Today, Liquid Meta Capital Holdings Ltd. (NEO:LIQD) (OTCMKTS:LIQQF) reported fourth quarter and full year 2022 financial results that were noteworthy for DEFI investors. While the “hype” meter for the sector is near zero given the drop in TVL and volatile macro market conditions over the past few months, Liquid Meta has demonstrated its ability to maintain liquidity and generate significant revenue amid difficult industry conditions .
Total blocked, according to defillama.com
In the fourth quarter, Liquid Meta achieved quarterly gross revenue – which included reward tokens and trading fees – of $932,896. Sales figures were down sequentially from the previous quarter ($1,108,946) on lower returns attributed to falling confidence and deleveraging in the sector. Liquidity mining operations in Q4 involved seven different blockchains, twenty-six dapps and forty-one liquidity pools, using a variety of market-neutral strategies.
Notwithstanding an improving yield environment, Liquid Meta has demonstrated remarkable resilience in preserving cash in its first year of operations. As of May 31, 2022, the Company reported total assets of approximately $22.0 million (C$27.8 million), which approximates the $22.2 million in gross earnings that Liquid Meta will post upon the close of its public listing achieved on the stock exchange NEO exchange in December 2021. The ability to save cash isn’t just a by-product of generating significant revenue — $4,740,467 for the year ended May 31, 2022 — it’s a relatively lean cost structure that doesn’t require investing in a ton of CAPEX in earnings to generate.
Equally important, Liquid Meta avoided various minefields related to the crash or full operational resolution of one or more Layer 1/2 tokens. In the press release, the company reported no material risks or losses as a result of the collapse of the stablecoin UST and related projects in the Terra ecosystem. This is a testament to the firm’s adherence to strict risk management protocols, developed in part by CEO Jonathan Wiesblatt, who previously served as a portfolio manager at Tier 1 investment firms Ninepoint Partner and Sprott Wealth Management.
Liquid Meta has been structured to operate in all market environments and its business model has been continuously stress tested. I am pleased with the Company’s ability to weather not only intense market volatility within the crypto and broader macro conditions and markets, but also its ability to generate respectable revenues and net returns during this time.
Jonathan Wiesblatt, CEO of Liquid Meta
Liquid Meta also reported on progress in the development of Meta Bridge, its proprietary technology platform being built to facilitate DeFi transactions for financial institutions, family offices and funds. CEO Jonathan Wiesblatt: “We are also continuing to build out our DeFi technology platform to ultimately facilitate institutional access to the world of decentralized finance and crypto yields. Our plans to introduce new technology and a platform are on track and we continue to use components of these tools on a daily basis for our own liquidity mining business.”
On March 15, 2022, Liquid Meta announced that veteran fintech executive Daniel Opperman has joined the company’s management team as Chief Technology Officer.
Liquid Meta ended the day on the NEO Exchange at $0.24 (+6.67%) – less than half of the CA$0.52 per share in cash the company had at the end of its fiscal year with no debt (May 31, 2022 ) reported in its balance sheet.
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