After working in proprietary trading for over a decade, I decided to switch to crypto in early 2017. Although crypto differs significantly from traditional capital markets, I managed to find a niche for successful and opportunistic trading. While 2017 was the perfect time to get involved, recent years have turned out to be a bit more challenging in terms of ROI generation.
Cryptocurrency traders have searched extensively in recent years for the next big winner. While the market as a whole hasn’t been very bull-friendly, one specific area that seems to be gaining momentum is decentralized finance known as DeFi. This area generally refers to the digital assets and financial smart contracts, protocols and decentralized applications (DApps) built on Ethereum. The reason so many crypto entrepreneurs are flocking to this space is that it allows them to create traditional financial vehicles in a decentralized network, outside of the meddling control of foreign governments.
An extremely popular DeFi project is Chainlink (LINK), a decentralized oracle network that provides real-world data to smart contracts on the blockchain. Chainlink has seen its symbolic price rise by more than 300% year-to-date. Another impressive project in the space is Kyber Network (KNC), which has seen its token rise from $ 0.20 at the start of the year to more than $ 1.60 at the moment. Kyber Network’s on-chain liquidity protocol allows decentralized tokens swaps to be integrated into any application, allowing value exchange to be performed seamlessly between all parties in the ecosystem. Chainlink and Kyber Network are just a few examples highlighting the excitement that crypto traders are currently having for the DeFi space.
But given that many of these tokens have already had a major run, traders may be wondering if there are still opportunities to come in at a reasonable price. After spending countless hours researching one project in particular, I have a strong sense that WISE token could get a massive run in 2021!
What is WISE Token?
WISE is an ERC-20 token based on the Ethereum blockchain that is decentralized, transparent, reliable and interest bearing with automatic liquidity.
The project is reshaping decentralized financing by developing a complete and efficient financial ecosystem. The smart WISE contract focuses on generating interest through staking and makes money for investors through the security and full transparency of their own private portfolios, while also providing a huge pool of liquidity to make a profit.
Staking is becoming extremely popular among crypto investors as it allows them to earn interest by locking their tokens for a period of time. This is especially beneficial for long-term participants, as they earn by doing something that they intended to do anyway. And for short-term traders, staking certainly gives them an incentive to hold on for longer than they expected. WISE functions similarly to bonds and CDs, but provides enhanced security, liquidity and superior profitability.
The WISE ecosystem through the WISE token allows all participants to stake their money in extremely low risk smart contracts, while retaining full control over their investment at all times. The ecosystem will fulfill 5 essential functions:
- Striking new WISE tokens
- Earn referral bonuses
- Initiating and closing rings
- Earning interest
- WISE token exchange
Regarding the last point, it is important to mention that the ecosystem will work seamlessly with Uniswap, a highly regarded decentralized exchange (DEX).
Now that you understand what WISE is, here are 3 reasons why I expect 2021 to be a big year for the token.
Reason # 1 – The Best Referral System in Crypto
A really interesting part of the WISE ecosystem is that it will include a dedicated referral program that will allow users to earn bonus tokens by adding new users through their dedicated referral links. Platform users can generate referral links by logging into their account and clicking the option to get the link. After that, the user can simply copy the link and start sharing through popular cryptocurrency channels such as Reddit, Telegram and Discord.
The most important thing to understand is that users don’t simply earn a 10% commission at launch. Instead, users will be further rewarded with a residual income every time a new user wagers tokens through their specific link. With marketing and word of mouth growing rapidly in the coming months and years, referral bonuses can prove to be a windfall.
Reason # 2 – Immediately huge market
The main problem with new projects is the lack of a market to sell new tokens. Who would want baseball cards if no one wanted to buy them? The answer is no one. The WISE contract takes the pre-sale money, puts it on Uniswap and locks it. That will be an absolutely huge amount of money that users can count on so that anyone can trade ETH for WISE and WISE for ETH. This feature really sets the WISE token apart from anything else currently available.
Reason # 3 – Stability
While the lack of a market is certainly the biggest problem with new projects, the lack of stability is also a big problem, especially with DeFi. What usually happens is that once new tokens are listed on Uniswap or other exchanges, bots and whales will immediately start making large purchases, dramatically increasing the price and creating FOMO. The price will keep going up for a while but eventually the steam will run out and the price will crash. This results in a lot of frustration and anger from traders, especially those who were unlucky enough to buy at or near the top.
This will not happen for WISE, as the project has already sold 50 million tokens that will be in the hands of long-term holders. The people who collect WISE tokens at the outset are the ones who see long-term value in the project and are not interested in flipping for some quick cash.
Decentralized finance is one of the fastest growing areas within the cryptocurrency space. Many new exciting platforms are being built every day thanks to savvy entrepreneurs who see what the future may be. Already in 2020 several tokens, such as LINK and KNC, have risen dramatically in price thanks to the value that both projects add to the space. While those opportunities may have been missed, WISE is only just getting started. I have a strong sense that 2021 could be a big year for those starting early WISE revolution.