Eco, the finance app has been on the news off late owing to the celebrity status it has achieved.
Eco is a Fintech that has a crypto back-end that they don’t really talk about and which raised $26 million in March. Now it was revealed that Diddy and a whole bunch of other celebrities and athletes had participated in that investment.
There is a lot of pop in this news with A-listers on the list but what is better is the reasons because of which they joined.
Eco has got a USDC lending back-end that’s how they kind of make their money but they don’t really talk about that to the consumers. That crossover of crypto and just more normal finance was a really big driver in getting these celebrities on board.
Eco is putting the crypto stuff on the back end and instead of offering a product that is firmly placed in financial empowerment. It is not like crazy DeFi yields, there is no yield farming scheme here. However, there are yields that are far more attractive than the average savings account can provide in terms of interest. In essence, you are talking about a 2.5% yield on savings that are kept on this app.
It is interesting to see these sort of crypto traditional Fintech mashups happening. The fact that it is attracting big-name splashy investors speaks to this moment where everyone is trying to get into the crypto space. Rapper Nasir Jones (Nas) made a lot of money when Coinbase went public. A lot of people with access capital who’re investing in these companies have started to think what the next thing would be.
If this is sort of a crypto-powered banking alternative then there may be some future for that. That also makes sense for a wide swath of Fintech users.
It is a model of syncing the crypto stuff to the back end and putting the marginally better interest stuff on the front. This is to see if it clicks for an increasingly tech-savvy audience of users.
All these different crypto projects star-ups see this interplay between playing up the crypto angel and educating newcomers on DeFi. Then there’s Eco which’s all about letting the crypto aspect work in the back-end but not burdening its users with all that information.
What is going to be the future of crypto is that all the crypto stuff will be going on in the background. Most people don’t understand how the email works but they still use it and all these protocols are going on in the background. Every time the computer tells the time it’s a completely different protocol and no one knows how that works but everyone enjoys the benefits. This is exactly what is happening with crypto and people are reaping benefits from it.