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This Is How Wealth Gets Democratized

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While taking an evening stroll, Alex observes as yet another old real estate property is renovated into luxury condos. Having lived in the neighborhood his entire life, he has seen it transform from a community of small homes to an area dominated by high-rises and exclusive properties.

These advances have primarily benefited high-net-worth individuals and institutional investors. Meanwhile, people like Alex have no choice but to remain on the sidelines, unable to afford the soaring property costs.

Currently, financial inequality is swiftly increasing worldwide. The rich are getting richer, while the poor are getting poorer. The financial system is structured in such a way that wealth generation is predominantly reserved for the affluent.

How Tokenization Can Democratize Wealth Creation

Consequently, the broader populace has scant opportunities to invest in high-value assets like real estate or fine art. This paradigm exacerbates wealth disparity.

According to a Statista report, the top 10% of earners in the United States possess 67 percent of the nation’s wealth. In stark contrast, the bottom 50 percent own just 2.5%.

Read more: What Are Tokenized Real-World Assets (RWA)?

Wealth Distribution in the US in Q1 2024
Wealth Distribution in the US in Q1 2024. Source: Statista

Tokenization, however, could dramatically reshape the financial sector. Alex and others like him could own a piece of the properties for the first time, reshaping their community. This technology promises to democratize investment, allowing more residents to benefit financially from the growth and changes in their neighborhoods. 

In an interview with BeInCrypto, John Patrick Mullin, co-founder of MANTRA—a layer-1 blockchain dedicated to the tokenization of real-world assets (RWAs)—explains how this technology is transformative.

“Tokenization is a powerful catalyst for democratizing wealth creation and dismantling historical barriers to retail investment in high-value real world assets,” Mullin told BeInCrypto.

Furthermore, by fractionalizing these assets and tokenizing them on-chain, MANTRA seeks to level the playing field for individuals with limited capital. The principle behind this innovation is straightforward yet transformative. Illiquid assets such as real estate or fine art are tokenized into digital tokens, each representing a fractional interest in the asset.

“Illiquid assets are made more accessible by being tokenized as digital tokens, with each individual token representing a fractionalized interest in the larger real estate or fine art asset,” Mullin adds.

Read more: Where To Buy Tokenized or Fractionalized Real Estate and Art

This shift from exclusive ownership to fractionalized investing allows for a more equitable distribution of wealth. Several investors can pool resources to purchase portions of a high-value asset, thereby holding a stake in potentially lucrative markets previously dominated by the wealthy. Mullin emphasizes that this method of fractional ownership is integral to fair wealth distribution.

Challenges With Tokenization

Despite RWAs’ potential to democratize investment, challenges remain. Particularly, there is the risk of tokenization merely becoming another tool for the affluent to consolidate wealth. Mullin notes the importance of inclusive practices and strong regulatory frameworks in addressing this.

“We implement several measures to eliminate gatekeeping and mitigate this risk,” Mullin states.

These measures include establishing regulations for investor due diligence, educating diverse investor populations to promote participation, and implementing transparent governance models prioritizing all stakeholders’ interests.

Moreover, the blockchain technology underpinning this innovation adds another layer of transparency and security. It makes on-chain data available for anyone to analyze, which helps promote fairness and eliminate malpractices like insider trading. This openness is essential for fostering trust among a broad base of investors.

Read more: What is The Impact of Real World Asset (RWA) Tokenization?

Additionally, education and accessibility are critical for the widespread adoption of tokenized RWAs, particularly among underserved communities. A comprehensive strategy that includes educating potential investors about the opportunities and risks associated with RWAs and supportive infrastructure can enhance participation.

Lastly, tackling regulatory challenges remains a crucial step toward a stable environment for tokenization. Mullin anticipates key developments, particularly increased compliance across jurisdictions. These developments will be fueled by legal frameworks that foster a more stable environment for tokenization.

The Current State of the RWA Market

In 2024, the market response to RWAs has been notably positive, with interest from major institutional players such as BlackRock, Fidelity, and Franklin Templeton. According to CoinGecko, the market capitalization of RWA crypto tokens is nearing $8 billion.

Read more: How To Invest in Real-World Crypto Assets (RWA)?

Top RWA Coins by Market Cap
Top RWA Coins by Market Cap. Source: CoinGecko

Also, the tokenized government securities market alone has surpassed $2.14 billion. These data illustrate the growing acceptance and integration of RWAs into the broader financial ecosystem.

Read more: Crypto Regulation: What Are the Benefits and Drawbacks?

Indeed, the tokenization of RWAs stands out as a potentially revolutionary force in the financial market. It can bridge the gap between traditional and decentralized finance, thus offering a more inclusive and equitable economic future.

“Tokenization may well be the final piece in the puzzle for equitable wealth distribution,” Mullin concludes.

Disclaimer

Following the Trust Project guidelines, this feature article presents opinions and perspectives from industry experts or individuals. BeInCrypto is dedicated to transparent reporting, but the views expressed in this article do not necessarily reflect those of BeInCrypto or its staff. Readers should verify information independently and consult with a professional before making decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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Why These Altcoins Are Trending Today — January 22

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With Donald Trump assuming office as the US President, the crypto market has experienced heightened volatility. While some altcoins have surged, others have faced significant crashes, and many are gaining attention due to recent developments. 

BeInCrypto has analyzed three altcoins that have been trending over the past 24 hours and explored what might lie ahead for them in the coming days.

United States Donald Trump (TRUMP)

TRUMP has captured significant attention this week as the official cryptocurrency token of US President Donald Trump. Since its launch, the token has gained immense traction and is now ranked 24th among the top 100 cryptocurrencies, marking a swift rise in prominence within the market.

The token recently hit an all-time high (ATH) of $79 and is currently trading at $41. If TRUMP can secure $45 as a support level, it may resume its upward momentum and make another attempt at its ATH, signaling strong bullish sentiment among investors.

TRUMP Price Analysis
TRUMP Price Analysis. Source: TradingView

However, profit-taking could pressure the token, preventing it from surpassing $45. A drop below this critical level could lead to a decline under $34, potentially invalidating the bullish outlook. In a worst-case scenario, TRUMP might fall to $26, reflecting a significant shift in market sentiment.

World (WLD)

World (WLD) captured investor attention following the announcement of Sam Altman’s OpenAI collaboration with Oracle and SoftBank. Together, they plan to invest $500 billion in US AI infrastructure under the Stargate Project, supported by President Trump. This strategic move has bolstered confidence in WLD, positioning it as a trending altcoin.

WLD’s price surged by 12% in the past 24 hours, driven by the positive sentiment surrounding this partnership. This rally could enable the altcoin to reclaim its 4-month-old uptrend line as support. If achieved, WLD might target $2.55 in the coming days, reinforcing its bullish momentum.

WLD Price Analysis
WLD Price Analysis. Source: TradingView

However, if WLD fails to breach the $2.17 resistance, it risks losing traction and falling back to $2.00 or lower. A further decline to $1.74 could completely invalidate the bullish outlook, signaling a potential shift in market sentiment against the cryptocurrency.

Bonk (BONK)

BONK has surged into the spotlight following the inauguration of the US Department of Government Efficiency (D.O.G.E.), which spurred renewed interest in dog-themed meme coins. This development has elevated BONK’s status in the crypto market, drawing significant attention from both retail and institutional investors seeking speculative opportunities.

The token recorded an 8% increase, trading at $0.00003236 and eyeing $0.00003151 as a critical support level. Securing this floor would strengthen the meme coin’s recovery prospects, potentially attracting more bullish momentum. 

 BONK Price Analysis.
BONK Price Analysis. Source: TradingView

However, failure to hold the $0.00003151 support could lead to a decline toward $0.00002748. This drop would only invalidate the bullish outlook and also signal a broader loss of confidence in the token’s recovery potential.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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Ethereum Price Can Reach $3,500 On The Back Of These Factors

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Ethereum, the second-largest cryptocurrency, recently failed to breach $3,524, triggering a sharp price drop. Since then, recovery efforts have remained weak as volatility persists. 

However, the current conditions suggest Ethereum may be preparing for a comeback as the market stabilizes.

Ethereum Has Room For Recovery

Ethereum’s Network Value to Transaction (NVT) Ratio is experiencing a decline, recently hitting a monthly low. A low NVT indicates that transaction activity is balanced with network value, reflecting reduced volatility. This creates an environment conducive to price recovery, something Ethereum urgently needs to regain its footing.

With the NVT ratio signaling healthy network activity, Ethereum is positioned to stabilize in the short term. Declining volatility often fosters investor confidence, making it more likely for the cryptocurrency to see renewed buying interest. As speculative activity wanes, Ethereum has an opportunity to chart a path toward meaningful recovery.

Ethereum NVT Ratio
Ethereum NVT Ratio. Source: Glassnode

Ethereum’s realized profits recently dropped to a six-week low, pointing to a significant reduction in selling pressure from investors. This trend highlights the market’s shifting sentiment, with fewer participants looking to offload their holdings. Such conditions could provide Ethereum with the breathing room required to capitalize on broader bullish cues.

The lack of an uptick in realized profits suggests that the selling lull may persist, allowing Ethereum to focus on building upward momentum. With investors holding onto their coins, market conditions are primed for a gradual recovery, provided external factors remain favorable.

Ethereum Realized Profits
Ethereum Realized Profits. Source: Glassnode

ETH Price Prediction: Breaking The Barrier

Ethereum is currently trading near $3,300, just below the critical resistance level of $3,327. Flipping this into support is essential for ETH to initiate a rally toward $3,524, representing a 6% increase from current levels. This move would mark a partial recovery from recent losses.

Breaking through the $3,524 resistance is crucial for Ethereum’s recovery. Achieving this would erase the recent downturn and also position the altcoin for further gains, potentially targeting $3,711. Such a move would underscore Ethereum’s resilience and align with the broader market’s bullish sentiment.

Ethereum Price Analysis
Ethereum Price Analysis. Source: TradingView

However, failing to establish $3,327 as a support level could stall Ethereum’s recovery. This scenario would leave the cryptocurrency vulnerable to a retracement toward $3,200, undermining recent progress and potentially delaying its path to $3,500.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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Justin Sun, Vitalik Buterin Speak Amid Ethereum Reform Debate

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TRON founder Justin Sun has offered a hypothetical plan for Ethereum and the Ethereum Foundation (EF) under his leadership. His remarks come amid controversy over EF’s leadership transformation.

In a series of posts on X (formerly Twitter), Ethereum co-founder Vitalik Buterin outlined the reforms’ goals and progress. He highlighted improvements in technical expertise, ecosystem engagement, and operational efficiency.

Justin Sun Outlines Blueprint for Ethereum Leadership

The TRON executive shared ambitious remarks on how he would lead the Ethereum Foundation if given the opportunity. Sun’s vision, shared on X, outlined a four-point plan to radically restructure EF operations, optimize Ethereum’s economic model, and drive the price of ETH to $10,000.

“If EF and Ethereum were under my leadership, ETH would hit $10,000,” Sun claimed.

Sun proposed an immediate halt to ETH sales for three years to stabilize supply and boost market confidence. He suggested covering EF’s operational costs through DeFi protocols like Aave, staking yields, and stablecoin borrowing, aligning with Ethereum’s deflationary goals.

A key component of his plan involves imposing significant taxes on Layer 2 (L2) solutions, aiming to generate $5 billion annually. The collected taxes would go toward exclusively repurchasing and burning ETH, further enhancing its scarcity and value.

Sun also called for a drastic downsizing of EF staff, retaining only top performers and offering them significant salary increases. This merit-based approach, he argued, would streamline operations and improve efficiency.

Finally, Sun emphasized adjusting node rewards and increasing fee burns to reinforce Ethereum’s deflationary narrative. He proposed redirecting all resources toward Ethereum’s core L1 development, focusing on scalability, security, and adoption. Justin Sun’s plan sparked a mixed response, with some applauding the bold vision.

“These are all very practical suggestions. Please pay attention to them and refer to them, Vitalik Buterin,” core developer 0xSea.eth posed.

Meanwhile, others challenged Sun to focus on TRON and explore bringing decentralized finance (DeFi) to its ecosystem.

“Maybe start with how to make DeFi great on TRON – you should ask your exec team (and yourself), “Why is DeFi nonexistent on TRON despite it being the chain with the most stable coins on it?” If you answer this, maybe TRON can beat eth one day,” ZIGChain co-founder Abdul Rafay Gadit remarked.

Vitalik Buterin Defends Leadership Amid Criticism

Sun’s proposed solution aligns with Vitalik Buterin’s recent post discussing ongoing changes over the past year, some of which have already been implemented. Buterin emphasized goals such as strengthening the EF’s technical leadership and improving collaboration with ecosystem participants. He also addressed concerns, rejecting the notion that the EF might adopt centralized or politically motivated roles.

“…these things aren’t what EF does and this isn’t going to change. People seeking a different vision are welcome to start their orgs,” Buterin articulated.

Aya Miyaguchi, an EF executive, confirmed the ongoing efforts, expressing excitement about forthcoming announcements. She noted that the reforms aim to solidify Ethereum’s position as a global neutral platform while embracing decentralized and privacy-preserving technologies.

The announcement has stirred controversy within the crypto community. Critics argue that the current leadership has failed to manage Ethereum effectively.

“Respectfully, just let new blood take over. You guys can’t even make a simple Twitter account work—how can you be trusted to lead the second biggest blockchain,” Wazz posed.

Another user, Coinmamba, suggested that pressuring Miyaguchi to resign could result in Ethereum reaching new all-time high. Buterin strongly condemned these comments, defending Miyaguchi and calling out the toxicity of such social media rhetoric.

“No. This is not how this game works,” Buterin retorted. “The person deciding the new EF leadership team is me. If you ‘keep the pressure on,’ then you are creating an environment that is actively toxic to top talent. YOU ARE MAKING MY JOB HARDER,” the Ethereum co-founder lamented.

Buterin also refuted specific claims against Miyaguchi, pointing out inaccuracies in translations and misinterpretations of her statements. He reiterated the need for a “proper board” within EF to enhance governance.

ETH price Performance
ETH Price Performance. Source: BeInCrypto

Ethereum’s ETH token was trading at $3,305 as of this writing, representing a modest 0.2% surge since Wednesday’s session opened.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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