The trademark of cryptocurrencies is Bitcoin. The little informed have heard of Ethereum and maybe Ripple with its token XRP, but there are actually around 6000 cryptocurrency / blockchain projects listed, with more popping up every day. As a new asset class, it is not without growing pains, especially liquidity. Wall Street has long criticized the barriers to entry to crypto as a whole, but now, perhaps reluctantly, has embraced Bitcoin and, to a lesser extent, Ethereum. Yet their involvement in everything is practically non-existent.

The difficulties of investing in cryptos are steeped in history and often exaggerated. Their hacking risks and the difficulty of navigating the blockchain are known and real enough, but this doesn’t deter tech-savvy companies, and investment banks have dedicated technology departments. So what’s stopping them from groundbreaking projects that have a much greater advantage than Bitcoin? Liquidity. The market just isn’t big enough to trade and the insufficient volume is wreaking havoc on the space. Historically, trading all but the largest crypto assets could move the market. It was full of manipulation and turned many trades into long-term, pejorative, involuntary investments.

So what about the rest of those 6,000+ projects? With no demand required to induce active trading in their token, the founders have been keeping an eye on a volatile asset as they grapple with stunned backers. Without the required pricing and the ability to easily get in and out of trading positions, those assets suffer and the room gets a black eye.

Bigger challenges

Current conditions have obviously had an impact on individual investors; many held a basket of assets that could not be sold at a reasonable price. The bigger problem is that this condition has a huge impact on those in charge of these projects. Truly transformative technologies are forced to focus on short-term actions that generate interest as they attempt to build the Web3 and deliver on the promise of a decentralized future. The space itself is unique in that it is largely unregulated and allows individuals to invest in projects at the earliest stages imaginable and trade the asset within days.

As a result, capital is constantly being redistributed as investors are often as immature as the asset class itself. The lack of inflows and outflows has hampered countless startups that urgently need support to survive. This is an inherent problem of the space with early stage investments as market-traded assets and the subsequent challenge with which they seek to build momentum.

The perception that it generates for potential users is a further complication. Many people are still uncomfortable with holding crypto assets, and their reputation for hacks, manipulation, and illiquid markets is slowly lagging behind. In the past two years, decentralized exchanges (DEXs) like Uniswap have popped up and injected much-needed liquidity through the use of automated market makers. Other platforms like Kyber and Balancer have shown great promise that these assets can also be successfully traded. However, the supply of tokens still outweighs the demand, and evaluating the fundamentals of a project requires a level of education that most do not have.

A possible solution

Keyword bonded finance. Your mission is to resolve liquidity problems and stabilize the overall market. Given the collective market capitalization of tokens other than Bitcoin, there is an untapped value that has so far gone untapped. Their value proposition is simple – the fintech platform aims to introduce “exotic” DeFi instruments that allow investors to lock their tokens in a smart contract and earn interest. effectively killing two birds with one stone. There is a reason for long-term investors to be patient, as yielding interest on a volatile asset increases hope while decreasing supply, which can potentially add value.

Their recent announcement of a partnership with Orion Protocol, a liquidity aggregator that is finding the best price for tokens on around 700 exchanges, suggests that they are looking for innovative solutions to the hurdles such a project may face.

According to his Announcement at the start, Bonded.finance estimates that $ 50 billion is locked in alternative coins that remain “undersupplied”. The upcoming lineup of Financial Instruments by the Bonded team is aimed at getting these overlooked assets up and running and making it easier for investors to hold onto.

Bonded decided to pursue this after much experimentation and market observation. Identifying this reserve of distressed capital is a significant opportunity. In one last interview, Bonded CEO Paul Mak, emphasized how otherwise great projects lose value, face relentless criticism, and in some cases their communities wither and die. In Mak’s words: “Our intelligent tools allow us to reuse unused capital to provide advantages for longer-term investors and teams and even to rekindle interest in projects that may have disappeared from the radar.”

For projects that want to hack growth or improve the utility of their token, Bonded offers an elegant solution. While the future is obviously hard to predict, Bonded has plenty of room to grow. The startup’s public funding efforts ended with one sold out Private Sale – with investors bringing in $ 2.25 million in the project.

Bonded also has numerous partnerships with REN, Origin Protocol, Matic, and. announced last, the Orion Protocol. As already mentioned, Orion is particularly interesting as an aggregator of liquidity across the entire market, which is placed on a single decentralized platform.

Final thoughts

Because the total locked value of DeFi is twenty Billions, it is impossible to dismiss their value and utility, or reduce a passing fad to it. Bonded, which is focusing its DeFi energy on less heavily trafficked parts of the crypto ecosystem, highlights the breadth and depth of the market while removing some constraints. Whether they will be able to implement their vision of “making alts great again” remains to be seen, of course, but what Bonded is doing – trying to create stability to offset the mounting pains of an emerging asset class is certainly not without merit . Crypto is notoriously tribal, but projects like Bonded are good news for anyone interested in maturing it. In such a volatile market, this can mean the difference between success and failure on some projects.

Disclaimer: The information presented here does not constitute investment advice or an investment offer. The statements, views and opinions expressed in this article are solely those of the author / company and do not represent those of Bitcoinist. We strongly advise our readers to DYOR before investing in cryptocurrencies, blockchain projects or ICOs, especially those that guarantee profits. In addition, Bitcoinist does not guarantee or imply that the published cryptocurrencies or projects are legal in any particular location of the reader. It is the responsibility of the reader to be aware of the cryptocurrency laws and ICOs in their country.

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