There are now a number of options for Canadian investors to get exposure to the crypto space via publicly traded companies. One such option is via a crypto-linked ETF, such as Purpose Bitcoin ETF. Another option is via a company like Tokens.com, which I recently highlighted.
However, for investors looking for growth in the decentralized finance (DeFi) world, such options are harder to find. One such company that’s grabbed my attention of late is WonderFi (NEO:WNDR).
Let’s dive into what this company does, and why investors may want to take a look at this speculative hyper-growth stock.
DeFi could be reshape how we think about finance
Going to the bank and getting a traditional loan, taking out insurance, or even trading securities could all be significantly disrupted in the years and decades to come. That is, if proponents of the DeFi movement are right.
The whole decentralized finance space is one that’s really picking up momentum right now. Via smart contracts tied to the blockchain, applications can be built which allow for a range of services typically performed by traditional banks to happen on the blockchain — that is, without the fees and headaches of dealing with banks.
WonderFi is a Canada-based, publicly traded company focusing on investing in the DeFi space. As far as publicly traded options go, this is one of the pioneers in the DeFi world. Accordingly, there’s a lot to like about where this stock could be headed, if investors catch onto this movement.
Recent moves bullish for investors in WonderFi
WonderFi is a company that’s been busy of late. On Oct. 26, the company announced that it closed a private placement deal worth $26 million. A week later, the company got board authorization to use $10 million of these funds to buy up DeFi-related cryptocurrency assets. A week after that, the company announced an additional US$1 million strategic investment in the Solana ecosystem and FTX Trading, a global cryptocurrency company.
These investments appear to be aligned closely with the company’s goal of maximizing value for shareholders looking for exposure to the DeFi space. Indeed, investors interested in DeFi can simply buy many DeFi-related tokens. However, being able to invest in the underlying infrastructure behind this movement is more difficult. WonderFi provides this exposure for investors.
WonderFi is certainly an intriguing speculative investment for investors seeking to put some risk capital to work. Indeed, the crypto sector is one with its own set of unique risks. Accordingly, stocks tied to the crypto world tend to be much more volatile and higher risk in nature.
However, some investors believe the risk is worth the reward. And the DeFi space is one that’s particularly attractive right now.
I think some allocation to companies with outsized growth potential such as WonderFi could certainly be warranted. This is a company that appears to be at the cutting edge of a growth sector that’s just scraped the surface. Accordingly, I’m watching it closely right now.