What is Happening? announced $58 million in crypto assets rewards to its users, with the total tally reaching $375 million. The company is registering positive cash flow and is hiring talent across the board to increase their range of services. Cake DeFi Even though Q2 of 2022 was one of the worst quarters for the cryptocurrency industry and the entire formal investment sector, Cake DeFi had its best quarter yet in terms of customer growth, funded accounts and payouts. The platform reported that average weekly user growth was 3.25% in the second quarter and is actively hiring skilled software developers. : Vested Interest Disclosure The author is an independent contributor publishing via our . Be it through direct compensation, media partnerships, or networking. The author has a vested interest in the company/ies mentioned in this story. HackerNoon has reviewed the story for quality, but the claims hereon belong to the author. #DYOR brand-as-author program https://twitter.com/uzyn/status/1559062795798597633 What is Cake Defi? Cake DeFi is a fintech platform that is open, innovative, and regulated, with the goal of giving users access to decentralized financial services and applications by letting them profit from their crypto and digital assets. The platform was established in 2019 and has around one million users from all over the world. In 2021, its user base grew tenfold. They have paid out $375 million in rewards to its users since its inception through the second quarter of 2022. Cake manages over a billion dollars in client assets. Why Building a Regulated and Compliant Platform is Critical for the Blockchain Industry Building a regulated and compliant platform is going to be the deciding moment for the blockchain industry in the coming years. With the fall of Celsius, 3AC and Voyager, the next billion-dollar blockchain unicorns are going to be regulated in nature with a focus on mitigating capital and technology risk associated with smart contracts and web3 applications. Regulators worldwide are introducing or have introduced regulations governing virtual asset activities. The Securities and Commodities Authority, the capital market regulator, has governing virtual asset activities in the UAE. introduced regulations Further, the financial free zones such as Abu Dhabi Global Market (ADGM) and Dubai International Financial Centre (DIFC) have governing virtual asset and investment tokens-based activities, respectively. Financial intermediaries that fall within the definition of a virtual asset service provider need to comply with AML and CFT laws, where activities such as providing credit in virtual assets, arranging deals in investments, and managing assets require approval or registration before the regulator where the platform seeks to provide its services. regulatory frameworks A robust financial fintech platform that complies with FATF standards and regulations governing virtual asset activities is going to be the future of blockchain-based startups. The reflects that compliance with existing money laundering and financing of terrorism is critical for platform intermediaries such as virtual asset service providers (i.e., Virtual Asset Exchange, Mixer, NFT Marketplace). arrest of Tornado Cash developers For instance, the state that all countries must impose activities-based AML/CFT requirements on financial institutions and virtual asset service providers that guarantee their compliance with such duties. Due to this, platforms that are fully compliant with all regulatory requirements set forth by an appropriate regulator are critical to ensure investor protection and protect users from technological risks such as hacks, thefts and fraud. Regulations are good for crypto as it protects the interest of investors and helps reduce the use of crypto for illegal activities helping blockchain companies integrate efficiently with the traditional banking system. FATF Recommendations Why is User Growth, Rewards and Fresh Hirings Significant in Today’s Market? When many web3 companies such as Celsius, Voyager and 3AC are facing downfall and traditional industries are also in crisis, the platform continues to have a positive cash flow and employs talent with a focus on hiring the best talent across the web3 industry. Its treasury has enough money to last at least 4 years, even in the unlikely scenario that all revenue would disappear. This provides the platform with a favourable run rate to focus on acquiring customers and building disruptive technology. The platform has been making money and has at least four years of runway. As a fintech company, it makes sure that customers' assets are kept separate from the company's operating accounts. This is called "clear asset segregation." It means that the user has full control, full ownership, and full authority over their funds. The platform acts as an agent or middleman for its services, giving users a "safe passage" or access to decentralized finance (DeFi) services. The company’s board has chosen to further diversify its treasury by investing 15 million dUSD in decentralized assets like dTSLA, dTLT, and a few others, building on the company's strong financial position. Additionally, given how much the general markets' prices have fallen, there may be a lot of potential upside. The platform services are all on the DeFiChain blockchain, which means that anyone can use them and they are completely open and honest. This is very different from other platforms, like Celsius, which can be thought of as a "black box" with little information available. So, users wouldn't know where the yields are coming from or if their funds are being mixed in with operational funds. Final Thoughts on Cake-Defi Growth and its Impact on the Future of The Economy During a crisis period when not only crypto companies are filing for bankruptcy, but even traditional businesses are facing a decline in growth and profit squeeze. The growth of decentralized platforms establishes trust in the new thinking that advocates a decentralized economy. In addition, the platform has launched a $100 million venture capital arm called Cake DeFi Ventures that is investing in Web3, eSports, gaming, and Fintech startups. This is a significant contribution toward the future of decentralized Finance. Don’t forget to like and share the stores! Image credits: Brooke Lark and Jeanmal Wilson.

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Cake DeFi Announces $58 Million in Crypto Assets Rewards to its Users in Q2 2022

Cake DeFi Announces $58 Million in Crypto Assets Rewards to its Users in Q2 2022

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