Catch the Tsunami of Capital Flowing Into Crypto With Cryptex
In February 2022 Research and Markets published “The global cryptocurrency Market Report” for 2022-2027. The report forecasted the crypto industry to cross a staggering $32.4 Trillion by 2027, exploding with a CAGR of 58.4%. CAGR stands for the Compound Annual Growth Rate. It is the measure of an investment’s annual growth rate over time, with the effect of compounding taken into account. This represents a 1,719.3% increase over the next 5 years.
Despite the bearish market conditions and macro-economic calamity, there are so many undercurrents that aren’t getting the media attention they deserve. There is so much to be optimistic about:
BlackRock, the world’s largest asset manager with about $10 trillion in AUM, launched it’s first blockchain ETF in April.
Most recently, Nasdaq (NDAQ), the second-biggest U.S. stock market operator, announced that it will start a crypto custody service due to the high demand for crypto among institutional investors.
BlackRock (BLK), the world's largest asset manager, announced that it will offer cryptocurrencies to its institutional clients, and Depository Trust & Clearing Corp., which processes essentially all U.S. stock trades, released its own blockchain as it looks to speed up the settlement of trades.
According to FinSMEs, venture capital firms poured $30.3 billion into crypto companies in the first half of 2022. That’s already more than the record $30 billion that went into the industry in 2021… And we’ve still got about three months until the year’s end.
London-based VC firm Northzone announced a $1 billion crypto fundraise which is their largest to date.
On May 25, a16z announced it raised $4.5 billion for its Crypto Fund 4, one of the largest crypto fundraises ever bringing their total crypto funds raised to more than $7.6 billion. Founded in 2009, a16z is a U.S. venture capital firm that also goes by the name Andreessen Horowitz – after its namesakes Marc Andreessen and Ben Horowitz. Their track record is impeccable and they have funded some of the most influential projects in the space, and continue to fund many up and coming projects. According to the firm:
“We are now entering the golden era of web3… [and] More importantly, a massive wave of world-class talent has entered web3 over the last year. They are brilliant and passionate and want to build a better internet.”
These are just some of the big traditional finance players entering the sector this year, but what they all have in common is that they are citing strong demand from institutions. With so many traditional finance juggernauts entering the industry it paves the way for many other prominent players waiting on the sidelines to enter the market. This is just the beginning of traditional finance firms getting into crypto, and as I've shown above, this year alone is just the tip of the iceberg. It is now clear that tsunami of capital is on its way to the crypto markets. How can we catch this coming wave of capital? Having a well diversified portfolio is a start, but with the ever changing landscape and massive scale of the crypto industry, it’s inevitable that opportunities slip through the cracks. Over the next 5 years there will be many winners and losers. If you look back over the past 5 years at the coins that were in the top 10 and 20 rankings of the market, it looks very different than it does today. I think it’s safe to say the next 5 will see a similar shift. Some will survive, some will fail, and some will flip others in the rankings. It’s an endless battle of king of the hill. This is the way of crypto: Disruption. What if there was a way we could bet on the success of the entire market?
This is where our next project comes in. Meet Cryptex. Cryptex is an emerging DeFi project that has developed a product called TCAP. The TCAP token gives holders real-time price exposure to the total cryptocurrency market cap. It gives you exposure to every coin and token supported by 9 different oracles and 5 data providers using the Chainlink protocol. TCAP is created by using ETH, DAI, WBTC or USDC as collateral, staking it on the Cryptex protocol and minting the corresponding amount of TCAP. It has a 150% collateral requirement so that each token is more than fully backed the underlying capital it represents. But you don’t need to stake your own collateral and mint TCAP to acquire it. TCAP is available on most DeFi exchanges as well as Gemini.
In addition to cryptocurrencies, Cryptex has just announced they will be launching a new product in Q4 of 2022 called JPEGz. JPEGz will give holders real time exposure to the total market capitalization of NFTs.
In 2021 the NFT markets experienced a meteoric rise in popularity and value. The first half of the year NFT transactions were valued at over $2.5 billion, which was a massive increase from the volume it saw the year before at only $13.7 million. This represents a 18,148% increase in value in less than 12 months. Clearly there is a sense of urgency to create an NFT index. The tsunami of capital coming to crypto will most definitely flow across not only crypto tokens, but also NFTs.
In a recent press release, CEO and Co-Founder of Cryptex Joe Sticco said: “Today becomes a groundbreaking point for Cryptex and our newfound ability to fully tokenize this unique asset class for crypto users worldwide.”
Cryptex is currently run and managed as a DAO and has a governance token under the symbol $CTX. CTX is currently available on Coinbase, Gemini and most DeFi swapping protocols.
Traditional finance is coming and some of the smartest money in the world is investing in the crypto ecosystem. The world’s largest asset managers are going all in and new crypto products are coming online and creating greater income-producing opportunities than traditional finance can.
With some cryptocurrency prices being down 70-95% from their highs, the maxim of legendary investor Warren Buffet comes to mind: “Be fearful when others are greedy and be greedy only when others are fearful.”