In the world of cryptocurrency, evaluating a new project like Usual (USUAL) is crucial to determining whether it has potential or poses a danger to investors. Usual, a decentralized stablecoin, is generating much attention, but is it an investment opportunity worth pursuing or just a risky trap? Let’s analyze the important factors for a clearer perspective.
Risks of Investing in Usual
1. Lack of Transparency About The Founding Team
One of the first factors that makes Usual a concerning project is the lack of transparency about the founding team. Although this project is backed by major financial partners like BlackRock and Ondo, detailed information about the founders remains quite vague. The lack of clear information about the people behind the project can lead investors to doubt the reliability and sustainability of Usual in the future.
2. Intense Competition
Usual is not the only project developing a decentralized stablecoin. Major competitors like Tether (USDT), USD Coin (USDC), and DAI have dominated the market and possess a large, stable ecosystem. Usual will face intense competition from these projects, and without strong innovation or the ability to attract users, Usual will struggle to maintain and grow in this competitive environment.
3. Legal Risks
The cryptocurrency market is facing increasingly stringent regulatory scrutiny from governments around the world. Stablecoins, such as Usual's USD0, are particularly sensitive to these regulatory policies. If the project fails to comply with international financial regulations or encounters legal issues, it could significantly reduce the token's value and potentially plunge the project into major difficulties.
4. Market Volatility
The cryptocurrency market is already known for its extremely high volatility. The value of Usual may be influenced by changes in market sentiment, decisions from major countries, or simply changes in the cash flow of investors. While the project may have attracted attention, this instability remains a significant factor to consider.
5. Lack of Liquidity
An important factor that helps stablecoins maintain stable value is liquidity. If Usual cannot maintain sufficient liquidity to protect the value of USD0, the project will struggle to maintain the trust of users and investors. Lack of liquidity could lead to depreciation and reduced confidence in the token.
Potential of Usual
1. Support from Reputable Partners
Despite many concerns, Usual has received support from major names like BlackRock and Ondo. This indicates that the project has the potential to gain recognition from large financial institutions. If Usual can maintain this relationship and continue to develop, it will be a significant boost to help the project surpass its competitors.
2. Decentralized Stablecoins: Safe and Transparent Solutions
Decentralized stablecoins like USD0 can provide an alternative to centralized stablecoins like Tether or USD Coin. With the strong development of DeFi, having an independent and transparent stablecoin can attract attention from the cryptocurrency user community, especially those seeking more safety and control over their assets.
3. Multi-Chain Integration
Usual is also building an ecosystem with support from various blockchain networks, expanding the usability of its stablecoin across multiple platforms and applications. This helps Usual increase its presence and utility in the cryptocurrency community, thereby creating sustainable growth.
Conclusion: Trap or Potential?
As with any cryptocurrency project, investing in Usual needs to be carefully considered. This project has growth potential, especially in the DeFi environment, but it also comes with significant risks, particularly regarding lack of transparency, intense competition, and legal risks.
If you are a cryptocurrency investor, always remember that all investments carry risk. Ensure you fully understand the project, analyze the market, and manage risks appropriately before making an investment decision in Usual.
*Let’s explore two major investment challenges for this USUAL project:
I. BlackRock
BlackRock is one of the largest asset management companies in the world, headquartered in New York, USA. Founded in 1988, BlackRock currently manages trillions of USD in assets for clients globally, including pension funds, insurance companies, financial institutions, governments, and individual investors.
Core business areas of BlackRock:
Asset Management: BlackRock specializes in providing asset management services for large organizations and individuals. The company manages a range of asset types, including stocks, bonds, real estate, and other complex financial instruments.
ETF Management: BlackRock is the largest fund management company in the world through its iShares-branded exchange-traded funds (ETFs). These ETFs help investors easily access stock markets at low costs.
Financial Technology Services: BlackRock provides financial technology solutions through the Aladdin platform, a portfolio management and risk system used by major financial institutions to analyze and monitor portfolios.
Investment Advisory and Risk Management: BlackRock also offers strategic investment advisory and risk management services for companies and financial institutions.
Market Position:
BlackRock is the largest asset management company in the world with total assets under management (AUM) of over 9 trillion USD (as of 2024). The company has a significant influence in the financial industry and is one of the most powerful investment organizations in the global stock market.
Impact on the cryptocurrency market:
Although BlackRock primarily operates in traditional financial sectors, the company has also begun to show interest in the cryptocurrency market. BlackRock has launched cryptocurrency investment products, including Bitcoin funds and other strategies to engage in the blockchain and cryptocurrency industry.
With BlackRock's involvement in projects like Usual (USUAL), this could help increase trust and stability for cryptocurrency projects while attracting traditional investors to this field.
II. Ondo
Ondo is a financial company and platform specializing in providing solutions related to DeFi and asset management. Ondo's goal is to help financial institutions and individual investors access new financial opportunities through the application of blockchain and DeFi technologies, with innovative products aimed at optimizing returns and managing risks.
Ondo's products and services:
Decentralized Finance (DeFi):
Ondo develops DeFi products that enable organizations and investors to engage in financial markets without traditional intermediaries. These products help improve liquidity and optimize returns for investors in the cryptocurrency space.Asset management and profit optimization:
Ondo provides solutions to optimize returns for investors through advanced asset management strategies. These strategies include leveraging DeFi products like lending, staking, and yield farming.Stablecoins and digital assets:
Ondo is also involved in developing stablecoin products, allowing users to engage in transactions without being subject to significant market volatility. Ondo's stablecoin can be used to create more stable financial instruments in the cryptocurrency environment.
Ondo's involvement in projects:
Ondo is a partner of many major projects in the cryptocurrency industry, including stablecoin development projects and decentralized financial products. Ondo’s collaboration with projects like Usual (USUAL) adds trust and stability to these products, as Ondo brings expertise in financial management and optimization solutions.
Influence and growth potential:
Ondo is regarded as one of the pioneers in applying blockchain technology and DeFi to traditional financial solutions. Ondo's strong development in this field expands opportunities for investors to participate in the cryptocurrency market with safer and more effective products.
Conclusion:
Ondo is an important company in the DeFi and cryptocurrency space, providing innovative products to optimize returns and manage risks. With Ondo's involvement in projects like Usual, it brings additional stability and growth potential to decentralized financial solutions.