Traditional finance (TradFi) faces serious challenges, highlighted by recent scandals in the industry. On November 8, 2022, the mismanagement of centralized finance collided with cryptocurrencies, as the infamous FTX centralized exchange, owned by Bankman-Fried, divested to the tune of $8 billion.
FTX management used little to no accounting or accountability policies and was using client funds to illegally support inexperienced crypto investment giants Alameda Research. This scandal and many of the financial problems plaguing the world today, such as the 2008 banking crisis and the one currently facing the US, were only possible because of the closed and centralized nature of traditional finance, where big Actors can do what they want without proper accountability or pathways.
The paradigm is changing
A new way is emerging in the world of blockchain and cryptocurrencies. Decentralized Finance (DeFi) is a rapidly growing ecosystem of financial applications based on blockchain technology without the need for intermediaries.
Its goal is to provide transparency, equity, and accessibility for all, regardless of socioeconomic status or geographic location. It offers greater control and ownership of assets, as well as the ability to earn passive income through various financial instruments, such as equity, yield farming, and liquidity provision.
Orbeon ProtocolDubbed “a challenging community-based VC model,” it is using these benefits to become the new paradigm for decentralized investing and crowdfunding.
They seek to match up-and-coming businesses with retail investors. Previously, investing in early-stage companies was reserved for large conglomerates like Blackrock or very high net worth individuals. Retail investors have to wait until companies go public before they can buy shares, by which time the big VCs will have already made a profit. Most of these deals are done behind closed doors, and even when the company goes public, investors outside the US are often unable to participate.
The current banking system also poses challenges for new businesses. In a world where many UK SMEs are unable to obtain funding, the Orbeon Protocol offers an opportunity for small but exciting businesses to evolve and grow while generating benefits for their community.
Helping smaller investors
Crowdfunding has helped small investors in the past, but as the Orbeon team points out, the traditional method typically takes a large chunk of the capital or rewards, lacks the transparency of blockchain, and lacks the security of knowing that a project has been examined for success by a team of experts.
Orbeon Protocol seeks to change all of this by carefully vetting early-stage companies and then turning the offered opportunity into an NFT, which is then broken up and sold to its community. Company information will be stored in NFT metadata. This means that investors can get involved in new projects for as little as $10.
The decentralization and democratization of investing is an exciting and empowering paradigm shift, and it will be interesting to see how far Orbeon Protocol and other blockchain-based companies push the boundaries of fairness and inclusion.
Orbeon Protocol is on pre-sale, with ORBN currently on sale at $0.1125. The pre-sale was supposed to end in January, but due to high demand, it sold out early.
In response to this and the fact that the team (who recently completed KYC using Coinsult.io) is well ahead of their development milestones, an additional 13% token supply was released for pre-sale.
Platform previews are shown to the community via social media, including the dashboard, marketplace, and portfolio. ORBN has over 6,000 headlines and has raised over $7 million to date. Users can find more information about pre-sale in the official website.
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