Dear TIOnauts,

Happy August to all, I hope that all of you located in the Northern Hemisphere are finding time to enjoy your summer despite the continuing concerns over COVID-19.  In my area, the pandemic has mostly died down, and we are now hoping for a return to whatever the new normal will be for fall activities.  Wherever in the world you are, I continue to hope that you are safe and secure.

TIOmarkets had another good month, especially when you consider that summer months are often a little slower.  We had some slightly mixed metrics, with acquisitions down a little lower than usual, but net deposits at a record high level.  My feeling is that this is indicative of continued improvements in our process, with the drag of summer months creating a mild slowing in new participants.  Payouts stayed relatively constant, it may have seemed as if they softened, but that had more to do with the rise in ETH.  Just part of life with the three dimensional pricing that occurs in crypto.  As we move forward, we have new promotions that we are working on and are continuing our marketing efforts.  We also continue to work to improve internal processes such as adding automation to our conversion funnels.  As also promised, we are deep in discussions concerning the payout levels and whether there needs to be an adjustment.  We hear you that this is important and agree.

On another note, we have been getting a lot of questions about DeFi and I wanted to share some of my thoughts.  First off, I am one of the many whom is extremely excited about the impact that DeFi may have on the future of finance.  As I have said in the past, we are looking at ways that DeFi might help the businesses of any of the companies.  However, I do feel that a healthy dose of caution is warranted at this time.  Decentralizing finance has massive potential, but in its early stages there is a great deal of risk as well. 

When you put your money in a traditional bank you are counting on the bank itself, its internal regulators and compliance personnel and government regulators to keep that money safe.  Here in the US, we even have the FDIC, which, if a bank goes under, will give you your money back.  Of course this all comes at a cost.  The cost of hiring people to watch your money, owning a building for them to sit in, keeping teams of lawyers on staff to keep up with regulations, paying FDIC insurance and so on.  Like any business, the returns a bank pays to you as a depositor, or charges you as a borrower, are impacted by these costs.  If you add in a little healthy skepticism about wanting the government watching you, and there are some really powerful points to the lower cost and more anonymous nature of DeFi financial services. 

But, to make a quick contrarian point, decentralized finance may be great when all is going well, but what when it does not?  Who would you go to if the dapp you put a bunch of money into was hacked, or crashed or just turned out to be a scam?  Now think about what a dapp really is, at its most basic, it is a bunch of computer code that is supposed to replicate a traditional process or institution, in this case banks.  As we can all agree, banks are very complex entities and replicating one with nothing more than lines of code is similarly complex.  Included in the processes that need to be replaced are all of the regulations, responsibility and safety protocols.  When it comes down to it, you are trusting your money to the very weakest line of code in the program, the weakest link in that particular chain.  The weakest bit that could be exploited or fail or be a backdoor for the builder and… poof… in a heartbeat your money is gone.  Then what do you do?  There is no recourse, no regulator, no one that can get you your money back. 

Thomas Hobbes held that in any society there is a balance between safety and freedom.  The more rules we adopt to keep ourselves safe, the less personal freedom we have.   When I come to a red light driving my car I am not free to drive past it, I have sacrificed that bit of personal freedom to an arbitrarily designated colored light so that I can safely know when there is a green light I won’t be hit by a car coming the other way.  So when you choose between trusting your money to a bank or to a DeFi dapp, just keep in mind, you may have more freedom with the dapp but you give up a lot of safely.  The question becomes, has DeFi reached the proper Hobbesian balance between safety and freedom.  From my prospective, DeFi is the future; it’s just not a developed enough future for me personally to risk my money, for now.

In the meantime, don’t forget these monthly updates:

  • If you would like, you can help us increase our domain authority (and to get as much traffic as possible) by leaving us a good review on trustpilot, by sharing one of our blog posts or even sharing our URL on your website, if you have one.
  • If you are worried about how the fast-moving markets might affect your investment during these times, we have set up a dedicated webpage providing up-to-date market information plus webinars, podcasts and more. Please bookmark this page to keep apprised of any market news that might affect your trading portfolio, or if you are interested in seeing how industry leaders are coping with the crisis. 
  • This update was published on Telegram and the TIOmarkets blog, publicly available to view here:  We are changing the way we send emails in response to feedback from the community about spam and no-receive challenges.  Any TIOnaut who has signed up to TIOprime, TIOmarkets (or who is in the Liquidity Pool) will remain in our database and will continue to receive important TIOmarkets news.  If you have not yet signed up on any of those spots and wish to continue to receive email updates, please do so at this time.  

I’m going to leave you with that for now TIOnauts.  We are back at it, working to build a business that will in turn create value in TIOx.


Bill Heyn


Bill Heyn

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