A number of big names have invested in fintech company SeaShell, an alternative investment app that promises users up to 10% return on investment, but could it be too good to be true?
Whatâs happening: Startup SeaShell raised $6 million dollars from a variety of investors, ranging from venture capital firms to individuals like Shark Tankâs Mark Cuban and Polygon co-founder Sandeep Nailwal.
Come on in, the water is fine: SeaShell is using the lure of potentially high yield investments to tempt the DeFi hesitant masses to dip a toe in, and while there is potential for smooth sailing there could also be blood in the water.
- On the backend, the app uses tools and protocols too technical for mainstream users but skins it with an easy to use platform and slick brand.
- SeaShell users deposit their dollars and the app allocates it to an array of yield generating investments they claim to provide stable returns. According to SeaShellâs website, this mix includes traditional assets like gold along with newer borrowing and lending DeFi protocols.
Sink or swim: While it may seem pretty attractive compared to typical US interest rates offered by banks, SeaShell deposits are not FDIC insured.
- That means putting your money into SeaShell is more like buying stocks than depositing in a savings account.
Big picture: SeaShell is following a trend of appsâsuch as BlockFi and Crypto.comâbringing the latest DeFi tools mainstream with slick and easy to use applications. While these tools may generate higher yields than traditional banks, the absence of insurance may give more risk-averse savers pause.
