Tag Archives: trends

Exploring The Investment Trends Of Crypto Venture Capitalists In Today’s “Bullish” Market

Exploring The Investment Trends Of Crypto Venture Capitalists In Today’s “Bullish” Market

The value of a cryptocurrency can be influenced by various factors, including news about the cryptocurrency and its underlying technology, government regulations, and overall market conditions. The market can also be influenced by investor sentiment, which can be affected by a wide range of events. Just a month ago, everyone is still saying its a bear market. As of this week, everyone is cheering for the current bull run. Bitcoin reached its highest price since mid-August by breaking through the price ceiling of US$24,000. This was largely attributed to investors liquidating almost US$70 million of predominantly short-position bets.

There are many different types of investments in the cryptocurrency space, and the popular specific investments can vary over time.

More Popular Types Of Cryptocurrency Investments

Buying And Holding: This is the most straightforward and common investment strategy. Investors buy a cryptocurrency like Bitcoin or Ethereum and hold onto it for the long term, with the expectation that its value will increase over time.

Mining: Mining involves using computer hardware to solve complex mathematical problems and verify transactions on a blockchain network. Miners are rewarded with newly minted cryptocurrency as an incentive for their work.

Staking: Staking involves holding a certain amount of a cryptocurrency in a wallet and locking it up to support the network’s security and transaction processing. In exchange, stakers receive rewards in the form of newly minted coins.

Initial Coin Offerings (ICOs) and Initial Exchange Offerings (IEOs): ICOs and IEOs are ways for companies to raise funds by selling newly created cryptocurrencies to investors. This strategy can be risky as some ICOs and IEOs have turned out to be scams.

Cryptocurrencies have several investment theses. Some investors believe that they have the potential to replace traditional fiat currencies, while others see them mainly as a store of value or a means of exchange. In addition, some investors see the underlying blockchain technology as having the potential to revolutionize a variety of industries, from supply chain management to identity verification.

Some Specific Investment Theses For Cryptocurrencies

The use of cryptocurrency as a means of exchange: Some people believe that cryptocurrencies will eventually be used as a primary means of exchange, replacing traditional fiat currencies.

The store of value thesis: Some people believe that cryptocurrencies will eventually be used as a store of value, similar to gold.

The blockchain revolution thesis: Some people believe that the underlying blockchain technology has the potential to revolutionize a wide range of industries and that investing in cryptocurrencies is a way to get in on the ground floor of this technological revolution.

The “greater fool” theory: Some people believe that the price of a cryptocurrency will continue to go up as long as someone is willing to buy it at a higher price, even if there is no intrinsic value to the cryptocurrency. This is sometimes referred to as the “greater fool” theory of investing.

Venture capitalists (VCs) are individuals or firms who provide funding to early-stage companies in exchange for an equity stake. In the cryptocurrency space, VCs have traditionally invested directly in cryptocurrencies or blockchain-based startups, but recently there has been a shift in focus towards investments in blockchain infrastructure and applications.

The fall of FTX and other crypto exchanges has led VCs to become more cautious about investing in cryptocurrencies directly. Instead, they are looking to invest in companies that are building out the underlying technology and infrastructure of the blockchain. This includes companies that are developing blockchain-based platforms, building decentralized applications, or working on other blockchain-related projects.

The reason for this shift is that many VCs see a long-term potential for blockchain technology to disrupt various industries and believe that investing in the underlying infrastructure will yield better returns than investing directly in cryptocurrencies, which are known for their volatility. Another reason for this shift is that the regulatory landscape for cryptocurrencies is still uncertain and can create risks for investors. By investing in blockchain infrastructure and applications, VCs can mitigate some of these risks and potentially realize greater returns in the long run.

Some Specific Areas Of Interest For VCs In The Cryptocurrency Space.

Blockchain infrastructure: VCs are increasingly supporting startups working towards building a robust blockchain infrastructure. These companies focus on developing innovative solutions that can potentially revolutionize the blockchain ecosystem. One key area of interest for VCs is the development of new consensus algorithms. These algorithms enable network participants to agree on a shared state of the blockchain without relying on a centralized authority. Some companies are working on proof-of-stake (PoS) algorithms that reduce the energy consumption associated with proof-of-work (PoW) algorithms, which are used by Bitcoin and other cryptocurrencies.

They are also investing in layer1 companies, which are startups that focus on building the foundational infrastructure layer of the blockchain. These companies are working on creating new and innovative technologies that can potentially improve the scalability, security, and performance of the blockchain. Former team members from traditional finance giant Jump Trading have established a tech startup called Monad Labs, which has raised $19 million in seed funding. The company intends to create a new blockchain that addresses the shortcomings of existing layer 1 protocols. According to a statement, the Monad blockchain will be introduced on a testnet in the coming months, with plans for mainnet deployment later this year. The blockchain will use the proof-of-stake consensus mechanism and be compatible with the Ethereum Virtual Machine (EVM), allowing projects on Monad to interact with the EVM software platform. This interoperability will enable developers from other blockchain projects to construct decentralized applications that can work together on the Ethereum network.

Web3 solutions: Web3, also known as Web 3.0, is the next iteration of the World Wide Web, and it is built on blockchain technology. It is designed to be more decentralized, secure, and open than the current Web. VCs are looking for projects that align with the core principles of Web3 and have the potential to drive its adoption and growth. This is another rising trend. Just last week alone, I noted more than $20 million were raised in the Web3 space.

  • Caldera, a provider of Web3 application infrastructure, has secured a total of $9 million in funding from two investment rounds. The funding was spearheaded by established financial powerhouse Sequoia Capital and digital currency-focused firm Dragonfly.
  • UK-based startup Nefta, which focuses on Web3 in the gaming and entertainment industry, has disclosed raising $5 million in a seed funding round led by the Future Fund of venture firm Play Ventures.
  • In a seed funding round co-led by Insignia Venture Partners, MindWorks Capital, and Signum Capital, Sending Labs has raised $12.5 million. The company’s objective is to offer a more accessible approach for developers and users to construct and engage with decentralized communication-based applications (dapps).

I noted amongst the VCs in my network they are also looking at blockchain applications. VCs have also invested in companies that are using the blockchain to build new applications, such as supply chain management platforms, decentralized finance (DeFi) platforms, and decentralized identity solutions. Interoperability and cross-chain solutions, for example, aim to enable different blockchain networks to communicate and interact with each other and are also one of the top investment choices.

In my opinion, investing in blockchain infrastructure and applications is likely to promote the expansion and maturation of the cryptocurrency ecosystem, and potentially generate more sustainable returns for investors over the long term. However, it’s important to recognize that VC investment is just one aspect of the broader cryptocurrency ecosystem. Other investors, such as hedge funds, family offices, and individual investors, may have differing investment theses and strategies, which can also impact the market. It’s crucial to stay informed about the various factors that can influence the cryptocurrency space and adapt investment strategies accordingly. As a licensed fund manager and a VC myself for over a decade, this is my humble note to all.

“To achieve the best returns in the crypto space, it’s important to believe in the underlying technology, focus on community growth, and capitalize on market trends. By understanding the technology behind a particular cryptocurrency and its potential for solving real-world problems, investors can make informed investment decisions that align with their long-term goals.”- Anndy Lian

 

Source: https://uk.investing.com/news/cryptocurrency-news/exploring-the-investment-trends-of-crypto-venture-capitalists-in-todays-bullish-market-2923980

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 Flashbacks & Flash Forward: 10 Events in 2022 + 10 Trends in 2023

Crypto Flashbacks & Flash Forward: 10 Events in 2022 + 10 Trends in 2023
  • It was an eventful 2022 for the crypto world
  • But what’s in store for in 2023?

The cryptocurrency market has certainly seen its fair share of excitement over the years. Cryptocurrencies, such as Bitcoin, have garnered a lot of attention due to their potential to disrupt traditional financial systems and their ability to provide a decentralized and secure way to transfer value.

There have been many developments in the cryptocurrency space over the years, including the launch of new cryptocurrencies, the emergence of decentralized finance (DeFi) platforms, and the increasing mainstream adoption of cryptocurrency.

By now, you would agree with me that the cryptocurrency market is highly volatile and unpredictable, and it’s not uncommon for prices to fluctuate significantly. Apart from that, many unfortunate events happened.

10 Crypto Events That Happened in 2022

1. The LUNA Empire Collapsed

84 million dollars leveraged a 40 billion financial empire, UST collapsed. The collapse started when UST de-pegging and the market’s extreme panic caused massive withdrawal. The collapse of one of the world’s largest public chains, Terra, fell with it, and it took only two days.

The beginning of the historical decline of cryptocurrency started right at that moment. “If LUNA fails, it will be the failure of cryptocurrency.” This was the kind of headline we saw in the mainstream media during that period. The downfall process is familiar to many financial folks, similar to the Asian Financial Crisis in 1997 and Lehman Brothers in 2007.

2. Top Hedge Fund, Three Arrows Capital Goes Bankrupt

This is still an ongoing TV series. Right after LUNA’s collapse, all eyes are on Three Arrows Capital (3AC). 3AC has borrowed from almost every major lender, from BlockFi, Genesis to Celsius. The fall of 3AC can be traced to the collapse in May of UST. They told Wall Street Journal that it has invested $200m in LUNA.

3. Crypto Lehman Brothers Moment: FTX Insolvency Hits Markets

A disaster with no survivors is how I described this incident. SBF and FTX have reached almost every corner of the industry in just three years, and their demise almost uprooted the whole industry.

It all began when SBF intervened to save some other cryptocurrency exchanges from impending doom due to rising interest rates, completely unaware that his own cryptocurrency exchange would suffer the same fate not long after. These transactions, which also implicated SBF’s trading company Alameda Research, caused the exchange to incur several losses.

Binance boss CZ called out SBF, users started withdrawing from FTX, and the rest was history. At that point in time, the market found a liquidity gap of up to $8 billion in FTX. FTX filed for insolvency restructuring, and the plot flipped swiftly without allowing anyone a chance to breathe.

The collapse of FTX has had an atomic bomb chain reaction, fusing a series of insolvency and FUD events. The former crypto giant was like a domino, and the entire crypto world was shrouded in panic. The failure of the cryptocurrency exchange FTX in November resulted in the lending arm of Genesis being compelled to halt redemptions. Since then, Genesis has been striving to raise money or negotiate a deal with creditors. BlockFi Files for Chapter 11 Protection, highlighting the need for crypto controls. Many other companies were affected.

4. Ethereum Successfully Completed Merger of Mainnet and Beacon Chain, End of Mining Era

Following an eight-year wait, at 14:43 on September 15, when the mainnet and beacon chains successfully merged, Ethereum signalled the end of Ethereum Proof of Work (PoW) and the full switch to Proof of Stake (PoS).

“The Merge” is a crucial turning point for the Ethereum ecosystem. Ethereum’s vision continues, and there are more milestones to be achieved as per their plans published on November 5.

5. Cryptocurrency Donation in Ukraine

At the end of February, the Russian-Ukrainian war started. This event was not directly related to cryptocurrency but more of an uncertainty to the global macro environment. However, after Ukraine announced the introduction of cryptocurrency donations and released its donation address, things changed.

Since the beginning of the Russian invasion, the Ukrainian government and an NGO supporting the military have received more than 120,000 crypto donations totalling $63.8 million. This contains a CryptoPunk NFT valued over $200,000 and a $5.8 million gift from Polkadot creator Gavin Wood. Many questioned how this was executed, the airdrop plan and the NFT sale. But to me, I witnessed by far one of the most significant cryptocurrency use cases for donations.

6. The Hardest Crypto Sanction in History: Tornado Cash

Tornado Cash, an Ethereum mixing platform, has been placed on the SDN List by The Office of Foreign Assets Control of the US Department of the Treasury. The Treasury Department says Tornado Cash has been used to launder more than $7 billion since its inception in 2019.

This is the first time in history that a protocol was sanctioned. Tornado Cash suffered devastating damage, developers were arrested, codes were removed from GitHub and the website domain name was blocked.

7. Create a new paradigm of GameFi: STEPN Move-to-Earn Big Hit

Move-to-earn is still a relatively new concept, but it is similar to the play-to-earn (P2E) model because it adopts elements of GameFi. They also solved some of the shortcomings of GameFi. STEPN is the pioneer in this.

The announcement of the release of Binance’s IEO on March 1 was an absolute turning point for STEPN. In a market that could not find a glimpse of light, STEPN’s GMT opened at Binance with 17x earnings and then rose all the way from $0.1 to $4. It is no exaggeration to say that STEPN led the wave of Web3 in 2022.

8. NFT Summer – Selling like Hotcakes

Yuga Labs had a brilliant year. In March, the owners of the Bored Ape Yacht Club (BAYC) received an airdrop of ApeCoins Token for every NFT they held. The airdrop received by one BAYC was initially worth about $140,000. Some ‘creative’ members took the BAYC out of the borrowing or splitting pool, received the airdrop and returned it, and earned $1.1 million in one day.

Many NFT-related events popped out during the summer. This has also started a series of celebrity endorsements to large brands entering the Web3 space. These are great summer moments; we all remember them.

9. Curve Wars

Curve has a very critical mechanism. The liquidity provider (LP) can obtain the veCRV accordingly by locking the CRV. The veCRV are used to vote in governance, boost governance rewards, earn trading fees and receive airdrops. The longer CRV is locked, the more voting power holders have and vice versa.

To win the war, many projects increased APY and organized new wars, allowing users who participated at that time to obtain benefits. More and more protocols are building off of Curve, and an entire ecosystem is emerging, engaged in the so-called Curve Wars.

10. Hacking incidents occurred numerous times throughout the year.

a) Optimism confirms 20 million OP stolen; hackers have sold 1 million. Due to communication and technical mistakes in cooperating with cryptocurrency market maker Wintermute, the 20 million OP sent by the Optimism Foundation to Wintermute was sent directly to the wrong Layer1 address. Then the 20 million OP was controlled by hackers.

b) The official bridge of BNB Chain was hacked. This is one of the largest on-chain attacks in the history of crypto, with losses of $718 million. The recovery was rapid, BNB’s price was stable thanks to the swift actions by CZ.

c) Ronin hack incident of Axie Infinity. This is one of the most outrageous theft incidents this year. Ronin, the self-developed sidechain of GameFi leader Axie Infinity, was attacked. 173,600 ETH and 25.5 million USDC were stolen, worth 625 million US dollars. It is also one of the most severe attacks this year. It is outrageous that the officials found out that it was stolen six days before the official announcement, but it has not been announced.

d) Bitkeep was compromised. The multi-chain wallet BitKeep has security vulnerabilities. Hackers hijacked some APK package downloads, and packages that were implanted by hackers were installed, resulting in the theft of many user funds. A total of 8 million dollars of losses were promised to be paid in full.

e) Cross-chain bridges are risky. Vitalik has warned us about the safety of cross-chain bridges and cautioned additional risks when used. Ronin Bridge by Axie ($624 million); Wormhole by Solana ($326 million); Harmony Bridge ($100 million); Nomad ($190 million).

It is difficult to predict specific trends in the cryptocurrency market with certainty, as the market is highly volatile and subject to various external factors. However, here are some potential trends that could shape the future of the cryptocurrency market.

10 Future Crypto Trends For 2023

1. The macro economy will be stabilized, and the Federal Reserve will slow down the progress of interest rate hikes. Crypto will be more stable too.

2. Cryptocurrency will continue to be watched by the regulators and will move to a more compliant stage. Crypto companies must continue to have positive government relations.

3. NFT liquidity tools will stabilize the NFT market and create a better Web3 infrastructure for users and investors. Soul Bound Token (SBT) use cases will also increase and become another market driver.

4. Decentralized Exchanges (DEXs) usage will experience exponential growth in 2023.

5. Decentralized Social (DeSoc) will change the way value flows with the help of AAA-level blockchain games.

6. Metaverse will have its own DeFi structure and framework, allowing exchanges, for example, to be operated on it with fewer restrictions and in the good name of innovation.

7. Investment and hype of ZK series public chains could be the new hotspot. We could possibly see in the first half of the year, e.g. Starknet, Zk-sync, Scroll, Polygon ZKEVM ZK L2.

8. Artificial intelligence (AI) sparked new growth in Web3. The popularity of ChatGPT surprised us in Q4 2022, and it will continue in 2023. I see them being applied to the application level. We would also see Web3/ blockchain solving productivity issues with AI to achieve a qualitative leap.

9. Security issues will receive greater attention, and large-scale applications of on-chain data monitoring will be deployed. On-chain data can not only provide support for Web3 security governance but also conduct in-depth analysis of on-chain activities, revealing key information such as Web3 user behaviour, emerging trends, and investment opportunities.

10. The rise of CeFi + DeFi reshapes the crypto market. Forward-looking financial institutions will continue to pay attention and devote themselves to combining CeFi and DeFi. They will also combine institutional-level risk management capabilities with code-enforced transparency to explore more business models that can support the real business world. Rapid growth and relatively mature DeFi services will be developed and more likely to be favoured by major institutions.

The cryptocurrency space is constantly evolving, and it is likely that we will see the development of new technologies and applications that could change the way we think about and use cryptocurrency.

In my honest opinion, the future of cryptocurrency is uncertain, but it is possible that we will see it become more widely adopted and integrated into mainstream financial systems over time.

Overall, the future of cryptocurrencies is uncertain, and it is difficult to predict precisely how they will evolve. I am sure it will continue to gain attention and adoption, but it is important for investors to carefully consider the risks and potential benefits before making any investment decisions. Let’s work harder for Crypto 2023!

Source: https://www.financemagnates.com/cryptocurrency/crypto-flashbacks-flash-forward-10-events-in-2022-10-trends-in-2023/

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

Recapping 10 major crypto events from 2022 + 10 future trends for 2023

Recapping 10 major crypto events from 2022 + 10 future trends for 2023

The crypto market has certainly seen its fair share of excitement over the years — cryptocurrencies have garnered a lot of attention due to their potential to disrupt traditional financial systems and their ability to provide a decentralized and secure way to transfer value.

There have been many developments in the cryptocurrency space over the years, including the launch of new cryptocurrencies, the emergence of decentralized finance (DeFi) platforms, and the increasing mainstream adoption of cryptocurrency.

By now, you would agree that the cryptocurrency market is highly volatile and unpredictable, and prices are not uncommon to fluctuate significantly. Apart from that, many unfortunate events happened in 2022.

Recap of 10 major crypto events that happened in 2022:

1. The LUNA Empire Collapses

$84 million leveraged a $40 billion financial empire when UST collapsed. The collapse started when UST de-pegging and the market’s extreme panic caused massive withdrawal. The collapse of one of the world’s largest public chains, Terra, fell with it, and it took only two daysThe beginning of the historical decline of cryptocurrency start right then.

“If LUNA fails, it will be the failure of cryptocurrency.” This was the headline we saw in the mainstream media during that period. The downfall process is familiar to many financial folks, similar to the Asian Financial Crisis in 1997 and Lehman Brothers in 2007.

2. Top Hedge Fund, Three Arrows Capital, Goes Bankrupt

This is still an ongoing series. Right after LUNA’s collapse, all eyes were on Three Arrows Capital (3AC). 3AC has borrowed from almost every major lender, from BlockFi, and Genesis to Celsius. The fall of 3AC can be traced to the collapse in May of UST.

They have told Wall Street Journal that it has invested $200m in LUNA. Three Arrows’ liquidators have recovered some assets belonging to creditors, including $35 million and several different cryptocurrency tokens, liquidator Russell Crumpler said in court.

3. Crypto Lehman Brothers Moment: FTX Insolvency Hits Markets

A disaster with no survivors is how I described this incident. SBF and FTX have reached almost every corner of the industry in three years, and their demise almost uprooted the whole industry. It all began when SBF intervened to save some other cryptocurrency exchanges from impending doom due to rising interest rates.

He was completely unaware that his cryptocurrency exchange would suffer the same fate not long after. These transactions, which also implicated SBF’s trading company Alameda Research, caused the exchange to incur several losses.

Binance boss CZ called out SBF, users started withdrawing from the FTX, and the rest were history. At that point in time, the market found a liquidity gap of up to $8 billion in FTX. FTX filed for insolvency restructuring, and the plot flipped swiftly without allowing anyone a chance to breathe.

The collapse of FTX had an atomic bomb chain reaction, fusing a series of insolvency and FUD events. The former crypto giant was like a domino, and the entire crypto world was shrouded in panic. The failure of the cryptocurrency exchange FTX in November resulted in the lending arm of Genesis being compelled to halt redemptions. Since then, Genesis has been striving to raise money or negotiate a deal with creditors. BlockFi Files for Chapter 11 Protection, highlighting the need for crypto controls. Many other companies were affected.

4. Ethereum Successfully Completes Merger of Mainnet and Beacon Chain, End of Mining Era

Following an eight-year wait, at 14:43 on September 15, when the mainnet and beacon chains successfully merged, Ethereum signaled the end of Ethereum Proof of Work (PoW) and the full switch to Proof of Stake (PoS).”The Merge” is a crucial turning point for the Ethereum ecosystem. Ethereum’s vision continues, and there are more milestones to be achieved per their plans published on November 5.

5. Cryptocurrency Donation in Ukraine

At the end of February, the Russian-Ukrainian war started. This event was not directly related to cryptocurrency but more uncertainty to the global macro environment. However, things changed after Ukraine introduced cryptocurrency donations and released its donation address. Since the beginning of the Russian invasion, the Ukrainian government and an NGO supporting the military have received more than 120,000 crypto donations totaling $63.8 million.

This also contains a CryptoPunk NFT valued at over $200,000 and a $5.8 million gift from Polkadot creator Gavin Wood. Many questioned how this was executed, the airdrop plan, and the NFT sale. But I witnessed one of the most significant cryptocurrency use cases for donations.

6. The Hardest Crypto Sanction in History: Tornado Cash

Tornado Cash, an Ethereum mixing platform, has been placed on the SDN List by The Office of Foreign Assets Control of the US Department of the Treasury. The Treasury Department says Tornado Cash has been used to launder more than $7 billion since its inception in 2019.

This is the first time in history that a protocol was sanctioned. Tornado Cash suffered devastating damage, developers were arrested, codes were removed from GitHub, and the website domain name was blocked.

7. Create a new paradigm of GameFi: STEPN Move-to-Earn Big

Move-to-earn is still a relatively new concept, but it is similar to the play-to-earn (P2E) model because it adopts elements of GameFi. They also solve some of the shortcomings of GameFi. STEPN is the pioneer in this.

The announcement of the release of Binance’s IEO on March 1 was an absolute turning point for STEPN. In a market that could not find a glimpse of light, STEPN’s GMT opened at Binance with 17x earnings and then rose from $0.1- to $4. It is no exaggeration to say that STEPN led the wave of Web3 in 2022.

8. NFT Summer- Selling like Hotcakes

Yuga Labs had a brilliant year. In March, the owners of the Bored Ape Yacht Club (BAYC) received an airdrop of ApeCoins tokens for every NFT they held. The airdrop received by one BAYC was initially worth about $140,000. Some “creative” members took the BAYC out of the borrowing or splitting pool, received the airdrop and returned it, and earned $1.1 million in one day.

Many NFT-related events popped out during the summer. This has also started a series of celebrity endorsements to large brands entering the web3 space. These are great summer moments; we all remember them.

9. Curve Wars

Curve has a very critical mechanism — the liquidity provider (LP) can obtain the veCRV accordingly by locking the CRV. The veCRV are used to vote in governance, boost governance rewards, earn trading fees and receive airdrops. The longer CRV is locked, the more voting power holders have, and vice versa.

Many projects increased APY and organized new wars to win the war, allowing users who participated at that time to obtain good benefits. More and more protocols are building off of Curve, and an entire ecosystem is emerging, engaged in the so-called Curve Wars.

10. Hacking incidents occurred numerous times throughout the year.

  • Optimism confirms 20 million OP stolen; hackers have sold 1 million. Due to communication and technical mistakes in cooperating with cryptocurrency market maker Wintermute, the 20 million OP sent by the Optimism Foundation to Wintermute was sent directly to the wrong Layer1 address. Then the 20 million OP was controlled by hackers.
  • The official bridge of BNB Chain was hacked. This is one of the largest on-chain attacks in the history of crypto, with losses of $718 million. The recovery was rapid, and BNB’s price was stable thanks to the swift actions by CZ.
  • Ronin hack incident of Axie Infinity. This is one of the most outrageous theft incidents this year. Ronin, the self-developed sidechain of GameFi leader Axie Infinity, was attacked. 173,600 ETH and 25.5 million USDC were stolen, worth 625 million US dollars. It is also one of the most severe attacks this year. It is outrageous that the officials discovered it was stolen six days before the official announcement, but it has not been announced.
  • Bitkeep was compromised. The multi-chain wallet BitKeep has security vulnerabilities. Hackers hijacked some APK package downloads, and hackers installed packages, resulting in the theft of many user funds. A total of 8 million dollars of losses were promised to be paid in full.
  • Cross-chain bridges are risky. Ethereum co-founder Vitalik Buterin warned us about the safety of cross-chain bridges and cautioned additional risks when used. Ronin Bridge by Axie ($624 million); Wormhole by Solana ($326 million); Harmony Bridge ($100 million); Nomad ($190 million).

It is difficult to predict specific trends in the cryptocurrency market with certainty, as the market is highly volatile and subject to various external factors. However, here are some potential trends that could shape the future of the cryptocurrency market.

Here are 10 future trends and predictions for 2023:

  1. The macro economy will be stabilized, and the Federal Reserve will slow down the progress of interest rate hikes. Crypto will be more stable too.
  2. Cryptocurrency will continue to be watched by the regulators and move to a more compliant stage. Crypto companies must continue to have good government relations.
  3. NFT liquidity tools will stabilize the NFT market and create a better Web3 infrastructure for users and investors. Soul Bound Token (SBT) use cases will also increase and become another market driver;
  4. Decentralized Exchanges (DEXs) usage will experience exponential growth in 2023.
  5. Decentralized Social (DeSoc) will change the way value flows with the help of AAA-level blockchain games.
  6. Metaverse will have its DeFi structure and framework, allowing exchanges, for example, to be operated on it with fewer restrictions and in the good name of innovation.
  7. Investment and hype of ZK series public chains could be the new hotspot. We could see in the first half of the year, e.g., Starknet, Zk-sync, Scroll, Polygon ZKEVM ZK L2.
  8. Artificial intelligence (AI) sparked new growth in Web3. The popularity of ChatGPT surprised us in Q4 2022, and it will continue in 2023. I see them being applied to the application level. We would also see Web3/ blockchain solving productivity issues with AI to achieve a qualitative leap.
  9. Security issues will receive greater attention, and large-scale applications of on-chain data monitoring will be deployed. On-chain data can not only provide support for Web3 security governance but also conduct an in-depth analysis of on-chain activities, revealing key information such as Web3 user behavior, emerging trends, and investment opportunities;
  10. The rise of CeFi + DeFi reshapes the crypto market. Forward-looking financial institutions will continue to pay attention and devote themselves to combining CeFi and DeFi.They will also combine institutional-level risk management capabilities with code-enforced transparency to explore more business models that can support the real business world. Rapid growth and relatively mature DeFi services will be developed and more likely to be favored by major institutions.

The cryptocurrency space is constantly evolving, and we will likely see the development of new technologies and applications that could change how we think about and use cryptocurrency.

“Overall, the future of cryptocurrencies is uncertain, and it is difficult to predict precisely how they will evolve. I am sure it will continue to gain attention and adoption, but it is important for investors to carefully consider the risks and potential benefits before making any investment decisions. Let’s work harder for Crypto 2023!” – Anndy Lian

 

Source: https://cryptoslate.com/recapping-10-major-crypto-events-from-2022-10-future-trends-for-2023/

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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