It's not just the weather that's feeling chilly. Cryptocurrency markets have been depressed since November, leading some to believe that we may be at the start of another "crypto winter".
The last crypto winter was between early 2018 and mid-2020 when crypto prices dropped >60%. During this time, the headline-grabbing news around crypto adoption and innovation all but vanished.
So, the question is: what do we make of the big pullback in the space? Does this mark the beginning of a new crypto winter or is it just a pause that refreshes the market?
Although the sell-off in crypto may not be as big as others in its history, it feels worse because the market has grown so large. At its peak, the crypto market was valued at $2.9Tr dollars.
This means that $1.7Tr dollars have been cleaned out of the market.
The damage in crypto has been broad with hundreds of coins taking a nosedive, some by as much as 90%. The Revix Top 10 Bundle, an investment basket that tracks the broader crypto market's value, is down 70% since early November.
And Bitcoin, the biggest and most well-known of the cryptocurrencies, hasn't been hit as badly but is still down a painful 64% from its peak.
Only time will tell whether we're near the bottom of this crypto decline or if we have further to fall, but there is one nugget of good news in all this: we can always look forward to spring. Past crypto winter events have always been followed by another bull run to new highs.
Where to invest during a crypto winter?Right now, putting your hard-earned money into the crypto markets may be too risky. With everything happening in the world — the Ukraine war, soaring inflation, higher interest rates, etc. — you should be looking towards a more stable and predictable investment or savings option.
The best place to store your wealth during a crypto winter is outside the investing market and in the savings space.
Introducing stablecoin crypto savings accountsThe problem is that the normal savings accounts offered by your bank don't enable you to grow your wealth in real terms. Even worse, they don't protect your money against inflation.
If you take a look at your bank-linked savings account, you'll see you're only earning a measly 4.00% to 5.00% per year if you're lucky. That's not taking into account the currency risk you have of holding rands, penalties for early withdrawals and all the other hidden costs.
The truth is there is an alternative to traditional bank savings accounts that is denominated in rand and offers better returns.
It's called the USD Savings Vault and it's the newest product offered by Revix, a Cape Town-based investment platform backed by JSE listed Sabvest and Swiss-based CV VC.
The USD Savings Vault enables you to earn 12% per annum through the world's second-largest dollar-backed stablecoin, USD Coin (USDC).
That's nearly 2.5x what your South African bank-linked savings account offers and 17x more than a traditional USD savings account.
Sean Sanders, a CFA Charterholder and Revix's CEO and Founder, explains, "We launched our new USD Savings Vault a month ago and we've had a lot of customers ask whether these returns are real, since 12% is a higher return than any bank can offer, and the answer is yes."
Sanders continues, "At Revix, we've been testing our USD Savings Vault for over a year and we've been able to consistently generate annualised yields of between 9% to 13% following low-risk yield generating allocation strategies."
"It's only now that we've decided to offer this as a savings product to the South African market."
The beauty of the Savings Vault is that anyone can benefit from it. It's popular amongst asset managers and high-net-worth individuals, as well as crypto-newcomers as it only has a R1.6k minimum deposit size.
Anyone following the current crypto news may be feeling sceptical, considering another stablecoin has recently been de-pegged from its dollar price. But there's nothing to worry about because USDC is nothing like TerraUSD (UST), the infamous algorithmic stablecoin in question.
USDC's value is tied directly to the U.S. dollar and backed by collateral held in trust by regulated third parties. USDC is also fully redeemable, meaning that at any moment you can redeem 1 USDC token for 1 U.S. dollar and vice versa.
This is what has made USDC the go-to stablecoin for over 95% of the institutional investing market.
How to get startedIt's that simple.
You can unlock and withdraw your funds with just 24-hours notice making Revix's USD Savings Vault an accessible option for a rainy day.
How does Revix offer such high rates of return?Revix generates a USDC return on your behalf by:
We all know trust is earned.
Revix is the only crypto investment platform in South Africa to perform a quarterly independent proof-of-reserves audit.
Mazars, a leading international audit, tax and advisory firm, performs Revix's quarterly proof-of-reserve report to ensure that the company holds all of its cryptos securely on behalf of its customers.
You can download Revix's latest report here which provides verifiable assurance that the company is fully collateralised.
Are there any fees?No, provided that you keep your funds in the USD Savings Vault for over 30-days.
Only if you choose to "unlock your Vault" within the first 30 days (meaning you withdraw funds from it), you'll pay a fee of 1.00% on the amount you unlock.
What risks are involved in using the Savings Vault?Cryptocurrencies are inherently high-risk investments.
While stablecoins are lower risk than other cryptocurrencies (like Bitcoin and Ethereum), they still carry risks. An extensive list of risk disclosures can be viewed via the Revix website using this link.
Revix saw the value of bringing a USDC Savings Vault to South African investors early on. For over a year, Revix's flexible US dollar-denominated savings account has offered an interest rate well above the rest of the market.
Now, the long-trusted Revix USDC Savings Vault has been upgraded to offer investors an even higher annual return. This enables you to effortlessly earn interest using your USDC holdings just like a high yield US dollar savings account. The only difference being that you'll earn a far higher return than any dollar savings account can offer.
Currently, Revix's Savings Vault is offering an annual return of 12% on your USDC. A minimum investment of 100 USDC is required to qualify, and there is a minimum lockup period of 30 days in order not to attract fees. T&Cs apply.
About RevixRevix brings simplicity, trust and excellent customer service to investing in cryptocurrencies. Its easy-to-use online platform enables you to securely own the world's top cryptocurrencies in just a few clicks.
Revix guides new clients through the sign-up process to their first deposit and first investment. Once set up, most customers manage their own portfolio but can access support from the Revix team at any time.
Remember, cryptocurrencies are high-risk investments. You should not invest more than you can afford to lose, and before investing, please take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.
This article is intended for informational purposes only. The views expressed are opinions, not facts, and should not be construed as investment advice or recommendations. This article is not an offer, nor the solicitation of an offer, to buy or sell any cryptocurrency.
To learn more visit www.revix.com.