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The DeFi movement is growing, and is about to turn the financial system on its head.
This article was written by Russell Starr, CEO of DeFi Technologies.
The biggest disruptor in my opinion will be decentralized finance, or “DeFi,” which is an emerging ecosystem of financial applications and protocols built on blockchain technology with programmable capabilities, such as Ethereum and Solana.
Decentralized technologies will enable investors to reap the rewards of a greater efficiency, faster, more inclusive system – offering individuals more control from a financial system that was one of the least efficient systems in the world.
The DeFi movement is growing, and is about to turn the financial system on its head
Whether you understand exactly how these transactions are executed or not, the important thing to know is that we‘ve entered the next phase of a major financial and technological movement. DeFi not only gives users control over their own money, offering more transparent transactions and freedom from intermediaries, but will unlock an entire financial and technological movement like we’ve never seen before.
Sure, there is natural skepticism that surrounds this still very nascent world. But consider the upside of this emerging ecosystem, which has attracted nearly 4 million users and with the total volume in DeFi currently at $6.90B according to CoinMarketCap. And while this represents only one percent of the total financial market, this asset class is growing at massive rates.
Through its very foundation, decentralized finance puts the power of finance back into the hands of users and investors through a global, open alternative to the current financial system.
The game is just beginning – Wins or losses, the time to invest is now
If this were a ballgame, we would just be making the first pitch in the first inning where it is not yet clear who will win (meaning which Defi protocols may win). Anyone who understands investing knows it takes a crystal ball to predict which protocols will come out on top. Bitcoin? Polkadot? Solana? Ethereum?
Rather than trying to pick winners or losers, imagine if you could go back in time to the late 1990s/early 2000s and invest in a diversified portfolio of tech companies including Apple, Google, Amazon, maybe even Netscape, and where you would be now if you had invested? Back then we knew that what these companies were doing was revolutionary, but few truly understood how they would change the way the world operated.
And back then, we had no idea that these companies would actually make it out on top. We are on the cusp of that same opportunity, today, but this time its Web 3.0 and DeFi that will open doors to new possibilities and opportunities that we cannot yet fathom. But consider this: Crypto is growing two times faster than the internet.
Not only is the opportunity larger, we are only just now allowing traditional investors to access it. You do not necessarily need to be a first adopter, but you do need to understand that potential value and upside to the industry.
So, whats the path forward?
The crypto industry is maturing, and the next 10 years will surely move just as rapidly as the past several. We believe that everyone should have the opportunity to participate in decentralized finance and cryptocurrencies.
Experienced investors will tell you that the best strategy is broad based and diversified exposure to the entire crypto space on a simplified, regulated basis. And while some predict that 2022 will be the year a bitcoin ETF is introduced in the U.S., regulatory concerns continue to hang over the industry and continue to make DeFi investing feel too risky for some.
(We‘ll leave the metaverse — a digital world where we are predicted to live, work and play, which will be fueled by DeFi and non-fungible tokens (NFTs) — for another conversation. But, yes, the metaverse will contribute to DeFi’s rapid growth.)
But with huge risk, come huge gains
Now imagine eliminating that risk, just a bit, by being able to unlock the future of finance and participate in the DeFi sector through regulated exchanges.
For those who dont have crypto investing experience or are worried about regulated exchanges, the opportunity to get involved exists.
My company, DeFi Technologies, is pioneering the disruption of the 22 trillion dollar a year financial industry to bring the power of finance back into the hands of investors.
DeFi Technologies is the first and only publicly traded company built to give investors direct exposure to the rapidly growing space of decentralized finance. DeFi Technologies represents whats next in the digital economy — providing simplified, trusted access to crypto and DeFi investment opportunities. Institutions and investors can gain diverse, trusted access to the booming DeFi market, including new technologies and ventures, through a single stock purchase on a regulated exchange. Our mission is to democratize the future of finance by empowering investors through access to industry leading decentralized technologies.
On behalf of our shareholders and investors, we identify opportunities and areas of innovation, and build and invest in new technologies and ventures in order to provide trusted, diversified exposure across the decentralized finance ecosystem.
The truth is investment funds that don‘t have crypto in their portfolio are going to be left behind. Performance is always measured against benchmarks, and based on what crypto and DeFi are doing today, any funds that don’t have crypto will not survive.
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