Connect with us

Cryptocurrency

Interview with Paul Mak, CEO of Bonded.Finance

Published

on

cryptocurrency investment - Investors King

Here is an Interview Investorsking  Had With Paul Mak, CEO of Bonded.Finance

There is hardly any other fintech industry that is growing as fast as the field of decentralized finance (DeFi). While many investors and fintech enthusiasts had never heard of DeFi at the beginning of the year, it now dominates the blockchain sector, with some projects reaching valuations north of $3 billion.

According to DefiPulse, a real-time data platform for DeFi investments, more than $10 billion is currently locked in various DeFi protocols.Some of the most popular DeFi use cases to date include decentralized borrowing and lending, derivatives, and yield farming. Today we spoke with an aspiring DeFi entrepreneur who wants to go one step further. With his project Bonded.Finance, Paul Mak wants to leverage a dormant, unused value of 50 billion dollars.

Here is what Mak has to say about his project and the future of decentralized finance.

What is Bonded.Finance and how does it fit into the Decentralized Finance space?

Bonded finance is a new lending protocol, innovating in the DeFi space by enhancing the versatility of smart contracts and how they manage and utilise digital assets. We construct and deploy experimental new instruments that enable us to harvest non-performing capital out of almost any digital asset and then put that capital to work in a lending environment. Once deployed these products operate autonomously free from central party authority.

Why is there a need for Bonded right now and what kind of people should be interested in it?

The crypto market is a paradox because it’s nascent and highly active with millions of micro-investors in a market that runs 24/7. To some degree this fosters innovation but the combination of immaturity and frenetic activity creates inefficiencies. Two inefficiencies are illiquidity and the breadth of distribution. Capital is spread across 700 exchanges and there are some 7000 projects vying for attention. With capital continually redistributing, start-ups are not garnering the support they need. Remember, in traditional markets early stage investments are not market-traded assets as young companies find their footing. This has been an ongoing problem and we see great projects lose value unfairly and get eviscerated by angry, abandoning communities. Bonded has identified some $50b in dormant capital sitting in altcoins, and by that I mean, the collective market cap of active projects with tokens that have earning potential. Our smart instruments enable us to harvest and repurpose that unused capital to offer benefits to longer-term investors, teams and even to reignite interest in projects that may have fallen off the radar. As for who should be interested in it—we think everyone in crypto frankly. Coin issuers have an easy way to enhance utility and we may have found a way to make HODLing sexy again. It is our hope that altcoin investors the world over will rejoice but we’ll settle for an active, fee generating network that provides stability and value to help offset the growing pains of our industry. For those with boots on the ground, this is great fit for farmers hunting returns as well as less savvy, plug and play investors seeking the highest sustainable yields in the space.

What is the current status of the platform’s development? Can you share a brief timeline of what’s ahead?

Sure thing. Our interface, which is the launchpad, is built and our first lending instruments are almost ready for testing. We anticipate the debut product due for release shortly after our public raise this month. DeFi moves so fast and as innovators, we will be pushing the envelope to rapidly evolve and deploy products that cater to the fast-moving demands of today’s users. Therefore, we plan on an aggressive rollout of products following our sale without sacrificing security. Tech aside, we have some fantastic partnerships to announce in the coming weeks, a large exchange listing and of course our IDO and liquidity event.

Our website is live and gives a rough estimate of anticipated development milestones.

Can you tell us more about your personal background and why you decided to launch Bonded?

I’m a seasoned investor/operator with over 15 years in the game. Precious metals, equities, property, angel investing and start-up capital; I’ve sort of done it all prior to crypto. Personally, I’m a Dad of two boys, still on the right side of 40 with an ailing back that keeps me honest. My work life has me predominantly between south east asia, (primarily Singapore and Indonesia) Australia and NZ.

As for why I launched Bonded, I like to think of it as the perfect storm. I’ve been operating a small family fund for 7 years, typically allocating capital to early stage companies. In 2017, I was exposed in crypto with a rather diverse portfolio. In 2018, the bear market really took hold and we started taking on water. Illiquidity was a glaring problem and we ended up holding a basket of assets that couldn’t be sold down at a reasonable price. I started considering alternative ways to accomplish this. The losses didn’t deter me but I was frustrated because I felt, even in the bear market, many teams navigated poorly and made avoidable mistakes. Since then, I’ve been eager to run my own ship in this space or at least invest with a stronger grip on the steering wheel. One of the projects we invested in was a DeFi solution, looking to change the way debt and credit is managed and monetised. I was fascinated by some of their ideas, particularly the concept of programmable debt instruments. The blockchain democratizes a number of industries but decentralizing finance is really mind-blowing to me. I’ve always loved the tech and ethos behind bitcoin and cryptocurrencies in general. The longer you’re in it and the more you learn, the deeper your convictions become and I didn’t want to sit on the sidelines as a passive investor any longer. I wanted to contribute something to the space that is sustainable and I think Bonded can accomplish that.

Many investors are comparing the current DeFi hype to the altcoin craze of 2017. What is your opinion on that?

There are definitely some shared elements but it is entirely different. Sure there’s irrational hype, scams and disregard for protocol but the similarities end there. DeFi isn’t exactly new. It is basically the original promise of bitcoin/crypto finally coming to fruition in a meaningful economic way. Sure, it’s volatile as true innovation, pre-internet took about twenty years on average. Here we have market cycles in microwaves, community creations and the internet itself promoting it. Things happen fast with incredibly short half-lives but the underlying principles of Defi are lasting and effectuating a change that’s been a couple hundred years in the making. The banks should have never owned us; we always should have owned the banks. ICOs were about the promise of a new world order for everything, a transposition of all things; some of which is fine, some of which is not ready. Defi is needed, has measurable value and current utility. Total value locked hit a billion in June I think and it took nearly two years to get there and despite a lot of hiccups, four months later, we’re at 10 billion. That’s not market caps with zero depth; that’s actual locked value.

Where do you see the DeFi space heading in the next 12 months?

Wall Street. Where else? Crypto is finally speaking the same language. The economics are simple to grasp, all we need now is 12 months of verifiable data and better accessibility. I will warn you that I’m an optimist so maybe it’s longer but that’s how I see it. The feedback loop is lightning fast in this space and the amount of capital and the velocity of that capital means we get huge amounts of data in such short time spans. 12 months of yield-generating investment vehicles, improved security and proven sustainability of the economic models and the yields become far too attractive to ignore. The better question may be: Assuming stability, at what stage would it become negligence for a fund to not have an allocation in this asset class?

Is there anything else you would like to add? Any closing thoughts?

Yes, definitely. First of all, thanks for having me and to everyone reading; Do not sleep on decentralised finance. Use it and learn it. Don’t let the volatility, rapidly cycling narratives or anything talk you out of this because this is, without doubt, the next decade of finance. Those armed with experience and knowledge will be at a significant advantage as investors, entrepreneurs and employees. Once you get under the hood, this stuff is genuinely fascinating and can pay dividends if you’ll pardon the pun. Also, any altcoin project looking to add some financial tools to help your community grow and invest with more conviction and flexibility, give us a call. In this turbulent marketplace, our solutions could really be the difference between success and failure.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Continue Reading
Comments

Cryptocurrency

Bitcoin Drops Over $10,000 in Value in 24 Hours

Published

on

Bitcoin - Investors King

Global financial markets rout plunged Bitcoin, the world’s most dominant cryptocurrency, by $10,000 to $47,000 a coin, according to the data obtained from Coindesk.

Bitcoin was trading at slightly above $57,000 a coin on Friday before falling by 17 percent or $10,000 to $47,000 within 24 hours to further highlight the state of the global financial markets amid growing concerns over the Omicron COVID variant spread.

Ether, the second most capitalised cryptocurrency, also sheds 10.26 percent to $4,047.96 a coin while Solana, XRP, Terra (Luna), Cardano and Stellar dropped 10.19 percent, 17.54 percent, 11.96 percent, 13.95 percent and 16.74 percent to $204.67, $0.796952, $60.85, $1.40 and $0.292059, respectively.

There is no clear reason as to why bitcoin and other cryptocurrencies are falling besides rising global uncertainty surrounding the fast-spreading Omicron covid variant.

Selling pressure in the Bitcoin spot market seems to have dragged on the entire cryptocurrency before triggering huge stop losses in the derivative markets.

“The evidence points to this being yet another derivative-induced selling event,” wrote J.C. Parets, chief market strategist for All Star Charts technical research, in a note Saturday morning. “The September flash crash had the same drivers as this selloff — leverage was flushed from the system in a violent fashion, which later enabled the market to eventually move higher toward a new all-time high in October.”

Despite the uncertainty surrounding financial assets, El Salvador, the first country to accept Bitcoin as a legal tender, announced it has bought the dip. President Nayib Bukele acquired 150 Bitcoin for about $48,700 a coin.

Tether (USDT), the largest stablecoin by market value, moved away from its 1:1 peg against the US Dollar to $1.025, largely because of its usage as a hedge against market uncertainty. Traders usually move their cryptocurrency to USDT during high market uncertainty.

“Our expectation for the coming days/weeks is sideways choppy price action. A contraction and basing process is likely to take place after such a violent move and we want to treat sharp upward rallies suspiciously right now,” added Parets.

Continue Reading

Cryptocurrency

Bitcoin and Ether Will be Outperformed by Solana in 2022: deVere CEO

Published

on

Solana - Investors King

Cryptocurrency Solana is likely to again outperform both Bitcoin and Ethereum, the world’s two biggest digital currencies, in 2022, according to the CEO of a $12bn financial giant.

The bullish prediction from Nigel Green, chief executive and founder of deVere Group, one of the world’s largest independent financial advisory, asset management and fintech organisations, comes amid another sharp bearish dip for leading cryptocurrencies on Friday.

Bitcoin, Ethereum and Solana were down around 5.7%, 6.8%, and 8.9% respectively over the previous 24 hours of trading.

Mr Green says: “End of the week trading was hit by negative sentiment of high-growth stocks, which went on to impact Bitcoin, the world’s largest cryptocurrency by market cap which, in turn, weighed on the wider crypto market.

“Despite this current volatility, crypto investors who have consistently stayed in the market have generally had a positive year. Year-to-date Bitcoin is up 46%, Ether 376%, and Solana around 13,000%.

“Savvy investors – both retail and institutional – know that crypto is the future of money. In times of volatility, in which there are lower entry points to top up portfolios, they typically continue to drip-feed money into the digital assets market.”

He continues: “I’m confident that a key one to watch in 2022 is Solana, currently the fifth largest crypto by market cap. It started off the year trading at around $2, now it’s changing hands on the deVere Crypto app for about $200.

“It’s likely it will outperform both Bitcoin and Ethereum again next year.

“Why? Because of its masterful technology and its cost-effectiveness.”

Mr Green explains: “Solana is a blockchain platform that has superior high transaction speeds, processing over 2,500 transactions per second – main rival Ether’s is 15 – and at a lower cost and without compromising decentralisation.

“Like Ether, it supports smart contracts, which are algorithms that are designed to operate automatically based on predefined agreements on blockchain technology.

“This revolutionary tech will ultimately change the way almost all business and financial services are delivered in the future. As such, a growing number of decentralized finance (DeFi) applications are moving to Solana.

“They’re also attracted by the considerably cheaper fees compared to Ether, whose prices have exploded in recent months.”

In September, the Solana network went down for about 17 hours. At the time, on Twitter, Solana explained a large jump in transaction load to 400,000 per second overwhelmed the network.

“It’s a young network still and this was just a temporary glitch,” comments Nigel Green.

He concludes: “In-the-know investors are watching it with interest.

“There’s no reason why it shouldn’t again outperform headline grabbers Bitcoin and Ethereum next year if the current momentum continues.

“It’s a momentum driven by a booming DeFi space as retail investors seek alternative funding opportunities and institutional investors continue to pile in.

“2022 will be Solana’s breakout year.”

Continue Reading

Cryptocurrency

Fintech CEO: FBI Crypto Ransomware Seizure Brings Custody to Forefront

Published

on

Dollar Cryptocurrency - Investors King

The FBI seized a cryptocurrency wallet used by Aleksandr Sikerin, it says, which holds $2.3 million in assets which were tied to ramsomware attacks. Sikerin is associated with REvil, which is known for its ransomware malfeasance. Earlier this month, the Justice Department announced a similar seizure of over $6 million in ransomware payments to Yevgeniy Polyanin, who targeted law enforcement and municipal organizations, among others. It is said that REvil has been responsible for more than $200 million in extortion since 2019.

“While identifying these criminals, and seizing their assets, is a step in the right direction, many of them are resting safely in countries, such as Russia, without extradition treaties with the United States. That’s why it is important that governments ensure that exchanges and other companies working in concert with these bad actors are held accountable,” opined Richard Gardner, CEO of Modulus, a US-based developer of ultra-high-performance trading and surveillance technology that powers global equities, derivatives, and digital asset exchanges. Earlier this year, Suex was sanctioned for allegedly doing business with hackers.

“There are three kinds of companies in the digital assets space. Those who actively and knowingly provide services, including money laundering, which aid in the efforts of hackers and bad actors. Those who are complicit and provide aid with no direct knowledge, but, instead, because they fail to adequately vet their clients with the AML & KYC procedures which have become industry best practices and, in most jurisdictions, mandatory. Finally, there are those which take every precaution and employ industry leading technologies to thwart hackers at every turn. Those that fall into the latter group, those are the companies with long-term potential, and it is time that the industry recognizes that in a more substantial way,” said Gardner.

Modulus is known throughout the financial technology segment as a leader in the development of ultra-high frequency trading systems and blockchain technologies. Modulus has provided its exchange solution to some of the industry’s most profitable digital asset exchanges, including a well-known multi-billion-dollar cryptocurrency exchange. Over the past twenty years, the company has built technology for the world’s most notable institutions, with a client list which includes NASA, NASDAQ, Goldman Sachs, Merrill Lynch, JP Morgan Chase, Bank of America, Barclays, Siemens, Shell, Yahoo!, Microsoft, Cornell University, and the University of Chicago.

“This isn’t just an issue with exchanges, of course. Even in the custody space, we’re faced with companies who are following the law but are still leaving massive vulnerabilities in their operation. It isn’t that they are trying to do a lackluster job. It’s just that they don’t appreciate how important the security aspect is in the digital assets space. Blockchain technologies, including digital assets, are a truly transformative innovation. We’re going to see them play out over the next decades. They will completely change how we interact with finance. In order to enhance the opportunities in front of us, it is incumbent upon us to do everything we can to ensure that the technology is safe and secure,” said Gardner.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending