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Fintech Startup Bonded Is Tapping into Massive Emerging DeFi Market

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2 Monaten ago

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BONDED.FINANCE successfully closed its Private Sale round, raising $2.25 million USD in less than a week. The public sale offering will take place on November 15th.

On average, worldwide interest rates have trended down; with the majority of Europe offering negative interest on saving accounts while the US hovers at close to zero. This leaves a massive population of people, with little financial knowledge, two unfavorable choices. One would be to try their hand at investing or some equivalent of storing it under an old mattress. The latter option, passive saving has become a punishable offense as inflation keeps eating away at purchasing power.

The pandemic has been a perfect stress test on traditional finance and has resulted in abject failure. In an era of low-interest rates, lending has tightened, there’s a shortage of liquidity at traditional banks, corporate debt hit all-time highs and bankruptcies have soared along with unemployment rates. 

And what we’re seeing now is a somewhat obvious shift. Recently, institutions have publicly announced their allocations in Bitcoin, volume at Bakkt has increased immensely and in recent months, the recorded number of BTC on exchanges has dropped considerably. Traditionally, once Bitcoin becomes too “crowded” and expensive, the money finds its way into the more forward-looking products. Waiting in the wings is decentralized finance or DeFi. 

BONDED.FINANCE: Leveraging Crypto Assets to Push Liquidity to the Next Level

The Opportunity

In crypto today, there are roughly fifty billion USD in dormant value locked in altcoins (Altcoins are all cryptocurrencies besides Bitcoin). This estimate represents the collective market cap of verifiable altcoin projects that have price and volume history. Currently, crypto lending platforms support only a few select altcoins while the majority of projects can not collateralize their assets. In the most general terms, as financial instruments come to crypto, supporters of a given blockchain company should be able to earn against their assets. Historically, even the most heralded blockchain projects were held hostage by traders as liquidity has often been outstripped by token inventory on the market. Liquidity came at a great premium and essentially, the success of one project created the failure of another. A finite amount of liquidity playing the equivalent of musical chairs. 

Perhaps predictably, the pandemic has spurred growth in the blockchain space. As physical contact started decreasing, online activity increased. Blockchain development has stepped up considerably and the number of various dApps (decentralized applications ran on a distributed computing system) has accelerated the growth in DeFi. In June of 2020, the amount of value locked in DeFi contracts crested one billion and less than six months later, the number is estimated to be close to twenty billion.

Bonded’s mission is to harvest this unchallenged capital and leverage these assets to push liquidity to the next level. Bonded is developing a full suite of smart instruments that generate incentives, reduce downside exposure, and effectively realize the value in a vast, but previously underserved market. 

Bonded’s pioneering innovation and contribution leverages the untapped altcoin market, in order to create incentivization to lock value (capital) in their contracts.  Given the surge in funding and proliferation of new projects, Bonded believes that their smart financial instruments could go a long way in securing value and are under development with four innovative products.

Ionic

Governed by an open protocol, supported by borrowers and lenders, crypto loans are issued against less liquid altcoins, allowing holders to unlock the borrowing power of these projects and earn on their long-term holdings. This allows supporters of a given project access to capital without needing to exit their positions. 

Bonded Index

Loans are issued against a pool of weighted assets, algorithmically distributing liquidations and risk across the basket. By providing liquidity to these pools, liquidity providers are able to earn a high-yield return composed of transaction fees and interest payments. This is in addition to Bonded’s “upside distribution,” which has borrowers relinquish a small percentage of any upward price movement of the asset during the life of the loan.

LOC Index

Bonded’s Line of Credit Index is a credit product designed specifically for the crypto space and the team’s driving it forward. Through verifiable smart contracts, approved teams can request lines of credit issued against time-locked or otherwise committed tokens. 

bEth Synthetic

Bonded’s synthetic Ethereum is minted against locked collateral, which is rebalanced by smart contracts and pegged to the current price of ETH. bETH offers the Bonded protocol a generalized substitution for ETH, creating inroads for broader adoption and interoperability.

BONDED.FINANCE successfully closed its Private Sale round, raising $2.25 million USD in less than a week. The public sale offering will be on November 15th, taking place on sale.bonded.finance and will be powered by Dolomite, a decentralized exchange driven by the Loopring protocol.

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Having obtained a diploma in Intercultural Communication, Julia continued her studies taking a Master’s degree in Economics and Management. Becoming captured by innovative technologies, Julia turned passionate about exploring emerging techs believing in their ability to transform all spheres of our life.



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RIOT Stock Registers Unprecedented Rally, Riot Blockchain Valuation Soars Above $1B

Published

12 Minuten ago

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Dezember 29, 2020

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Following the Bitcoin all-time high on Sunday, December 27, Riot Blockchain stock registered 20% gains on Monday’s trading session. The stock has already appreciated by 13x this year. Apart from BTC, investors of Bitcoin mining companies are making a bomb in the market.

Bitcoin mining giant Riot Blockchain is making all the news in the market at the moment. On Monday, December 28, Riot Blockchain Inc (NASDAQ: RIOT) stock price surged a massive 20% surging past $15.5 levels. One of the biggest milestones with the Monday rally is that the Riot Blockchain has clocked a $1 billion market cap.

The latest price rally comes as Riot Blockchain hints at going aggressively on its Bitcoin mining business. Last week, the Riot Blockchain added new S19 Pro Antimers to its bitcoin mining arsenal. The company announced the purchase of an additional 15,000 Bitcoin (BTC) mining machines from Bitmain. The recent purchase also pushes Riot’s total fleet to 37,640 Next-Generation Bitmain Antminers.

Riot said that the fresh purchase of Antminers will help the mining company to attain a 65% jump in its mining hash-rate. RIOT stock has registered an unprecedented rally this year in 2020. RIOT stock has multiplied by 13x this year registering a 1200% surge so far.

Riot Blockchain has issued nearly 17 million shares since November 2020 with its total outstanding shares going to 67.5 million. It has been a phenomenal journey for Riot ever since it ventured into the Bitcoin mining business in October 2017. With valuations less than $50 million back then, Riot has grown more than 20x in size as of its latest stock price.

RIOT Stock and Shares of Other Bitcoin Mining Companies Profit from BTC Bull Run

The recent Bitcoin (BTC) price rally during Q4 2020 has also pushed the stocks of Bitcoin mining companies to new highs. Earlier on Sunday, December 28, the BTC price hit its all-time high of $28,000 in a massive bull run followed by huge institutional inflows.

Moreover, along with the BTC price rally, the Bitcoin hash-rate has jumped significantly since November 2020. Over the last two months, the BTC hash-rate has surged nearly 30% and is currently at 132 TH/s. The surge in the hash-rate suggests higher mining activity for Bitcoin.

As a result, Bitcoin mining companies have been making massive purchases of the BTC mining machines. In addition to Riot Blockchain, other giants like the Marathon Patent Group have made aggressive purchases over the last few months. Just like RIOT, the Marathon Patent Group (NASDAQ: MARA) has registered a phenomenal rally of 18% on Monday, December 28. MARA stock has multiplied investors’ wealth by 12x in 2020. It means the MARA stock has also given phenomenal 1100% returns year-to-date.

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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.



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How low could XRP go? Watch these price levels next

Published

6 Stunden ago

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Dezember 29, 2020

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XRP price dropped by 30% on Dec. 29 following Coinbase’s decision to suspend trading. 

The market sentiment around XRP has become overwhelmingly negative due to the fear of more exchange delistings.

In the near term, XRP faces three key historical support levels at $0.224, $0.1743 and $0.1471.

Where will the XRP price go next?

The ongoing price trend of XRP is not cyclical nor reliant on technical analysis. It is due to investors selling XRP following the suspension of trading across major cryptocurrency exchanges.

On Dec. 29, Coinbase announced that it is suspending the XRP trading pairs on their platform. Paul Grewal, the chief legal officer at Coinbase, wrote:

“In light of the SEC’s lawsuit against Ripple Labs, Inc, we have made the decision to suspend the XRP trading pairs on our platform. Trading will move into limit only starting December 28, 2020 at 2:30 PM PST, and will be fully suspended on Tuesday, January 19, 2021 at 10 a.m. Pacific Standard Time*. We will provide additional updates, if any, through the Coinbase Support Twitter account, including if there are any changes to timing.”

As Cointelegraph previously reported, analysts anticipated Coinbase to suspend XRP trading after the United States Securities and Exchange Commission filed its complaint.

Coinbase plans to undergo an initial public offering, and it is in the firm’s best interest to remain fully compliant with the regulators in the U.S.

Considering the regulatory uncertainty around XRP, traders have emphasized that technical analysis is of less importance in the short term. Scott Melker, a cryptocurrency trader, said:

“A few people have told me that there’s oversold bullish divergence on the $XRP chart. You are doing it wrong. Charts don’t matter here. You cannot trade in a vacuum. Jesus could come down with Biggie and Tupac and put on a concert for Brad Garlinghouse and I still wouldn’t buy.”

In the foreseeable future, XRP has several major support areas it could potentially recover from. However, these are deep support levels on the weekly chart, which shows that it lacks momentum for a major rebound.

XRP/USD weekly candle price chart (Coinbase). Source: TradingView.com

The XRP price has fallen by over 60% in merely two weeks, recording one of its steepest two-week drops in history.

What happens next?

Adam Cochran, a partner at Cinneamhain Ventures, was one of the first to break the story that Coinbase had conversations about suspending XRP trading.

Cochran hinted that the SEC are probably looking into more projects and companies than people realize. He said:

“If you thought my scoop on Coinbase delisting/suspending $XRP was insightful, you’re going to love the next scoop I’m working on, this week. Looks like that SEC is far more active than we thought and sniffing around a number of projects and companies!”