News
Are cryptocurrencies back from the dead?
New beginnings
“There have been a lot of new projects coming out in 2022 with new ideas and new ways of interacting with the blockchain applications,” says Forza.
“In the background obviously there were many projects that died out, but there were also many projects that were improving their protocols and systems over time. bearish market.”
Strength Lists Aave, Solana, Lido, Uniswap AND Thorchain among the projects that emerged in 2021 and 2022.
“There have been new developments, new projects, new things you can do, processes and protocols, non-fungible tokens (NFTs)gaming, re-staking and real-world assets,” he adds.
Over the next year, Forza believes financial planners and investment managers will recommend Bitcoin, Ethereum or other crypto products as part of their diversified portfolios.
“Cryptocurrencies have been declared dead many times. The approval was a watershed moment for the industry because it makes it much easier for asset managers, advisors and others to invest client money in cryptocurrencies.”
— Henrik Andersson, Apollo Crypto
Jemma Xu is the co-founder of Singularitya protocol that aims to facilitate compliant access TO decentralized financeor “DeFi”, while ensuring commercial confidentiality for all on-chain transactions.
Xu is also currently working on a project scheduled to launch in mid-2024.
“I think from the builders’ point of view, there has been a continued upward trend, while prices have been much more volatile,” says Xu.
Speculating on trends, Xu says she is a “big fan.” zero-knowledge proofs.
“Building with zero-knowledge technology requires significant technical expertise and an understanding of the nuances of what can and cannot be achieved,” says Xu. “I think that’s why, as a narrative, it was difficult for the general public to understand. I think he is ripe to do well in the coming years.”
Liquid staking and re-staking They are also very hot topics, Xu says.
Cryptographic regulation
Forza says that with 20 products launching worldwide every day, it can be difficult to keep up with developments in the cryptocurrency world. In terms of regulation, he adds, it is necessary to ensure a balance between strong protection of investors and cryptocurrency investments and the ability of people to invest.
The need for balance remains a pertinent issue.
In speaking at Blockchain Policy Week APAC in March 2024, ASIC Commissioner Alan Kirkland referred to the “regulatory trilemma”, which “puts forward the idea that oversight of financial innovation can at most achieve two of three objectives”: consumer protection, market and encouragement of financial innovation.
“I think, from a builders’ perspective, there has been a continued upward trend, while prices have been much more volatile.”
— Jemma Xu, The Singularity
“But ultimately the challenge of good regulation is finding a workable balance between all three,” Kirkland said.
“From ASIC’s perspective, regulation and enforcement helps to promote trust – and trust is essential for every part of the financial system – including cryptocurrencies and decentralized finance. A system with limited oversight, which is opaque, unpredictable and unreliable – leading to large-scale losses for investors or market manipulation or abuse – will ultimately fail to thrive.”
Andersson believes there is no doubt that sooner or later we will hear that cryptocurrencies are dead again. He stresses that, to understand cryptocurrency, it is essential to realize that it is a “fundamental innovation” that cannot disappear.
“It’s a real invention and creates a lot of value and financial freedom for a lot of people,” he says.