NewsCrypto, a platform that aims to make cryptocurrency trading more accessible, intuitive, and profitable, has today announced that it will join the rapidly growing number of projects to go multi-chain, by launching the NewsCrypto (NWC) token on two new blockchains.
Originally a Stellar token, NewsCrypto Coin (NWC) is now also available as a BEP-20 token on Binance Smart Chain, and an ERC-20 token on Ethereum, giving users the choice of three blockchains for their NWC holdings.
By bringing the NewsCrypto token to other blockchains, NewsCrypto is looking to massively expand the utility of the NWC token, by allowing users to participate in the rapidly expanding Ethereum and Binance Smart Chain decentralized finance (DeFi) landscapes.
In the last year, DeFi has gone from being a relatively unexplored use case for blockchain technology and digital assets, to one of the main use cases for cryptocurrencies like Ethereum (ETH-USD), Tron (TRX-USD), and Polkadot (DOT1-USD). According to data from DeFi Pulse, the total value of ERC-20 assets locked up in Ethereum DeFi protocols alone soared from $300 million to over $15 billion in 2020 — representing growth of almost 5,000%.
To put this into perspective, Tesla, Inc. (TSLA), one of last year's best-performing stocks, gained around 740% in 2020, while the Dow Jones Industrial Average (^DJI) only achieved a modest 9.7% total return in 2020 (including returns from dividends).
Much of this growth was catalyzed by the extraordinary performance of decentralized exchanges like Uniswap and Curve Finance, as well as collateralized lending/borrowing platforms including Maker and Compound, which have provided additional utility to ERC-20 token holders — as well as new revenue streams.
As a result of the cross-chain launch, NWC holders will soon be able to access popular Ethereum and Binance Smart Chain DeFi platforms using their tokens, opening the poor for a wide array of new use cases for the token. These might include the ability to provide liquidity and earn rewards on decentralized exchanges, yield farming, and using NWC as collateral to loans or stablecoin deposits.
Since fees can sometimes be costly on the Ethereum blockchain, users will also have the option to use BEP-20 NWC to take advantage of the myriad decentralized exchanges on the Binance Smart Chain.
Users are now able to easily swap their NWC tokens between the Stellar, Ethereum, and Binance Smart Chain blockchains via a simple tool available on the NewsCrypto website. After importing a wallet containing NWC, swapping it between different chains is a 1-click process that is automatically executed by a smart contract.
With 2021 touted to be the year of cross-chain projects, NewsCrypto is set to seize the opportunity early, unlocking several lines for future growth for the NWC token ecosystem.
Disclosure: No positions. This Op-Ed is written by Reuben Jackson. Insider Monkey News Department isn’t involved in the production of this article.