Crypto industry focus: Regulation, stablecoins, market crash

A visual representation of the Bitcoin cryptocurrency.

Edward Smith | Getty Pictures

At the World Economic Forum in Davos this year, crypto companies dominated the main street, there is a notable difference between this version and the final version in 2020.

The industry’s high-profile presence came even when the cryptocurrency market crashed. It was fueled by the collapse of the algorithmic stablecoin called terraUSD, or UST, which saw its sister luna drop to $0 in May.

Meanwhile, global regulators are keeping their eyes on the cryptocurrency industry.

WEF is the annual meeting of global business leaders and politicians that aims to set the agenda for the year.

Against this background, it was the perfect time to catch up with some of the big players in the cryptocurrency industry. Here’s what I learned.

Thousands of cryptos may crash

There are currently over 19,000 cryptocurrencies and dozens of blockchain platforms.

Blockchain is the technology that underpins these digital currencies, and platforms include Ethereum, Solana, and others.

Most industry executives see the current state of the market as unsustainable.

Brad Garlinghouse, CEO of cross-border blockchain company Ripple, predicted that in the future only the “points” of cryptocurrencies could remain. He said that there are about 180 fiat currencies in the world and that there is really no need for that many cryptocurrencies.

Web3 Foundation CEO Betrand Perez likened the current state of the market to the early internet age, saying that there are many “scams” and many that “do not bring any value”.

Brett Harrison, CEO of cryptocurrency exchange FTX US, said there are “several clear winners” when it comes to blockchain platforms.

Stablecoins: the talk of the town

You may have heard of stablecoins. They are a type of cryptocurrency that needs to be pegged to a real-world asset.

In practice, stablecoins such as tether or USD Coin, which aim to mirror the US dollar exactly, are backed by real assets such as currencies or bonds. They hold a reserve of these assets to maintain a dollar rate.

Now that everyone wants to be more involved in crypto, no one is ignoring the industry anymore.

Mihailo Bjelic

CEO of Polygon

The terraUSD crash “clearly showed people that not all stablecoins are created equal,” said Jeremy Allaire, CEO of Circle, one of the companies behind the USDC issuance.

“And it helps people differentiate between a well-regulated, fully-segregated, asset-backed dollar digital currency like USDC and something like that (terraUSD).”

Reeve Collins, co-founder of BLOCKv and co-founder of another stablecoin tether, said the terraUSD saga will be the “probably the end” of most algorithmic stablecoins.

Industry welcomes bear market

This sentiment was echoed by other managers. to say The huge increase in prices caused people to focus on speculation rather than producing products.

″[The] In my personal opinion, the market has become perhaps a little unreasonable, perhaps a little reckless to some extent. And when times like this come, [a] correction is normally necessary and at the end of the day [is] healthy,” said Mihailo Bjelic, CEO of Polygon.//identifier please ///.

Edit is coming but thinking has changed

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