Veteran crypto investor Arthur Cheong believes one digital asset sector is offering long-term holders a golden opportunity.
Cheong, the founder of DeFiance Capital,tells his 171,700 followers on the social media platform X that he thinks decentralized finance (DeFi) is tremendously undervalued.
According to Cheong, DeFi projects are innovating at a rapid rate and are leaving traditional finance (TradFi) firms in the dust.
“I haven’t been this excited about the risk/reward and potential upside of DeFi for a while. Probably the most mispriced moment since 2020 pre-DeFi summer with extremely bright outlook.
I see opportunities not just in OG (original) DeFi but also some newer projects rapidly iterating and been growing at a pace that fintech startups will do anything to achieve.”
The veteran investor also believes that crypto is now here to stay following the recent launch of spot market Ethereum (ETH) exchange-traded funds (ETFs) last week.
“The bigger picture is the floodgate is open and there’s no turning back. TradFi asset managers will keep launching new crypto products because guess what: there are tons of demand for them!
I expect them to launch actively managed crypto ETFs [in the] next years.”
Earlier this month, Cheong posited that it might be the wrong strategy for crypto to chase mass adoption, believing that digital assets are designed to disrupt several key financial sectors.
“I think we should accept that it’s possible crypto are not fit for mass adoption like web2 but instead are optimized for certain narrow but extremely high impact use cases like global state-free money, cross-border payment and decentralized finance.
Chasing normie mass adoption might be pursuing a wrong grail right from the beginning.”