Over the last year we have seen some crazy people, blatant lies, and sudden collapses. The Crypto industry has been overall abysmal in 2022. So taking some of these lessons that were realised over the course of the previous year, let’s breakdown what we know and don’t know.
By holding illiquid assets firms cannot pay their debtors or customers in a time of crises causing bank runs to overwhelm the firm.
Again and again we have seen companies rely on collateral that is too closely correlated to other assets they hold causing a freefall effect when one gets affected, the other tends to go down as well leaving that company in a death spiral. For example, Luna thought backing UST with Bitcoin would help diversify the stable from Luna token but when it started to depeg BTC also went down, causing them to sell their BTC to hold the peg which caused all other assets they held to drop as well, creating a death spiral. Additionally, we saw this during the FTX situation with FTT and the other assets they held. The examples go on and on.
When looking closer at the balance sheet of FTX and Binance there are some stark differences
After analysing different wallets of on-chain data I was able to find an interesting trend of large exchanges buying up PAXG (a token that is backed by real gold) during this market turmoil. This represents a massive shift away from holding only crypto assets on their balance sheets. This move is most notable in Binance where they are a holder of over $61,000,000 PAXG and seems to be in prime position to shake-off any negative effects from FTX.
Please see the list below to note exchanges who now hold PAXG.
Binance: $61,000,000
Kraken: $11,000,000
Gemini: $4,000,000
Crypto.com: $2,000,000
KuCoin: $1,566,989
Nex0: $700,000
So what does this all mean? While it’s all fine and dandy to be investing in Cash or Gold during times of market turmoil but with inflation at this scale, investors are still losing out. What if I told you that there is an asset class that can solve all of these problems and create real opportunities for early adopters.
Fine Wine vs Gold (12 Years)
Fine Wine vs Gold (12 Months)
Wine has consistently outperformed Gold over the past 12 months and 12 years while acting as a perfect hedge for inflation.
WiV Technology is proud to announce the introduction of the WIVX fund, giving institutional and accredited investors passive access to wine as an investment class. Think of what PAXG introduced by creating a token backed by gold, WiV is creating a similar product except this is backed by investment wine assets.
WiVX is the future to diversification within crypto, offering a liquid, low volatility, and high returning asset class to all investors.