THE INVESTOR'S DILEMMA

In the world of an investor, capital reigns supreme. They are in the business of moving capital for profit. Without capital there is no profit, so an investor is quite cautious with his/her capital.

However, it's almost impossible for capital to be effective or productive with development. With development comes new products and utilities that can attract other capital and profit for the investor but there is the risk factor--not every venture turns out profitable.

In most cases, most projects fail. This is the burden an investor has to bear. To mitigate this risk they tend to invest in several ventures. You can call it a gamble of some sort. You hear terms like portfolio management. This is basically an investor spreading risk amongst several ventures. Your capital size and appetite for risk will determine your risk exposure.

Most venture capitalists/investors are very conservative. As much as they love profit, they cherish their capital even more and it makes logical sense. Most times these individuals or institutions have spent years gathering their capital and are not willing to lose it all for the next shiny thing.

If left to these individuals they would rather hold their capital, but then they would have to deal with the consequence of leaving capital idle. The point I am trying to make is that (in most cases) the more capital you have the lesser your appetite for risk. You would rather maintain the status quo and that can hamper innovation and growth.

The whole point of this post is to help highlight the investor's point of view. As much as I would like to be critical about whales and their actions, I try to be pragmatic and see things from a different perspective. The crypto industry is one of the easiest places to grow capital over a short period. This is mainly because the industry is small and is willing to accept more members. However, what you do with that capital matters a lot.

In the crypto world, we are bound by capital/stake and ideology. This is what it takes to be part of a community. If you believe in a project you must have skin in the game--a stake. Although this can be taken to the extreme where hodlers who sell their position are ousted (with fancy labels attached to their names which I have been fortunate to wear myself), it is understandable and probably the only effective way to protect a project from milkers. This is one of the ways stakeholders/investors protect their investment.

The other thing investors react to is change. If you have been busy around the Leo discord server you can attest to fud. A few people think the polycub project is unnecessary and simply dilutes investors' capital. Shortsegments wrote a detailed post explaining why that's not necessarily the case.

However, I just wanted to point out how normal such reactions are in this space and in general, the financial world. As I stated earlier, investors are very conservative with their capital and are unwilling to lose it in pursuit of profit. This isn't a bad thing if you understand their rationale. Change creates uncertainty and that's not always good for an investor or his capital.

Unfortunately, an investor cannot innovate. They are in the business of allocating capital and they have to work with the innovators to ensure that capital is adequately utilized to bring about growth and innovation that translates into profit. However, their opinions and concerns are valid and how we as a community respond is equally important. I have seen countless times how misunderstanding and lack of proper communication escalate trivial issues leading to the destruction of a good initiative.

In conclusion, we are all here for different reasons. However to achieve our purpose we need to work together as a community to grow. All our dreams and expectation for the community would be caught short if we do not work together or even attend to understand each other's point of view or pain point.

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