn’t go blow their life savings themselves, then it’s just entertainment.

But…

It’s the latest move of content creators that’s the problem IMO.

I had a long discussion with my youngest about this yesterday. A few years ago, online slots/online betting was a niche topic on Twitch. You basically had a handful of people doing this as their full-time job, only focusing on slots or online betting. If someone wanted to watch, they found an online betting streamer and watched.

Now this niche topic is going mainstream.

xQc, one of the top streamers in the world, became popular by streaming the games like Overwatch. Recently, xQc has been streaming slots on an ongoing basis since 2021.

Just this week xQc revealed that he has wagered $685 million dollars since he started gambling online. xQc is funded and sponsored (in the tens of millions) by Stake.com. Stake is also the official betting partner of the UFC (which is a head scratcher since most of UFC’s audience is in the United States, but yet those people can’t bet 😉).

This is the issue that concerns my youngest (and me). Of his 10 million plus followers, one-third are between the ages of 15 and 17. These are kids that initially came for the gaming and have now been introduced to online gambling.

This is going to be train wreck.

screenshot of stake gambling website

But you ask, how can kids (or anyone) in the United States gamble online when it’s “mostly” illegal? For example, see the image above from me going to Stake.com. I can’t even play.

I’ve learned it’s pretty easy. Just go to a free VPN (virtual private network) site and a website (like Stake.com) doesn’t know where you live. Then bet with cryptocurrency and you are on your way.

And it’s just getting started.

For those who know me, I’m not against gambling. I love going to Vegas, and enjoy slots and blackjack. The first time I gambled was in my late 20s. I had a job and had “some” sense of what I was spending on this entertainment.

I’m not sure 15-year-olds do. I’m also not sure how to fix this issue as gambling regulations (specifically online betting) are relaxing around the world. It will soon be everywhere and easier than ever. Just look at Premier League Football. I think every team has an online betting partner.

I’d like to be positive about it, but my mind goes to the scene of “Biff’s” in Back to the Future II.

How do we avoid it?

Ryan Reynolds Is a Marketing God

Do yourself a favor and watch this four-minute MNTN ad produced by Ryan Reynolds. It’s hilarious.

Yes, it’s an advertisement. I don’t think I’ve ever watched a marketing demo all the way through until now. Enjoy!

 

NOTE: There is no “random thing” feature in today’s newsletter. I decided to take the rest of the day off and go kayaking with my wife. Go spend some time with your family. Best, Joe

Tokenomics and the SEC – #91

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What I’m Reading…

I’m on a reading roll now. Thanks in large part to this community, I’ve read three amazing books in a row. First it was Where the Crawdads Sing. My wife and I were ready to go see this at the movies, but we couldn’t get beyond the 34 percent approval on Rotten Tomatoes.

Next it was Swan Song, which is a perfect Robert McCammon book (thank you to Random subscriber Joe Waters for recommending). And now? Upgrade by Blake Crouch. Crouch is one of my favorite authors and his new book does not disappoint. A mixture of today’s problems with science’s solution for the future, and you have a non-stop sci-fi thriller fest. Highly recommend.

Oh…and I’m halfway through A Life in Parts by actor Bryan Cranston (from Breaking Bad). Thanks to Random subscriber Jeff Korhan for sending this one to me. I’m loving it…and rethinking how I approach my content because of it. Regardless, truly entertaining autobiography.

The Future in Tokenomics

Remember last year when everyone was buzzing about Web3 and tokenization? Well, now you can hear a pin drop. Crypto winter has arrived (along with most tech stocks).

Regardless, the opportunity hasn’t gone away. It may be stronger than ever now that the buzz has died down.

Financial expert Jim Bianco has an amazing take on where we are going with tokens (go to the last eight minutes of this interview with Jim on The Breakdown podcast). Some highlights:

— The worst performing stock sector of the S&P since 2007 are the financials. Inside the financials the worst performers are the banks. Jim believes that is a signal that investors believe the banks cannot thrive in a digital economy.

— The process of moving money from one country to another through banks is criminal. Crypto is the disruptor that is set up to make digital transactions faster and cheaper. Banks can’t do this.

— Tokenomics (or tokenization) is critical for creators to extract value out of Twitter, Facebook and YouTube who take almost ALL the value for themselves.

— Jim believes the current system is broken and tokens can be the answer, whether that be social tokens and NFTs for creators or crypto for currency issues.

BUT (this is a big but), the system will and is fighting back.

Last week the SEC filed suit against a former Coinbase employee regarding insider trading. As part of that suit, the SEC framed nine tokens as securities, including our own Rally token ($TILT coin is a sub-token of Rally).

Many in the crypto community lashed out at the SEC, saying that the Securities and Exchange Commission is overreaching and making random decisions about what is and is not a security (great 19-minute podcast on that here). The CFTC, which is the governing body that handles commodities, publicly complained about the SEC’s move, saying that they are trying to regulate through enforcement, and not working together on writing workable regulations.

In addition, the management team at Coinbase fought back with their post “Coinbase does not list securities. End of story.” Well, the SEC didn’t like that very much. A few days ago, the SEC launched a formal probe into whether Coinbase is offering unregistered securities. Coinbase’s stock plunged 13 percent after the news broke.

Here’s my take. Cryptocurrency and tokens fill an important need, both for creators and for markets. The problem is that the US Government (the SEC and the CFTC) cannot develop workable regulations for the industry. Anyone who’s in crypto simply wants to know the rules of the game.

All the SEC stuff makes me laugh (and cry). The DOJ and the SEC are going after a couple kids who worked at Coinbase and made less than $2 million. Yes, I know that “sounds” like a lot, but normally the DOJ and SEC will do releases and go after billions, not millions. This whole thing is all about positioning. The SEC wants to control crypto (or see it go away). The CFTC wants to own it as a commodity. In the meantime, not one person can put together reasonable legislation so we can see this technology thrive and grow. Give me a break.

I’m a bull on tokens. This technology is here to stay. Token-gated content will become the rule and not the exception in the next decade, but the government needs to set down some reasonable investor protections and then get out of the way.

 

OEF Golf for Autism this Monday

Our 16th Annual golf outing supporting kids who need speech therapy happens this Monday, August 1st. Over 160 golfers will make their way to Elyria, Ohio to support the cause. If you’d like to support us from wherever you are at, you can make a donation here. Thank you and pray for no rain.

A reminder… I’m giving out $20 in $TILT coin for a new review of my podcast Content Inc. or This Old Marketing. Just reply to this email with proof of the review and your Rally ID and $20 is yours.