Quantum Wealth Summary
- Decentralised finance (DeFi) is an emerging area. The goal to build a new generation of infrastructure for online transactions. This includes technology like cryptocurrency, blockchain, and digital wallets.
- Retail investors with a rebellious streak have been quick to jump on the DeFi bandwagon. Could institutional investors now follow?
- We explore a highly speculative opportunity for crypto banking, which may offer both benefits and risks.
It starts innocently enough.
One day, you make the decision to relocate from the United States to Canada.
You’re moving to a new home.
This means that you’ll need to transfer your life savings across borders.
However, you’re concerned about fees, and you don’t like the traditional banking system. Too much bureaucracy. Too much red tape.
So you decide to use a cryptocurrency platform instead. Hey, why not? You’ve talked to your friends. They all say this is a good alternative. It will allow you to carry out your transaction at minimal cost and minimal fuss.
So, enthusiastically, you jump on the crypto platform.
Here’s how your plan unfolds:
- You change your American dollars to Bitcoin.
- Then you change Bitcoin to Canadian dollars.
- The process is smooth. Simple. Quick.
And then…well, here’s where the ride gets a little bumpy.
You make a final request for a withdrawal. You want to transfer your Canadian dollars to your bank account in Canada.
The crypto platform starts processing your transaction.
Then — uh-oh — it gives you an error message.
Apparently, your funds are stuck.
You feel nervous. So you reach out to customer service by virtual chat and email. But they don’t seem to be very helpful. They give you vague answers about how ‘compliance issues’ are delaying the transaction. But they assure you the problem will be resolved soon.
You feel anxious. Because this are an online-only platform, it’s impossible to visit a physical branch to see anyone in person. After all, this isn’t a bank. So you have no choice but to wait and take them at their word.
Days become weeks.
Weeks become months.
But…in the end…your money never arrives in Canada as promised.
Somewhere along the way, it simply vanishes into thin air.
It’s a nightmare — and you’re left traumatised by the experience.
Well, this is exactly what happened to Tong Zou.
In 2018, he was a Canadian citizen working in the United States. He wanted to move back to his home country, and he needed to transfer his life savings.
To do this, Zou chose Quadriga, which was Canada’s largest cryptocurrency exchange at the time. He assumed that the process of making a transaction would be straightforward.
Unfortunately, this turned out to be a horrible decision.
All in all, Zou lost CAD $500,000.
It was a complete wipeout.
‘It just makes me more depressed about it. I could have invested it in real estate. I could have put it in stocks. So far, nothing’s been found. It sucks.’
Tragically, Quadriga turned out to be an elaborate scam. It was operated by a shady character named Gerry Cotten. And if the rumours are to be believed, Cotten may or may not have faked his death in order to flee with $250 million of customer funds.
This story demonstrates an important point: the world of crypto is like the Wild West. People tend to shoot first and asks questions later. The landscape is largely unregulated, and when something goes wrong, there can be no fix. No remedy.
So, here’s the big question: can this wilderness be tamed? Can the wolves be reined in? And more importantly, can decentralised finance (DeFi) ever be as reliable as using a traditional bank?
It’s a huge task. But one Company is optimistic that it can achieve all this. It is positioning itself as a cryptocurrency bank — and it says that it is building the infrastructure to make the journey safer, cleaner, and much more accessible for users.
This goal has clearly struck a chord with speculative investors.
Over the past two years, the Company’s share price has surged by over 800%. This is impressive in terms of momentum. It’s pure rocket fuel.
But is the hype to be believed? Is a revolution in money about to happen? Is this going to change our lives?
We want to do a deep dive into this Company. Investigate their innovative ideas. Find out if there’s more here than meets the eye…