GovWorld
Published in

GovWorld

The problem with the crypto space is… well, what is the problem?

Written by Chris McDaniel and Musthafa Ahmed

“Crypto isn’t magic. It’s math”

Over 300 million people worldwide have either used a DApp, or held or traded at least one of the 4000 different cryptocurrencies available in the market today.

The increasing interest in crypto can most notably be attributed to the innovation which blockchain and DeFi offer over traditional technology and finance. In addition, the fact that a small investment in the crypto space, depending on the project, could result in life-changing returns in the form of investment multipliers. Yes, I’m referring to the 10, 20, 50(x), or even the elusive, 100x :).

Now, of course, one of the biggest challenges for investors is analyzing & comparing different projects to ultimately decide where they should invest, and how long they should hold these cryptocurrencies. Whether it’s investing in a blue chip, small-cap, launchpad governance, NFT platform, or even a single NFT token, capital is always limited and investment opportunities are seemingly unlimited. This is why projects with plans for long-term sustainability often incentivize their communities to hold their tokens by offering many variations of staking rewards or tier-level benefits.

These ‘incentives’ would be perfect if it weren’t for the fact that sometimes they can leave an investor in a not-so-ideal (unwanted) situation as outlined below.

An investor may be left with the ‘unbalanced portfolio problem’. This is where the value of a portfolio is skewed toward the benefit-bearing governance token itself and, due to holding requirements for benefits, the value becomes locked within this respective token and is inaccessible. In a bull market, the time/value of money is highly pertinent to serious investors because there is limited time to grow one’s portfolio. Thus, having significant capital locked in any one token is a liability.

Currently, it is not possible to access liquid funds (i.e. stablecoins) against the value of many governance tokens without selling the token. This creates unwanted sell pressure on the respective token, and in some cases where staking is concerned, selling tokens could also result in paying penalties.

The lack of an established lending marketplace further increases this ‘sell pressure’. While there is lending liquidity on many DeFi platforms, most only have a market for the same set of tokens. People who would otherwise hold these various blue chip, small-cap, launchpad governance, NFT platform, or single NFT tokens will most likely have to sell their tokens due to a lack of lending liquidity. This is a lose /lose situation for these popular projects and their community members.

So far, we have discussed a few of the problems in the cryptospace when it comes to accessing liquid funds during a bull market… but what about when there’s a significant pullback or even a full-scale bear market, what then? 😉😈

The solution to these problems (and much more) is … GovWorld!

About GovWorld 😎

GovWorld is the first DeFi ecosystem of its kind, leveraging the power of the most customizable P2P, cross-chain lending protocol on the blockchain. Able to collateralize any altcoin or NFT for public or private loans of USDC, USDT, or DAI. This is where users can unlock their liquidity, retain tier level benefits & staking rewards, and have 100% freedom to choose their terms.

🚀 🚀

✅ Innovative DeFi ecosystem.

✅ Collateralize any Altcoin or NFT for short-term cash loans.

✅ Choose your loan terms.

✅ High APY% opportunities for lenders on USDT, USDC, DAI.

✅ Maintain tier & staking rewards while altcoin is staked for loans.

✅ Limited time, strategic partner staking pools to earn $GOV.

✅ PLUS + + other cool DeFi benefits in the GovWorld ecosystem.

🚀🚀

Unlock Your Potential at GovWorld!… 🙌

Website: https://www.govworld.io/

Whitepaper: https://t.ly/govworld-whitepaper

Pitchdeck: https://t.ly/govworld-pitchdeck

1 Pager: https://t.ly/govworld-1pager

Twitter: https://twitter.com/govworld1

Telegram: https://t.me/govworld_community

Telegram Ann: https://t.me/govworld_announcements

Media: https://t.ly/govworld-logos

#GovWorld #GovLend #PartnerFi #CollateralFi #GovIntel #FarmFi #LeaderFi

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store