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In this video, the host examines the growing prominence of the Chinese yuan and its challenge to the US dollar's dominance, citing recent policy statements, trade surplus data, and the digital yuan pilot. The analysis connects these macro trends to the Thucydides Trap theory, suggesting a shift in global power dynamics. The presenter then outlines three investment themes—precious metals, rare earth minerals/energy, and cryptocurrencies—positioned as hedges against a destabilizing monetary system. The bulk of the content serves as a sponsored pitch for DeFi Technologies (ticker DEFTF), detailing the company's business model of providing regulated crypto exposure through its subsidiary Valor, which issues crypto exchange‑traded products (ETPs). An earnings‑call excerpt highlights DEFTF's revenue, profit run‑rate, assets under management, and valuation multiples, while endorsements from Anthony Pompliano and Erik Jackson are presented to bolster credibility. The video concludes with a strong call‑to‑action, a disclaimer about investment risks, and an urging for viewers to consider buying DEFTF shares.
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Are the days of Western financial dominance numbered? As the Chinese yuan gains traction globally, quietly but steadily, the US dollar-dominated international monetary system begins to exhibit significant downward trends. Geopolitical analysts and global finance observers have taken note of China's recent policymakers statements expressing satisfaction with the yuan's ascent to a 2.5-year high. As the world's largest economy accelerates its recovery, the People's Bank of China has granted the market more freedom to devalue the yuan. The yuan's growing relevance on the global financial stage indirectly challenges the dominance of the US dollar. What about the implications? Well, the implications of these shifts are profound. An increase in the yuan's value, coupled with a decline in the US dollar, will certainly impact not only purchasing power but also the global availability of less expensive Chinese commodities. These changes could lead to lower prices worldwide. It's crucial to recognize China's economic position. It has overtaken the United States as the world's largest economy when measured by purchasing power parity, known as PPP, which is the amount of goods and services a citizen can buy in their own country. Contrary to some media reports, the yuan is one of the most traded currencies, and it seems poised to join the exclusive ranks of the world's most important international heavy currencies. Doing some research, I found out that the yuan has appreciated approximately 6.6% against the US dollar since early 2020. This appreciation is largely due to the US dollar's nearly 6% depreciation against a basket of currencies. And oh, as of 2020, China became the largest global economy to grow by about 1.9%, a growth rate that the International Monetary Fund noted surpassed their June forecast by 0.9 percentage points. These statistics highlight why the global economy will increasingly depend on the Chinese market. Data from the State Administration of Foreign Exchange indicates that China's goods and services trade surplus reached 315.2 billion yuan, or $48.2 billion, in October of the same year. China's trade income was approximately 1.66 trillion yuan, or $254.2 billion, while expenditure amounted to 1.35 ¥4 trillion or $204.2 billion. The necessity for the US administration to develop sound policies and effective strategies in dealing with China becomes apparent. The US economic and financial sanctions policy, which has impacted many countries during both Donald Trump and the current President Biden has driven nations the likes of China, Russia, Turkey, Iran, Venezuela, India, and even other European countries to seek alternative currencies in trade. Currently, the yuan is considered the best alternative. China's recent test of its digital yuan marks a significant development. The People's Bank of China issued about 10 million yuan, or $1.5 million, in digital currencies to 500 randomly selected users, signaling a public test of the yuan's digital payment system. This move is seen by many as a direct challenge to the United States dollar dominance. Thucydides Trap theory suggests that the dangerous dynamics when a rising power threatens to displace an established one, as seen with Athens and Sparta, Germany and Great Britain, or China and the US today. The digital yuan's success could offer an alternative to the US dollar, helping global financial markets move away from the dollar-based system. This shift would allow China and other nations to circumvent US sanctions and restrictions. In my book, The Dynamics of Russia's Geopolitics: Remaking the Global Order, I argued that China's rise The US's declining global power, the disillusion of the current global order, and potential military ties between Russia and China indicate that a shift in the global balance of power is already underway. Ironically, only a decade ago, the West predicted that China's economy will take many decades to catch up to the United States. This prediction has proven false. The ongoing trade war between the United States and China highlights this misjudgment. The reality is clear: the global economic landscape is shifting, with China at the forefront of this transformation. Then there is the investment strategies in this changing landscape. What will they be? Well, consider this shift. Investors are left wondering where to allocate their funds. The uncertainty and potential volatility in the global financial system necessitate a strategic approach to investments. Here are 3 potential areas of focus: 1. Gold and Silver. These precious metals have historically been seen as safe havens during times of economic uncertainty. Gold and silver offer stability and are likely to retain value even as fiat currencies fluctuate. As traditional financial systems face potential upheaval, these metals could provide a hedge against currency devaluation and inflation. 2. Rare earth minerals and energy. With the global transition towards green energy and technological advancements, rare earth minerals are becoming increasingly valuable. These minerals are essential for producing high-tech devices and renewable energy technologies. Investing in rare earth minerals and energy resources can capitalize on the growing demand driven by technological and environmental shifts. And third is cryptocurrency. Well, cryptocurrencies represent a revolutionary shift in the financial world, offering decentralized and secure transactions. As trust in traditional financial systems wanes, cryptocurrencies like Bitcoin and Ethereum could gain prominence as alternative stores of value and mediums of exchange. The decentralized nature of cryptocurrencies also aligns with the broader trend of reducing reliance on centralized financial institutions and major currencies. This last category is of great importance as one who invests in this sector Leading me to talk about today's video sponsor, DeFi Technologies. Stock ticker is DEFTF. First, let me provide you an overview about the company. DeFi Technologies is a public company founded in 2020 out of the need for a better and a more secure access to decentralized finance. DeFi provides regulated, diversified exposure to a new wave of blockchain-based assets, services, and applications. The Rise of DeFi Technology. In this new era of finance, the financial world is witnessing a revolutionary transformation with the advent of decentralized finance . DeFi technology. That's where the word came from. DeFi is not just a buzzword. It represents a paradigm shift in how we perceive and interact with financial systems. As a holding company, Valor, a treasure trove in the crypto industry. As such, Valor is among the companies leading this charge. A name synonymous with innovation and profitability in the DeFi space. And with this comes the significant role and the promising future VALOR holds. Over the first 6 few months of this year alone, talking about 6 months here, DeFi Technologies stock surged an astounding 150%. Reaching a 52-week high. As one who seeks investment opportunities and who's investing in this company, I am here to share with you why this company is an unparalleled investment opportunity. Let's hear first from the company itself, from its Q1, first quarter earnings call.
I think everybody needs to look at the company as a whole. So, so we basically did $10 million US in revenue in Q1. Q2, the math is really easy, and I'm using US numbers here, but our AUM is basically 50% higher in Q2. So multiply $10 million US in Q1, which is, you know, basically break even for the year just in Q1. So you have $15 million US, call it, in profits for Q2, and you have $40 million in profits off of the trades. So we're already at a $55 million profit run rate in the first 6 months, $55 million should be trading at 20 times profits because we're not even talking revenues, we're talking profits. That's a billion-dollar AUM company. And if you look at our US market, that's a 4-bagger from our current share price. So there is a massive valuation disconnect here, which we're obviously going to be working on aggressively to change. There are broker-dealers all over in Canada and the US that are reaching out to us now that they're seeing what this company is doing. And, you know, this is the irony, everyone.
Pioneer in bridging traditional finance and crypto world. This is why DeFi is a trailblazer in enabling traditional investors to gain access to the highly effective rapidly expanding digital asset sector, including decentralized finance and Web3. Its unique business model offers a secure and regulated gateway, eliminating the need for investors to create separate crypto wallet or account. And given its current trading at a 52-week high, reflecting its strong performance and market confidence. Doing the research myself, I learned that the analyst who is covering this stock forecasts more than 150% upside from its current value, which is a conservative estimate in my opinion. The company is doing very well. Here is their, their stock ticker on your screen. Check it out. What is also remarkable about this company is that it is ultra profitable, has hyper growth, amazing management, not on NASDAQ exchange floor yet. And the key important thing is that Main Street is getting it before Wall Street. It is an OTC, known as the over-the-counter traded. And lastly, when you have a profitable company, it does not need to raise any money, which is the case here. The company has a solid management that oversees this ultra profitable company, and it is under none other than Anthony Pompliano, known as Pump.
During a recent CHON conference, which was held this year on April 4th, Pump stated, and I quote, "The stock I would have pitched at the Sean Conference." Each of these picks has a solid thesis behind them, but I think they will be drastically outperformed by the stock that I would have pitched yesterday if I was at the conference. My pick would be DeFi Technologies.
As mentioned earlier, DeFi Technology owns Valor, And by the way, Valour is the only licensee or issuer of crypto exchange traded products known as ETPs in Europe. By the way, ETPs are similar to exchange traded funds, which is the ETFs here in the United States. Valour has licensed about 23 crypto ETPs. It allows investors, including hedge funds and sovereign wealth funds, to gain exposure to cryptocurrencies like Bitcoin, like Ethereum, like Solana, among others. Valor manages 23 different ETPs and is looking to issue more, making it a significant player in the crypto investment space. Erik Jackson, the founder of EMJ Capital, recently endorsed DeFi technologies on CNBC Money Movers to discuss whether the tech stocks are currently in an AI bubble. Nvidia, lack of competition, for example, and other under-the-radar plays in artificial intelligence. Here is what Erik Jackson wrote on X. The market is starting to take notice. AMJ Capital's Eric Jackson on Dell said, and I quote, "Still cheap compared to other AI plays," end of quote. And you know, guys, since Jackson's endorsement, the stock has surged 55% in just one week, further validating the bullish sentiment. Interestingly, what makes Valor unique is that it can issue crypto ETPs, which is, by the way, a process that takes between 2 to 3 years to acquire. This puts Valor ahead of others since it started back in 2017. The genius and the foresight has already driven close to $1 billion in assets under management to Valour, highlighting its pioneer role in the market. Let me break it down for you. Please get a pen and a paper. The financial metrics of DeFi technologies are very impressive. Valour makes 7% on its assets under management. Which are around, as I mentioned earlier, $1 billion. So it makes about $70 million in revenue as of this year. Its overhead cost is estimated about $10 million. So you take the $70 million, take $10 million out of it, that leaves you with $60 million. That's how much profit Valor will generate in net income this year. Considering DeFi Technologies market cap of $320 million, in addition to having $80 million in cash, the estimate for everything DeFi Technologies own, including Valor, is about $240 million. That's when you take $320 million and you take $80 million out of it. This is how much they have in hand. One thing is sure, the numbers I just shared with you suggest that this valuation indicates a 25% return on investment. Now be honest, guys, tell me where else can you find an investment with such a return in the market today? Where else can you find an asset generating a 25% return? This is why it makes DeFi Technologies one of the most attractive and undervalued companies globally. And by the way, since DeFi Technologies' price on the stock market is very cheap, the company just authorized buyback of their own shares up to 10%. Today, the price is traded at $1.26. Some analysts expect a target price of $3 per share, which is profitable, I would say. I'm going to share with you something personal. The team here at Geopolitics in Conflict, we decided to buy shares in this company given the low price and the expectations of great return that will be between $8 and $10 a share. Here's my conclusion for you. What are you waiting for? You can either invest in DeFi Technologies. Stock ticker is DEFTF. Visit the website, check it out, and check their stock ticker and see for yourself why DeFi Technologies is poised to continue its rise. Here's my disclaimer to you. As we stand at the cusp of a new era in global finance, it is crucial to stay informed and adaptable. The traditional financial system may be transforming, but with strategic foresight, you can find opportunities to thrive. Don't waste any time. Click the link below to DeFi Technologies and read for yourself. Remember, there are always risks in investments and there are no guarantees of any kind. Thank you.
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