• Skip to main content
  • Skip to secondary menu
  • Skip to footer

Digital Market

seeing people behind the digits

  • About
  • Blockchain and Fintech Events
  • Domain Names
  • Reports
    • Technology
    • Venture Capital
  • Featured Listing
    • Make a Contribution
    • Submit a Sponsored Post
  • Contact

Tokens.com Publishes a Letter to Shareholders Regarding its Staking Operations Powering the Next Generation of Finance

June 3, 2021 By Digital Nomad

TORONTO – Tokens.com Corp. (NEO: COIN) (FSE: 76M) (“Tokens.com” or the “Company”), a Blockchain technology company that provides transaction processing and validation services for various digital assets that power Decentralized Finance (DeFi) applications and Non-Fungible Token (NFT) platforms, is pleased to share Part II of its letters to shareholders series regarding the Company’s business model, particularly as it relates to the blockchains that are powering opportunities in the next generation of finance.

Dear shareholders:

As part of our ongoing series from management, we’re pleased to share Part II today on the opportunity to support the next generation of finance through staking and the role played by Tokens.com. Please refer to our website to revisit past letters, including the first of this series published last week on our near zero energy consumption business model.

Part II

DeFi is the Most Exciting Thing Happening in Finance and in Blockchain

Decentralized Finance or DeFi, refers to digital platforms that allow consumers to perform financial transactions with each other without the use of banks. This is accomplished using blockchain technology. The most popular DeFi uses are lending, borrowing and trading. The sector is currently booming with over $80 billion(1) locked in DeFi applications and, as of the end of Q1 2021, there were 1.75 million estimated users(2).

The advantages of using DeFi instead of traditional banks are numerous, including it being more reliable, less costly and faster than outdated banking platforms. For example, if you have ever sent money abroad via the SWIFT system that banks belong to, you are aware that it is slow and expensive. Banks dominate the borrowing and lending of capital. They charge high fees to borrow and pay near zero interest on deposits. DeFi solves these issues.

The deposit rates in DeFi are far higher than what is offered at a bank, typically reaching 8% or higher. Individuals can also borrow off these platforms instantaneously by using crypto assets as collateral. The volume and user numbers continue to grow at an astonishing pace every month as new consumer finance applications are brought to market.

What role does Tokens.com play and why?

The most popular DeFi platforms, such as Aave and Uniswap, are built on the Ethereum blockchain and require ETH, Ethereum’s digital asset, to operate. Ethereum is programmable and ideal for operating robust, next-generation apps that require high throughput like DeFi, which trades billions of dollars daily. It is this functionality that makes highly-programmable blockchains like Ethereum not only popular – but also valuable.

Blockchains like Etherum require third parties, like Tokens.com, to validate its transactions. As such, each time a DeFi transaction occurs on Ethereum, the DeFi application pays fees to the Ethereum network, which then pays fees to transaction processors, like Tokens.com. Ethereum is currently a Proof-of-Work Blockchain (where miners validate transactions) – but is in the process of migrating to Proof-of-Stake (where staking firms like Tokens.com validate transactions).

DeFi platforms are consumer-facing financial interfaces that require blockchain technology and Crypto Stakers (the transaction processors) to operate. The blockchains act like digital highways allowing DeFi transactions to move. Crypto Stakers, like us, are the toll booths that ensure the transactions are safe and then let them proceed. Tokens.com’s service is unseen at the consumer level, but our service is the necessary infrastructure that allows transactions to occur. DeFi applications, the blockchain highway and the Crypto Stakers are intertwined and each one integral to how blockchain technology functions. This is essential to how Tokens.com generates its revenue and selects the blockchains it stakes.

How we choose which Blockchains To Stake

We have conviction that DeFi will become a trillion dollar market. Tokens.com looks at which DeFi applications are most widely used and which blockchains they are built on. We also conduct thorough due diligence before we stake a blockchain, looking at their staking returns, market cap and sponsorship. While we evaluate dozens of blockchains, we believe that Ethereum 2.0, Polkadot and Binance Coin are widely used and positioned to capitalize on the growing DeFi market.

Simply, we choose to stake blockchains that are linked to fast-growing sectors, like DeFi. DeFi is recreating the entire financial system. That’s where we see a high volume of transactions that need our services. The more transactions we process, the more revenue we earn.

We feel that despite the current volatility, the digital assets we are staking are linked to long-term growth sectors and will show greater resilience. We believe it’s not about timing the market. It’s about time in the market. Our staking assets, like Ethereum 2.0, are shaping the future of finance, which is why we think they’ll also provide outsized staking returns and appreciation for our investors.

(1) https://coinmarketcap.com/view/defi/
(2) https://consensys.net/reports/defi-report-q1-2021/

About Tokens.com

Tokens is a Blockchain technology company that provides transaction processing and validation services for various digital assets that power Decentralized Finance (DeFi) applications and Non-Fungible Token (NFT) platforms. Tokens utilizes Proof-of-Stake (“PoS”) or Staking technology. DeFi is a new class of financial applications that provides users with automated and transparent financial services, such as borrowing and lending, without the need for financial institutions. NFTs are redefining how art, gaming, music and collectibles are created, valued and traded. Management believes that as mainstream adoption for DeFi and NFT applications grow, the need for Tokens.com’s Staking services will commensurately increase.

Tokens has agreements with industry leaders, Polychain Labs, Bison Trails, Staked and Coinbase Custody, to manage its staking operations and provide custodial services. Tokens’ management team includes seasoned blockchain and financial professionals with prior experience at Hut 8 Mining, Fidelity Investments, Galaxy Digital and Goldman Sachs. Tokens was formed in collaboration with Polychain Labs, an affiliate of Polychain Capital, which is one of the largest cryptocurrency venture capital firms in Silicon Valley. Current investors include Bitbuy Limited, First Block Capital, HIVE Blockchain Technologies Ltd., PowerOne Capital Group, Matthew Roszak (the co-founder and Chairman of Bloq, Inc.), and Olaf Carlson-Wee (the founder and CEO of Polychain Capital).

The Company’s common shares are listed under the symbol “COIN” on the NEO Exchange and as “76M” on the Frankfurt Stock Exchange.

Further information can be found on the Company’s website: Tokens.com.

Filed Under: News

Footer

RSS Market Research Media

  • America’s 100 largest housing markets are overpriced
  • How do media companies perform in digital transformations?
  • A six-step forecasting methodology
  • New skills will be required for the future world of work
  • Two biggest barriers to wider adoption of XR are user experience and limited content
  • The current market value for AR/VR/MR is around $30.7B, and the worldwide market may rise to $300B by 2024
  • Global asset classes compared by market cap in 2021
  • Russian oil production succumbing to the impact of Western sanctions
  • Russia’s default on its foreign debt is around the corner
  • BRIC Investment Funds Have Taken a Beating This Year

RSS Domain Aftermarkets

  • MetaBelgium.org
  • ASAPcopywriting.com
  • CruiseMktg.com
  • blockchaining.org
  • cocina.me
  • latakia.org
  • MetaAntwerp.com
  • ArtOeuvre.com
  • ASAPcarrier.com
  • MktgDev.com

RSS Domain Market Research

  • .COM is the biggest franchise the world has ever known!
  • ebyte.org, domain name for sale
  • OPINR.com, domain name for sale
  • #wallet: HashtagWallet.com, domain name for sale
  • Knowledge Engineering: KnowledgeEngineering.com, domain name for sale
  • CryptoEncryption.org, domain name for sale
  • Bootstrapping.org, domain name for sale
  • Salade.org, domain name for sale
  • Cruise Market: CruiseMarket.org, domain name for sale
  • moveable.org, domain name for sale

Copyright © 2012 Digital Market

Technologies, Market Analysis & Market Research Reports

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Do not sell my personal information.
Cookie SettingsAccept
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT