Solana is a chain of controversy, very fast, very sleek, excellent for DeFi and NFTs but with a lot of tech issues. It may be the chain of the future, perhaps entirely replacing Ethereum one day, or it may fall from glory completely.
Collateral Network is a new idea, born from the possibilities of DeFi and using NFT technology to change the way borrowing and lending is done. COLT has just gone into presale at $0.01
Solana’s history and future
Solana recently went down due to a ‘forking incident’, and the chain and coin (SOL) fell from grace after the collapse of FTX. Because Bankman-Fried was so keen on Solana, he amassed a lot, and the token fell by around 45% after SBF filed for bankruptcy.
History aside, Solana remains the fastest blockchain, with a potential speed of 65k tps and an actual speed of around 500 tps. When combined with its cheap transaction fees, Solana Pay has the potential to become the crypto payment system of the future, and if they can achieve this, the outlook is amazing for Solana. The chain was launched in 2020 and already has over 350 dapps, way more than Cardano.
Solana is currently showing signs of weakening bearish momentum at the $20 support zone. The structure of Solana’s price remained strongly bearish, but Solana buyers have the advantage of a clear invalidation point.
On the price charts, SOL is trading at a strong demand zone, indicating a favorable risk-to-reward buying opportunity for bulls in the coming days. However, Solana bulls must carefully manage risk when buying the asset, and more risk-averse traders can wait for a move above $21.5 and a bullish break in the lower timeframe market structure before buying SOL.
Lending 3.0 from the Collateral Network
Collateral Network (COLT) allows people to take their real world assets, including property, cars, watches and diamonds, and unlock their liquidity, e.g. get a loan when they need it, and quickly – within just 24 hours in most cases. This is a big change from traditional finance which can make people wait weeks and months, filling in endless forms, for loans based on houses as collateral.
The Collateral Network are working together with teams of lawyers, property and asset evaluators and vault storage. Once a borrowers’ item has been assessed, it is stored safely in a vault and then an NFT is minted to represent the asset. This NFT will have details of the asset inscribed in the metadata. It can then be fractionalised and sold to members of the Collateral Network community to fund the loan.
In this way, multiple people can become the money lenders for one item, increasing liquidity, which is often an issue for scarce items. The lenders also have the chance to own a stake in something which might go up in value (but cannot go down as per the terms of the agreement), and they will receive interest for doing so.
This really does seem to embody the ethics of DeFi, and in support of this, Collateral Network are now with live with phase 1 of their presale. COLT is the native token which gives holders staking rewards, trading fee discounts and access to better interest rates.
Find out more about the Collateral Network presale here:
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