How to invest Digitally in Real-World assets
Real-world assets are tangible and already proven hence why they are usually ‘safe’. The safest investments with high appreciation prices are high ticket items such as real estate, luxury timepieces, art etc. Some of these items have starting prices of 500,000 - 1 Million(s). Only the wealthy 1% can afford to see the appreciation within these items at these prices. As a result, we have seen a gap in the market, which will allow anyone holding $GLO to earn some of the asset appreciation without the initial capital, similar to fractionalizing.
While stable digital assets currently back many Defi projects, we plan to use a proportion of our treasury to work with real-world asset-backed platforms, bringing tangible items on chain.
Within traditional finance, diversification is what is preached as the holy grail. Although we can achieve diversification within cryptocurrencies, we are not. This is because the current market follows Bitcoin; therefore, your eggs are all in one basket.
We aim to diversify this process, using our funds to invest in high-end watch, art, wine and property markets. Not only will this mean our treasury will not be directly dictated by Bitcoin's price movement, but it will also appreciate organically over time. As the blockchain industry is still in its infancy, it will be prone to volatility. However, once we have moved a portion of our treasury into digitally asset-backed products, we believe our treasury will be better prepared to hedge against volatility.
Examples of the real-world protocols and assets that Uniglo may invest in: