The recent slump in cryptocurrency prices has only just begun to recover. This may sound like good news but despite the fact that Bitcoin (BTC) is doing a bit better than it has been recently, its price is still rather low.
Collateral Network (COLT), on the other hand, looks more promising given its real-world use case in the lending industry. Analysts expect it to rise 35x in the next 6 months.
Let’s look at some of the reasons why Bitcoin (BTC) whales could soon start migrating to the Collateral Network (COLT).
Why Bitcoin (BTC) Whales Are Shifting Focus to Newer Crypto Initiatives?
A prominent cryptocurrency exchange, FTX, which was once on the rise, filed for bankruptcy on November 11. That has obviously had far-reaching effects on the cryptocurrency industry.
Following on from this, the major cryptocurrency exchange and lender BlockFi also declared bankruptcy. As a result, cryptocurrency businesses, including significant financiers such as Genesis Global Trading, are struggling to avoid going bankrupt alongside the rest of the industry.
According to analysts, major cryptocurrencies such as Bitcoin (BTC) have taken the brunt of the recent crash. The Bitcoin (BTC) price lows seen in 2022 were likely deepened by FTX’s implosion and the subsequent fallout.
Due to the turmoil, the crypto market has had a rough finish to the year. Currently, the price of Bitcoin (BTC) had rebounded somewhat to $23,529.22 but was still trading in the red zone until late January 2023 according to CoinMarketCap.
Poor macroeconomic conditions have also worsened market sentiment all year, which is a bigger concern in the failings for Bitcoin (BTC). Experts are uncertain as to whether Bitcoin (BTC) will recover, and remain recovered, from the crypto winter. These are some of the reasons why Bitcoin (BTC) whales are now shifting focus to emerging projects such as the Collateral Network (COLT).
What is Collateral Network (COLT)?
Collateral Network (COLT) is built on the Ethereum (ETH) blockchain and is focused on bridging the gap between the physical and digital worlds.
Touted as a leading global challenger lender, Collateral Network (COLT) makes it extremely easy for anyone anywhere to borrow funds using their physical assets on the blockchain. Users of the Collateral Network (COLT) platform can act as their own personal banks and offer fractional loans to borrowers with a fixed interest rate.
The platform’s unique selling point is the fact that it is the first cryptocurrency platform that allows minting NFTs against real-world assets and then fractionalizing the NFTs and allowing the community to fund loans through the affordable fractionalized NFTs.
For example, someone with a piece of art or property worth $100,000 that needs a quick loan can mint a tangible NFT on Collateral Network (COLT) backed by the art or property and then fractionalize the NFT to make it easier and more affordable for fractional lenders to provide him or her with a short-term loan with an agreed fixed interest rate.
The Collateral Network (COLT) ecosystem comes with more useful features such as a marketplace, auctions, and of course the crowdlending platform. The native token for Collateral Network (COLT) is COLT which has a total supply of 1.4 billion but only 50% of them will be available for presale.
The practical utility of Collateral Network (COLT) has been one of the key reasons why it is currently attracting investors from other projects such as Bitcoin (BTC).
Find out more about the Collateral Network presale here:
Website: https://www.collateralnetwork.io/
Telegram: https://t.me/collateralnwk
Twitter: https://twitter.com/Collateralnwk
