Decentralized Finance, or DeFi as it is popularly known, refers to the ecosystem created by decentralized digital financial institutions that are not only democratic but are also capable of operating autonomously, independent of several national and international regulations. DeFi has been garnering a lot of attention these days from everyday investors and institutions alike as more and more people are looking at non-traditional instruments of investments.
In simple terms, DeFi is an attempt to decentralize core traditional financial processes like trading, lending, investing, wealth management, payment and insurance using the blockchain.
DeFi platforms do not need to follow the highly rigid legal system which governs financial systems across the world. This cuts down many hurdles making the process fast and effortless.
Why DeFi is Hot These Days?
The current global scenario is not good for the economy and many nations are facing the brunt of extended lockdowns and near stoppage of almost all economic activities. Spending is down and people are wary of the security and safety of their investments. This has led them to look at alternative methods to create wealth and secure their savings. And DeFi has all the right ingredients to cater to them.
As of the time of writing this article, the total value locked (TVL) in DeFi applications stands at roughly 8.9 billion USD. Now consider the fact that this figure had just reached 1 billion USD in the first week of February. This means a close to 900% rise in TVL in less than seven months. This shows the immense attraction of investors towards DeFi applications.
Today, more than 250 DeFi ecosystems function on the Ethereum, Bitcoin and EOS networks, with multiple asset management tools helping investors to secure their assets.
With High Returns Comes High Risk
While returns on investments have been exciting, there are inherent risks as well, but that comes with any kind of investments, even traditional. With their rising value, many blockchain projects have become very attractive investment options in recent times. This tends to be the right time to tap into these projects for a bumper return later.
While, like many other sectors, there are many fraudulent and underachieving projects, they can be a good option for an investor’s asset portfolio if chosen correctly. In fact, many analysts have gone on record with their concerns about what ill-conceived DeFi projects pumped up by ill-informed investors can mean for the crypto sector in particular and the financial market in general.
In this respect, education about these assets is very important for new investors who are trying to enter this sector. Informed and experienced investors can not only leverage more promising projects but also help the crypto sector grow in general. Yet, unfortunately, there are not many options to learn the process of investing in the crypto sector, about the potentials and limitations of new trends, and about hot financial products in the crypto sector like the DeFi projects.
Bithumb Global Provides a Solution
It is here that Bithumb Global can come in with its innovative products. While Bithumb Global comes from the house of one of Korea’s topmost and most trusted cryptocurrency exchanges — Bithumb. Bithumb has always been an innovator and this innovative DNA is evident in its many novel financial solutions that benefits all kinds of investors.
Bithumb Global Learning is the latest product from the company which tends to break the barrier between investment in practice and learning about investing. The service provides a platform for new investors to get a degree of handholding from experts as well as a chance to learn from peers at the same level of experience.
This service enables users to learn about specific projects which are advertised on the platform and about the opportunities of investing in them. While the users can actually invest in these projects through this service there is a safety net for investors who have failed to grasp the extent of risk involved in the investments. Moreover, the platform is designed to incentivize learning about the projects and the principles of investment in general.
The users who are able to show a consistently higher degree of learning will be rewarded with the tokens of the project and their investments will be leveraged accordingly. However, the users who have failed to demonstrate adequate understanding will be barred from participating in the investment event which will be organized periodically, the investment of such users will be nullified for their own good.
Such platforms help users to learn about new trends in the sector like the DeFi movement and understand them through practical engagement with such projects. In other words, they get a chance to actually become a part of these movements.
Previous Projects and Their Performance with Primary Listing on Bithumb Global
- OM Token
Mantra DAO was a very interesting project which tried to give the financial control of the company in the hands of the community members and was listed on the Bithumb Global Learning platform. The OM token was pumped 15X after pre-sale. It soared from 0.04$ to 0.6$. 18,000,000 OM were sold out in 2 days on the BG Staking.
- CREDIT Token
It is a platform for cross-chain derivative issuance and peer-to-peer lending. The token saw a more than 3X surge after its primary listing on the Bithumb Global and is currently trading at more than 2X listing price. The project got more than 463,000+ votes on BG learning and the staking interest for the project was up to 88%.
- SXP Token
Swipe is a reputed blockchain-based payments platform, which aims to increase the usability of crypto assets for everyday transactions. After the project was listed on the Bithumb Global, the token was pumped 5X.
Welcome to the BG DeFi Paradise
DeFi is gradually changing the face of the financial markets through its innovative decentralized solutions. While risks remain, learning consistently from experts can negate instances of losses, while leveraging real information to gain profits. Bithumb Global’s services have not only given opportunities for new investors, but it has helped DeFi projects get higher recognition as well. Bithumb Global continues to blaze the fintech innovation trail with novel offerings that will lead the decentralized finance movement.
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