Early this year, my go-to YouTuber for crypto and finance news made a video about upcoming trends that would “take the market by storm”. He mentioned a few narratives like AI, gaming and memes that are frankly old news(and getting tired now) but one stuck with me, tokenizing real-world assets(RWAs).
The idea’s been around for a while now but apart from Etheruem and Solana and maybe Polymesh, I’m yet to see solutions that adhere to traditional finance regulations and with real utilities. The closest I’ve seen is Mantra. They’re fairly new but have already built dApps finance services like lending and borrowing. I hope they bring the web3 we were promised.
Also, do you think it’s still early to see positive performance from them in this current cycle?
They’re fairly new but have already built dApps finance services like lending and borrowing. I hope they bring the web3 we were promised.What's the difference between them and dozens of other dex/dapps on the market then? Lending and borrowing are not new, and the tokenization of real-world assets is not revolutionary either. If anything the lack of projects and interest from the market shows that the demand is not there yet, if any. Based on my experience, gold-based tokens have been around for years now, and as far as I can see their trading volume has been stagnant.
Projects that claim to be an alternative to memecoins, Ethereum, Bitcoin, etc. are usually short-term hype projects that fail in the long run. Therefore, given the high value of real-world assets (RWAs) investments and the lack of regulation, they are more likely to be scams than alternatives to memecoins.
There remains to be a good interest with RWA in the market and I think there is a news of Binance giving some focus on RWA (https://www.binance.com/en/square/post/18615666941961) and its potential to disrupt the market.
Projects that claim to be an alternative to memecoins, Ethereum, Bitcoin, etc. are usually short-term hype projects that fail in the long run. Therefore, given the high value of real-world assets (RWAs) investments and the lack of regulation, they are more likely to be scams than alternatives to memecoins.why would there be considered any alternative to memecoins which most are scams anyway?
...why would there be considered any alternative to memecoins which most are scams anyway?
why would there be considered any alternative to memecoins which most are scams anyway?Due to the lack of regulatory regulation and the fact that such contracts are archived and stored in a distributed manner, it is clear that real-world assets (RWAs) will be completely separate from the idea of digitizing human assets, just like AI tokens. The only use case is to buy digital assets within games or metaverse, but this can be done with centralized solutions.
Early this year, my go-to YouTuber for crypto and finance news made a video about upcoming trends that would “take the market by storm”. He mentioned a few narratives like AI, gaming and memes that are frankly old news(and getting tired now) but one stuck with me, tokenizing real-world assets(RWAs).
The idea’s been around for a while now but apart from Etheruem and Solana and maybe Polymesh, I’m yet to see solutions that adhere to traditional finance regulations and with real utilities. The closest I’ve seen is Mantra. They’re fairly new but have already built dApps finance services like lending and borrowing. I hope they bring the web3 we were promised.
Also, do you think it’s still early to see positive performance from them in this current cycle?
RWAs has the potential to dominate the market even though it may not be this year. I haven’t seen them perform great due to how bearish the market is but i’m positive about it. Memecoins and RWAs aren’t comparable at all, the latter is a promising one with value and utility while the former doesn’t provide value but only make traders money occasionally.I keep hearing that but I've yet to see any valuable breakthrough on the market. Sure, RWA theoretically has more value compared to meme coins, but if it doesn't materialize it will be harder to encourage people to invest in them. I'm on the camp that meme coins are bad for the future and I'm more than happy if other assets thrive, but if it results in another pump-and-dump scheme it would be disappointing. I think it's hard to distance yourself from P&D unless the market changes significantly though.