In the spirit of putting the losses of previous weeks behind me, this week I am focusing on the exciting new developments coming to Cardano, and Crypto.org. Let’s start with a quote.
Many great fortunes are built slowly. They are built on the principle of compound interest, what Albert Einstein called, “The Greatest Power in the Universe” — Brian Tracy, Financial Literacy Advocate and Speaker
Compound interest can work for, or against you. In the case of debt, it is compound interest that causes it to get out of control. In the case of growing your great fortune, compound interest is the force that causes your wealth to grow exponentially. In this letter, I have gravitated to Cardano and Crypto.org for two main reasons.
I believe both of these platforms to be important in forming the financial infrastructure of the future
They are both offering participants the ability to automatically compound their investments
Let’s dive into both of these points of analyses.
Financial Infrastructure of the Future
The future of finance is on the internet; this much is clear.
What monetary pipelines will be formed is still largely up for debate. However, I also think it is clear that the money flowing through these pipes will be Bitcoin. Therefore it is important to figure out which platforms will be enabling Bitcoin to scale.
Financial Application Ecosystems
While I think there will be a good variety of blockchain-based financial platforms, I believe Binance, Cardano and Crypto.org to be uniquely positioned to form a good chunk of the financial infrastructure of the future.
Much like Ethereum has already formed a financial application ecosystem, so too will these emerging platforms. There is a major trend that I’d like to point out. Ethereum has already established many standards for financial applications. Other platforms are adopting the standards set forth by Ethereum. Take Binance Smart Chain (BSC) for example. It is more or less an exact copy of the operating system that runs all Ethereum applications. It is known as the “Ethereum Virtual Machine” or EVM for short.
What this allows for, is newer blockchains such as Cardano and Crypto.org to copy the financial applications deployed on Ethereum, and paste them into their own blockchains.
Cardano and Crypto.org
There are two major events to look out for in the roadmap for Crypto.org and Cardano. That is the launch of the EVM on their own blockchains.
Crypto.org Roadmap
There are a couple of large releases coming for Crypto.org. The first is the ability to create NFTs on Crypto.org, which I am rather ambivalent about. The second is the implementation of the EVM. That is the event that I think will take Crypto.org and CRO to a new level.
The reason I think this, is because when Binance implemented an Ethereum Virtual Machine into Binance Smart Chain, the utility of BNB skyrocketed, and the price followed. Crypto.com (the company that is driving the development of Crypto.org) tends to move pretty quickly, and once the capability to deploy Ethereum based smart contracts comes online, we can expect to see clones of AAVE (DeFi lending), UniSwap (DEX), SNX (Synthetic Tokens such as TSLA stock), and so on.
I recommend checking out the Crypto.org roadmap for more details. In anticipation of these releases, I am compounding my CRO so that I have plenty to deploy throughout their financial ecosystem when the time comes.
A quick note on the Difference Between Crypto.com and Crypto.org
It is useful to understand the difference between Crypto.com and Crypto.org in order to comprehend the direction of the overall Crypto.com/org ecosystem.
Crypto.com is a company that built a cryptocurrency ecosystem based on CRO. They run an App, and an Exchange. They also built a non-custodial wallet, and a decentralized blockchain called Crypto.org
Crypto.org is what hosts the CRO token. It is a blockchain network that is run by 100 validators around the world.
The entire Crypto.com/org ecosystem is knitted together, and developed by the company, Crypto.com
Cardano (ADA) Roadmap
Cardano is something I am impressed by. I came across it in 2017, but didn’t formally invest until 2019. I’ve constantly been on the lookout for something that has a reasonable chance of taking market share away from Ethereum. I believe Cardano to be that project.
For future reference, ADA is the base currency of the Cardano network.
Cardano is one of the most actively developed cryptocurrency projects in the world1
The developers behind Cardano have made good on nearly all of their releases, and haven’t missed a beat in terms of quality
The project is taking a mathematical and rigorously scientific approach to decentralization2
They are intentionally playing the long game, and not seeding their community with false expectations of technical deliverables
You can imagine the excitement in the community as the date nears when Cardano launches its own EVM to bootstrap its financial application ecosystem. The story is similar to Crypto.org, once this ecosystem launches, you can imagine there being many more ways to use and grow your ADA throughout the ecosystem. Check out Cardano’s status page for more details.
A Few Words About ADA
ADA is the base cryptocurrency on the Cardano network. You can think of it like CRO, or ETH, or BNB. The entire network runs on ADA. From staking it to secure the network through Proof of Stake (PoS), to paying for the creation of tokens, to interacting with smart contracts. Finally, 72% of the total amount of ADA is staked3 on the network, which significantly limits the supply available for trading. Instead, the tokens are being used for their primary purpose of securing the network through proof of stake.
Cardano and Crypto.org Capturing Market Share
In terms of adoption, I believe both of these blockchains will capture market share in different areas of the industry.
Cardano
From the looks of it, Cardano is looking to compete directly with Ethereum in the decentralized financial infrastructure space. They have mentioned that deployment in Africa is their main plan for large-scale rollout and adoption. The continent of Africa is home to the largest demographic of underbanked, or unbanked individuals, families, and businesses. Cardano has a reasonable chance of providing a massive population with high quality, easily accessible, decentralized financial services. I do, however, think that Bitcoin will be the core currency in use, but on the payment rails and pipelines provided by a network like Cardano. People will be using Bitcoin on Cardano, but to them, it’ll just be Bitcoin.
Crypto.com
Crypto.com and their blockchain Crypto.org, by the looks of it, are going after the payments, and institutional businesses space. They have already made it super simple for people to spend any cryptocurrency their platform supports (which is 50+ and growing). Additionally, you can now spend CRO directly from the Crypto.com DeFi Wallet which is a game-changer. This is because the DeFi wallet is non-custodial; which means you can always be the core custodian of your funds, and pay at any Crypto.com payment terminal with cryptocurrencies from your DeFi Wallet.
Fees on Crypto.org are far less than a cent, and nearly instantaneous. These qualities are ideal for a payments network, which to reiterate, is the core market I believe Crypto.org (and Crypto.com) to be going after.
In the last two years, their user base has grown from under 1 million to well over 8 million presently. I see Crypto.com capturing the majority of the Crypto VISA Debit/Credit space. They will eventually expand into the “Crypto-Bank” territory as they continue to uphold their record of having the best security, the most insurance, and the most compliance with local, national, and international money regulations. In short, Crypto.com appears to be the model cryptocurrency company, one that surely will aim to be copied. Where Crypto.com goes, Crypto.org will follow.
Automatically Compounding Your Investment on Cardano and Crypto.org
While reading the Psychology of Money, one phrase stuck out to me. It went roughly like this.
“The key to growing your wealth is uninterrupted compound interest”
Not just compound interest, but uninterrupted compound interest. This means not taking our your initial investment. Not moving those interest payments into other assets. Just letting the effects of compound interest do their thing!
I admit, in the last few months, I’ve been interrupting my compounding CRO. The idea of uninterrupted compound interest wasn’t emphasized in my own thinking at the time. Now that I’ve read this passage, and had it explained to me in simple terms, I’m ready to make a more concerted effort to not withdraw anything from my compounding interest strategies.
Cardano Automatically Compounds
This is a thing of beauty really. Daedalus, the Cardano wallet automatically claims any rewards given to me, and adds it to my balance, that then earns more rewards. In other words, it automatically compounds for me.
IMAGES AND CONTENT REDACTED — [ May 1st 2022 ]
Crypto.org is Manually Compounding
While I appreciate the hands-off approach that Cardano gives me, I still don’t mind logging into my Crypto.org wallet once per day to compound my interest.
IMAGES AND CONTENT REDACTED — [ May 1st 2022 ]
Key Takeaways
Don’t interrupt your compound interest
Blockchains are already adopting a standard (EVM) for financial applications.
Bitcoin will be tokenized on secondary blockchain based financial platforms. This accelerates the use case for Bitcoin as money.
What is Next?
Since you’re a premium subscriber, you have the ability to vote on what topics I write on next. You can check this link for the list of proposed topics for June.
If you want to set up compounding for your crypto assets or passive income streams for any of the coins or tokens you are holding, don’t hesitate to reach out to me at ready@gofullcrypto.com
All The Best,
Keegan Francis