Digital assets are today’s burgeoning investment asset class dominated by a new generation of Generation Z and millennial investors, who may be causing a shift in conventional retail IR practices.
Since 2020, this global group of blockchain investors has diversified its Bitcoin and cryptocurrency portfolios to embrace decentralized finance (DeFi). These investors are buying, holding, lending and staking tokens – central to fueling use-cases and business models that make DeFi projects work. Tokens represent a tradable asset or utility that allows the holder to use it for investment or economic purposes. They are built on top of an existing blockchain network, most often Ethereum, and can serve a multitude of functions in DeFi mechanisms, such as governance and voting.
DeFi has ushered in new crowdfunding capabilities enabling companies – projects in blockchain parlance – to find buyers and liquidity for their tokens. This is done through initial distributed exchange offerings (IDOs) such as Uniswap, and initial centralized exchange offerings like Coinbase. Investors are seeking the long-term appreciation that owning an early-stage company’s token could bring, and using their token to participate in yield farming – a DeFi practice of staking or lending crypto assets to generate high returns or rewards in the form of additional cryptocurrency.
Continue reading: https://www.irmagazine.com/technology-social-media/business-blockchain-how-engage-digitally-native-next-generation
Since 2020, this global group of blockchain investors has diversified its Bitcoin and cryptocurrency portfolios to embrace decentralized finance (DeFi). These investors are buying, holding, lending and staking tokens – central to fueling use-cases and business models that make DeFi projects work. Tokens represent a tradable asset or utility that allows the holder to use it for investment or economic purposes. They are built on top of an existing blockchain network, most often Ethereum, and can serve a multitude of functions in DeFi mechanisms, such as governance and voting.
DeFi has ushered in new crowdfunding capabilities enabling companies – projects in blockchain parlance – to find buyers and liquidity for their tokens. This is done through initial distributed exchange offerings (IDOs) such as Uniswap, and initial centralized exchange offerings like Coinbase. Investors are seeking the long-term appreciation that owning an early-stage company’s token could bring, and using their token to participate in yield farming – a DeFi practice of staking or lending crypto assets to generate high returns or rewards in the form of additional cryptocurrency.
Continue reading: https://www.irmagazine.com/technology-social-media/business-blockchain-how-engage-digitally-native-next-generation
