Crypto venture capitals focus on DeFi as INNODEX builds a hybrid, decentralized exchange
While concerns over the banking crisis in the United States, following the bankruptcy of Silicon Valley Bank (SVB), have not subsided, distrust in the traditional financial system appears to support crypto assets.
On Mar. 15, Galaxy Digital CEO, Mike Novogratz said with the SVB crisis, bitcoin has been rapidly increasing due to the widespread perception that it is a safe asset. He added that bitcoin will be the best investment alternative in the “face of the economic recession and credit crunch risks.”
While bitcoin continues its upward rally, increasing to $27,690 on Mar. 18, Wall Street financial investment firm, Bernstein, released a report saying that this year could favor institutional investors seeking crypto exposure.
Further reports show that venture capital (VC) funding for virtual assets rose to $36.1b in 2022.
Which investments do venture capitalists prefer?
It further discovered that investor preference for “Decentralized Finance (DPI),” a virtual asset-based peer-to-peer (P2P) transaction service, has soared.
Using DeFiLlama data, CoinGecko, a global virtual asset information analysis platform, reported that $2.7b had been invested last year, up 190% from $900m in 2021.
Last year, the market capitalization of virtual assets fell from more than $2t to around $1t, facing a “crypto winter.” Still, DPI’s investment was steady, increasing 65X.
“Crypto funds tend to prefer smart contract platforms and decentralized exchanges (DEX) in the fourth quarter of 2021,” said Cobit, an analyst at the Research Center. “Silvergate Crisis and Institutional Investor Fund Trends,” released this year, also showed that investment demand is still solid in some sectors, such as DeFi.
In particular, the importance of DEX is being emphasized as a hedge in the ongoing banking crisis in the United States. The industry believes decentralized exchanges (DEXes), which function independently from financial authorities, could be the solution. What’s crucial is that institutional investors can use DEXes.
Exploring INNODEX, a hybrid, decentralized exchange
Amid the growing emphasis on the need for a decentralized exchange (DEX) and VCs’ attention in the DeFi market, a hybrid, decentralized exchange, INNODEX, which combines the advantages of centralized and decentralized exchanges, has emerged.
INNODEX has put forward a trading system that stores and trades assets in an individual’s wallet without complicated self-certification. In this design, the exchange can also transparently check personal asset holdings on the blockchain. At the same time, it removes Gas costs, a disadvantage common when transacting on public blockchains like Ethereum.
The trading platform introduced a new technology that absorbed the benefits of centralized exchanges and the advantages of decentralization.
INNODEX has the advantage of centralization. Notably, it can store assets and facilitate trading directly from non-custodial wallets without entrusting the services of a third party. Creators hope the exchange will re-instill confidence in finance following the SVB bankruptcy and Silvergate liquidation.
While decentralization is emphasized, INNODEX can increase access to users familiar with centralized exchanges by providing service experiences without transaction gas costs.
Merging centralized and decentralized exchanges
INNODEX can offer the benefits of a centralized and decentralized exchange because of the blockchain patent technology owned by NvirWorld.
NvirWorld’s “Stay Pending” technology collects transaction details that must be recorded on-chain and record the results simultaneously according to the designated time and frequency. The technology is the core that can relieve the burden of users’ gas costs, maximize convenience, and provide centralized services.
In addition to the “Stay Pending,” NvirWorld has a patented technology that allows payment and transaction using cryptocurrency. This solution is being developed and scheduled for mainnet launch later this year.
Moreover, NvirWorld is developing and providing various patented technologies for commercializing blockchain technology.
Specifically, it has signed an official partnership with Solana and ConsenSys, the team that develops Ethereum solutions. At the same time, it has partnered with “World Vision,” a global non-governmental organization. This deal is centered on INNODEX and NvirWorld, the issuer behind the deflationary coin, NVIR.
Crypto market prospects
The push to popularize blockchain and crypto is increasing. DeFi, NFT, and DEX-related technologies were developed in the crypto winter between 2018 and 2020. Like NvirWorld’s “INNODEX,” companies that survived the downturn have emerged stronger.
Eric Peters, the CEO of One River Digital Asset Management, who appeared on the Bankless Show podcast on the Mar. 6, suggested that the next bull market would be “very strong” and driven by institutions.
While many experts maintain a bullish outlook in the mid-to-long term, attention is being paid to how far the DeFi and DEX market, which crypto VCs are paying attention to, can grow in 2023.
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