Centrifuge (CFG)

Introduction to Centrifuge (CFG)

The world of blockchain is truly vast now that we’re in the middle of 2024. 

It seems like every other day some new project is launched or there is some kind of new and exciting announcement, generating all the right buzz. 

This can only mean one thing, and that is that this world is expanding.

Unfortunately, a lot of the time, this world is cut off from the real world in more ways than one. 

The blockchain world has thus remained fairly isolated with the exception of the role played by oracles that serve as a bridge between the two worlds, but that is basically them fetching data from the outside world and delivering it to the blockchains that need it, like price feeds and whatnot. 

But that is different when compared to what platforms like Centrifuge are doing.

If there was one phrase that could summarize what Centrifuge is all about, that would definitely be “real-world asset tokenization.” 

With Centrifuge, investors may access various different types of assets, enhancing transparency and gaining better insights into their portfolios. 

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Asset managers can then tokenize their funds while streamlining access to the necessary investors and service providers, saving expenses for fund operations while unlocking new capital sources. 

So, Centrifuge is all about unlocking additional sources of capital, particularly those pertaining to the outside world.

In other words, it bridges the world of DeFi with the RWAs, aka real-world assets.

Although there are already quite a number of projects that do what Centrifuge is doing, like tokenizing assets like traditional financial products or real estate, Centrifuge’s approach is different in that it’s more asset-agnostic and wide-ranging, which enables users to bridge this vast spectrum of RWAs to the DeFi plane, but in ways that can benefit asset investors and originators alike. 

The Centrifuge blockchain’s mainnet went live a while back in April 2020, with its approach already demonstrating the possibility of unlocking several multi-trillion RWA markets around the world.

So, with that, Centrifuge may just be on track to catalyze entire waves of DeFi activity tethered not to some abstract intangible asset, but to the actual world instead.

The Technology Behind Centrifuge

There’s a lot that goes into the technology powering the network that is Centrifuge. 

But when looking up its flagship offerings, the Tinlake dApp will pop up a lot, and that happens to be an open marketplace or investment application built above Ethereum, or well used to be.

I was Tinlake that enabled users to convert RWAs into virtual assets that may then be utilized in the issuance of interest-bearing stablecoins.

These tokenized RWAs may be anything, from stakes within business endeavors and loan providers to actual physical assets. 

But once tokenized, these Tinlake assets would then be freely transmitted and utilized throughout the enormous ecosystem that comprises DeFi services and products.

Tinlake also allowed stablecoin issuers to provide stable stores of value backed by some collateralized asset pools.

Because investors possess distinct risk-reward profiles, Tinlake was made to offer a method for users, which can involve investing in the same assets but through distinct classes of investments.

Here is how the whole thing works.

Every time asset originators bridge RWAs through Tinlake, they turn their assets into NFTs, or non-fungible tokens that can be embedded with the appropriate legal documentation.

In contrast to NFTs on networks like rarity.tools or OpenSea, Centrifuge’s NFTs can be tokenized representations of each individual asset, like a mortgage or invoice, which may then be utilized as collateral on Tinlake. 

Such NFTs play a vital role in reducing the barriers of entry for investing in and originating assets, scaling their liquidity and financing, all while generating bridges between DeFi and the actual world. 

From there on, users may create asset pools that can be collateralized with those tokenized RWA NFTs, after which they may use those pools to issue two types of ERC-20 cryptocurrencies, TIN and DROP.

The TIN and DROP tokens behave in a manner similar to the workings of tranches within two-tiered financing infrastructures inside the traditional financial landscape.

In this framework, DROP tokens have the role of senior tranches while TIN tokens will be the junior tranches.

The underlying blockchain architecture of Centrifuge is known as the Centrifuge Chain. 

It’s a proof-of-stake blockchain network built above the Parity Substrate, a platform that enables users to generate semi-autonomous distributed blockchain-based systems on Kusama(KSM) and Polkadot(DOT).

Not only that, but Centrifuge’s on-chain transactions can be optimized for small subsets of particular operations, allowing for quicker execution of logic, considerably lower transactional expenses, and faster transactional finality.

And although Tinlake was constructed on top of Ethereum and interacted through a Chainsafe bridge with the Centrifuge Chain, the decentralized application has already migrated to that chain. 

However, since it did, it eventually phased out entirely. 

Tinlake is now called the Centrifuge app; however, its functionality is all intact and has some added features too.

CFG Token Utility and Economics

It seems that every blockchain network has its own native token, the same is true for Centrifuge, which has the CFG token taking on that role, having its own set of utilities.

Now onto some of its tokenomics. To start with, its price is currently worth around $0.65. 

Its market capitalization is over $329 million and its fully diluted valuation is more than $365 million.

The daily trading volume is less than $1 million, currently at around $926k. 

As for the supply end of things, there doesn’t seem to be any maximum supply here. 

Still, its total supply is around 526.25 million and its circulating supply is approximately 492.7 million.

Now that we’re done with all those stats, let’s see what the initial token distribution was.

Well, it saw 17.1% allocated to the private sale, 27% to the team and advisors, 9.5% to the public sale, 7.3% to rewards and grants, 8.3% to the early ecosystem, 11.8% to development grants, 7.1% to community grants, and finally, 11.8% to the foundation.

How to Buy CFG Tokens

So, you’re looking to get some CFG tokens for yourself? Well, there are a couple of exchanges where you can do so, including the likes of OKX, Gate.io, KuCoin, Kraken, and more. 

However, do note that buying from these exchanges may take a while depending on what exchange you’ve selected or even where you live, as you may have to complete KYC if you want to withdraw or deposit higher amounts, or even trade at all since some absolutely require it. 

Other than that, you also have registration to contend with, which can take some time too, and also choosing a digital wallet that can store those funds safely, which there are so many of these days.

But MetaMask might be a good first choice for you, and setting that up won’t take that long.

However, speaking of wallets, you should consider some cold wallets too, as they’re the best in terms of security that the cryptocurrency landscape has to offer, and in this space, you cannot be too careful, especially considering the kind of attacks that can take place online.

Luckily, with these wallets, you shouldn’t have to worry too much about threats like that since they store your funds offline. 

Using CFG in the Centrifuge Ecosystem

As mentioned earlier, the CFG token is the fuel of the Centrifuge blockchain ecosystem.

It’s designed to reward or encourage users to maintain a strong, decentralized system that can power an ever-increasing array of DeFi applications on Centrifuge.

Not only that, but these tokens can also be utilized to take part in the governance that Centrifuge has set up for itself, and they may also be utilized within transactional fee payments, staked for block incentives, and more.

But as what the platform offers increases along with its user base, that greater usage and network value will probably be reflected within this token in various ways.

Future Developments and Roadmap

So far, we haven’t found anything concrete online about a proper roadmap.

However, this year it did introduce a new protocol fee charged on every completed loan, which is poised to gather approximately $4 million in fees in 2024.

So, there will likely be some new changes like this every now and then, as new proposals open up for people to vote on.

Conclusion: Centrifuge’s Impact on DeFi and Traditional Finance

In the legacy financial world, overall, only the biggest investors or institutions have been able to access massive capital markets directly, all while dealing with assets that are historically illiquid within a fluid yet safe manner. 

Because of this, smaller firms or investors have not been able to take advantage of the competitive interest rates as a result of structural market inefficiencies, high transactional fees, and institutional gatekeepers.

This is why the Centrifuge cryptocurrency project was even set up in the first place; all to solve these many issues through the provision of simpler methods for both institutional and retail investors to introduce their RWAs to the blockchain space, thereby tapping into the newer investor bases and markets.

We Coin-Labs.com provides only objective information about Centrifuge (CFG).
Therefore, we are not responsible for the investment decision in Centrifuge (CFG) and the resulting loss.

Centrifuge (CFG) Basics

Here are some factors that investors should consider before investing in Centrifuge (CFG).

Cryptocurrency Features	Centrifuge (CFG) (CFG)
Publisher or Developers	Centrifuge
Headquarters (Registration Number)
Symbol	CFG
Platform
Published Date (CMC Registration)	2024-11-01
Max Supply	No limit

Reliability Score of Centrifuge (CFG) in 2024

These are indexes mesuring the investment reliability of Centrifuge (CFG) conducted by Coin-Labs.com.

Investment Reliability Rating Items	Scores and Current Status
Company Activation Rate	/ 10.0 CAR
Communication Rate	/ 10.0 CR
Technology Transparency Rate	/ 10.0 TTR
Development Participation Rate	/ 10.0 DPR
Listing Status on the World's Top 10 Exchanges	Listed on 4 Exchanges
Number of Available Pairs Worldwide	34 Pairs
Market Cap of the Cryptocurrency	233,113,671 USD (Rank #186)

The table above shows the result of investment suitability evaluation for Centrifuge (CFG).
Check out how we evaluate cryptocurrencies on the crypto rating description page.

Centrifuge (CFG) Price

Here are the price and recent trading volume of Centrifuge (CFG). (Data of 2024-11-02 00:35:00)

Price Items	Price and Trading Volume of Centrifuge (CFG)
Centrifuge (CFG) Price	0.294 USD
Price Change 24h	1.76%
Price Change 7d	0.03%
Trading Volume 24h	838,343 USD
Trading Volume Change 24h	67.15%

Cryptocurrency Metadata

You can check the development status and social media information of Centrifuge (CFG) through the links in the table below.

Metadata Source	URL
🌎 Official Website	https://centrifuge.io/
📖 White Paper	https://centrifuge.io/cfg_token_summary.pdf
🛰️ Source Code (GitHub)	https://github.com/centrifuge/
🐦 Twitter	https://twitter.com/centrifuge
🤖 Reddit
🎺 Message Board	https://medium.com/centrifuge

Where to Buy Centrifuge (CFG)

Here are the top ten world crypto exchanges where traders can buy Centrifuge (CFG) in 2024.

Top10 Exchanges	Listed Status	Page URL
Binance	Not listed
Coinbase	Not listed
Kraken	Listed	https://pro.kraken.com/app/trade/cfg-usd
KuCoin	Listed	https://www.kucoin.com/trade/CFG-USDT?rcode=rPH7VCS
Bitfinex	Not listed
OKX	Listed	https://www.okx.com/trade-spot/cfg-usdt?channelid=43776722
Huobi	Not listed
Bitstamp	Not listed
Bybit	Not listed
Gate.io	Listed	https://www.gate.io/trade/CFG_USDT

Frequently Asked Questions