CMCC Global writes monthly to investors, sharing our views on market dynamics and demystifying this new asset class.
Industry Insights
Insights
Here we share selected insights, exploring important topics in the blockchain ecosystem.
The Investment Case for Rari Capital
Over the weekend Rari Capital suffered from a hack, losing USD10m worth of Ether to an attacker. This represents 60% of user funds that were held in one of Rari’s yield pools. It is against this backdrop that we now publish our investment case for Rari. The team is building something unique. At face value, it is a yield aggregation platform that allows users to easily earn yield on crypto.
The Resurgence of NFTs
In June 2018, we wrote about the emergence and promise of non-fungible tokens (abbreviated to NFTs). This was a new type of crypto token that could represent ownership of all kinds of asset from physical ones like houses and artwork, to digital ones like digital art, memes, music and intellectual property.
The Solana Ecosystem
The Solana ecosystem is growing rapidly. From network validators to wallet providers and applications, there is excitement surrounding the Solana smart contract platform. While blockchain networks rely on technical consensus to function, the value of a network depends on social consensus.
The Institutional Adoption of Bitcoin
Bitcoin outperformed all major asset classes in 2020. An investment in Bitcoin returned +305% in 2020 as compared to 42% for the NASDAQ, 19% for Gold and 15% for the S&P 500. This performance is a result of institutional adoption and acceptance of Bitcoin as its own asset class.
The Role of Stablecoins
In November we interviewed Do Kwon, the CEO of Terra, and spoke at length about the use of stablecoins in ecommerce and beyond. As Do highlighted, there is clear product-market fit for stablecoins as a method of online payment.
