Hello community members!
The Velo marketing team attended the famous Token2049 Singapore last month from September 28-29. We’re excited to share the event highlights in this new blog. We hope you enjoy reading this. Let’s get right in!
The Evolving Crypto Narrative
The focus in the crypto industry right now is on rebuilding the industry’s credit. Although that is important, panelists argued that what’s most important is making sure the crypto narrative reflects what we want to put out. In recent years, layer one tokens such as Bitcoin and ETH have gained more legitimacy among investors and regulators. The regulators have become more open to cryptocurrency and are following the trend of not banning it but instead giving clarity to the market.
The crypto narrative should be about the benefits of DeFi, the technology, and how mass adoption will be achieved. The actual use cases of blockchain and crypto are often overlooked and lost amid ideas and hype. For example, all big names in the industry agreed that stablecoin is the way for cryptocurrency to grow. This is because it has the potential to develop into various use cases and gain mass adoption. The industry needs to use this opportunity during crypto winter to shape the correct narrative on crypto for the space to grow sustainably.
Scaling DeFi toward Mass Adoption
The evolution of DeFi is an exciting aspect of the crypto space. Recently, DeFi has been attractive because it presents flexibility in raising capital and finance, so we can expect to see more real-world assets being brought into DeFi in the upcoming year. However, DeFi still has problems with hacks and exploits and a lack of liquidity. Different protocols need to consolidate to reduce the space between liquidity. The goal for DeFi is to build a system with a sustainable yield that doesn’t require a Ponzi scheme and creates access to the space for anyone to enter.
Experts believe that CeFi will also merge and transform into regulated DeFi. The ecosystem between CeFi and DeFi will become more interconnected, and we will see this rising trend in the following years to come. The aim is to create easy-to-use products that people don't even realize are blockchain.
Building new Financial Rails through CeDeFi
One key industry that would benefit significantly from CeFi and DeFi integration is the financial sector and how we can build new financial rails through blockchain. Blockchain enables 24/7 trading and settlements that aren’t available in traditional finance. As we expand and more real assets are brought into the blockchain network, we can use the infrastructure to disrupt and improve financial services and inclusion.
There are technical challenges that the industry still needs to overcome, such as interoperability in all blockchains and clarity in the regulatory landscape, especially when it comes to financing. However, the industry is moving in a positive direction. Experts believe there will be a revamp in payment, specifically in terms of the stablecoins’ use case, and the infrastructure will be more robust and optimized for applications. Blockchain technology will gain mass adoption in the way that it’ll seamlessly become a part of daily life.
The narrative is constantly evolving regarding the risk of generating yields and transparency of CeFi and DeFi. Full disclosure and real-time risk management have become the industry’s new standard. CeFi and DeFi would always co-exist in this sense, and no one is better. Which one is better depending on your main target and primary needs? Hence, it is clear that there will be a bridge between CeFi and DeFi that is so seamless that you don't even realize you’re shifting between the two.
Navigating the Future of Crypto
And that’s the recap of Token2049 Singapore 2022 highlights we’ve captured for our community members. It was a 2-day event full of buzz and hope, especially in the direction of where the crypto space is heading. Although the market is down, all panelists agreed on one thing – that this is the best time to grow and build. Any industry has its business cycle, and crypto is the same. The most important aspect is to focus on growing your team and building your product and technology so that when the process comes around, you are ready to take advantage of any opportunities that come your way!