NEST Roundtable 19: Crypto opportunities in 2023
Nicole, NEST Protocol
Suman, Analyst at Tritium
Kinsa, Director of Growth Marketing at Republic Crypto
Hana, Co-Founder at NEST Protocol
How do you think the role of cryptocurrency will change in the next year? Or how do you see the adoption of cryptocurrency by mainstream consumers changing in the next year?
WhaleCoinTalk: It was just people that were passionate real tech guys at first, and then miners and communities were involved. Then move to DeFi etc. so I think the trend for adoption is gonna be people will look for simple ways to onboard. They are going to use this technology in their daily life, and they will not care about detailed tech. 2023 is going to be a year for builders for sure, and people will come in because they think this tech is useful.
Nicole: But the total market capitalization of the Crypto market is now approximately US$835 billion, down 62% from US$2.2 trillion at the end of 2021
WhaleCoinTalk: I think people still look back at all the cycles. Most people come in in every bull run because of the massive gains. The retail investors are not capitulating. The retail investors holding on to their coins to their crypto and still using them which we are seeing now. That’s why I am hoping people come in because the tech is useful and is helping them somehow.
Hana: We didn’t have a good market in 2022 because of FTX, Luna etc. But actually, the cycles in the economy of bull and bear are normal. I see there’s a lot of room for significant growth and adoption. Today is like 1997 in web2. The southeast Asian market is strong in terms of regulation. The average crypto holding is around 190 dollars which is higher than in the US. I think the level of adoption will naturally improve, especially in Europe which is still waiting for signals from regulators. We will also see a lot of changes in how to onboard users.
What are some of the potential use cases for cryptocurrency in the near future?
Kinsa: I think it is important to ask this question and see how we can move forward and add some utility to the tokens themselves or see additional use cases for the technology as a whole. I looked at real assets, for example, in the music industry, the music NFT. This benefits them in royalties and getting more people involved for example. This also requires more regulatory things.
Nicole: Do you think the debate around enforcing royalties at the token level is also likely to start in 2023?
Kinsa: It does depend on the regulation and education, but right now, about the tokenized royalties, I don’t think the infrastructure could support legacy music assets yet.
WhaleCoinTalk: In terms of regulation, I think the EU is a little forward-thinking. And in terms of the use cases, we already have some good use cases that people are quite unfamiliar with, so people are still looking for grants. So, 2023 is a good opportunity for people who wants to learn more. You could also consider Layer 1 and dApp tokens.
Nicole: In fact, some people say they have yet to see a game that is good enough or has enough mainstream adoption to convince them of GameFi. So do you think good games would exist next year?
WhaleCoinTalk: The way I look at it is not in web3, it’s in the game industry in general. It’s not easy to build a game, so I do not blame it on web3, I blame it on the whole market.
Hana: I want to talk about really using technology to solve a real-world problem. Tokenization would be one of the ways. It’s not just for the loan market, you could actually use the potential of the global crowdfund or a small group of investors. For DeFi, the potential of tokenization use cases is really large, like in bonds, etc. The capital price now is really expensive, so investors are going to be looking for solutions that really add value.
How might regulatory issues be addressed in the coming years? Do you think 2023 will bring a full, comprehensive regulatory change?
Suman: This year there were many big news incurred. We got different solutions, and I think there will be more products and new ideas to solve it. We also need mass education to the authorities about how we can solve this.
Hana: Due to the events that happened in 2022, in 2023, we will see more strict rules, and governments and regulators will be more realized that they can no longer expose consumers to unsupervised exchanges. The size of the crypto market has grown significantly, and that means that it is actually contagious for the rest financial system, triggering different concerns from regulators. They have to act to mitigate the risks. This will drive adoption up.
WhaleCoinTalk: What regulators have in their eyes is stuff like if the stablecoins issuers have enough reserve that prevents the collapse. They would also require miners to disclose their energy consumption.
What advice would you have for someone who is considering getting involved in this space in 2023? Or what do you see is opportunities for individuals and businesses? Especially in terms of investments?
WhaleCoinTalk: Do some crowdfunding and don’t call it crowdfunding. Get some legal advice, this would save a lot of money, so do not neglect the lawyers.
Hana: I would say if you were starting, it is really important to understand the tech and go into a deep side. Learn things behind it and read the whitepaper. Do not go speculate. Do not be fooled by someone. Do your own research.
Kinsa: I will add something for individuals. Getting involved with a project is quite struggling as there are so much info in the space, but as you learn, you will know what you are interested in etc. Have a focus.
Do you have any key predictions for the crypto industry in 2023?
WhaleCoinTalk: Bitcoin would still be the top dog, because it is the first one and every time there’s news, people always use bitcoin. But also, a lot of people see more utilities of Ethereum with smart contracts. I do not know if we will see a flipping. I think a general sentiment is that the king would still be bitcoin.
Nicole: Actually, I feel like the crypto-native money will continue to flow out of BTC and into good layer 1 tokens + DApp tokens
Suman: 2023 would be more products and projects that people were building in the bear market.
Nicole: What type of products or projects do you think would grow dramatically?
Suma: Might be social products we use, because we can talk to others in a decentralized way.
Hana: Bitcoin is game theory based, and its design is very nice and scientific, so I think it would still the king. In terms of the prediction, I think the central bank digital currencies would grow in 2023.
Hotpizza: How do you plan to onboard web2 users into your project and expand your community globally? And also, how you give the investors confidence?
Woody: We are trying to increase the number of members in our community and traffic to help the projects which are built on NEST. We are doing a lot of effort, and we are expanding our business around the world. In terms of how to incentive the community in the beer market, besides the weekly space, we also have a lot of campaigns. We are also collaborating with other projects, and we are designing our NFT and NESTFI.
Hana: As an infrastructure project, we also plan to onboard users to hackson etc.
Ankur: How in 2023 see the confidence of crypto investors be stored again?
Nicole: Despite the bad market, it still performed quite well compared to other asset classes.
Hana: We need to understand the general macroeconomic trends. When you are not in a stable state, you need some time to get back to equilibrium. So now is the time to learn
Bright: How will crypto adopt and do you have any suggestions?
Hana: We will have a really extreme shift in mass adoption in 2023. We will have users and organizations onboard.
WhaleCoinTalk: Spend 10–15 minutes on crypto every day, regardless of what it could be, such as coding news, etc.
Mario: Considering the negative market and sentiment, what strategy do you have? Do you think it is needed to improve or adopt a new strategy?
Nicole: Personally, I am active in regulatory projects, such as Coincenter.
Hana: Things change fast. What we are doing now is building trucks of community. We need to emphasize how infrastructure could be built. The strategy is medium to long-term.
Fortune: There have been many crashes this year. How do you manage this situation?
Hana: We have a mixture of academics and industry experts. We always have a strategy for different scenarios. True that you can never be 120% ready, but you can prepare a lot and absorb the negative effects of the bear market.