1. Over the next few years, cryptocurrency and blockchain-based investments are expected to grow exponentially.
The primary reason for this growth will be investors' increasing interest in these currencies and products. Cryptocurrencies and related products will be a new asset class available to investors, similar to the rest.
Crypto markets are still in their infancy, despite their meteoric growth. As of today, it is valued at about $1.5T, which is less than Apple ($2T), a single listing of S&P 500 itself is worth $35.6T.
2. Due to the opportunity it offers, the Traditional Finance (TraFi) sector should attract more investors to the crypto world, thus increasing the overall market cap. This process is currently happening around the world and our vision is to make it accessible for the traditional world to offer DeFi products and services.
3. To offer their clients the ability to invest in the crypto world, TraFi companies will have to use products similar to the ones they offer now, such as:
- Structured products/derivatives
- Discretionary Assets Management
- ETF (Exchange Traded Funds)
4. In the cryptosphere today, there are two categories: CeFi (centralized) and DeFi (decentralized).
Customers can access cryptocurrencies and other crypto products via CeFi operators, which is very similar to private brokers. In addition to investing in liquidity pools or staking, DeFi allows investors to buy and sell cryptocurrency directly.
TraFi consists of CeFi and DeFi, the two main components of the entire crypto market, which can be used as building blocks for investing in or building new investments. However, CeFi investors are exposed to additional risks.