DeFi

Why Wall Street is still wary of DeFi

Published

6 months ago

26 July, 2024

CoinFlix Staff

Key points to remember

DeFi’s ‘gray area’ challenges Wall Street’s traditional regulatory frameworks.
BlackRock and Franklin Templeton are leaders in blockchain-based government securities.

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Wall Street’s best and brightest are diving headfirst into tokenizing real-world assets, but they’re at a crossroads: Should they play it safe or venture into the Wild West of crypto?

The world of finance is undergoing a transformation around blockchain, and Wall Street is leading the charge in transforming traditional assets into digital assets. But as banks and asset managers venture further into this new frontier, they face a stark choice: stick with the safer, more controlled environments they know, or risk it all in the wilds of decentralized finance (DeFi).

For the uninitiated, DeFi is like the crypto version of financial services on autopilot. It’s a collection of projects running on blockchains that offer loans, exchanges, and other “monetary legos” without any central authority giving the orders. Sounds cool, right? Well, it’s also a regulatory minefield that’s giving traditional finance players serious headaches.

Steven Hu, Standard Chartered’s digital asset guru, puts it bluntly: we need to move towards total decentralization to tokenization This simply will not be “realistic or desirable” for banks. They need someone at the helm to make sure everything runs smoothly.

“There is a critical need for a centralized authority to ensure the authenticity, uniqueness and proper use of the underlying asset,” Hu said.

Tokenization could reach $30 trillion in a decade

But here’s where things get interesting: The tokenization market could reach $30 trillion by 2034, according to Standard Chartered’s crystal ball. Right now, we’re looking at about $13.2 billion of real assets tokenized, with private credit leading the way at $8.4 billion, followed by good old US Treasury bonds.

Speaking of Treasuries, some big names are already making waves. BlackRock and Franklin Templeton have launched government securities funds that live on blockchains. They have attracted nearly $1 billion in assets through their BUILD And BENJI tokens.

While some Wall Street players are playing it safe with private blockchains, cryptocurrency diehards are betting big on public networks. Matter Labs’ Nana Murugesan is convinced that’s where the real intrigue will unfold.

Franklin Templeton has big ambitions for its BENJI tokens. They hope these digital assets will eventually become traded across the crypto ecosystem. Roger Bayston, their head of digital assets, is even talking to regulators about how to make a stablecoin work in the world of DeFi — provided everyone plays by the rules, of course.

BlackRock isn’t sitting on the sidelines either. Its digital currency fund has raised $527 million since March. Carlos Domingo of Securitize Markets attributes its success to the fact that it’s available on Ethereum and allows people to withdraw their funds in a snap.

DeFi is the Wild West, and there are too few cowboys (for now)

So why does all this matter? Well, OpenEden’s Jeremy Ng puts it this way: “DeFi is the horse that pulls the tokenized RWA cart.” In other words, without all this on-chain craziness, no one would care about tokenizing boring old traditional assets.

Even regulators are starting to get interested. Singapore’s financial watchdog has 24 major banks looking at tokenization in their sandbox. Meanwhile, Goldman Sachs is doing its own thing with a private blockchain for bonds.

The million-dollar (or should we say trillion-dollar?) question is whether Wall Street will fully embrace DeFi or keep it at arm’s length. Franklin Templeton’s Bayston thinks it’s only a matter of time before everyone realizes how great public blockchains can be for making markets more efficient.

The line between the traditional banking system and the new world of cryptocurrencies is becoming more and more blurred by the day, almost like a tear in the matrix. Whether this is exciting or terrifying probably depends on which side of Wall Street you are on.

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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.

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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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