What is BABB (BAX) and Compound (COMP), learn about these two undervalued cryptoassets.
What is BABB?
Babb is a financial blockchain platform founded in London (United Kingdom) that aims to bring accessible financial services to the unbanked and under-banked. Babb’s mission is to become a decentralized banking platform that leverages blockchain, AI, and biometrics technology to offer anyone in the world access to peer-to-peer financial services. There are at least 2 billion people without a bank account or essential banking services, and it is not viable for the traditional banking system to serve them. Babb is a new approach, using innovative technology to crowdsource financial services and completely removes the need for banks as we know them.
Babb is preparing to launch a distributed application platform where FIAT currencies are tokenized. The Babb App, partner services, banks worldwide, and central banks in developing countries will use these tokenized funds.
BAX is the lifeblood of the Babb platform and is used under the hood to operate the platform’s services across all the geographies and jurisdictions served by the platform.
Why is babb exciting
BABB is building a decentralized bank. Anyone with a smartphone can open a UK bank account, and if you’re fully verified yourself, you can board your friends and family. These integrated digital identities allow for quick onboarding for anyone, especially those living in areas where access to banking may be more challenging.
This innovative and ambitious project also has its own token behind it, and that allows for much more freedom than what would be permitted with a standard banking system. Users will even be able to gain access to a payment card that is independent of systems used by Visa or Mastercard.
This blockchain project targets developing nations with a high percentage of citizens without access to a bank account but with a growing number of mobile phone users, making their solution a perfect addition to these economies.
What are the primary barriers?
Nobody knows if BABB would be legal because it would need permission from the government and central bank in every country it operates. BABB would require approval from other authorities such as the Federal Deposit Insurance Corporation (FDIC) in the United States as well.
The BAX token had a Circulating Supply of 49.85 billion and a Total Supply of 50 trillion, according to coinmarketcap, which makes the ambitions grander than the reality. Investors would be well advised tl invest with precaution in BABB until the company demonstrates it can make its dreams a reality.
Is BABB a good investment?
BABB is an excellent long-term investment that can become a future stronghold in the crypto world. However, it will require your patience as some hard years are coming down the line.
What is Compound?
Compound (COMP) is an Ethereum-based token that allows the community to govern the Compound protocol. The protocol consists of decentralized interest rate markets that enable users to supply and borrow Ethereum tokens at variable interest rates.
Why is compound exciting
Most cryptocurrencies are mostly passive on exchange platforms and do nothing for your investors. Compound aims to change this with its open lending platform that allows anyone depositing supported Ethereum tokens to easily earn interest on their balance or take out a secured loan. This is based on a “trustless system” in which users do not need to know or trust each other.
What are the primary barriers?
Compound has some barriers that investors should be informed about. Liquidation of collateral due to the unpredictability of Cryptocurrencies sometimes gives a massive setback to compound users. The crypto commodity is a highly Volatile algorithm-based smart contract system that leads to technical errors in the DeFi system. There are limited numbers of cryptocurrencies for the users to lend or borrow from. Yield Farming can be extremely risky as the users can trade crypto much larger than the actual value they have put down.
Is compound a good investment?
Compound has established itself as a popular Defi token. However, its price action has been bearish over the past few months. Whether the COMP token fits your investment portfolio depends on your circumstances and risk tolerance. It would be best to estimate the level of risk you are ready to take before investing. And never invest money that you cannot afford to lose.
Hope you had a fantastic reading and remember this is not financial advice