Crypto Biz: The biggest problem with DeFi isn't what you think

Crypto Biz: The biggest problem with DeFi isn’t what you think – Mail Bonus


Cryptocurrency has turned on another Wall Street veteran after former Morgan Stanley executive Kevin Lepsoe launched a new decentralized finance (DeFi) platform. His new company, Infinity Exchange, received a nice injection of seed funding to increase the adoption of DeFi among institutions. In his pledge to help build “DeFi 2.0,” Lepsoe outlined one of DeFi 1.0’s biggest pain points — and it’s one you probably haven’t heard about. As it turns out, if you want organizations to adopt your products and services, you need to give them a product category they are familiar with. Until then, DeFi offers a value proposition shrouded in risk and inefficiency.

This week’s Crypto Biz newsletter explores Lepsoe’s solution to the dangers of DeFi. We also dissect the latest news on MicroStrategy and Fireblocks.

Fixed rates to create DeFi 2.0 for institutions, says ex-banker

Lepsoe’s Infinity Exchange raised $4.2 million to continue building out its institutional deals, introducing the concept of zero-quote floating rates. In other words, Infinity Exchange is trying to bring the interest rate structure and risk management methods of traditional financial institutions to DeFi. According to Lepsoe, giving institutional investors access to a full suite of products, including fixed to floating rates, could be key to boosting DeFi adoption. Although most of us know about the boom-and-bust DeFi, Lepsoe said the sector’s biggest challenge is the relationship between the floating-rate and fixed-rate markets. Not exactly intuitive, but it’s a compelling take, nonetheless.

MicroStrategy to Reinvest $500M Stock Sale in Bitcoin: SEC Filing

MicroStrategy, Michael Saylor’s business intelligence firm, is planning to buy a lot more Bitcoin (BTC), which at this point shouldn’t surprise anyone. In a recent filing with the US Securities and Exchange Commission, MicroStrategy revealed that it has partnered with brokers Cowen and Company and BTIG to raise $500 million through a stock sale, with proceeds going toward buying more BTC. The business intelligence firm is doubling down on its Bitcoin holdings despite dropping over $1 billion in its current position. With BTC hovering around $20,000 and analysts expecting more downside in the short term, will MicroStrategy actually buy the dip this time, or will the price just keep falling after the buy?

Institutional Investors Aimed at Crypto Breakthrough: Apollo Capital

Remember when investing in crypto was considered a “career risk”? Now that doesn’t seem to be the case investing in digital assets carries the biggest reputational risk of all. What a difference a year can make. According to Henrik Andersson, managing director of Apollo Capital, institutional investors may soon “reverse” their conservative approach to digital assets. In an exclusive interview with Cointelegraph, the crypto fund manager said that institutional interest in digital assets is slowly increasing. Some of the major institutions, such as pension funds, may be waiting for others to take the first steps because no one wants to be the first and be wrong. But when the floodgates open, not being assigned will be considered more of a career risk.

Fireblocks records $100M+ subscription revenue in bear market

The crypto industry has crowned dozens of unicorns in the past couple of years, but how many of these companies have viable business models? Blockchain infrastructure developer Fireblocks reported that it generated over $100 million in annual recurring revenue this year, a huge milestone given the current state of the market. Web3 startups, payment service providers, consumer brands, and game companies all contributed to Fireblock’s massive push, demonstrating that the blockchain industry continues to generate interest despite the bear market.

Don’t miss it! Will Ethereum’s Merge Change Crypto History?

The Ethereum merger has been described as a historic event for the blockchain industry as the largest smart contract platform undergoes a major change in its governance structure. While most traders are fixated on the price of Ether (ETH), there is much more at stake. Will the merger change the trajectory of the crypto industry that relies so heavily on Ethereum? Or will it prove to have an insignificant effect in the long run? In this week’s market report, experts Marcel Pechman, Benton Yaun and Joe Hall discussed this very topic. You can watch the full replay below.

Crypto Biz is your weekly pulse on the business behind blockchain and crypto delivered straight to your inbox every Thursday.