DeFi

Solana Project Wants to Tokenize Oil Rights – Will Investors Take the Bait? – DL News

Published

7 months ago

8 July, 2024

Solana Project Wants to Tokenize Oil Rights – Will Investors Take the Bait? – DL News

A new Solana project has symbolized lucrative oil and gas rights.
This is the latest attempt to integrate so-called real-world assets into blockchains.
But so far, the only product that has successfully become a tokenized product is gold.

A new Solana-based project will bring another real-world asset to the blockchain: rights to oil and gas wells and the royalties that come with them.

The Elmnts project made beta software available to selected users last week.

This will test crypto users’ appetite for real-world assets. Corporate giants such as BlackRock have tokenized nearly $2 trillion in U.S. Treasury debt, according to RWA.xyza data platform that tracks the asset class.

But there have been other attempts to tokenize real-world assets. fizzled outA tokenized uranium product launched in November saw no more than $5,000 in daily transactions volume since February, according to CoinGecko.

And the tokenized commodities market — a sector dominated by Tether and Paxos, both of which offer or tokenized – has remained flat over the past two years, to about $800 million, according to RWA.xyz.

But royalties from oil and gas wells can provide a new, stable and lucrative asset in cryptocurrency markets, one that is untethered from the rest of the cryptocurrency market, where tokens often move in lockstep, said Odai Ammar, co-founder of Elmnts. DL News.

“We now have an asset class where the returns are much more aligned with the crypto ethos,” he said.

“You have an asset class that doesn’t require any capital calls because you don’t incur any expenses – it’s all borne by the oil operator. You just sit back and collect the profits. In Texas, they call it mailbox money.”

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Oil and gas

Elmnts’ four co-founders are James Pacheco, a former private equity analyst at Goldman Sachs; Elias Moreno, a software engineer; and Erich Schmidt, an oil industry veteran who now owns a brewery in Midland, Texas, where 30 percent of the workforce is based. employee by the fossil fuel industry.

Landowners who are located above an oil well can sell the rights to that oil without selling their land. The owners of these so-called mineral rights can then lease part of the land to companies that extract the oil. The owners are compensated with a share of the companies’ profits.

“If the oil operator produced a million dollars [of oil] “This month they are taking the top 25 percent and distributing it to the mining rights owners,” Ammar said.

According to Ammar, royalties on mineral rights are most lucrative in the early years, when the well is most productive. Oil production – and therefore royalties – decline in later years, and wells are typically exhausted after 20 years.

The first offering of Elmnts, a tokenized fund that holds mining rights to land where Chevron operates, will offer yields “in excess of 20%,” Ammar said. Investors will be able to buy “security tokens” that represent shares in the fund.

Security Tokens and Atoms

Elmnts’ first product will be a permissioned platform, “suitable for grandpas and grandmas,” where users can browse different investment opportunities, according to Ammar.

Customers will be able to create an account with an email address and password, a rarity in the crypto economy, where they are expected to log into new platforms using pre-existing crypto wallets.

Elmnts will create an “in-app wallet” upon signup, and users will be able to invest using the USDC stablecoin or ACH, with Coinflow converting users’ money into USDC for on-chain settlement.

Tokenized oil and gas rights will be securities exempt from registration under the Securities and Exchange Commission Rule 506(c)which permits the sale of unregistered securities provided that the purchasers are accredited investors and the company in question takes reasonable steps to verify their accreditation.

“We are leveraging Solana’s capacity token extensions to ensure compliance and program these safeguards from the inside,” Ammar said.

Elmnts will charge a 0.69% management fee, Ammar said. And, as a sponsor of its tokenized funds, the firm will earn 6.25% “in the form of upfront equity” rather than cash fees.

The second product will be a lending protocol called Atoms, where Elmnts security tokens can be used as collateral for crypto loans.

Ammar believes this will be popular with borrowers.

“I have a pledged token that pays me 15%, I didn’t have to go through any KYC, any AML… I come from anywhere in the world except North Korea and the sanctioned countries that we will have to geoblock,” he said, referring to know-your-customer and anti-money laundering requirements.

Elmnts said It will make the beta software widely available “in the coming weeks.”

Aleks Gilbert is DL News” DeFi correspondent based in New York. You can contact him at aleks@dlnews.com.

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DeFi

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Published

6 months ago

29 July, 2024

CoinFlix Staff

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Bonk and Pepe appear set to net new investors 10x to 100x returns over the next 12 months. However, cryptocurrencies in the DeFi play-to-earn gaming sector could offer even greater returns. As August approaches, Rollblock is emerging as a standout DeFi play-to-earn gem with the potential to 100x-1000x gains in the fourth quarter and beyond.

The project features an innovative revenue sharing model and exceptional accessibility, attracting players and investors. Additionally, Rollblock’s extensive game library of over 150 titles and enhanced sports betting are further driving excitement for the platform. Cryptocurrency analysts are expecting a sudden surge in demand. 800% a push for Rollblock from the beginning of September.

Bonk remains strong despite market fluctuations

While most well-known cryptocurrencies struggled throughout July, Bonk remained strong. As one of the highest-grossing meme cryptocurrencies of 2024, Bonk rose over 24% in July, while most cryptocurrencies experienced negative fluctuations.

Investors looking to add a relatively safe memecoin to their portfolio should consider Bonk. While Bonk is unlikely to generate explosive gains of 250x to 1,000x from here on out, Bonk could still theoretically provide returns in the 20x to 100x range.

Pepe should see a big rise in the next bull run

Alongside Bonk, Pepe has yet to go through a bull run. This means that there are still substantial gains to be made from Pepe over the next 12 months.

Pepe is down 4% in 30 days, but that shouldn’t worry Pepe investors in 2024. Experts believe Pepe’s best days are still ahead, with crypto analysts predicting a 10x to 50x surge in the next election cycle around November.

In the long term, Pepe could surpass the 100x mark for today’s investors. However, Pepe is a memecoin, and one should exercise caution when investing in purely speculative assets that have no utility.

Rollblock’s Unprecedented Hype Potential Could Push It Past 100x Valuation in Q4

Rollblock is a GambleFi Play-to-Earn token that integrates centralized and decentralized gambling on a single platform. By allowing players to earn rewards through active participation and gameplay, the platform creates a compelling incentive structure that appeals to both casual and competitive players.

With its cutting-edge blockchain technology, Rollblock offers top-notch security that keeps bets and transactions on the platform secure. The platform’s lack of KYC mandates appeals to both users who value anonymity and security.

Rollblock’s revenue sharing model, which allocates up to 30% of casino revenue to RBLK token holders, is a major draw for investors. The model involves burning half of the repurchased tokens and distributing the other half to stakers, increasing the token’s value and encouraging long-term investment.

The platform is also constantly evolving thanks to user feedback which has enabled updates such as the upcoming sports betting feature within the platform’s casino. This addition will complement Rollblock’s extensive game library of over 150 titles, ranging from traditional poker to innovative blockchain-based games.

RBLK is expected to emerge as one of the leading DeFi tokens in 2024. With a price of $0.0172 with impressive growth potential and over 140 million tokens sold recently, Rollblock is on track to enter the top 100 cryptocurrencies by Q4, making today a lucrative time to buy RBLK tokens.

Discover the exciting opportunities of the Rollblock (RBLK) presale today!

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DeFi

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Published

6 months ago

29 July, 2024

CoinFlix Staff

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Veteran cryptocurrency investor Arthur Cheong believes the digital asset sector offers long-term holders a golden opportunity.

Cheong, the founder of DeFiance Capital, tell His 171,700 followers on social media platform X indicate that he believes decentralized finance (DeFi) is hugely undervalued.

According to Cheong, DeFi projects are innovating at a rapid pace and leaving traditional financial (TradFi) companies in the dust.

“It’s been a long time since I’ve been this excited about the risk/reward and potential upside of DeFi. This is probably the most misjudged moment since the pre-DeFi summer of 2020, with extremely promising prospects.

I see opportunities not only in OG (original) DeFi, but also in some newer projects that are evolving rapidly and growing at a pace that fintech startups will do anything to match.

The veteran investor also believes that crypto is now here to stay following recent launch from the Ethereum spot market (ETH) exchange-traded funds (ETFs) last week.

“Overall, the floodgates are open and there is no turning back. TradFi asset managers will continue to launch new crypto products because, guess what: there is huge demand for them!”

I expect them to launch actively managed crypto ETFs [in the] coming years. ”

Earlier this month, Cheong laid that it might be a bad strategy for cryptocurrencies to seek mass adoption, believing that digital assets are designed to disrupt several key financial sectors.

“I think we should accept that cryptocurrencies may not be suited for mass adoption like Web2, but rather are optimized for some narrow but very high-impact use cases like stateless global money, cross-border payments, and decentralized finance.

Chasing mass adoption of normies may be chasing the wrong Grail from the start.

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