For a long time, Cardano’s ADA seemed to be a coin of potential only, but now that Cardano can actually build stuff, things have changed. At first Decentraland’s MANA seemed like a far off play and whilst the full actualisation of the metaverse may take time, it’s now possible to “Create, explore and trade in the first-ever virtual world owned by its users”. Collateral Network the globe first asset backed lending marketplace for real-world assets on the blockchain is the latest startup with promise, which has just entered the 1st stage of its presale with its token COLT at a price of $0.01.
Why is Cardano better than other blockchains?
While some are skeptical of Cardano and founder Charles Hoskinson, there are some things that make Cardano special:
- Action is coming, fast – There are over 100 dapps live but over 1000 in development on Cardano, meaning that this could well play into positive price action for Cardano’s ADA in 2023
- Open source (or at least open to peer review) – Cardano eschewed releasing a whitepaper, instead choosing to be reviewable by its many supporters, including academics.
- More decentralized – Although Victoria Harris recently cast doubt about how truly decentralized Cardano is due to its organizational structure, in terms of the blockchain, it has a higher amount of validators than many chains. This means that it should be more secure.
Second life gets a second chance with MANA and Decentraland
If you’re a millennial or older you will probably remember second life, a virtual world that many found hobbies, friends, lovers and income from. Decentraland brings that concept to life, allowing people to earn MANA, the native currency of Decentraland, for things they create and sell. Sadly it seems a long way off VR integration due to recent news, but with the VR community still being a small one this is not going to affect the price of MANA or adoption of Decentraland for now. However, AR (Augmented Reality) is possible already and is now being demonstrated by Decentraland and fashion partners.
While the London fashion week recently concluded, Decentraland’s second digital fashion week takes place now at the end of March. Decentraland is collaborating with designers and brands such as Dolce & Gabbana, Tommy Hilfiger, COACH, adidas, DKNY, to bring exciting events with wearables, music, interactive exhibitions and AR integration. If Decentraland keeps up the hype and partnerships, MANA may see a boost in 2023.
MANA is up over 12% this week, but down 77% over the year.
Collateral Network brings new use cases to NFTs
Unlike in Decentraland, most of the assets that pass through Collateral Network are real world assets, including cars, jewelry, real estate, fine art, fine wine and whisky. For those in need of liquidity, Collateral Network offers the ability to mint an asset to an NFT to represent the item on a 1:1 basis and borrow cryptocurrencies against the asset. This NFT can then be fractionalised and offered to the Collateral Network community who can help fund the loan in smaller increments for an agreed rate of interest.
Collateral Network will have independent teams for valuation and legal teams to ensure law compliance. Assets will then be stored in high security warehouses and vaults.
Careful loan to value ratios will be made by the Collateral Network team, meaning that liquidation due to price changes will not happen. If the asset goes up in value, crowdlenders can trade the NFT in the marketplace, gaining better terms.
As Collateral Network enters the first stage of its presale at a price of $0.01, potential investors are very early to the party and if crypto analysts are correct could earn a 35x from their initial purchases of the token. Collateral Network’s token COLT has plenty of utility, providing staking rewards, trading discounts and preferred rates of interest.
Those who buy in the presale will have access to a VIP club for distressed asset auctions. As a new token and project, the risks with COLT and Collateral Network are greater than ADA or MANA but the rewards have the potential to be much higher, making COLT a great addition to a well rounded portfolio.
Find out more about the Collateral Network presale here:
Disclosure: This is a sponsored press release. Please do your research before buying any cryptocurrency or investing in any projects. Read the full disclosure here.