Although Liquid Meta Capital Holdings Ltd. (NEO:LIQD) is known for its liquidity mining operations that have produced prodigious gross profit margins early on, the company is more than earning high yield on deployed capital. Foremost, Liquid Meta is a Software as a Service (SaaS) company focused on the lucrative institutional market—a demographic that is increasingly becoming a dominant presence in the space. While “first mover advantage” gets bandied around often in various forms of stock talk, it truly has meaning it this instance.
For those unaware, SaaS companies are organizations that use software to provide customers with a service. These businesses create, develop, host, and update the product themselves. The benefit of SaaS businesses is that they have access to an unrestricted global market and can scale without increasing product delivery costs. It is why some of the highest gross margin companies are domiciled on the NASDAQ-laden. For companies that make cutting-edge and in-demand software, the operating leverage and cash flow they can generate is unmatched among industries.
A SaaS platform generally offers a wide range of features and functionalities solutions to the \end user—solutions that make it easier to access an application and automate back-end processes. This will be particularly important in institutional DeFi, where complicated considerations such as compliance, KYC/AML and accounting must be built-in. The first such companies offering robust and comprehensive solutions will have a leg-up in this fast growing market.
While Liquid Meta is just beginning its journey, its mission to become the bridge between DeFi and institutional access is immutable. The visible part of its operations is liquidity mining—however that’s just a means to an end. The real focus in on the Meta Bridge platform, which links DeFi markets and assets through a central platform. With no public companies exclusively focused on this end of the market, Liquid Meta has a chance to break into an area of the market with should dominate Total Value Locked (TVL) going forward.
Click on the embedded link to view our Part 2 of our newest interview with Liquid Meta CEO Jonathan Wiesblatt. To view Part 1 of the interview, click here.