Is the crypto market stuck in a vicious cycle called mid-cap trap created by itself?
The answer is YES.
Is the market cap likely to escape the threshold of $300 billion to $400 billion?
Is it likely to climb to the thousands of billions of dollars?
You can imagine that if a giant pump drains a large amount of water outside and then pumps it up into a lake, after that, immediately draws that amount of water out of the lake, will the remaining water level of the lake change?
The answer is absolutely no. The water level will stay the same.
How to raise the level of the water in the lake?
Only two ways is to pump up the water in the lake and not draining water out of it or draining a smaller amount of water rather than the pumped water. Only then does the water in the lake increase.
How to apply that into the crypto market?
If we can retain old investors with their wallets into that market, in the meantime, attracting more new investors to participate in the game, then we can see the the growth of total amount flowing money.
How to do that?
If their capital is protected, they will stay.
How to protect their investment capital?
There should be a product or a stop-loss tool, which is enough effective and powerful to protect their wallets whenever the market dumps dramatically.
In addition, this product or this stop-loss tool should have an big cap to be counterpoised with the large investments in the market.
Has this product or this stop-loss tool appeared in the market?
What is it?
They are USDT and True USD.
Will these products help investors to stop-loss?
The answer still seems YES. If the market turns down dramatically, crypto investors will immediately switch to these stable coins. They will stop trading and keep these stable coins, but they won’t get any interest rate. If they want billions of dollars, they will not have enough dollar supply to back their stable coins.
Are there any stable crypto coins that when investors keep them, they still can enjoy interest rates and unlimited supply?
What are their names?
We call them CryptoBonds.
Now, let’s compare USDT, True USD and CryptoBonds
USDT and TrueUSD: Interest rate is 0%
CryptoBond: has interest rate.
USDT and TrueUSD are backed by actual dollars. Therefore, the size of issuance is limited because there is not enough dollars in the bank.
CryptoBonds are backed by bonds. Therefore, the size of issuance is unlimited. In other words, the limit of total global bonds is approximately $100,000 billion
Now you could see that this solution is effective and has enough size for investors and total global crypto market.
Crypto Bonds is the key to unlock the answer of how to escape the mid-cap trap created by the crypto market itself for over the past 9 years to become a mature market capped with thousands of billions of dollars in the next few years.