Ondo Finance, The Future Of Tokenisation ?
Launched on January 18th, Ondo, the token of Ondo Finance, has been performing with a 3x return since the beginning of its launch. Today, we are going to explore what Ondo is and why it’s an interesting token to have in our portfolio.
What Is Ondo Finance ?
Ondo Finance is a company that offers tokenized funds, allowing stablecoin holders to invest in bonds and US Treasuries. You can also invest directly with USD. If you want to invest as an individual, you will need to verify your identity (KYC).
It specializes in the Real World Assets narrative, allowing crypto investors to invest in the giant market of US bonds with a high APY and is known to be one of the safest investments in the world :
Tokenomics
The Ondo token plays a role in the DAO as a governance token. There is a maximum supply of 10 billion ONDO tokens that will be fully unlocked in 5 years (by 2029).
At the time of writing, only 14% of the total supply is circulating. This will double every year in a stair-step pattern, as you can see above.
Partenairships
The main strength of Ondo is their wide range of partners, allowing them to have a good amount of exposure.
As you can see, these are big names in both the traditional and crypto space, allowing them to be one of the leading projects in the realm of Real World Assets (RWA) narrative.
My Final Toughts on Ondo
Ondo Finance is providing something new that is very useful for crypto users; however, there are some inconveniences :
- The utility of the token is very limited (only for the DAO).
- Many countries cannot use the services that Ondo offers :
That’s quite a long list, to be fair, which can be a barrier towards mass adoption.
- High fees :
Advantages :
- Riding the wave of Tokenisation of Real World Assets narrative.
- No unlock until January 2025.
- Still has a lot of potential regarding its market cap (800M).
Overall, Ondo Finance brings something new that is a concrete example of tokenization. It’s still a very young and promising project that’s worth keeping an eye on.
As always thank you for reading !
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Disclaimer : This is not a financial advice, you need to do your own research !
