Why Did I Join Defi Technologies Inc.?

I have the greatest job in the world.

As the editor of multiple investment newsletters I cover everything from crypto assets to stocks, options and private placements. I get to work with brilliant people. We uncover life changing ideas for hundreds of thousands of my amazing subscribers.

It’s demanding work. It’s also the most fulfilling work I’ve ever done. So why would I want to add to my workload? Why make my life more difficult by agreeing to work with a publicly traded company?

In the past I’ve been offered truckloads of money to work with projects before. I’ve always said no. So why would I say yes to this one? It all comes down to the most important financial trend of our lifetimes: Decentralized Finance or DeFi (sounds like “defy”).

What is Decentralized Finance?

Decentralized Finance is the name given to the trend of blockchain based financial services. It’s called “Decentralized” because it replaces centralized corporation (like banks, insurance companies & trading exchanges) with computer code no one owns.

If you’re new to DeFi, it’s going to sound like something from science fiction. I get it. Just stay with me because right now more than $40 billion has migrated to the Decentralized Financial ecosystem.

This $40 billion is being used in blockchain based software no one owns. These software programs provide decentralized insurance, decentralized trading, decentralized borrowing and decentralized lending.

Over the span of about 18 months we’ve seen the amount of money committed to DeFi explode from about a billion dollars to forty billion. That is explosive growth. To ignore it or dismiss it as a fad would be a grave financial mistake.

In my opinion DeFi is the single biggest world changing, wealth generating trend since the commercialization of the Internet. Here’s why I believe that…

DeFi Will Transform the Financial System

It’s estimated the global financial system sucks out about 6% of the world’s economic output. That’s about $8 trillion. That’s an eight trillion dollar pie up for grabs and my bet is DeFi will end up consuming most of it.

It’s a simple bet on a technology that is faster, cheaper and 100% transparent beating out an old financial infrastructure that is slower, more expensive and opaque. I’ll take that bet all day long.

In my newsletters I have already been helping my readers get into this trend by recommending which projects to invest in. Many of our positions are up over 100% with one outlier up over 900%. It’s been wonderful to get my readers into this trend early.

But what about the people who will never buy a crypto asset? What about them? Must they be relegated to the sidelines while others change their financial lives by investing in DeFi? That didn’t seem right to me.

And that is where my involvement with DeFi Technologies comes in.

Here’s How DeFi Technologies Will Make DeFi Accessible to You

DeFi Technologies is a publicly traded company listed on the NEO Exchange (Ticker: DEFI) and in Germany on the Frankfurt Exchange (Ticker: RMJR). The company’s mission is to democratize access to the DeFi trend. The company is aiming to become the de facto “one click” solution for investors looking to gain broad based exposure to Decentralized Finance through the stock market.

There are 500 million stock investors in the world vs. about 100 million crypto investors. Many of those stock buyers will never buy a crypto asset from a crypto exchange. Why should they get left behind just because they don’t have the technical skill or comfort with technology other people have?

Does that sound right to you?

It didn’t to me and that’s why I joined DeFi Technologies Inc. I get to help shape the strategy of how we can make DeFi accessible to anyone not just the technologically fluent. As I mentioned, the company is looking to become the “one click” investment solution to any traditional investor looking to get broad exposure to the Decentralized Finance trend.

To this end DeFi Technologies will be focusing on four core pillars it believes will give its shareholders exposure to the most important trends in DeFi. Each of the four pillars is built on the foundational ideas that DeFi should be easy to access, easy to use and easy to invest in.

The first Initiative is called “DeFi ETP.”

DeFi investments are crypto based assets and that means many institutions cannot own them. Additionally many individual investors are intimidated by working with unfamiliar and often unregulated exchanges.

To solve for this problem DeFi Technologies has acquired a 20% stake in Valour Structured Products Inc., which intends to help those investors that cannot or will not buy a crypto directly by issuing ETP’s (exchange traded products). ETP’s are similar to ETF’s in that they allow an investor to get pinpoint exposure to a specific investment.

Similar to how the ETF GLD gives you access to owning gold bars, exchange traded products will give investors direct access to various DeFi token projects. DeFi Technologies thinks the market for traditional investors looking to invest money into crypto investments through regulated, securitized vehicles will be a massive, long lasting trend.

One quick peek into how big this trend could be is to look at the dollar flows we have seen in the first few days of a North American launch of the first bitcoin ETF. $421 million flowed into this ETF in the first two days it was available.

Clearly traditional stock investors have a huge appetite for digital assets offered in an equity “wrapper”. This makes “DeFi ETP” a no-brainer opportunity to pursue.

The second initiative is “DeFi Treasury.”

7,000 corporations signed up for Michael Saylor’s Bitcoin for Corporations summit. At that event he gave away his playbook of how he was able to get his board of directors at Micro Strategy to agree to add more than a billion dollars’ worth of BTC to its treasury

Those 7,000 corporations represent trillions of dollars of corporate cash wasting away on the sidelines. How many of those corporations will take the plunge into Bitcoin? It might be far fewer than people realize. That’s because many people view Bitcoin as a binary bet. They think it will either be worth a million dollars one day or zero.

To be clear that’s not my belief. I think Bitcoin has reached escape velocity and is here to stay. But getting a CFO to that level of belief is going to be very difficult. So if a corporation does not want to make what looks like to them an all or nothing bet on Bitcoin where do the opportunities lie with corporations?

This is where DeFi Treasury comes in.

DeFi Treasury will help corporations allocate part of their treasury reserves into DeFi protocols. These protocols have yielded anywhere from 3% to as high as 15%. When compared to the binary bet most people think Bitcoin is, DeFi Technologies thinks this “middle path” of partial allocation to the hefty yields now being seen in DeFi is a sensible approach most CFO’s can get behind.

The company is aiming is to provide an easy to use process corporations can use to take advantage of the yields currently on offer in the DeFi space.

In a world where many companies are paying banks to hold their money, the idea of allocating part of their reserves into interest paying DeFi protocols is one DeFi Technologies believes many of the world’s corporations will seriously consider.

If you would like to find out more about how DeFi Treasury can help your company plug into DeFi please send an email requesting more information to [email protected]

The third initiative is “DeFi Governance”

As more Decentralized Finance applications seek to improve the way their projects are governed by their respective token holders a need has emerged for independent governance. To that end the company believes DeFi projects will be looking to secure relationships with independent third parties to enter their governance systems.

The best way to think of it is similar to a public company opting to install independent board members. To that end DeFi Technologies is in talks to begin securing such a role. The DeFi Governance product will work with decentralized networks to run independent nodes that will validate transactions and provide governance on the network.

As the only public company dedicated to the decentralized finance space, DeFi Technologies believes it is uniquely positioned to fulfill this emerging need in the market place.

The fourth initiative is “DeFi Venture.”

How does the average person get access to the very earliest stage DeFi projects? The short answer is they can’t. At least not without climbing a very steep learning curve and having a very deep list of industry contacts.

That often means the most lucrative DeFi investments are limited to the very connected or the technologically savvy. Do you think that’s fair? I don’t. That’s why I am so excited about DeFi Technologies’ DeFi Venture initiative.

DeFi Venture is where DeFi Technologies will take stakes in early stage promising DeFi protocols.

The company has already started to build out its portfolio of early stage investments that have the backing of some of the biggest professional investors in the space. DeFi Venture is the company’s attempt to “kick in the door” of the early stage investing world for its shareholders.

The company is intent on building a portfolio of what it believes will be the world’s leading DeFi names.

Conclusion

So there you have it. four ways to play what I believe will be the biggest wealth generating trend of our life time: Decentralized Finance.

1. Help traditional investors and institutions get access to DeFi projects through the stock market.

2. Help corporations plug part of their treasury into high yielding DeFi protocols

3. Help work with decentralized networks to run independent nodes that will validate transactions and provide governance on the network.

4. Help DeFi Technologies shareholders get exposure to early stage DeFi protocols that have explosive promise.

My goal is to help DeFi Technologies become the “one click” solution for investors looking to get broad based exposure to the Decentralized Finance space.

Now here’s the legal stuff. I can’t guarantee any of those plans will come to fruition, or that the company will be a leader in any of those verticals or that those verticals are the ones that will show the most growth. Nothing in this essay should be construed as financial advice of any kind or a forecast on behalf of DeFi Technologies.

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