Social capital shouldn’t be bought—but that doesn’t mean it can’t generate liquidity

The uptake and growth of prediction markets has been dampened by regulatory issues, but possible workarounds include a non-fiat token, or reputation-linked points system.

Think about someone you didn’t take seriously until someone you respect told you that they think highly of them—how many missed opportunities are there because people miss out on this information? We have inefficient markets for reputation today, and that creates all sorts of market failures as a result.

Humans need a reputation and a portable identity; without these things, we're just beings with no value or purpose. Right now, the main things that determine our reputation, outside what we say and do, are credentials given to us by institutions (like universities). As it relates to social networks, I see opportunities in unbundling institutional c... See more