DeFi is Getting Into Everything

Crypto isn’t just about simple financial tools anymore. Any project can be a DeFi project. Here’s how. The current crypto bear run is finally seeing a few flecks of green, but some still believe that plunging through multiple death crosses puts us firmly in bear territory. Others believe we have already hit rock bottom and…

By: Masha Prusso Loading...

Crypto isn’t just about simple financial tools anymore. Any project can be a DeFi project. Here’s how.

The current crypto bear run is finally seeing a few flecks of green, but some still believe that plunging through multiple death crosses puts us firmly in bear territory. Others believe we have already hit rock bottom and are due for a correction. Either way, the extreme volatility has many of us on edge, particularly the influx of new investors that entered the ecosystem last year. In this environment, any bad news has a multiplicative effect, and good news is met with skepticism.

The main reason for this is that cryptocurrencies only give a return on investment when sold. You might consider APY and staking rewards. On one hand, it’s great that the blockchain puts the power of the banks in the hands of the people. We provide liquidity for each other and facilitate our own transactions. On the other hand, if the price of the currency drops below the value gained through these interactions, then those gains are not relevant.

The solution to this volatility is to attach crypto to real-world goods and services that people need or use on a daily basis. Most crypto companies are designed to operate within the crypto space. DEXs, exchanges, oracles, wallets, IDO platforms, NFT platforms, and other financial or blockchain-oriented tools were all created to work together and support each other. While this has created an incredibly fertile ground for new projects to grow and flourish, the industry is completely isolated from the real world. It relies on incoming investments rather than generating its own cash flow.

Fortunately, there are already a few projects that are breaking the mold and attacking the real world head-on. These companies create value independent from investments and can bring ROI regardless of the ups and downs of the crypto market. Soon, crypto will get into everything. You will use services you had no idea were connected to the blockchain.

And with the new ability to tokenize equity in a company, more and more projects of all sorts will soon be moving into crypto. Companies with tokenized equity have the ability to give dividends to their token holders. By generating income outside of investments, investors can buy and hold without fear or anxiety. That’s because added value is coming from within the company itself. There is no need to hope other investors jump in so that you can sell.

It’s time for a more stable environment. Here’s how it starts.

Illiquid Assets

Wall Street investors have found ways to convert many different assets into liquid, tradeable forms. The way they minced and diced gold into a million different tradable options is quite impressive. And it demonstrates how assets in the real world can function as financial assets in a digital ecosystem. Although the atomization of gold is somewhat irresponsible, it is also inefficient to allow solid, quantifiable value to sit around and do nothing.

Crypto takes this to the next level by liquifying anything and everything into a tradeable token on the blockchain.

For instance, Pandora tokenizes any asset so that it can be traded and borrowed in an open finance ecosystem. Have an expensive painting? Tokenize it into one hundred different pieces and let people speculate on the price. Someone may even take out a loan on their small piece. With Pandora, everything becomes a commodity. Instead of Wall Street sharks and hedge fund managers, individuals now have the power to leverage their assets, no matter how small.

The value of your tangible assets won’t fluctuate as wildly as the crypto market will. Even the worst bear market won’t bring down the value of a hunk of gold. They simply aren’t related.

The Legal System

Unless you have strict personal business with the courts, you’re likely to have very little contact with the legal system outside of mundane interactions.

The only people making a profit from the legal system is the lawyers running the show. But in fact, there is a way for those unaffiliated with a law firm to get involved. Litigation finance allows investors to help fund lawsuits against large entities to help under-funded plaintiffs engage in legal battles. However, only rich investors are allowed to play.

Until now, Liti Capital tokenized the shares in their company, drastically lowering the bar for the average individual to invest. Litigation finance has some of the largest payouts of any asset class, and that payout is not any larger or smaller based on the size of the crypto market. Holding a LITI token gives the holder dividends when the litigators win a case on behalf of the plaintiff. Liti Capital also pursues crypto scams perpetrated against their token holders, which makes their token a sort of insurance that many investors will want to hold onto.

Litigation finance existed before crypto and will continue to make profits no matter what happens to the crypto world.

Solar Energy

Crypto is seeing hard times, and Elon Musk isn’t a small factor. A mere tweet can send shockwaves through the market, but it’s not entirely his doing. There are environmental concerns surrounding blockchain mining, and if those concerns are validated by a trusted public figure, the spark hits the kindling. Although the blockchain isn’t as bad as popular opinion seems to think, it is still a problem and will turn into a bigger problem in the future.

iM Intelligent Mining offers a way to invest in solar energy infrastructure and blockchain mining at the same time, moving the network to a renewable energy source and decentralizing those profits. Holding their token also provides a form of dividends, but as a high APY instead. The profits from the mining rewards are redistributed to token holders who stake on their platform. Staking gives them access to a second token, which then can be used to buy bitcoins that can be sold for cash.

Putting your money into real, high-end equipment generating real value is a solid investment. The sun isn’t going away any time soon.

Tokenized Equity: How Any Company Can Go Crypto

The exciting thing about crypto is its ability to innovate and how it drives legal innovation as well. Regulations need to be able to keep up with blockchain tech without slowing it down.

The Liechtenstein Blockchain Act and Swiss DLT Amendments opened up a new avenue for new projects of any kind to transform the equity in their company into tokens and give their investors dividends as a reward. Up until this year, any token or coin that had even a hint of the markings of a security would be shut down immediately. We’re finally moving into the next stage.

Companies like Mt Pelerin, Amazing Blocks and Blockchain App Factory specialize in turning equity into tokens. These platforms take care of some of the legal leg work and create easy-to-use templates for founders to fill in the rest of the legal structure. They also facilitate many of the interactions needed for a new company to get started. Investor interface, crowdfunding, ETOs (Equity Token Offerings, which are akin to IDOs or ICOs), and other tedious administrative tasks are all automated and simplified.

Not only do these platforms make it possible for anyone to turn their idea into a crypto company, but they also make it an extremely attractive option. The ease and simplicity are hard to ignore.

These new companies will be more impervious to the ups and downs of the crypto market because their value is linked to real-world assets and services. They will simply be companies that use blockchain technology to generate income independently of any single event or market. And the people who invest in and hold these tokens won’t have to worry about selling when things look grim for everyone else. Their tokens will provide them with passive income, and a $1000 dollar token will give just as much as a $1 token.

One day, when every kind of company is a crypto company, the volatility will drastically decrease. No one is going to want to sell their tokens.