Research and Reports
Cryptocurrency lending and borrowing is a relatively new concept in the world of finance and investing. While it may sound like something only bankers would do, you’d be surprised to learn that ordinary people can easily get involved too. In this article we'll explore crypto loans, why they're valuable for both borrowers and lenders, details about how they work, and whether lending crypto is the right option for you today!
Whenever new technologies are developing, we see them in the public eye under specific brands. These brands have become synonymous with their technology. In the case of cryptocurrency, the trajectory has been a little different.
When it comes to crypto lending, there is centralized or decentralized. A centralized finance (CeFi) platform works in a similar fashion as a bank would. They are decentralized to some degree, but not 100%. Centralized crypto lending platforms (BlockFi, MakerDAO, etc.) acts as a custodian for your deposited funds. They then will loan your money out to market makers, hedge funds, and other users on the platform.
Many millionaires are being spawned due to the cryptocurrency boom. As many as 100,000 people have 1 million or more bitcoin stashed away, according to a crypto research firm. Bitcoin isn't the only cryptocurrency creating financial freedom for folks, though. Other cryptocurrencies like Ethereum, Cardano, Dogecoin, and more have made a lot of money for Americans and others worldwide.
Known as tokenized securities or security tokens, digital securities are financial securities that can be represented on the blockchain. This means that the asset itself is completely digital, with verification being confirmed through modern distributed ledger technology. Traditional securities refer to assets that can be held and traded with others. This includes things such as stocks and bonds. These assets are linked to physical assets, while digital securities are linked to the digital blockchain.
Our thesis of creating asymmetric returns by applying algorithmic risk management on high-growth assets continues to be validated and our focus on the intermediate and long-term digital asset market cycles has served us well. During a period when many investors have faced total loss due to unmitigated custodial risk in the case of Celsius Network misunderstanding of risk premium in
Our cryptocurrency risk model has informed our investment strategies and more importantly, the design of our fund. By focusing on a more complete risk profile for digital assets, we have avoided many of the pitfalls that have bankrupted other crypto funds.
The blockchain gaming industry is still in its early stages. However, there are already a few big players. The most popular blockchain game is CryptoKitties, which allows you to buy, sell, and breed virtual cats. It's been incredibly successful, with over $12 million worth of cats sold. Another popular blockchain game is Huntercoin. It's an open-world MMO that runs on the blockchain. In the game, players can collect coins and use them to purchase items and upgrade their characters. There are also rewards for taking down other players.
Two days ago, the peg broke and UST closed at a value of $0.77 USD instead of the expected $1.00 USD. At the same time, the LUNA token dropped by 52% from $64 to $30. There are many explanations as to why this occurred, but the cryptocurrency market has been in a broad-based sell-off over the same period, which may have introduced concerns that this novel stabilization strategy will fail. Indeed, LUNA’s price has fallen from a high of around $116 USD to $1.05 USD at the time of this writing for a decline of 93%.
Volatile markets such as cryptocurrency markets are prone to excesses on the upside and the downside. Investors are rarely concerned with the upside events, but the downside events receive tremendous attention. As we see this week with television pundits and social media commentators weighing in on where the bottom may be and attempting to identify the exact date of reversal. Many of these commentators are calling the events of May 2022 a capitulation, but is it?
Over the past few years, cryptocurrency has exploded in popularity and risen to trillions of dollars in market capitalization. From humble beginnings, there are now nearly 2000 different cryptocurrencies, with more popping up every year. The vast majority of those are tokens and small market capitalization coins. But there are a handful of digital currencies that stand out from the rest--and Bitcoin is the granddaddy of them all.
Not understanding investments could place you in hot water. The good news is that there's hope in crypto investments. Read this ultimate guide on the differences between the two to start investing today!
The latest Bitcoin bear market has reached day 106 since it began on Jan 15, 2022 after trading sideways for most of 2021. The oft cited thesis that Bitcoin halving events drives the cryptocurrency markets remains intact. Anecdotally, the Bitcoin Miami conference had peak attendance and restaurateurs, Uber drivers, and other new investors all have a favorite coin.