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Reshaping the digital landscape: The future of NFTs

Reshaping the digital landscape: The future of NFTs

I had the privilege of speaking at the Web3 Creator Summit in June, where I participated in a panel discussion on the future of NFTs. This engaging conversation sparked deeper thoughts and insights that I’d like to share, combining perspectives from the panel and my own observations.

One of the central themes of our panel discussion revolved around the significance of community within the NFT ecosystem. Each panelist, including Jenny Zheng from Bybit NFT, Karen Shidlo from Fiat24, Hugo Gong from Westminister Business School, and Anndy Lian, an Intergovernmental Blockchain Advisor, provided valuable insights. Moderating the discussion was Carmac Rowe, an NFT Enthusiast.

Karen emphasized the crucial role that community plays in establishing connections and fostering engagement. She explained how even companies offering utility tokens can benefit from building a strong community. Karen’s own company, Fiat24, relies on platforms like Telegram and Twitter to create personal connections and provide financial services to their community members.

Jenny added to the discussion by highlighting the influence of the type of NFT asset on the importance of community. While art NFTs may not heavily rely on community engagement, other types of NFTs, such as game assets or profile picture (PFP) projects, thrive on community involvement. Building an active and passionate community becomes vital for the success of these projects.

I agreed with the panelists, stressing the need for real communities rather than just a high number of members. In my view, active users and meaningful engagement are more valuable indicators of a strong community than sheer numbers.

Evaluating NFT Projects

During the panel discussion, Jenny shared valuable insights into the process of evaluating NFT projects based on her experience at Bybit NFT Marketplace. She highlighted key factors that play a significant role in their decision-making.

Firstly, they consider the project’s community and its level of engagement. A vibrant and active community indicates the potential for success. Additionally, they assess the utility and functionality of the NFTs. The presence of renowned collaborators, such as influential artists or investors, is another important aspect they consider. Lastly, the team behind the project holds immense importance. Jenny emphasized the team’s commitment and dedication to the project as a crucial factor in their evaluation process.

Diverse Applications of NFTs

Our panelists also delved into the various applications of NFTs beyond art, expressing their excitement about the potential impact on different industries.

Hugo focused on the educational aspect of NFTs, explaining how teaching students to create their own NFT collections can empower them to explore the possibilities of blockchain technology and digital ownership.

Karen highlighted the transformative potential of NFTs in the banking sector. By utilizing NFTs for identity verification and creating a more secure banking ecosystem, they aim to redefine traditional banking practices.

Recognizing the Underlying Value

In recent years, NFTs have captured the attention of enthusiasts and investors alike, from high-profile sales to groundbreaking art collections. However, as the market matures, there is now a growing emphasis on the underlying value and utility of these unique digital assets.

The Power of Community Consensus in NFTs

In the world of NFTs, the value extends beyond the artwork or digital collectibles themselves. One crucial aspect that sets NFTs apart is the sense of community they foster. Whether you’re an artist, collector, or enthusiast, being part of a vibrant community enhances the overall experience and creates opportunities for collaboration and growth.

The importance of community is not limited to a specific niche within the NFT ecosystem. Cultivating a strong community is essential, whether you’re in the web3 or web2 space. The power of consensus and shared interests drives the success of many popular NFT collections. Projects like “Bored Ape Yacht Club” and “Abe Azuki” thrive on the strength of their communities.

Transitioning from Hype to Utility

As the NFT market evolves, there has been a noticeable shift in focus from pure hype and speculation to the utility and real-world value of NFTs. The craze surrounding profile picture NFTs (PFPs) peaked during the last bull run, but the landscape has since changed. Today, the exorbitant prices associated with PFPs, often lacking tangible utility, are less likely to attract buyers.

The true value of NFTs lies in their ability to empower communities to come together and create meaningful experiences. Imagine owning a PFP that grants you exclusive access to special events or allows you to establish localized chapters of like-minded individuals worldwide. These rights and privileges bestowed upon NFT holders offer a unique form of utility that goes beyond traditional physical benefits.

It’s important to note that the days of paying exorbitant amounts for a PFP are likely behind us. While the direction of the market remains uncertain, it’s unlikely that we will witness similar million-dollar sales for profile pictures in the future.

The Growing Influence of Bigger Brands

An important trend in the NFT space is the increasing involvement of larger brands. Established names like Red Bull, Starbucks, and Gucci are actively exploring ways to engage with their communities and customers through NFTs. By leveraging blockchain technology and digital assets, these brands are forging new avenues for interaction and brand loyalty.

It’s vital to recognize that the entry of bigger brands has contributed to a decrease in transactional volume and pricing. Many of these brands are not seeking exorbitant profits from NFT sales but are instead focused on building stronger connections with their communities. As a result, the utility-driven adoption of NFTs is gaining momentum, catering to a broader user base beyond the traditional cryptocurrency enthusiasts.

Exploring New Use Cases: The Future of NFTs

Looking ahead, the potential use cases for NFTs are virtually limitless. Beyond their collectible nature, NFTs have the potential to revolutionize various industries and offer innovative solutions. Here are some potential use cases that have garnered attention:

Digital Identity and Authentication: NFTs can revolutionize digital identity and authentication systems by associating specific NFTs with user profiles, creating a unified digital identity across multiple platforms and services.

Documentation and Certification: NFTs can provide secure documentation and certification, reducing the risk of fraud and enhancing trust in various industries, from passports to educational certificates.

Gaming and Play-to-Earn Models: The integration of NFTs into gaming has the potential to transform the industry by allowing gamers to own and trade in-game assets as NFTs, unlocking real-world value and economic opportunities.

Exclusive Access and Event Tickets: NFTs can grant exclusive access to events, memberships, and experiences, incentivizing and rewarding communities while fostering loyalty and engagement.

Digital Art and Collectibles: Digital art and collectibles remain significant aspects of the NFT market, where artists can showcase their creativity and monetize their work through limited-edition NFT releases. The emergence of generative art and collaborations with renowned artists further expands the horizons of this evolving medium.

In Conclusion

As the NFT market matures, the focus has shifted from speculative hype to the utility and real-world value of these digital assets. The power of community continues to be a driving force behind successful NFT projects, fostering collaboration and growth. With the entry of larger brands, the utility-driven adoption of NFTs is gaining momentum, catering to a broader user base.

Looking ahead, the potential use cases for NFTs are vast. From digital identity to gaming and exclusive access, NFTs have the power to revolutionize various industries and create new opportunities for creators and consumers alike. As the space continues to evolve, it will be exciting to witness the innovative ways in which NFTs reshape our digital landscape.

 

Source: https://www.financialexpress.com/business/blockchain-reshaping-the-digital-landscape-the-future-of-nfts-3161265/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
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South Korea’s Evolving Regulatory Landscape for Cryptocurrencies: What to Expect

South Korea’s Evolving Regulatory Landscape for Cryptocurrencies: What to Expect

South Korea’s cryptocurrency industry is bracing for an impending shakeup as policymakers set their sights on regulation. The government’s primary objective is to safeguard investors by stamping out any fraudulent activities that may be lurking within the industry’s dark corners. While the specifics of these regulations remain unclear, one thing is certain: change is coming.

FIU Takes Action

South Korea has been actively engaged in the regulation of its digital asset market. In the latest development, the country’s Financial Intelligence Unit (FIU) has taken stringent measures against five cryptocurrency exchanges, namely Bithumb Korea, Coinone, Dunamu, Korbit, and Streami, for their blatant disregard of regulations pertaining to the reporting of irregular crypto trading. The exchanges have been found negligent in their duty to monitor and report suspicious transactions diligently, resulting in the discovery of several instances of irregular trading practices. The detected irregularities include using borrowed-name bank accounts for transactions and grossly insufficient internal controls.

Notably, the FIU unearthed one case of a 95-year-old man engaged in late-night trading of over 30 different types of cryptocurrency, covertly splitting his money into smaller amounts to avoid detection. In another instance, a customer repeatedly withdrew money promptly after large virtual asset deposits had been made, raising suspicion of wrongdoing. On top of these, the FIU found that one of the board members of a cryptocurrency exchange was involved in transactions using their spouse’s name, further underscoring the lackadaisical attitude towards internal controls.

As a result, the FIU has levied substantial fines and issued disciplinary warnings on the exchanges, with the potential to order further improvements if the corrective actions taken by the exchanges are deemed inadequate. The fines amount to a staggering 490 million won, and the exchanges have been given a strict deadline of three months to address the identified suspicious transactions. The neglect of duty by the cryptocurrency exchanges and the discovery of various irregular trading practices emphasize the urgent need for stricter regulations and improved monitoring mechanisms to thwart illegal activities such as money laundering in the crypto market.

Parliament Expected to Pass New Digital Asset Bills

The South Korean parliament is expected to pass a bill regulating the digital asset market in April 2023, which was proposed at the end of 2022. Currently, 18 digital asset bills are being debated in the Political Affairs Committee of the National Assembly of South Korea. These bills are part of the proposed Virtual Assets Act, which aims to regulate the digital asset market in South Korea. The bills cover a range of topics, including amendments to the Exchange Act and the Specific Financial Information Act, and the establishment of new regulations.

Out of the 18 bills, 11 are related to virtual assets, 4 are amendments to the Exchange Act for electronic financial services, 2 are amendments to the Specific Financial Information Act, and 1 is related to establishing financial institutions for digital assets. The parliament members have expressed their belief that the bill to regulate the digital asset market would likely be passed in April, owing to the intense debates that have been taking place in the Political Affairs Committee, with members narrowing their differences. Members of the first subcommittee have shown a keen interest in the bill and are expected to pass 18 digital asset bills by the end of the month.

The regulatory landscape for cryptocurrencies in South Korea is rapidly evolving, with new laws being proposed and enforced in response to the growing popularity of digital assets.

Actions Determine the Future

The government is willing to take legal action against crypto companies that engage in fraudulent activities. South Korean prosecutors also seek to extradite Do Kwon, a crypto entrepreneur accused of a multibillion-dollar fraud, to face charges in South Korea. Do Kwon was taken into custody in Montenegro, and South Korea and the US requested his extradition. There have also been attempts to arrest another Co-Founder of Terraform Labs, Shin Hyun-Seung, or Daniel Shin, in connection with the investigation into the collapse of the Terra-Luna cryptocurrency. Still, a South Korean court has twice dismissed the request for his arrest. This suggests that the government is willing to take legal action against crypto companies that engage in fraudulent activities.

With protecting their investors in mind, the domestic market has picked up a lot of confidence. They have seen a resurgence of cryptocurrency trading, particularly in XRP tokens. The trading volume for XRP has spiked to billions of dollars on top Korean exchanges like UpBit, Bithumb, and Korbit. In fact, XRP has overtaken Bitcoin in volume on the top 4 Korean exchanges.

crypto stats

Source: CoinGecko

They are taking steps to regulate the cryptocurrency industry and protect investors. There are also rumours that regulators have started to take notice of foreign cryptocurrency exchanges operating in South Korea through various affiliate marketing programs, social trading, and decentralized wallets. It seems like they will block domestic access to foreign cryptocurrency exchanges that lack the proper registration to operate in the country in due course. Previously, FIU has notified authorities that 16 firms allegedly violated this rule. Violating the registration requirements carries a maximum sentence of five years in prison or a fine of up to 50 million South Korean won (US$38,000).

Ending Remarks

South Korea’s efforts to regulate the rapidly evolving cryptocurrency landscape must be applauded for their aim to safeguard investors and combat fraud. However, the impact of these regulations could be more far-reaching and, dare I say, detrimental than initially anticipated. While well-intentioned, the imposition of rigorous regulations may deter reputable companies from entering the market and quash the spirit of innovation that has driven the cryptocurrency industry thus far. Companies may opt to relocate to jurisdictions with more lenient regulatory environments without a coherent global regulatory framework. This, in turn, could lead to a dangerous exodus of capital and talent from South Korea, leaving it in the dust.

Therefore, policymakers must take a nuanced approach that balances investors’ protection with the encouragement of innovation. Perhaps, instead of going it alone, South Korea could spearhead a collaborative effort that brings together regulators from around the world to craft a regulatory framework that is both effective and equitable. By doing so, South Korea could become a beacon of progress in the cryptocurrency industry, fostering creativity and responsible business practices.

South Korea is still one of the biggest forces in the cryptocurrency space and will remain competitive for years to come if they strike a good balance.

Source: https://www.financemagnates.com/cryptocurrency/south-koreas-evolving-regulatory-landscape-for-cryptocurrencies-what-to-expect/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Crypto Expo Asia 2022 Singapore: The Role of Crypto Exchanges in Today’s Landscape

Crypto Expo Asia 2022 Singapore: The Role of Crypto Exchanges in Today’s Landscape

Crypto Expo Asia is the largest event in Asia for Investors and Crypto industry leaders to network and explore more business opportunities in the crypto space. They provide the market’s leading content & updates on the Crypto and Blockchain industry that will help you explore the investment opportunities available as smartly and securely.

A crypto exchange is a platform on which you can buy and sell cryptocurrency. You can use exchanges to trade one crypto for another — converting Bitcoin to Binance Coin, for example — or to buy crypto using regular currency, like the U.S. Dollar. Cryptocurrencies make it easier for people in different countries to pay each other, negating financial borders currently controlled by banks and governments. The panel comprises experts and practitioners from centralized exchanges. They will share insights on the role of Crypto Exchanges in today’s landscape.

The session is moderated by Herbert Sim, Bitcoin Man and with panelists Feroze Medora, Gemini; Anndy Lian, BigONE; Travis Teo, Tokenize and Lewis Mahlanga, Gym Network.

The following questions were addressed:

#1 The explosion of thus many crypto exchanges is the white-labelling phenomena, which allows for almost instant creation of an exchange. With all this proliferation, the nature of platforms continues to diversify. What is the current role of exchanges today, besides crypto trading?

Lewis Mahlanga: “We need to educate the market about cryptocurrencies.”

#2 Centralized Exchanges versus Decentralized Exchanges. What are your thoughts? Pros and cons?

Travis Teo: “As a new user, you might not know how the wallets work. You are also may not know where to obtain ETH or SOL. CEX will act as a bridge for these new users to guide them through the process.”

#3 To list out some more roles that a crypto exchange could play – Payment services (Remittance, Escrow Service, Micropayments, Merchant Services – Gateway processor, Mobile PoS card reader, Debit card; and more); Mobile wallet, ATM. What are the differentiating factors which sets apart each of the exchanges?

Herbert Sim: “Security of the exchange, how credible it is.”

#4 A big challenge for centralized crypto exchanges over the years is custodial. Users are required to perform mandatory tasks to sign up and verify their identity. Fees can be expensive because platform takes a percentage of initial investment, and off every trade. While there is high level of trust in the CEX from the users, the CEX actually holds the private keys to the tokens and the funds, which makes it subject to hacking. And we have all seen massive multi-million, even close to billion dollar hacks taken place, even in the present day. What are your thoughts about CEX’s custodial today?

#5 Possibly the toughest, most controversial question for crypto exchanges. What are your thoughts on wash-trading? And rankings on CoinMarketCap?

Feroze Medora: “Even though we are in a very new industry, I like the expression ‘Nothing is new under the sun’. Wash trading falls under the border category of market manipulation. Which are features of regular financial market for very time.”

#6 The question that is probably the biggest challenge for crypto exchanges. What are your thoughts on regulations by regulators across the world – from US SEC, to China’s PBoC, and here in Singapore Monetary Authority of Singapore (MAS)?

#7 Let’s talk about crypto trading specifically. Mobile Financial Trading, Derivatives Trading, Future Trading, Financial Trading. What’s next? What do you think is the future of trading?

Anndy Lian: “I think derivatives trading would be the strongest and will be one of the key crypto highlights. NFT trading and NFT marketplace would be the next to look at too. The current NFT market has not reached its fullest potential in terms of trading, because it has not hit a critical volume. We should look at this market seriously, build products on top of NFT, facilitate it with real utility and link back to spot/ derivatives trading to optimize its full potential.”

Crypto Expo Asia 2022 is held on 22 – 23 June 2022, at Raffles City Convention Centre, Singapore. The second day of the event will feature speakers from ConsenSys, UOB, OKX, Bybit, Fireblocks and many more. More information can be obtained at https://cryptoexpoasia.com/.

This article is produced by BLOCKCAST.CC.

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j