In 2017, it was #ICOs. In 2021, it was #NFTs. I have found the next 𝐓𝐫𝐢𝐥𝐥𝐢𝐨𝐧 𝐝𝐨𝐥𝐥𝐚𝐫 𝐧𝐚𝐫𝐫𝐚𝐭𝐢𝐯𝐞 that will lead the upcoming 100x bull run.
1. Phases of RWA Token Legitimization:
Off-Chain Formalization: The process begins with off-chain formalization.
Information Bridging: Followed by information bridging.
RWA Protocol Demand and Supply: The final phase involves RWA protocol demand and supply.
Detailed information is available in the provided link.
2. RWA Markets in DeFi:
RWAs are used in equity-based DeFi markets, real asset-based DeFi markets, and fixed-income-based DeFi markets.
3. Equity and Real Assets Markets:
These markets in the RWA space are relatively small.
Potential reasons include heavy regulation as equities and real assets are usually traded in public markets.
4. Fixed-Income Markets:
RWA-based fixed-income markets are more active and diverse.
Private credit offerings in this space have reached over $4.3 billion.
5. RWA Project of Interest:
The individual is accumulating tokens from the @realio_network ($RIO) for their RWA narrative.
The project targets a $16 trillion RWA industry.
6. Risks Associated with RWAs:
Legal Risks: Regulatory compliance and legal contracts may be necessary.
Counterparty Risks: The decentralized nature of DeFi exposes participants to counterparty risks.
7. Other Risks:
Price volatility risks and technical risks like smart contract bugs, hacks, or network disruptions are mentioned.
The expectation is that, as the industry matures, these risks will be reduced over time.
8. Upside Potential:
Tokenization of global illiquid assets is estimated to be a $16 trillion opportunity by 2030.
The current market capitalization of RWA tokens is $500 million, indicating a potential upside of 32,000x or 3,199,900%.