News & Blog
The Era Of The Re-Wired Investor
Table of content
December 21, 2022

The Era Of The Re-Wired Investor

How web2 + web3 revolution enabled a new generation of investors

The Era Of The Re-Wired Investor

Following the internet revolution, the last decade completely transformed the world of financial products. It all began with the new “Re-Wired” Investor.

The Re-Wired Investor has its own rules, principles, and expectations that were not present in the finance of the 20th century or earlier.

Here are some of the characteristics of the Re-Wired Investor:

  • Investors no longer want to be treated as part of a segment but instead as unique individuals (“Just me”) with specific goals and preferences. Instead, they expect to receive advice tailored to their unique circumstances.
  • Likewise, they want to stay in control of their financial lives and understand the advice they receive, and make important decisions themselves.
  • They are reluctant to buy discretionary services, and they are increasingly comfortable conducting their own research.
  • The Re-wired Investor is more skeptical of authority than previous generations of investors.
  • She believes in the wisdom of her peers. As a result, she is likely to seek opinions and views from multiple sources of advice simultaneously, including but not restricted to experts and financial advisors and often starting with people like her friends and colleagues.
  • With her expectations shaped by her interactions with non-financial digital firms (e.g., Google, Facebook, Amazon) as well as smartphones and other digital devices, she expects to be able to access advice anywhere and at any time, through multiple channels and devices as part of a cohesive, rich digital experience.
  • The Re-wired Investor has come to view risk through a different lens: she perceives risk as a downside rather than volatility. As a result, advisors have to emphasize capital markets and hedging strategies that seek downside protection more than traditional portfolio allocations that seek to manage risk through diversification.
  • Lastly, she feels entitled to the same investment products and strategies available to Ultra High Net Worth (UHNW) or even institutional investors forcing WM firms to think through new ways to give their retail investors access to alternative investments and new asset classes beyond traditional fixed income and equities, as well as active strategies.

Blockchain technology and decentralized finance further advance the Re-Wired Investor.

  • With self-custody, they can stay in control.
  • The variety of DeFi products allows them to choose whatever fits their preferences.
  • With on-chain data transparency and analytics, they can conduct independent research.
  • With the abundance of online communities enabled by Twitter, Telegram, Discord, and other forums, they can easily get the wisdom of their tribe.
  • The user experience and access to finance are within one tap or click on a mobile or web device.
  • With new investment products built on top of DeFi, the investors can access the strategies previously only available to UHNW and institutional investors.

This fundamental economic and social shift enables a one-in-a-lifetime market entry opportunity for a web3 product that will give the Re-Wired Investor full potential to utilize the world of DeFi.

P.S. we are raising for One Click — a DeFi robo-advisory product that lets you create a DeFi portfolio and rebalance it with one button click.

Max Yamp

Sign up for our Newsletter

You are in!
You have already signed up for our newsletter.