Decentralized finance or ‘DeFi’ as its more commonly referred to, is an emerging financial technology based on secure distributed ledgers or ‘blockchains’. The ‘big idea’ behind DeFi is to remove the control large banks and institutions have on money, financial products, and financial services.
Coinbase (NASDAQ:COIN) took an early lead in the space and quickly became the ‘go-to’ name for all things DeFi and cryptocurrency. However, naturally, a single behemoth is not meant to thrive in a space that prides itself on removing the powerful few in favor of the ‘power of many.’ In a report published on Barron’s, writer Jack Denton posited “Coinbase Global (NASDAQ: COIN) appears to be losing market share at an accelerating pace, adding onto other pressures facing the cryptocurrency exchange.”
DeFi itself is growing at a rapid rate. The overall value of assets deposited in transactions has risen from $700 million in December 2019 to $200 billion at the start of 2022 representing a 28,471% increase in 2 years. Credit Suisse, estimates global wealth at $360.6 trillion, so there is still a massive amount of market share opportunity for DeFi companies.
Using Coinbase as an example, investors will find the most value in niche defi innovators that are in position to disrupt markets, rather than potentially overvalued leaders. There are several interesting companies creating exciting solutions to global economic problems, such as the supply chain crisis.
DEFI TO SOLVE SUPPLY CHAIN?
Sino United Worldwide (OTCMKTS: SUIC) provides DeFi-based supply chain financing solutions, with lockdowns in Shanghai many fear a second supply chain crisis compounding the first. Companies doing business on the supply chain are going to need easier access to capital to allow them flexibility in dealing with unpredictable logistics.
Sino United (OTCMKTS: SUIC) partners with payment-service-providers ‘PSP’ and allows them to offer several services from its Midas Touch and Beneway DeFi Ecosystem. For more information on how the ecosystem works visit http://sinounitedco.com; to sum it up; SUIC offers borrowers rapid access to funds and flexibility in loan repayment.
The global supply chain financial market is estimated to reach ~$20 trillion by 2025, SUIC is disrupting in a massive market at the right time. Start your research on SUIC today.
DEFI EXCHANGE TRADED PRODUCTS BRIDGING THE GAP?
DeFi Technologies, Inc. (OTCMKTS: DEFTF) bills itself as a bridge between traditional finance and Web 3.0 which is a bit vague, however, the companies products seem to show promise. The company reported 2021 revenue of $15.1 million, of which staking, and lending revenue amounted to $3.34 million. The company achieved this feat even when most of its revenue-generating products (management fees and high staking APY ETPs) managed to gain reception in the latter part of the year.
DeFi (OTCMKTS: DEFTF) offers a wide range of DeFi exchange-traded products ‘ETP’s which are essentially ETFs in that they allow investors opportunities to invest in several companies at once. However, DEFTF’s ETPs are focused primarily on Web3 investment. its expects to launch its MATIC ETP, Metaverse and Gaming ETP, Top 5 DeFi ETP, and Top Digital Assets ETP this year.
CENTRALIZED DEFI AI
While DeFi is focused decentralization, two companies, Apollo Global Management Inc.(NYSE: APO) and Mitsubishi UFJ Financial Group Inc. (NYSE: MUFG), have decided to pool their resources and commit $775 million to Liquidity Group, a company that’s AI-based analysis system performs due diligence in 72 hours outpacing the industry standard 6-12 weeks. They use this system to to finance late stage startups across the globe.
Much like crypto, DeFi is here to stay. Companies like Sino United (OTCMKTS: SUIC), DeFi (OTCMKTS: DEFTF), and Liquidity Group are niche innovators that could grab serious market share. Start your due diligence today.
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