Institutional adoption is the new frontier for digital asset projects. Not too long ago, the crypto market value was at $500bn, and only a handful dared to learn and invest how this community operated. But recently, we saw the crypto market value hit an all-time high of $2tr as institutional adoption became a reality and technology pioneers such as Elon Musk and others publicly announced their support of digital assets.
There is no doubt that the crypto market is a volatile space. As a result, many investors have compared digital assets to traditional financial markets like stocks and bonds, specifically to the dot com boom, which shows similar behavioural patterns with a much more significant upside.
By comparing traditional financial markets to digital assets, users can see value creation and how different these markets perform.
Stocks fluctuate in value according to a company’s performance and changes in glocal sentiment. A company’s stock value is also influenced by how many people own shares in a said company. Digital assets do not have a tangible form but work similarly . The ideology is a libertarian-like utopia that has turned into a global democracy as regulators profusely try to control – because it’s now out of control – by trying to centralize and peg virtual assets to tangible values that can be warranted and accountability tracked. And it should, to an extent – that extent being people are protected from fraudulent losses.
Many factors determine how much a stock costs at any time: its current price, its previous prices, whether it has experienced any significant gains or losses, etc. In contrast, digital assets have no such limitations.
A digital asset’s value solely depends on demand and supply on the open market and project potential. However, today’s economic landscape is diverse, with traditional stocks, digital assets, and blockchain-based tokens of various shapes and forms existing side by side.
According to information from CoinGecko, the value of the digital assets market just topped $3 trillion for the first time. While impressive, this value pales compared to the value of traditional markets.
For context, the current market cap of the S&P 500, which lists companies including Apple and Amazon, stands at approximately $40 trillion – not including the value of additional market options like bonds, precious metals, and fixed deposits. Despite remarkable progress, digital asset markets have tremendous room for further growth. In contrast to the global market potential for digital assets, the potential stands that crypto is currently estimated to be 1% of the total addressable market (TAM):
Virtual assets are known for their volatility. However, with the recent digital assets trading and investments boom, many institutional investors seek greater involvement.
As the industry grows, so does the need for a stable and fast infrastructure. In addition, institutions are looking to adopt blockchain technology, but digital asset exchanges offer a sub-par experience all too often.
Most digital assets don’t have a stable infrastructure to ensure further development. As a result, there are a lot of risks associated with blockchain technology because it is not yet able to handle the traffic and load requirements well enough to provide services for many users simultaneously. Without a stable infrastructure, the adoption of digital assets will remain limited.
Decentralized technologies need faster adoption if they have any chance of becoming the future of finance. The infrastructure needs to be stable and fast for the digital asset industry to grow. Currently, it can take hours for digital assets to transfer between exchanges, making adoption slow and inconvenient.
The lack of regulation and proper government support is leading to problems. It’s causing confusion among consumers, which leads to fraud and financial loss.
Regulators struggle to keep up with how the world is moving away from traditional finance and transitioning into a new digital economy. From the simplest way Bitcoin works to how much energy each cryptocurrency uses, they’re constantly trying to catch up on all the compounding information for proper regulation.
FLUID understands the challenges that compliance exchanges and virtual asset regulatory frameworks will bring to the industry. With this knowledge, FLUID can help member exchanges adapt to these challenges through KYT and AML standards and “travel rule” compliance. In addition, this allows for efficient access of data, when needed, for all exchange partners.
Asset custody is a kind of fundamental matter to be considered in cryptocurrency. It helps to ensure the assets under management by an investment firm will be safe and secure for any investor. Investors need to know their funds will be available when needed, not just sitting idle in an account somewhere.
Market manipulation is the act of artificially influencing the price of an asset through various deceptive means. Unfortunately, a lot of crypto investments develop via market manipulation.
For example, you may see an IDO promising high returns on investment but doesn’t have an actual product or service to offer. This manipulation could occur because of nefarious activity such as wash trading or creating fake accounts to inflate the token’s value before launching their token for sale. As a result, it’s difficult for any investor to tell if they’re dealing with a legitimate project or a scam.
Present day asset markets suffer from a lack of liquidity, pricing discovery, and execution problems. The market is described as fragile with thin volumes across trading pairs. FLUID combines resources across member exchanges to create an order book to connect institutions and retail investors.
With FLUID’s innovative technology, multitudinous transactions are settled instantly and simultaneously across all chains, exchanges, and trading pairs using a blockchain-based solution overlaying an MPC wallet architecture.
Korea's premier crypto and blockchain event, Korea Blockchain Week, saw crypto enthusiasts from around the world converge in Seoul for inspirational keynotes, panel discussions, pitch competitions, investor meet-ups, and world-class networking opportunities.
The year 2021 was unquestionably a turning point for the cryptocurrency industry, with Bitcoin repeatedly reaching its record high, albeit with some significant losses. Ethereum, the second-largest cryptocurrency by market capitalization, experienced some of this too, as it climbed to its highest price yet.
The crypto industry is constantly evolving, but there are still some challenges that it has to tackle for institutional adoption. Crypto exchanges do have issues, many of which can ultimately hurt users.
The recent decline in the cryptocurrency market has shocked many, including seasoned professionals. The phrase "DeFi Summer" is developing meaning in 2022, 180 degrees out of sync with the heady times that gave rise to the phrase just two years prior.
This week’s FLUID Live featured FLUID’s CEO and President, Ahmed Ismail, and Head of Marketing and Communication, Matias Jeldrez, who addressed our community’s queries regarding the TGE and FLUID Rewards.
A stablecoin is a cryptocurrency whose value is linked to another asset class, such as a fiat currency or gold, to stabilize its price.
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Liquidity aggregation is not a new concept in the financial industry. On the contrary, it has been used as a solution to tackle fragmented liquidity for many years across conventional financial systems.
Over the last decade, artificial intelligence has snowballed, and no business or industry today is immune to its influence and pervasiveness. This is more evident in the financial services industry, which is constantly evolving and realizing that AI is a transformational technology.
The DeFi industry has the potential to disrupt the TradFi industry by using blockchain-based applications and services to replicate banking, investing, and trading activities. Many TradFi services already have a DeFi counterpart, and more are on the way.
Blockchain-based technologies have surged in popularity over the years. Time and time again, efforts have been made to promote awareness of this relatively new phenomenon. The decentralized finance (DeFi) sector is undeniably thriving, with the total value rising from $700 million in December 2019 to over $200 billion at the beginning of 2022.
The internet that we know today has traversed a long way since its inception. Web1, the first internet, had a physical infrastructure of cables and servers that allowed people and computers to communicate with one another. The ARPANET Network of the United States government sent its first message in 1969, but the web that we know today didn't exist until 1991, HTML and URLs allowed people to browse between sites.
Over the past 48 hours, the FLUID team has been closely monitoring the current climate and the impact FLUID can play in helping to reduce huge volatility in the face of black swan events such as the UST downfall.
FLUID has compiled a list of the most important headlines from the past couple of months, including Kraken's new operating license in Abu Dhabi, Ukraine's cryptocurrency legalization, and New York's two-year crypto mining embargo.
Despite Dubai's popularity as a trading epicenter, the UAE government has sought to transform the city into a global hub for digital asset trading. According to Bloomberg, the Dubai Multi Commodities Centre (DMCC), the UAE's largest deregulation zone, had built up an administrative structure for crypto companies in March 2021 and had already recognized 22 crypto-blockchain entities.
FLUID, the ultra-low latency liquidity aggregator that uses AI quant-based models to tackle inefficient fragmented liquidity in virtual asset markets, has announced it will integrate the LERC20 standard of Lossless to power its $FLD token with hack mitigation capabilities of detecting fraud, freezing fraudulent transactions, and reversing stolen funds.
The term liquidity has various financial meanings that are often used interchangeably and can be very confusing; it could refer to the ease of how an asset is exchanged for another without affecting the market price, how much liquidity a company holds, aggregating liquidity from different sources, or providing access to liquidity.
FLUID LP – FLUID’s DeFi solution – will utilize Polygon as its commit-chain to provide ultra-low transaction fees at speed.
FLUID is a game-changer for the virtual assets industry in liquidity aggregation and provides high throughput, ultra-low latency and costs, and zero counterparty risk through AI quant-based solutions
Counterparty risk refers to the situation where one of the parties of the financial transaction fails to fulfill their commitments. In the traditional market, stocks, bonds, and derivatives carry counterparty risk.
Cryptocurrencies saw values soar in 2021 when some investors sought a haven from the inflationary pressures. Additionally, retail consumption spiked across the industry, with data revealing that global crypto use had increased by more than 880 percent last year.
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Trading technologies have evolved significantly over the years. The traditional finance trading technology evolved from a simple electronic order book to an ultra-fast, interconnected, AI-supported unified liquidity, allowing investors and institutions to facilitate advanced trading strategies.
As the DeFi industry exceeds growth forecasts, it has now significantly attracted more interest from financial institutions and regulatory bodies.
FLUID is the trading system that consists of an AI-based smart order routing protocol and cross-chain liquidity aggregator enabled by FLUID’s proprietary hedging pool providing high throughput at ultra-low costs, ultra-low latency, and zero counterparty risk.
Most present-day centralized crypto exchange platforms use custodial trading.
Liquidity is the measure of ease to which a cryptocurrency asset can be exchanged/traded into another crypto asset or fiat currency.
Regulation of exchanges and more broadly the infrastructure enabling the trading and exchange exchange of virtual assets has been a widely discussed hot topic that has over 2021 and 2022 graced many government bills.
It’s no secret that the crypto-verse moves at blazing speed with many projects finding success in disrupting the disruptors. So while DeFi protocols like yield farms and DEX’s were at a high last year, the flood of multiple similar platforms have prompted the rise of DEX aggregators like 1inch and 0x.