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 Emerging Terra Ecosystem
Over the last year Terra has evolved from being a single use case stablecoin platform out of South Korea to a global ecosystem of financial applications that utilize Terra’s stablecoins. This evolution has led to significant growth in the market cap of Luna, the native token of the Terra network, from around USD50m in early 2020 to over USD2.5bn today.
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.
