The centralized finance market has become one of the biggest industries across the crypto and financial markets. This is due to the massive amounts traded daily on the exchanges worldwide. However, the creation of the decentralized finance sector has been pushing traders out of centralized platforms. Coupled with some advantages of the decentralized sector, traders are now seeing weaknesses on the part of centralized platforms giving them a good reason to abandon them. Although the crypto sector was built with decentralization in mind, it would take a longer period before the market achieves that sim. With that not in sight, platforms like Verso Finance give traders and investors a feel of both sectors. In this article, we will be looking at Verso Finance, its native VSO token, and every other thing you need to know.
What is Verso Finance?
Verso Finance provides users with a standard and regulated marketplace to access the products they need. It helps users connect the centralized finance sector to the decentralized finance sector by creating a standard for how products are gotten to consumers. The main channel that Verso Finance uses to carry out this operation is through wallets and banks accounts. Asides from its operations in the decentralized finance sector, Verso Finance also enables service providers in the centralized finance sector to provide and distribute larger products to a massive audience. In simple terms, Verso Finance’s main aim is to solve basic problems in the crypto sector by enabling a bridge that can connect the DeFi sector to the centralized sector. Developed in April 2021, Verso Finance is owned by Gregor Ann.
What is the Verso Token?
The VSO token is the native token of Verso Finance which allows its holders to carry out specific activities on the platform. Aside from using the VSO token to take part in the platform’s governance, users that can also use the token are platforms that provide financial services, users that validate products, providers of wallet services, and financial institutions. The VSO token uses a proof of stake concept built on the Avalanche network. The proof of stake concept allows traders that hold the highest amount of tokens to validate transactions and earn rewards. Traders can make governance calls on the platform if they hold enough VSO tokens. Traders that validate products on the platform are mandated to stake a certain amount of tokens to carry out their activities on the platform.
Use Case of Verso token
Financial service providers
Financial services providers leverage Verso Finance and the VSO token to enable a project or offer to reach a larger audience. For example, if a financial institution were to give out a loan, Verso finance would help it pick out the details of people eligible for the loan. After that, the loan will be sent out on the decentralized platform. Using the above criteria, the network will calculate the amount it would cost them to offer the services. When a trader decides to take the loan, he will have to use the smart contract, which will release the loan amount to him. At the end of the period, the smart contract deducts the loan amount from his wallet.
Traders who validate products must hold the VSO toke to carry out their activities. For instance, if financial institutions were to give out a loan, they would need a product validated to validate their products on the platform before they have the go-ahead to list such products. However, validation on Verso Finance does not come easy as traders need to hold more than one million units of the VSO token before they can be allowed to validate products.
Asides from holders of the VSO token using it for validation of financial products, they can also use it for the governance on the platform. Traders can stake their tokens and earn rewards for staking them. However, the higher a trader stakes, the higher his place when changes are proposed on the platform. The community has a large say in what kind of products get listed on the platform, the criteria used in listing the products, and how the marketplace can be made accommodating in the years to come. The token holders are also the determinant of what happens on its Ecosystem Development Pool.
Future Price Predictions
The VSO token is presently in bearish waters as the digital asset trades at $0.1132, losing 7.86% of its value in the last 24 hours. It is ranked #1340 on CoinMarketCap, the token boats a 24-hour volume of $113,097. It presently has a circulating supply of 45,824,242 with a market capitalization of $5,180,690. Although the asset price is very much low at this period, it is tipped to touch close to $0.19 before the end of the year. This is due to the various partnerships in the works by platform.
2022 will be another defining year for the token as it hopes to break into the market and enjoy adoption. The asset price is predicted to touch close to $0.28, and if the bulls take it up, it could go as high as $0.32. Volatility is one element that tokens in the crypto market feed off. This is one of the reasons why predicting a coin is a very tedious job. However, the VSO token is predicted to cross above $0.37 at the beginning of 2023.
If investors are interested in the coin, it could grow as high as $0.39 to end the year. In 2024, the asset price has been predicted to stabilize around $0.55, but analysts have predicted that the coin could finish the year close to $0.60. By 2025, crypto would have been more adopted, and it would be the same case with the VSO token. With that in mind, the token has been predicted to hit around $0.78 if the bulls trigger a surge upward.
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Is Verso Token A Good Investment?
As explained above, Verso Finance has potentials judging by its mode of operation. But what cannot be ascertained at this period is how good an investment’s native token is. However, traders might want to bet on the token on a long-term investment. Looking at the predictions, everything points at the price of the token moving up. However, traders should remember that the road might not be smooth as the bears might come calling from time to time. Another thing that should be noted is that predictions are hypotheses and not factual, so it is better to carry out research to determine if you want to bet on this token in the long term.
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Undoubtedly, the VSO token shows promise and might be finding its way into the portfolio of most smart traders in the market. Even though the token is bleeding presently, there are signs that it might recover and trade higher in the future. Although it is still early to project, investors might be interested in its use case and adopt it in mass. However, traders should bear in mind that keen research into the token might do them a great deal of good.
* This article was originally published here