Decentralized finance companies ("DeFi") are making multi-millionaires out of early investors straight out of the gate in 2022, and they have Mr. Wonderful Kevin O'Leary to thank.
A $206M definitive agreement between the parent company of Bitbuy, a cryptocurrencies marketplace and Mr. Wonderful's Neo-listed DeFi company $WNDR, minted millionaires and marked an exciting start to 2022 for DeFi investors.
What is DeFi? Don't know much about it? Until recently, I didn't either. I still have a lot to learn to be honest. But here are my coles notes on it.
What is decentralized finance? ( DeFi )
Decentralized finance (DeFi) refers to an ecosystem of financial applications built on blockchain networks. DeFi technology is an open-source, permissionless and transparent ecosystem of financial services, available to all and operating without a central authority. It puts users in control of their assets and allows them to interact with this ecosystem through applications like digital wallets.
What are the advantages of DeFi?
Without intermediaries or mediators, DeFi apps are self-sufficient. The code points to resolving any possible dispute, and users maintain control of their funds. DeFi reduces the costs of using these products and allows for an efficient and fluid financial system. The system also provides easy access to people who would otherwise not access the current financial systems. Low-income people can then benefit from a wide choice of financial services through decentralized finance.
With decentralized finance, users can:
- Borrow and lend
- Obtain monetary banking services
- Use decentralized marketplaces (exchange digital assets without intermediaries)
- Use smart contracts
I don't own any stock in $WNDR or have any other investments in the DeFi space. I am willing to recognize that I have been sleeping on it until recently, though. The acquisition of the Canadian company WonderFi Technologies Inc. is a clear signal of the start of this growing market for 2022.
If the stars align, I hope to be able to bring an early investment opportunity in a DeFi space to you all. Stay tuned, and as always: best of luck out there.
Disclosure: Author hold no shares of WonderFi Technologies Inc. at the time of publishing and may choose to buy or sell at any time without notice. Author has not been compensated by any third party for this article.
Disclaimer:
The article is for informational purposes only and is neither a solicitation for the purchase of securities nor an offer of securities. Readers of the article are expressly cautioned to seek the advice of a registered investment advisor and other professional advisors, as applicable, regarding the appropriateness of investing in any securities or any investment strategies, including those discussed above. WonderFi Technologies Inc. is a high-risk venture stock and not suitable for most investors. Consult company SEDAR profiles for important risk disclosures.
This article contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). Certain information contained herein constitutes “forward-looking information” under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “expects”, “believes”, “aims to”, “plans to” or “intends to” or variations of such words and phrases or statements that certain actions, events or results “will” occur. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed by such forward-looking statements or forward-looking information, standard transaction risks; impact of the transaction on the parties; and risks relating to financings; regulatory approvals; foreign country operations and volatile share prices. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Actual results may differ materially from those currently anticipated in such statements. Readers should not place undue reliance on forward-looking statements and forward looking information. I will not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on www.SEDAR.com for important risk disclosures. It’s your money and your responsibility..
