Photo: Tokoverse, the Crypto Hub for Impact Investing

3 Reasons Why Tokoverse is the Crypto Hub for Impact Investing

Albert Einstein once famously said, “for every action, there is a reaction” and this sums up the principle of causality which governs our world. Although we may lack the comprehension to understand the precise causes and effects underlying the causal relationships which underlie the comings and goings of this world in which we live, the chaos theory aka the butterfly effect phenomenon posits that a seemingly small and localized initial change in one part of a large and complex system can bring about major effects elsewhere in the system. From the perspective of our world as a complex system, the effects of small changes in one part of the world may compound themselves and eventually culminate in impactful events in other parts of the world. As the initial proponent of the chaos theory, Edward Lorenz postulated, the flap of a butterfly’s wings in Brazil might ultimately cause a tornado in Texas.

It was in this context that the notion of impact investing came about in recognition of the fact that our investment decisions could bring about major differences in terms of the conditions of our world, particularly those in relation to the environmental and social aspects of humanity’s existence. In essence, impact investing entails the adoption of an investment strategy which is focused on generating financial returns, albeit in a manner which brings about constructive environmental and social effects. With its focus on the environmental and social dimensions of financial investments, the general framework of impact investing has given rise to two investment approaches in the form of Environmental, Social, and Governance (ESG) investing and Socially Responsible Investing (SRI). Whereas ESG uilizes environmental, social and governance criteria to undertake technical valuations of investment prospects, SRI adopts a more comprehensive approach by utilizing social welfare parameters to screen and filter out investment prospects.

Impact Investing: Achieving UN’s SDGs with Cryptocurrencies

In 2015, the United Nations (UN) adopted its 2030 Agenda for Sustainable Development which had at its core 17 Sustainable Development Goals (SDGs) that cover everything from social development and economic growth to environmental sustainability. With the UN estimating that the global achievement of its SDG goals would require annual investment fundings of between USD5 trillion to USD7 trillion from 2015 to 2030, impact investing has a central role to play in terms of securing the requisite fundings to facilitate the achievement of these goals. In this regard, the UN’s SDGs is already being used as reference points by most impact investors as illustrated by the Global Impact Investing Network (GIIN)’s latest “Annual Impact Investor Survey” i.e. the 2020 edition which revealed that 73% of impact investors had utilized the SDG framework “for at least one measurement and management purpose.” As crypto becomes increasingly mainstream, the environmental sustainability and social responsibility of the domain, which is but another form of financial investment, would inevitably be measured using the yardstick of SDG goals under the banner of impact investing.

The role of cryptocurrencies in the context of impact investing has come about in the form of impact tokens which is defined by the International Institute for Sustainable Development (IISD) as “a group of tokens with the specific goal of unlocking investments for projects with positive social and environmental impacts.” The potential of impact tokens is illustrated by the fact that the IISD in its report titled “Impact Tokens: A Blockchain-Based Solution for Impact Investing” had noted that these tokens could help “unlock the investment needed to achieve the SDGs.” From the social perspective, it is trite knowledge that cryptocurrencies can help promote financial inclusion which has positive correlations with earning power. As from an environmental perspective, there is a general trend towards greenifying cryptocurrencies led by Ethereum through its Project Casper which entails the transition for the network from the energy intensive Proof-of-Work (PoW) consensus mechanism to the less energy consuming Proof-of-Stake (PoS) mechanism. Besides that, Bitcoin Mining Council, which is a coalition of Bitcoin miners, has devised the Crypto Climate Accord to work towards net-zero carbon emissions by 2030. Whilst the crypto industry has adopted piecemeal approaches towards social responsibility and environmental conservation, Tokocrypto has adopted an all-encompassing macro approach in its application of ESG and SRI principles for the development of Tokoverse.

Photo:Crypto Climate Accord’s Logo / Bitcoin Mining Council

Tokoverse: The Crypto Model for Impact Investing

In line with our corporate social responsibility (CSR) agenda as set out in the company’s mission statement to promote the betterment of the global population in general and Indonesians in particular through the power of cryptocurrency, Tokocrypto is leading the way on all fronts when it comes to fulfilling our social responsibilities and ensuring environmental conservation through the development of Tokoverse in a manner which is conducive to meeting the expectations of impact investors. Here are 3 features of Tokoverse’s operations which provides 3 reasons why the ecosystem is the crypto hub for impact investing:-

Approach #1 — Impactful Delivery

Tokocrypto’s modus operandi is to place central emphasis on supporting the holistic development of the community by harnessing the infinite potential of the crypto economy whether this is through the curation of non-fungible tokens (NFTs) for TokoMall or the shortlisting of projects for TokoLaunchpad with the overarching objective of promoting social welfare of the community in which we operate while improving the environment in which the community is residing.

Photo: Tokoverse Impact Investing / Tokocrypto

Approach #2 — Social Responsibility

In furtherance of Tokocrypto’s CSR agenda, we have devised TokoCare to undertake charity initiatives that harness the transparency feature of blockchain to ensure that public donations reach their intended recipients. Back in August 2021, TokoCare had organized Indonesia’s first NFT fundraising campaign that managed to raise 222 Ethers (ETHs), which had a market value of about USD700,000 at the time, in support of Oxygen for Indonesia, a neutral coalition created by the Indonesian startup ecosystem to help fight the pandemic by alleviating the shortage of oxygen supply in the country.

Photo: TokoCare Oxygen / Tokocrypto

Approach #3 — Environmental Sustainability

As the backbone of Tokoverse which powers the ecosystem, Toko Token (TKO) operates using the PoS consensus mechanism which as previously mentioned, consumes considerably less energy than the PoW consensus mechanism thereby helping to reduce the carbon footprints of TKO’s operations and those of the users of the token in addition to ensuring the environmental sustainability of Tokoverse as a crypto ecosystem that is powered by an environmentally friendly token.

Photo: TKOs Growing on Trees / Tokocrypto

Notwithstanding the abundant natural resources of planet Earth, the fact that the rich is becoming richer and the poor is becoming poorer means that those who are less unfortunate end up having to be dependent on the goodwill of others to eke out a living for their existential needs in order to survive another day, hence the need for CSR. Nonetheless, for the rich or poor alike, until and unless we find an alternative habitable planet in the cosmos, humanity has only one place to call home, hence the need for our collective efforts to warrant the continuous sustainability of our environment.

As a corporate organization which has CSR as one its founding virtues and green as one of its primary colours, Tokocrypto is spearheading the global drive towards the achievement of the UN’s SDGs with TKO as the functional epitome of impact tokens and Tokoverse as the crypto hub for impact investing.

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Tokoverse by Tokocrypto

Tokoverse by Tokocrypto

Tokoverse by Tokocrypto is a crypto ecosystem comprised of an exchange, a utility token, an NFT marketplace, a community center and venture building platforms.