š The First Publicly Traded Human
You may have bought shares of companies but what if you could buy shares of a person?
Most of us are always looking out for good investment advice. Which shares to buy, when to sell, and whatnot. But what if instead of being the investor, you could be the investment? What if you could sell shares of āyouā? The idea seems strange?Ā
Not to Kanye West. West recently announced that he wants to go public for $1 trillion. He plans to sell shares of himself to raise money for a universal basic income. And despite how bizarre this may sound, West is not the first person to have come up with this idea.
Today, we will tell you about the world's first publicly traded person: Mike Merrill.
Putting the 'I' in IPO
In 2008, 30-year-old Merrill took the bold and so far unheard decision of going public and selling shares of himself. Why? To raise money of course! Merrill, a software engineer by day, was also an artist. And by selling shares of himself, he wouldn't just get funds but something even more valuable. Investors' insight into what projects he should choose.
So, he sold 100,000 shares of himself for $1/each in his IPO. He retained most of the shares (as expected) but some of his friends bought around 900 shares. But Merrill said his shares would be non-voting and that investors' wishes would be his command.Ā
Soon after his IPO, something strange happened. The word of this bizarre experiment soon got around and more people were interested in investing in the first publicly traded human.Ā
Now, Merrill couldn't actually register himself on a stock exchange. So, he created his own stock exchange. However, a new problem arose.
His investors said they should also have a say in the important decisions in his life. Why? These decisions, like moving in with his girlfriend, directly impacted his creativity and therefore his value. So, they started calling the shots in his life.
Now, let's pause here and think what do the investors get out of it? Do they earn any money? Merrill definitely doesn't give them dividends like other companies they invest in. The value of their shares is inherently derived from their popularity. Investors can cash out when other interested investors want in and make money that way. If this seems bizarre to you, think again. Isnāt this exactly how some NFTs and cryptocurrencies (not all) derive their value?Ā
The world's second publicly traded human understood this loophole. So, instead of selling shares of himself, Alex Masmej launched his own cryptocurrency, $ALEX. Buying the crypto would give people voting rights as well as a percentage of Alex's income.
This idea of betting on humans is quickly catching on. A startup called NewNew has created a sort of a human stock exchange where you can invest in your favourite influencer or celebrity. Blockchain-based social media platform BitClout allows you to do the same. In fact, on BitClout celebrities can even claim their accounts and cash in on their popularity (hereās our explainer on this).Ā
But can you, an ordinary human being, also sell your shares?
Upstart Your Life
Yes, absolutely. And don't worry, you won't have to hand over control of your life to someone else.
A US-based startup called Upstart has been making this possible since 2013. Upstart is sort of like Tinder but instead of looking for possible life partners, you look for investors.
All you have to do is provide information about yourself, like your education details, why you want funds and some interesting facts. Upstart will then estimate how much you can earn and based on that amount people will invest in you. You will then have to provide them with a return on their investment. This arrangement is basically called a human capital contract.
Wait a minute! That sounds like a loan. What's the difference?Ā
Because with Upstart you wouldn't have to pay interest when you're not earning. You know how the companies you invest in don't provide dividends in times of crisis? Plus, you get the benefit of getting stellar advice from your investors who are rooting for you to grow. Imagine if someone like Ratan Tata invested in you. To make sure he gets a good return on his investment he will mentor and coach you and that would be priceless!
The idea might seem very creepy and unsettling. But think about it, aren't we constantly investing in people throughout our lives? Whether it is time or money. Even when you're investing in a company or a startup, you're doing so because you have faith in the people running the company. So in a way, it is these founders and CEOs you are investing in.Ā
But there are always two sides to a coin. This could get ugly real quick. Especially if a person doesn't provide the returns they promise.
Given a chance, would you want to handle the reins of someone elseās life?
P.S. The book, The Unincorporated Man, explores a future where each human being is incorporated and has shares.Ā
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Personally I think students with good grades who can't afford hight tution fees especially in the US with a huge college loan issue can use this method to fund their studies and this model can be applied everywhere so instead of interest it can be a gratituous donation for a deserving student