EGW Capital, the blockchain investment bank is the latest blockchain and crypto-focused organization to foray into the Defi space. Though the Defi which EGW Capital is trying to carry out is more focused towards stable income backed by buyback on a particular date, thus protecting the investors from any visible downside risk. Such stable Defi bond coins will not be volatile in nature and are directed towards the investor class who is seeking a fixed income on their short term investments. After all, to date, the Blockchain does not have a single product which is working towards protecting the interest of the investors.
Though there are some staking programs those do not guarantee any principal protection.
EGW Capital’s stable income Defi bond will have a tenure of 12 months which can be extended by another 6 months on the order of the management. The bond will pay 1% per month on a stipulated date. The bond will trade on the secondary markets and can be purchased by any investor worldwide.
The Defi coin space does not fall under the space of security tokens. The main purpose of Defi is to automate the investments on the blockchain without the need of any middleman.
Bonds are not volatile in nature as compared to stocks and leading cryptocurrencies like Bitcoin and Ethereum. The investors in the traditional markets purchase bonds to earn a stable income and to either protect or lock their investment in regular income products. When the markets turn unpleasant such bonds will help the investors to sail the bad times.
In several countries around the world, the bank interest rates are now zero or negative and will remain in a similar situation for another 3-4 years as per the report published in Bloomberg.
An investor can purchase the bond from the secondary market by either exchanging their Bitcoin or Ethereum or by purchasing bonds through fiat currency (through bank transfer or credit card). This is called interest arbitrage where an investor can benefit from the high-interest rate without exposing themselves to the local domestic laws of that country.
The bonds will be made available in India and investors will be able to buy bonds directly from the authorized agents.
These Defi stable bonds will trade normally like other tokens, we can compare it to USDT / stable coins which provide stability and when staked it provides a fixed return whereas in the case of a bond any investor who will have tokens on the record date will receive interest.
EGW Capital’s Love For Tokenization
EGW Capital is raising capital for general corporate purposes which includes buying a Special Purpose Acquisition Company (SPAC) shell. EGW Capital plans to acquire an established tech business in India in the range of US $100-200 million.
The company is proposing to list it’s EGWCAP tokens on the retail market followed by a US $100 million IEO.
The tokens of EGW Capital (EGWCAP) has lost 61% in value. The market cap of the business is little above the US $800 million with EGWCAP coin price trading in the range of US $6-7. It is being predicted that EGWCAP may buy back its coins from the market ahead of its retail market listing to infuse confidence in the retail investors.
Company Name: EGW Capital Inc.
Contact: James Law
Address: 1100 Peachtree Street NE, Suite 200, Atlanta, Georgia 30309
Email: [email protected]
We help our clients navigate through the uncertainties and capture the opportunity that the blockchain-based digital assets represent. To do this, we have instituted processes and infrastructure in line with the established standards of financial regulation.
EGW Capital operates through several divisions, offering end-to-end solutions for corporates, institutional investors, family offices, and high-net-worth individuals.
This release was published on openPR.