Cryptocurrencies are a relatively recent phenomenon that has taken the world by storm. These digitally encrypted currencies have brought in a new wave of investment and trading opportunities. However, not all cryptocurrencies perform the same in the market, with some being considered underperforming crypto.
These undervalued cryptocurrencies have remained outside the mainstream focus and are shrouded in lack of investor interest. As a result, the value of these underperforming crypto have failed to skyrocket as compared to industry-leading currencies. This has led to disappointing returns for those who invested early in these cryptocurrencies.
But all hope is not lost for these underperforming cryptos. A new innovation called Wrapped Tokens or Wrapped Crypto could change the game and pave the way for these undervalued currencies to attract more investment and interest.
Wrapped Tokens Explained
Wrapped tokens are essentially digital assets that are pegged to the value of an underlying asset, such as a cryptocurrency. Simply put, wrapped tokens allow you to use one cryptocurrency to represent another cryptocurrency.
In simpler terms, wrapped tokens are collateralized digital assets which are backed by other cryptocurrencies or assets. This way, the value of the wrapped token mirrors the value of the underlying asset. The term “wrapped” refers to the process of wrapping tokens of one cryptocurrency within the tokens of another cryptocurrency, which makes them interchangeable.
Wrapped Crypto Explained
Wrapped crypto is a specific type of wrapped token that is backed by cryptocurrencies. Wrapped crypto is generally used to facilitate transactions and allow for more liquidity within the cryptocurrency market.
One of the most popular wrapped cryptocurrencies is Wrapped Bitcoin (WBTC), which is an ERC-20 token backed 1:1 with Bitcoin. WBTC allows Bitcoin holders to access the decentralized finance (DeFi) ecosystem of Ethereum blockchain, which is not possible with Bitcoin. WBTC enables Bitcoin to be used in DeFi applications such as borrowing, lending, and earning interest, along with other DeFi-based use cases.
Benefits of Wrapped Crypto
Wrapped tokens offer several benefits that could turn the tables for underperforming crypto in the market. Here are some of the benefits that wrapped tokens offer:
1. Increased Liquidity: Wrapped tokens brings in more liquidity to the market by making it easier for underperforming crypto assets to be traded for other cryptocurrencies. This way, these underperforming crypto assets get more exposure, and their value could increase in the long run.
2. Increased Accessibility: Wrapped tokens make it easier for investors, traders and developers alike to interact with the Ethereum blockchain by making use of their existing cryptocurrency holdings. This way, it bridges the gap between two different blockchain networks and enables more people to take part in the DeFi ecosystem.
3. More Use Cases: Wrapped tokens could expand the potential use cases of cryptocurrencies that were earlier limited to their respective blockchain networks. With wrapped tokens, these cryptocurrencies could potentially be used in several DeFi-based use cases that are not available on their own blockchain networks.
4. Instant Settlements: Wrapped tokens can be settled instantly just like other cryptocurrencies, which makes it a faster and more efficient way to transfer funds.
Wrapped Crypto and Underperforming Crypto
Wrapped crypto could potentially provide a solution for undervalued cryptocurrencies that have failed to attract significant value in the market. Undertaking this process could open up new investment opportunities and bring in more interest among investors. Wrapped tokens could be seen as a viable way to make previously underperforming crypto more approachable while bridging a gap between different crypto networks.
For example, imagine a scenario where an undervalued cryptocurrency that may not have many direct use cases, gets wrapped as an ERC-20 token. This would allow it to be used in the DeFi space, which brings in more use cases for investors. This increases its value beyond what its own native network could have offered, and could boost investment interest from existing investors/traders in the crypto world.
Wrapped tokens and wrapped crypto can potentially take the next step in the evolution of the cryptocurrency market. The crypto world has been craving innovation and wrapped tokens could be the next revolution. It could pave the way for undervalued cryptocurrencies to be utilized more effectively in the market. It’s no secret that the cryptocurrency market is dominated by a few top performers, but wrapped tokens provide the opportunity for currently underperforming crypto to gain more attention and investment.
The use of wrapped tokens as a way to bridge the gap between different blockchains shows increasing promise for the future. The innovation of wrapped tokens opens up potential investment opportunities in otherwise limited markets. So, it’s quite possible that wrapped crypto may be the solution for undervalued cryptocurrencies to become more approachable to more investors, which could prove to be quite profitable in the long run.
Polygon (CRYPTO: MATIC) is a Layer 2 scaling solution for Ethereum, and its recent initiative to collaborate with Sports Illustrated on an NFT ticketing platform called Box Office is generating significant interest among investors. Box Office is built on top of Sports Illustrated’s existing ticket marketplace called SI Tickets, and it functions much the same as a traditional ticketing platform, with one key difference: instead of receiving a barcode-laden ticket, ticket buyers will receive an NFT that can reside in the blockchain wallet of the buyer and can be used for admission to the event.
This initiative is a part of Polygon’s strategy to expand its foothold in the non-fungible token (NFT) market, which is gaining immense popularity among investors. The platform’s ability to transform a regular ticket into a super ticket by adding exclusive video highlights, images, or other premium content has instant appeal for die-hard sports fans and sports memorabilia collectors.
In addition to providing greater value to ticket buyers, Box Office’s shift to the blockchain could make the business model for selling tickets more efficient, transparent, and cheaper. It could also help to eliminate ticket fraud and other scams, as real-time data on the Polygon blockchain can be used to verify that a ticket is authentic.
Many investors are skeptical about NFTs due to the decline in prices in the NFT marketplace that occurred in 2022, especially since Polygon has already collaborated with some of the biggest names in the worlds of entertainment, sports, and media, but nothing has really resonated with investors so far. However, Sports Illustrated thinks that this new NFT ticketing platform could disrupt the primary ticket marketplace, especially since it has tremendous appeal for an older demographic.
The decision of whether or not to buy Polygon is really a litmus test for how investors feel about NFTs. If they are bullish about the creativity and ingenuity of next-generation NFT projects, Polygon might be worth a closer look in the long term. For now, Polygon’s stock trades at just $0.98, notwithstanding its initiatives in the NFT market.
In the final analysis, Box Office holds great potential to change the minds of investors about Polygon’s future growth prospects, and it could pave the way for the company’s expansion in the NFT space. Investors should keep an eye on this innovative ticketing platform, as it could be a game-changer in the world of sports, entertainment, and media.