Wrapped Centrifuge: Everything you need to know

Source: Medium

For a long time now, the crypto industry has been amongst us and has been growing at a rate that has never been anticipated before. Being the overall aim of the industry to completely revolutionize the global payment system, it has managed to gain quite a lot of attention lately from potential investors, all over the globe and has been able to make a name for itself.

Seeing its extraordinary past record, I am forced to assume that, a majority of you are already aware of the basic concepts of cryptocurrencies but as usual, for some of you who are still having doubts regarding the same, let me help you with that first. Crypto is nothing but a form of virtual currencies which has fully changed the outlook of digital currencies as a whole.

These virtual assets of yours can very well be used for various purposes, one of which is the buying and selling of goods and services as well as the exchange and trade of currencies over numerous crypto exchanges over the Internet of course. Basically, if we talk about the core of the crypto industry, these are nothing but decentralized blockchain-based platforms, meaning that, they use blockchain technology in order to operate along with fulfilling the purpose of recording and verifying transactions.

On the other hand, being decentralized refers to the fact that, they are very well capable of operating outside the control and jurisdiction of central authorities and can function freely without any government interference. The crypto fan base has been constantly growing ever since it was first introduced and a few major reasons for this to happen are their portability, ease of use, convenience, huge profit margins, uncertainty, and also its volatility of course.

Speaking of volatility, it is worth mentioning that, the fluctuations in prices of virtual currencies are almost instant and are very difficult to predict, which means that, along with having the opportunity to earn huge profits, if not done right, you could also end up having significant losses as well. As of today, the industry has grown so much that, unlike when it was first introduced to the world, the crypto industry today witnesses several currencies coming up each day and a huge number of customers joining in every hour.

Source: deFi.cx

As previously mentioned, many crypto experts from all over the world believe that crypto is the future of digital currencies and is rapidly moving toward completely revolutionizing the global payment system as well. To back this statement, I would further like to take a recent example of a report that came out a couple of weeks back which stated, a McDonalds in Ell Salvatore has started accepting Bitcoin as the official mode of payment from customers and this indeed shows that, these assumptions being made are not entirely baseless.

Moreover, I do personally think that, in the near future, just like this, many merchants and shops will also start accepting cryptocurrencies as a mode of payment. Also, speaking of a lot of currencies available today in the marketplace to choose from, some of the most popular and demanded virtual currencies include Bitcoin, Dogecoin, Polkadot, Cardano, Binance Coin, Dogecoin as well as Baby Doge to name just a few of course.

Now that you have the basic knowledge about cryptocurrencies, I sincerely believe that you will be able to have a much better understanding of what we have with us today, Wrapped Centrifuge. To know more, I suggest you read further!

Everything to know about Wrapped Centrifuge (WCFG)

Source: CoinList Blog

Wrapped Centrifuge or as commonly referred to as WCFG is nothing but an Ethereum token that has been developed in order to represent Centrifuge (CFG) on the popular Ethereum Blockchain. Not just that, it is important for you to know that, Wrapped centrifuge is not a regular CFG, but rather a separate ERC-20 token that has been developed focusing on tracking the price of Centrifuge (CFG).

Speaking of Centrifuge, some of you might be thinking what exactly is it? Allow me a chance to explain. CFG is the native utility token or asset of the Centrifuge Chain based on Polkadot and can very well be used for the purpose of on-chain governance as well as staking for that matter. Since WCFG is practically based on the Centrifuge itself, as mentioned above, it is vital for you to have a fair understanding of CFG first.

To begin with, Centrifuge is a platform that is known to bridge the gap between several real-world assets like real estate, invoices as well as royalties, and Decentralized Finance( DeFi). With the help of Centrifuge, Borrowers are capable of financing their real-world assets without having to go through banks or any other intermediaries, and providing liquidity is more or less open to everyone, while investors usually receive a return plus CFG rewards. Not just that, Centrifuge is one of the first protocols to have connected DeFi to the real world, mainly by bringing multi-trillion markets of real-world assets(RWA) on-chain.

Coming back to the topic, two months ago, the sale of the Centrifuge token brought in more than 320000 new token holders to the community, with nearly 18.5 million dollars in centrifuge tokens purchased. As mentioned, while the CFG token natively resides on the Centrifuge Chain, it also has the ability to be bridged to Ethereum and used as an ERC-20 token which is backed by a 1:1 ratio with CFG.

Source: CoinGecko

In addition to this, each WCFG is backed by one CFG which is said to be locked up in the bridge account on the Centrifuge chain as and when it is moved over to Ethereum. Also, it is worth noting that, token holders are capable of moving between Centrifuge as well as Etherem at any time, that too without having to face any restrictions.

Furthermore, think of it this way that, with implementing CFG on the Centrifuge chain, it allows you to participate in governance, stake, and earn rewards, as well as use CFG to pay for fees on the Centrifuge Chain. Now, using WCFG on Etereum allows you to interact with decentralized applications that are known to support ERC-20 tokens as well as use WCFG within Ethereum and also hold it in your Ethereum wallet.

As per reports, CoinList has also been seen building support for the CFG Ethereum bridge, thus allowing users to convert the native CFG token into WCFG on the Ethereum network and vice-versa, all directly through their virtual wallets. The bridge between the two platforms that we just talked about is developed by ChainSafe in collaboration with ETH Classic, Celo as well as Aragon. Not to mention that the bridge between WCFG and CFG is said to rely on a set of relayers in order to submit transactions to the Cent Chain and Ethereum in respect to the events that are happening on other chains.

This is because all these transactions can be very expensive considering the high gas prices. For this very reason, the fee to go to Ethereum from the Centrifuge Chain is relatively high. Not just that, due to the fact that Centrifuge Chain has no insights into the gas prices on the Ethereum network, there is absolutely no direct way for them to charge the actual gas spent. Therefore, the bridge fees are constant and are allowed to be changed at any time by the council and are often shown to you before you bridge any given token.

Investing in Wrapped Centrifuge

Source: TechCrook

As of today, the price of Wrapped Centrifugeis about 2.10 US dollars with a twenty-four-hour trading volume of 34,674,042 dollars. Not just that, in just the past twenty-four hours, the value of the WCFG has gone up 38.30 percent, and with the current market cap of the platform not available, the platform is currently placed at #2704 position as per the CoinMarketCap rankings.

Also, it is worth mentioning that, unfortunately, the current circulating supply of Wrapped Centrifuge is also not yet available along with the maximum lifetime supply of the currency. In just the past week alone, the price of the platform has gone uphill by 5.35 percent.

Reading so far, you must have gotten a fair understanding of the platform and by now, you should be able to figure out on your own whether or not investing in Wrapped Centrifuge is the right thing for you to do. Seeing what it has to offer when combined with its performance in the recent past as well as its plans for the near future, I certainly believe that WCFG can prove to be a worthy investment in the near future and can provide you with good returns but again, nothing can be said for sure!

Source: Nomics

As mentioned at the very beginning, crypto is a highly volatile marketplace and is extremely uncertain. Thus, It is extremely important for you to understand the fact that just like any other currency in the crypto marketplace, Wrapped Centrifuge does have its own risks as well and you should invest only if you are willing to take those risks and bear any and all losses if at all necessary.

If you are wondering, where can you buy Wrapped Centrifuge? Let me help you with that. Currently, Wrapped Centrifuge is available on all major crypto exchanges but some of the popular exchanges that have WCFG listed on them include Coinbase Exchange, Coinlist Pro as well as 1inch Exchange to name a few. 

In conclusion, What are your thoughts on Wrapped Centrifuge? Do let us know in the comments below. To know more about various cryptocurrencies, do check out other articles we have on our website. Thank you for your time & if you found our content informative, do share it with your investor friends!

Also read: NKN: Everything you need to know