The entire cryptocurrency market is valued very similarly to the S&P 500.
Written by Tom Wan
Compiled by: 1912212.eth, Foresight News
The most frequently appearing keywords in this meeting are:
- TON
- Tokenization
- ETF
- UX (User Experience)
- Supervision
The following are some excerpts from the meeting:
How to “sell” cryptocurrencies to traditional financial market investors/participants
- Similar to other asset classes, but without having to focus on macro financial market fundamentals
- The main challenge at present is that the market is still not stable enough and the volatility is too high.
- Find similarities with emerging markets and early development paths of the Internet industry
Have VCs regained their activity?
- The rhythm is similar to the past. After the big drop, it is actually a great opportunity to invest at a reasonable valuation.
Why Altcoin are underperforming
- New tokens continue to emerge, leading to capital diversion
- In the long run, regulatory risks cannot be ignored
- Currently, the total market value of the crypto market and the S&P 500 target pool is similar, and another similarity is that both have top assets occupying the majority of the market share.
In the predictions and “highlights” section of the conference, every speaker mentioned TON
Dan (Pantera Capital):
- Blockchain X AI, AI Models/Origins in Computing and the Decentralized Field of AI
- TON has a large existing user base
Richard（Digital Asset Capital Management）：
- AI and consumer-facing interfaces
- There is enough block space now. What we need is to attract more users by "abstracting complexity". TG is a good example
Joseph (Republic Digital): TON/Near/Bittensor/Bitcoin smart contracts
Robby: ZKP for decentralized ID and powerful distributed blockchains like TON
How does blockchain demonstrate its ability to connect with the real world?
- Tokenization: lower costs, higher efficiency, and a 24/7 market. For example, @Securitize’s BUIDL
- Bitcoin ETF
What are the main challenges in the industry today?
- Compliance: Staking remains complex in terms of reporting and tax calculations
- Complexity: Staking still may not be simple enough for investors
- User Experience: ETFs are a good example of a solution that abstracts the custody aspect from investors
Is staking the next trend for institutional adoption?
- Institutions will begin to participate in decentralized networks, such as running nodes or validating the network. However, regulations are still not fully determined.
- Staking is still complex, and how to achieve abstraction is key.
Will there be more cryptocurrency ETFs besides BTC and ETH?
- Solana and TON do offer different products than BTC and ETH. Therefore, there will not only be BTC and ETH ETFs.
- Index funds may be a long-term sustainable solution for the next wave of cryptocurrency ETFs.
Looking back, is there any unexpected surprise in the Bitcoin ETF? What will be the indirect effect?
- Coinbase survey expected US Bitcoin ETF assets under management to reach $10 billion within a year before launch, but the results exceeded expectations
- The rate of adoption by investors and advisors has been quite impressive compared to GLD
- The inflow of funds from retail investors and high net worth individual investors is very fast, because institutions have not yet fully entered
- Pension funds and endowments may be next
- An indirect effect is likely to be the tokenization of assets
How have market dynamics changed since the launch of ETFs?
- Liquidity deepens during US trading session
- Trading volume during the US trading session increased 3-4 times, accounting for 50% of total trading volume
- Derivatives trading begins to dominate price movements
In addition to ETFs, what other factors will drive Bitcoin price changes?
- Regulatory changes
- interest rate
- Ordinals/BRC-20 innovation on the base layer
- BitVM and other Bitcoin scaling solutions
- Credibility/counterparty risk mitigation
@HHorsley asked how many people had heard of the inscription, surprisingly, over 70%
Where are we in this cycle?
- The technology is ready for prime time. Transaction costs have been significantly reduced through L2 and other L1s like Solana
- Institutions will build their own solutions based on top DeFi protocols
How Will the US Election Affect Cryptocurrency?
- Cryptocurrency is more in the spotlight than ever
- We need a clear regulatory framework
- A clear regulatory framework can foster innovation and increase U.S. competitiveness
Best and worst-case scenarios for the industry at year end:
Best case scenario:
- A super app is born that attracts millions of people to use it
- Institutions begin using blockchain
Worst case scenario:
- Lack of progress and bad reputation
- Talent flows to AI
Cryptocurrencies are not that different from the structure of the real world, but in a more advanced way:
- DeFi is now one of the largest central banks with $100 billion TVL.
- DAOs may be the organizational structure of the future.
How Cryptocurrency Helps the Gaming Industry:
- NFTs enable users to own a piece of the internet.
- In-game currency = Tokens
- Skin = NFT
- Historically, most of the money raised by game studios has been spent on ads on Facebook, Instagram, or TikTok. Very little of it has flowed back into the games 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.
Current challenges facing Web3 games:
- Many cryptocurrency games are still restricted by mainstream platforms such as Apple or Steam, which require them to disable NFTs in their games.
- Another option is to build games on Telegram, where developers can also benefit from Telegram's huge user base.
Why Tokenized Money Market Funds Are Important for Cryptocurrency:
- Income-generating assets are high-quality mortgage assets
- Stablecoins do not have the ability to "actively earn profits" and may have the risk of potential counterparties "doing evil".
- Users are given the option to use assets that are more capital efficient than cash.
The industry’s biggest opportunity may be cryptocurrency asset management, mortgage asset management or tokenization?
- Cryptocurrencies will dominate. So will tokenization, but we need to move beyond the proof-of-concept phase.
- The super app of cryptocurrency.
- The mortgage asset management track may bring surprises.
