Semi-centralized crypto platforms may challenge DeFi – head of Nexo

CONTENT

  • Crypto industry is doing better than gold and stocks, Nexo CEO says.

  • Despite the boom in DeFi, there is strong growth in the segment of semi-centralized lending services.

  • Baby Boomers May Provide Fresh Blood Into Crypto Space.

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Anthony Trenchev, CEO of the Nexo platform, commented on the reasons and prospects for the current rise in the crypto market, and also noted the growing interest of the boomer generation in cryptoassets.

Start with Bitcoin

Anthony Trenchev, co-founder and head of lending platform Nexo, gave an interview to Bloomberg TV, in which he shared his opinion on the active growth in prices for crypto assets..

He believes that the current driver for the market is the boom in the decentralized finance industry DeFiDecentralized finance (DeFi) is financial services built on blockchain technology that offer users access to an open, efficient and … More that has surpassed the growth rate of gold and promotions. Trenchev believes the key to the success of the DeFi segment is the elimination of traditional intermediaries such as banks from the financial transaction mechanism.

However, he warns, it is better for beginners to start their acquaintance with the cryptocurrency market with bitcoin (BTC). The first cryptocurrency in the world continues to maintain its status of “digital gold” and receive reliable support from fundamental factors. In short, Bitcoin remains the safest crypto asset.

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Marching against De-Fi

Meanwhile, Trenchev continued, he notes the potential for further growth in the fintech sector in the crypto space. Not surprisingly, Trenchev, as a representative of the Nexo team, recommended buying his platform tokens. He also expressed general confidence in the development of similar companies involved in centralized crypto lending..

Many investment and credit crypto platforms have indeed been reporting rapid growth lately. One such example is, for example, the Celsius project. According to June data, the number of active wallets on the platform exceeded 100 thousand, and the size of assets managed by Celsius was more than $ 630 million. Token As the use of cryptocurrencies grows, new types of tokens appear. They can represent value or something intangible like voices. Two … More Celsius also posted an impressive 1400% annual growth .

Another centralized platform token, Crypto.com, is in the top 10 by market cap according to Coinmarketcap. Companies like Crypto.com offer users a wide range of services, from stock trading to credit and debit cards. In fact, they are full-fledged banks. On the other hand, they require customers to be holders of platform tokens..

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Unlike DeFi, these semi-centralized platforms offer lower interest rates. Of course, every investor has a choice. You can jump into profitable farming and enjoy impressive, but highly volatile profits.

Semi-centralized crypto platforms may challenge DeFi - head of Nexo

Source: Coinmarketcap

The more cautious may prefer more stable rates, which will still be higher than the average bank rates offered in the traditional banking sector. The advantage of such semi-centralized companies is the availability of customer support services and insurance of customer funds.

Semi-centralized finance boom?

The head of Nexo believes that despite strong capital inflows into DeFi, the CeFi (centralized finance) market continues to grow as well. According to Trenchev, over the past six months his company has recorded double-digit monthly growth rates. People are increasingly realizing the attractiveness of lending with bitcoin as the tax-friendly currency.

Trenchev also drew attention to the impressive growth of interest in financial crypto companies from baby boomers. His other business colleagues agree with him. For example, the financial company River Financials reported in June that in 2020 the number of its clients doubled every month. At the same time, the main inflow was due to investors aged 55 and over.

These are quite interesting results, since experts have previously reported more than once that bitcoin is more popular among millennials, and not among older age groups..

In general, commenting on the risks associated with participation in the crypto space, Trenchev sums up that the greatest risk is not the likelihood of losing funds, but the threat of being left behind and missing out on new profitable opportunities..

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Semi-centralized crypto platforms may challenge DeFi - head of Nexo
Semi-centralized crypto platforms may challenge DeFi - head of Nexo
Semi-centralized Crypto Platforms May Challenge DeFi - Head of Nexo

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