(NEO: WNDR) (OTC: WONDF)
WonderFi Technologies Inc., has been getting a ton of press recently, they’re named after Mr. Wonderful, Kevin O’Leary and they develop solutions that provide access to DeFi assets for the everyday investor. WonderFi is creating products to make it easier for regular people to gain exposure to DeFi, while meeting all the necessary regulatory requirements. They’ve gone up 73% the last month and still have a really low market cap just under $100 million, after their latest capital raise they have a massive war chest and shouldn’t need to dilute shareholders with anymore public offerings.
There products include:
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WonderFi High Interest Savings Accounts
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DeFi indexes to automate the market portfolio
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Swap, an application to buy and sell digital assets from mobile, tablet, and browser
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Earn, an application that lends digital asset holdings through compound finance to earn interest.
They’re building an app that’ll facilitate better access to DeFi, they’ll invest in and hold crypto assets, generating additional revenue by staking those assets and they’re looking to grow by acquiring other companies and technologies that operate in this space.
There are still a lot of problems in DeFi, a lot of the tech is experimental, there’s a lack of liquidity, it’s hard to find best pricing, evaluating investments and lack of transparency, onramp/offramp fiat services and the biggest one according to Kevin O’Leary is compliance. WonderFi will aggregate decentralized exchanges to provide better liquidity, automatically source best pricing from across several different protocols, can even split orders. They’ll provide transparency and an analysis of returns. WonderFi will integrate with centralized exchanges and payment processes for onramp/offramp services and have AML integration for tax filling and reporting.
They can hold crypto assets on their balance sheet, unlike ETFs which just earn money as their portfolio appreciates, WonderFi can stake their crypto assets to earn additional yields from multiple different strategies in DeFi.
Part of their strategy is growth through acquisition, they’re looking at buying licensed crypto exchanges, payment processors, Web3 Wallets, Regulated financial products, and staking infrastructure companies.
The company is almost brand new and still pre profit but has raised a ton of capital, after their latest capital raise they now have about $52 million in cash and cash equivalents, that’s an insane war chest to help them grow aggressively.
This is their capital structure that I pulled from their investor deck:
Insiders and Strategic Investors 22,698,608 36.7%
None-Insiders 36,490,067 59.0%
Options 1,660,000 2.7%
Warrants 960,575 1.6%
Total (Fully Diluted) 61,809,250 100%.
Having big names attached to a company will help increase the investor base quickly, the whole DeFi industry is still in its infancy so there’s a ton of unrealized potential in the market. Having a big name attached to the company like Kevin O’Leary is also likely to help entice new investors in crypto and DeFi who are skeptical because of the credibility he lends WonderFi. I really think thatches company, with their focus on compliance and simplicity for investing in DeFi can be at the forefront of this industry as it evolves.
This is not financial advice.