TBC2 Coin February 2023 Newsletter
DeFi, the Metaverse and the Future
As the crypto space continues to mature, it is becoming more and more obviously each day that Decentralized finance, or DeFi, is one of the most important topics in cryptocurrency.
The aim of DeFi is to give back control to individual users, allowing you to know where your money is being used, stored and spent at all times. There are already tens of billions of dollars being invested through, and used in, Decentralized applications (dAPPS), as well as huge sums of investment into the infrastructure of blockchain to improve networks and end-user applications such as wallets.
We fully expect the near-future to be filled with innovation to improve user onboarding, including simplified flows for things like setting up accounts/wallets, as well as easier access for on and off-ramping between crypto and FIAT which has always been a major barrier to the crypto space as a whole.
The reason why the idea of DeFi is so successful, and why we expect the narrative for the next bull run to be DeFi driven, is because the underlying structure of DeFi removes a required layer of trust when dealing with centralized entities like exchanges.
As we have seen in recent months, centralized entities are a point of failure, whether it is outright fraud as seen with FTX/Alameda (allegedly), or simply poor judgement and poor risk management as seen with lending companies such as Celsius and others, it is clear that these are failures of centralization and not failures of crypto as a whole.
Decentralized Platforms
Some major improvements when looking at the DeFi space, vs centralized space, are platforms for Exchanging currencies, Lending and Borrowing and ease of use and accessibility through Stablecoins.
Due to the simple nature of the DeFi space, using smart contracts and open-source blockchains that are transparent, makes it possible for anyone to take part.
For example, the average interest rate on savings right now for savers in the USA is 0.23% APY, vs an average credit rate for borrowers of over 25% APR! Ask yourself, who is making the profit?
In contrast to centralized lending and borrowing run by the big banks and credit card companies, anyone in crypto can use a platform such as AAVE, which boasts having a total of over $6.5 Billion in deposits currently.
Users can deposit a stable coin, such as USDT and earn 3% variable APY, and borrow a stable coin such as USDC and pay only 2.63% APY currently, all based on supply and demand, and the majority of the interest being paid by borrowers to lenders.
Similarly, some Decentralized Exchanges allow us to stake token (deposit into specific pools or contracts) and earn other tokens which we can then use or sell, often with higher APR and sometimes with increased risk which needs to be managed.
METAVERSE
Major news headlines in 2022 were Metaverse related, and although things seem to have simmered down towards the end of the year, we still expect the Metaverse to take a major role in shaping the future, whether it’s seeing an artist perform, viewing artwork from around the world using VR headsets, browsing for goods in a 3d-space on the internet, or being able to collaborate with teams around the world in a more immersive environment than simply having a web-cam in front of you.
The Metaverse space lends itself in a major way to advertisers, performers, artists and retailers, such as Nike, Zara and Balenciaga who are already using the Metaverse to expand their reach and advertise their goods to retail customers.
There is also a lot to be said about computer gaming, which is now recognised as the largest entertainment industry in the world, larger than the movie and music industry combined.
The Future
Given the exciting emergence and growth of Defi & the Metaverse, we are looking forward to completing the distribution of TBC2 to be part of this for the future. We expect to become fully immersed in all that the DeFi and Metaverse spaces have to offer, including lending and borrowing, yield farming through staking and having the token listed on decentralized exchanges to allow for swaps to be done via various platforms as well as advertising and allowing our users to take part in the Metaverse space.
