Venture Capitalists (VCs) have invested 33 33 billion in crypto and blockchain startups in 2021, according to a report from Galaxy Digital. The head of research says that number could be even higher in 2022, and as it stands, the predictions seem to be coming true.
Startups in Singapore alone have raised millions this year. Adding the pile, Singapore-based fintech firm Cake Defy announced the launch of its new venture capital arm in March.
Cake Defy Ventures has allocated US $ 100 million for Web3, gaming and fintech investments over the next two years. The company is particularly interested in projects related to NFTs, metaverse, blockchain, and e-sports.
“By launching Cake Defy Ventures, we want to bring cryptocurrency and blockchain capabilities to the world. The projects we invest in can be expected to receive strong support on a global scale, ”said Dr. Julian Hosp 7
What is Cake Defy?
Cake Defy was created as a universal platform for people to manage their crypto funds and generate returns through stacking, lending and liquidity mining. Today, it has 400,000 users and manages assets worth US $ 1 billion.
“Our team has deep blockchain and crypto experience,” Hosp explained “This has allowed us to be at the forefront of innovation in blockchain and defi technology. We are able to offer a platform through which users can access new DeFi services and applications and, as a result, generate long-term value and high returns.”
With the launch of Cake Defy Ventures, the company is looking for strategic investments that could help it develop and expand its Web3 offerings.
They are currently looking for startups that have unique technological and business pricing offerings, as well as access to a wide range of Web3 ecosystems.
Through its efforts, Cake Defy is committed to onboarding to bring the next wave of people to the blockchain.
Despite the increase in cryptocurrency adoption over the past year, understanding of cryptocurrency and blockchain technology is still at a very low level. At Cake Defy, we hope to actively educate all potential and existing customers to increase the level of education within the crypto space.
– Dr. Julian Hosp, co-founder and CEO of Cake Defy
The skepticism surrounding DeFi and blockchain technology often stems from a lack of understanding of space. Users quickly become obsessed with the idea of money and fail to research their investments.
This, for one, has created a skewed notion about the prevalence of scams in crypto. While bad actors do exist, we often see them combined with high-risk investments that do not actually promise rewards.
For example, consider cryptocurrencies that offer four-digit interest rates for stacking. These currencies tend to be extremely volatile and investors need to be aware that their value may soon be negligible.
For example, Cake Defy helps users understand the mechanics behind DeFi products so they can make informed decisions. Not only does this help investors, it can also improve general perceptions about crypto space.
How will DeFi continue to grow?
“Early DeFi iterations had to deal with a lack of users and high network fees, but these challenges are slowly disappearing as the entire DeFi space matures,” Hosp explains.
With all the innovations of the last few years, the place may finally be ready for the mainstream audience.
Over the next five years, as awareness about DeFi grows, it is clear that the broad market audience will grow. Users will look for intuitive platforms with which they are familiar, similar to traditional financial institutions.
– Dr. Julian Hosp, co-founder and CEO of Cake Defy
For Cake Defy, there are two major developments on the horizon: blockchain gaming and NFT financing.
“Play-to-earn, GameFi and Metavers are not just bold futuristic ideas. They have already reached our homes and are used by millions of people around the world, ”says Hosp
“With the move to change its name to meet Facebook, we’ve already seen the first steps that will follow in the near future: a massive adoption led by technology giants.”
Hosp believes that these ideas will continue to spread and change the way users interact with each other and across different platforms.
“Platforms will eventually become more interconnected and give users more opportunity to express themselves by purchasing, swapping or upgrading in-app items,” he added.
These considerations have played an important role in determining the focus of Cake Defy Venture.
Will DeFi replace traditional money?
DeFi has grown rapidly over the past year, however, it remains a small sector compared to traditional financing. Despite being framed as a disruptor, it may not be here to completely replace the banking and equity markets – at least not in the near future.
We believe that crypto, web 3 and metavers have started all over the world so DeFi and traditional finance go hand in hand.
– Dr. Julian Hosp, co-founder and CEO of Cake Defy
Hosp believes that DeFi will become an alternative to centrally governed financial institutions. It could potentially fill the gap in financial inclusion by providing access to the bankless.
“How these dynamics work in the future depends on the regulatory front,” he added. “If governments take the path of openness and equality, DeFi will prosper and revolutionize the ancient banking system.”
Within Singapore, the crypto scene is already thriving. However, there are still some ways. “We believe more can be done in space,” Hosp said, adding that the level of education and awareness is currently low because the majority of the population still finds crypto foreign and difficult to perceive.
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Featured Image Credit: Cake Defy
