Author: @tomwanhh
Translation: Blockchain in Vernacular
Goldman Sachs is a world-renowned investment bank, securities and investment management company headquartered in New York City, USA. Founded in 1869, Goldman Sachs is well-known for its influence and leading position in the global financial market.
At the recent Goldman Sachs Digital Asset Conference, @tomwanhh briefly summarized the discussion on the most commonly heard terms: TON, tokenization, ETF, user experience, and regulation:
1. The next wave of digital asset investment
The speakers are:
@dan_pantera of Pantera Capital
@richwgalvin of Digital Asset Capital Management
Joseph Naggar of Republic Digital
@rviewfromhk by Animoca
1) How to introduce cryptocurrencies to traditional financial investors
Similar to other asset classes, but don’t put too much emphasis on the philosophical aspects
The main challenge at present is high volatility
Analogy of the maturation of emerging markets and its connection to the Internet boom
2) Has venture capital investment fully recovered?
The speed is similar to before. The price drop is a great opportunity to invest at a reasonable valuation
Liquidity investing is also a good area
3) Why Altcoin underperform
Many new token generation events (TGEs) have led to some capital rotation
In the long run, regulations will determine winners and losers
The overall crypto market valuation is very similar to the S&P 500, with the top assets accounting for the majority of the market share
4) Predict exciting areas of the future
Every speaker mentioned @ton_blockchain
Dan:
Combining blockchain and AI in the field of traceability and decentralization of AI models/computations
TON and its large existing user base
Richard: AI and consumer-facing interfaces. We have enough block space now. We need to attract more users by simplifying complexity. Telegram is a good example.
Joseph: TON/Near/Bittensor/Bitcoin smart contracts.
Robby: Zero-knowledge proofs (ZKP) for decentralized identity and strong blockchains like TON for distribution.
2. Basic digital asset technology
The speakers are:
@konstantin11, BlockdaemonHQ
@YuvalRooz, Digital Asset Holdings
Aaron Schnarch, Anchorage
@TimRiceCM, Coinmetrics
1) Where blockchain demonstrates real-world capabilities
Tokenization: lower costs, higher efficiency and 24/7 market. For example, @Securitize’s BUIDL
Bitcoin ETF
2) What are the main challenges facing the industry today?
Compliance: Staking remains complex in terms of reporting and tax calculations
Complexity: Staking may still be too complex for investors
User experience: ETFs are a great example of simplifying operations by abstracting the custody process from investors.
3) Is staking the next trend for institutional adoption?
Institutions will begin to participate in decentralized networks, such as running nodes or validating networks. However, regulations are still not completely certain.
Staking is still complicated, simplification is key
3. Where will cryptocurrencies go after ETFs?
The speakers are:
@Gautam_iit of Brevan Howard Digital
Coinbase’s @0xUNaeem
@Chris_Zuehlke of Cumberland
@HHorsley of Bitwise
1) Will there be more cryptocurrency ETFs besides Bitcoin and Ethereum?
Solana and TON blockchains offer different options than Bitcoin and Ethereum. Therefore, ETFs are not limited to Bitcoin and Ethereum.
Index funds could be the next wave of cryptocurrency ETFs as a durable long-term solution
2) In hindsight, what’s surprising about a Bitcoin ETF? What would the second-order effects be?
Coinbase survey expected US Bitcoin ETF assets under management to reach $10 billion a year before launch, but actual results exceeded expectations
The rate of adoption by investors and advisors has been astonishing, significantly higher than GLD
The flow of funds from retail and high net worth individuals was surprising as institutions have not yet fully entered
The next wave may be pensions and endowments
The second-order effect may be tokenization
3) What changes have occurred in market dynamics after ETFs?
Liquidity is more abundant during US market trading hours
Trading volume during US market hours increased 3-4 times, accounting for 50% of total trading volume
Derivative flows begin to dominate price action
4) In addition to ETFs, what other factors drive Bitcoin price fluctuations?
Regulatory changes
interest rate
Ordinals/BRC-20 demonstrates innovation at the base layer
BitVM and other Bitcoin scaling solutions
Reputational/counterparty risk mitigated through ETF vehicle
@HHorsley asked viewers how many had heard of ordinarys, and surprisingly over 70% said yes.
5) Where are we in this cycle?
Technology is ready for prime time. Transaction costs have been reduced through L2 and other L1s like Solana
Institutions will adopt some blue-chip DeFi protocols to build their own solutions
6) What impact will the US election have on cryptocurrencies?
The crypto agenda is louder than ever
We need a clear regulatory framework
A clear regulatory framework can foster innovation and increase U.S. competitiveness
7) Best and worst-case scenarios at the end of the year:
Best case scenario:
A super app is born, attracting millions of users
Institutions enter the on-chain space
Worst case scenario:
Lack of motivation and bad reputation
Talent flows to the AI industry
4. How Web3 can empower a billion people to change capitalism and financial markets
This point was made by @ysiu.
Cryptocurrency is not that different from the real world structure, it’s just more advanced:
DeFi is now one of the largest central banks with $100 billion in total locked value
DAOs may be the organizational structure of the future
1) How Cryptocurrency Helps the Gaming Industry:
NFTs give users the power to own a piece of the internet
In-game currency = Token
Skin = NFT
Historically, most of the money raised by game studios has been spent on advertising on Facebook, Instagram, or TikTok to acquire users. However, almost no money has flowed back into the gaming industry or users.
Airdrops are a new user acquisition strategy. Even if players don’t like the game, the tokens they sell will remain in the cryptocurrency ecosystem.
2) Challenges currently faced by Web3 games:
Many crypto games are still restricted by mainstream platforms such as Apple or Steam. They may need to disable NFT features in the game.
Another option is to build games on the Telegram blockchain, where developers can benefit from Telegram’s large user base and attract users.
5. Institutional spotlight: What are their focus in the digital asset field?
The speakers are:
Tony Ashraf of Blackrock
Geoff Kendrick of Standard Chartered Bank
Russell Barlow of Abrdn
1) Why Tokenized Money Market Funds Are Important for Cryptocurrency
Income assets are high-quality collateral assets
Stablecoins have no returns and may have potential counterparty risks
A more efficient asset than using non-yielding cash
2) Why did Blackstone choose to work with @Securitize to tokenize money market funds?
Opened up new distribution channels
This is a highly effective asset
Provides the cryptocurrency industry with an opportunity to earn risk-free interest rates without leaving the blockchain
3) What strategic investments has your company made?
Russell from Abrdn:
24/7 trading infrastructure
Work closely with Hedera, running nodes and participating in the governance committee
Geoff from Standard Chartered:
Zodia Hosting
Tony from Blackrock:
Blackrock invests in companies it can work with
Partnering with Securitize to help distribute tokenized funds
JPM, Coinbase, BNY, etc.
4) Which opportunity is the biggest? Cryptocurrency, custody, collateral management, or tokenization?
Cryptocurrencies will dominate. So will tokenization, but we need to move beyond the proof-of-concept stage.
Super apps in the cryptocurrency space
Collateral management will bring surprises
Disclaimer: These are not my opinions. This is a summary of a discussion panel at a digital asset conference.
PS: Sorry for the scattered notes. Hope this information is helpful!
Link to this article: https://www.hellobtc.com/kp/du/07/5269.html
Source: https://x.com/tomwanhh/status/1806754176279498798
