The prolonged market volatility has not stopped investors from backing a new protocol that merges DeFi and the foreign exchange market.
As investments continue to uncover projects with promise, the current bear market in cryptocurrencies has shown itself to be a builders market. For the creation of its new protocol, Onomy, an ecosystem built on the Cosmos blockchain, has lately received millions from investors.
The project combines the foreign exchange market and decentralized finance (DeFi) to bring the latter on-chain. The most recent investment round, according to the developers, received $10 million from major industry participants including Bitfinex, Ava Labs, the Maker Foundation, CMS Holdings, and others.
The fundamental purpose of creating a decentralized autonomous organization with a public infrastructure, according to Onomy co-founder Lalo Bazzi, should support the “basic tenant of crypto — self-custody” without compromising the user experience.
Due to the FTX liquidity-bankruptcy incident, DeFi and self-custody have both been hot subjects in the cryptocurrency world. One of the most important lessons to learn from the scenario, according to several experts, is the significance of DeFi platforms as opposed to centralized gatekeepers.
Industry predictions for the foreseeable future have indicated a mix of another challenging year and investor interest. Institutional investors are still interested in the market, according to a Coinbase-sponsored study that was carried out between September 21 and October 27. In the past year, 62% of institutional investors who had cryptocurrency assets revealed in the study’s findings had raised their stakes.
Days into the FTX debacle, on Nov. 9, Cathie Wood of ARK Investment increased the company’s existing Coinbase shares by $12.1 million. In addition, banks are still interested in the market; JP Morgan uses DeFi for international transactions, while BNY Mellon just introduced its own Digital Asset Custody Platform. However, some data indicates that the blockchain business will likely continue to face challenging circumstances in the following year
