Hey yo what is ripe with those in the ranks of the Chico Army, but if you're tuning for
the 1st time you ain't got no stripes, you're just a viewer of the tube. My name is Tyler
the host of the crypto channel whose content has a flow that just makes you want to Jam.
That beat was one in a melon...it’s time for Chico Crypto!
Well the opportunities are abound... presenting themself with this DIP. Now, I’m a DCA investor,
Dollar Cost Average I buy on my set schedule no matter what the price is doing. So in my
mind, Dips can be seen as opportunities…
And scaling Ethereum & saving DeFi is the biggest opportunity presenting itself in the
crypto space.
So you know my picks for scaling Ethereum, in the short term xdai & in the mid to long
term polkadot & ethereum’s transition to ETH2.
Now, I do believe they should win the scaling competition, and the signs do point to them
being a top contender...and today, I have more. Ameen, the summoner of the MolochDAO,
tweeted his pick for the reddit competition, it was xdai...and he gave his reasons. None
other than Vitalik Buterin, decided to chime in. He said “There's certainly something
to be said for "quick and easy to migrate and forward-compatible with future optimistic
rollups and eth2 when those come, May well be the least-bad path to bridge our current
chasm of having high adoption but not yet having high enough trustless scalability to
properly handle it”
So to win the reddit scaling competition, the solution will have to support general
purpose smart contracts. Aka more than just the function of deposits and withdrawals of
tokens. Just 3 days ago this was tweeted in regards to Scaling & adoption by Eth developers.
Layer 2s, including OMG, Loopring, and Matic & Bridges, REN, KEEP, ONE, DOT & More….vitalike
responds. The current crops of layer 2's do not support general-purpose contracts. Optimistic
rollups (coming soon) will.
So in my opinion, of those who are top other contenders for the win, Matic & OMG...it can’t
be them, as Vitalik is saying they can’t handle general purpose smart contracts which
you would think a reddit community point app would need, especially if it’s to connect
with third party apps like metamask & hardware wallets like ledgers.
Because...the people judging this competition are people from the Ethereum foundation. The
board of the Ethereum foundation? Aya Miyaguchi, Vitalik Buterin & Patrick Storcheneger.
Although politics can play into things, and you have to realize that Aya Miyaguchi and
Vitalik Buterin are both advisors to OMG...as we can see Aya tweeted about her position
in 2017...and Vitalik was listed as an Original advisor to the project. So you can’t count
out OMG sliding in and taking it, even though it’s not ready...but I hope not.
Now, what else I want to discuss is those things called NFTs. Non Fungible Tokens, which
I see picking up the markets and pushing forward the bull run into overdrive. Why?? Because
NFTs are what brings that real world into the crypto world.
Now the NFT market isn’t that big as we speak, and is mostly dominated by crypto enthusiasts
who understand blockchain. The typical regular ole joe investor, hasn’t touched NFTs yet,
if even bitcoin or Ethereum.
Thus, the market is small, all time volume for NFT trading just crossed 100 million,
with over 4.8 million sales performed. That is all time, since non fungible began tracking
in July of 2017. Now crypto exchanges some of the smaller ones, for tokens, do that in
a single day...and volume for NFTs daily over the past couple of months, has been averaging
just over 100k.
Now why, why, why...are NFTs dragging behind, when an exchange like Uniswap can cross 1
billion in 24 hour trading volume. I thought NFTs were a part of the ethereum token ecosystem?
Well they are, it’s just Uniswap is built for a certain type of token, called ERC20s
which are fungible...they work with Uniswap’s design of liquidity pools, since when pooling
tokens and withdrawing, it doesn’t matter which token from the pool you get, they are
all the same and have the same value.
That is way different with NTFS, as it matters a whole hell of a lot which token you receive
back, as their value is derived from a multitude of factors, limited quantity editions, numbers
issued from the limited collection & more.
So NFTs are being held back, no Uniswap trading & there is no trading interface like Uniswap
for the trading of NFTs. One of the biggest marketplaces for the trading of NFTs, is OpeSea...it’s
not bad, it connects to Metamask, but the buying and selling process is a process, per
example, selling my Chico Crypto name for Decentraland, you have to pick how, set bid,
auction, or bundle, and then...you gotta wait & hope a buyer is intrigued.
Obviously, people wan’t 1-2 click buys and sells, and Uniswap is a prime example of that.
So is it possible with pooling of tokens? Yes, and it’s called the fractional ownership
of NFTS & Niftex has just launched this technology.
How does it work? Niftex works directly with NFT holders to structure launches of fractions
or shards, ERc20 tokens representing a claim on the underlying asset NFT. These shard tokens
are unique to the specific assets, giving them a real-time valuation and governance
rights to the shardholders.
And the exchange, it’s live baby. As we can see, NFTs shards are exchanged and traded
through a simple interface, and buying and selling takes a couple clicks. And adding
liquidity to the pools, is easy, just like Uniswap as it is using Uniswap.
So NFTX, this is where the true value of NFTs begins to be realized as people realize what
it can do. It’s the first time ownership of NFTs can be traded & exchanged through
Automated Market Makers, in a permissionless manner.
Right now, it’s gaming items dominating the NFT Dex, ...Axie Infinity, one of the
biggest NFT PvP NFT games in the space had one of their rarest characters sharded, an
Almace as $ALMX tokens. That got initial eyes on the concept, and got some small pools going…
But one of the largest NFTs in the gaming sphere is coming to Niftex, the BAUS, from
Neon District which gives the owner special rights to the last boss in Neon Districts
coming game. It sold for 141 Ethereum, one of the highest in NFT history and the owner
put out a medium article, explaining he is planning to tokenize them on NIFTEX with a
launch of q3 or q4.
Now, I’m telling you, this is just the beginning of the NFT DeFi trading revolution. By putting
Fungibility in non fungible tokens, not only permissionless trading opens up, but also
collateralization & more. Which means, not only digital and gaming items, but the tokenization
of real world assets. Which we will get into in a second, but first speaking of gaming
items, Ultra..the sponsor of todays video, is laser focusing just on that & like always
the full details of our agreement can be found in the description.
So Ultra can be considered the blockchain for gaming distribution. Helping both gamers
and game developers. They are building the one stop shop to number 1-play and discover
games number 2 buy, sell and trade those games, with revenue sharing options..and also gaming
items including NFTs & finally 3) a place for the social aspect-communities, streaming
& of course competition.
And they have backing from big names to help accomplish this. Back in November, it was
announced that Ubisoft was going to be a block producer on their blockchain, then in December
it was announced that AMD and Ultra would be working together on game distribution & co
marketing activities.
Now, if you didn’t know the platform launch could be coming soon... In August Ultra announced
the launch of their Ultra SDK for closed Beta...and this is big, because it’’s a cross platform
SDK where you can build for the common gaming platforms, steam, xbox, playstation and more,
use the common engines,..use the common languages and tools and then enhance it with blockchain
capabilities and ultra.
And according to the Ultra team, 150 game developers and publishers are keen and ready
to have their games on or launched with the platform after it goes live.
Now why would they wan’t to build and publish with Ultra? NFTs my friends. By purchasing
games on Ultra Games, users are actually purchasing Game NFTs that prove ownership and unlock
the right to download, play and get updates. Game NFT parameters are easily set by the
publisher and devs, including game tradeability, minimum resale prices, ability for resell
revenue sharing & more.
Now remember, how I said the social aspect of gaming would be a major component, well
Ultra has partnered up with another favorite of mine, to accomplish this and I use their
streaming service every weekend. Yesterday, Theta and Ultra announced a partnership where
Theta would be integrated into Ultra &Ultra’s users will have opportunities to earn both
TFUEL and UOS token rewards for relaying streams they watch, which can be used for purchasing
content across the Ultra platform including games and virtual item NFTs.
So, gaming and digital NFTs, a bubbling market that Ultra has laid the groundwork to capture.
But now, it’s time to talk about NFTs and real world items.
Now this space is brand spanking new, not many projects have accomplished much in regards
to bridging the two. Lukso is one I have my eyes on, but it’s still in testnet..so the
wait is the hardest part…
But what about what is live, what is tokenizing real world assets, and making those who invest
in it a very nice return? I’ve spoke of this before, and that is Centrifuge,
So what is this and what real world items are being tokenized as NFTs? Well the asset
originators, in Centrigure are able to tokenize their real world assets, which include invoices,
royalties, and in the future mortgages and auto loans.
So in regards to invoices, business’s worldwide sit on payments waiting to be made, right
now, there is actually 30 trillion dollars locked in outstanding payments. Centrifuges
Tinlake, gives these businesses the opportunity to tokenize these outstanding payments, and
access cash when they need it.
Investors, we pool together stablecoins, and invest in the NFTs, for a promise of a return
from the asset originator.
Now, there have been 8 tinlake pools so far, with over 2.1 million dollars financed. And
as we can see, Drop investors, those who invested in the NFTs have received a 6 percent return,
and the highest an 11.6 percent return.
These are high yield, and the pools are short term, maturities in 30 to 45 days with invoices,
and the risk of investing is much lower than other things in crypto DeFi related, you have
a much greater chance of getting paid back.
Now the right to shares of the NFT payments pools come in the form of investment tokens.
Drop & Tin, Drop is the less risky senior pool, which has a stable return rate...while
TIN is the junior pool, having a variable rate, which can be higher, but you take losses
1st if any happen. Now as we can see, from their largest valued
pool, Console Freight 2, the current tin variable rate, was nearly 41 percent. Damn good returns,
for those that took the big risk & would eat losses if there were any.
Besides the investment tokens, Centrifuge has a governance token. Radial tokens & getting
them, is next to near impossible, if you're not a validator for their chain. Which by
the way, is a substrate built, polkadot ready chain, as seen from the explorer.
But now you can get them through Tinlake liquidity mining. Both asset originators & investors,
will receive RAD tokens in addition to their financing or yield. And as we can see this
reward of RAD is high to begin, but as more DAI is locked with Tinlake, the lower the
reward goes.
Investors, unfortunately there are barriers...you must have a minimum of a 10k investment, you
must pass KYC & AML, and you must be accredited. But those outside of the US, accreditation
is not needed, although the other 2 requirements still apply.
I’m just giving you a tip, especially if your oustide of the US, RAD tokens will be
big in my opinion, and contributing to the initial stages of the platform, is how you
get them. Centrifuge isn’t only connected to Polkadot and their ecosystem, they also
are partnered with MakerDao and Maker is getting ready to have Drop and Tin tokens, as collateral
with Dai..just 15 days ago in the forums, they are discussing it with a deep infographic
of how oracles, the loans, tokens & liquidations would work….I hope you get it. Cheers viewers
I’ll see you next time!