How to reset your cryptocurrency at Davos 2023

As 2023 begins and the economy begins to unravel next year, there is one sector that seems in need of a reset or at least some correction. Cipher. There are many sources doing it very well to avoid rehashing the negative events of 2022. It’s safe to say that the crypto space enters the new year with a somewhat damaged reputation. Recent lawsuits against both Gemini and Genesis have further reinforced the perception that the Securities and Exchange Commission (SEC) appears more interested in regulation by proclamation than productive dialogue, and will reset cryptocurrencies next year. It seems necessary to Fraud, fraud, lawsuits and shaken investor confidence are not the way to build a healthy, sustainable and viable market.

Held each January in Davos, Switzerland, the World Economic Forum (WEF) is well-known as an opportunity for individuals and institutions of the highest levels of power and influence around the world to network and analyze. It analyzes trends and tries to predict how the global economy will behave in the future.Bitcoin
Bitcoin
The original cryptocurrency .

The real question is how cryptocurrencies will rebuild, recover and re-engage investors, regulators and policymakers. Let’s take a look at some of the considerations and ideas that cryptocurrency proponents should look out for at WEF 2023.

Crypto scams are still scams. Much has been made about the apparently high fraud rates that permeate many projects in the crypto space, but it misses the point. and is no excuse for cryptocurrency fraud. Therefore, regulators and policy makers are developing tools and rules to prevent such acts. Already embedded with reputational issues in the eyes of many regulators, crypto needs advocates to make this point clear.

Fraud, loss of trust and other indirect effects of the presence of rogue operators in the sector are serious issues that cryptocurrencies need to address in order to regain and gain market confidence. To that end, we need to remind all stakeholders that 1) fraud is always fraud, and 2) cryptocurrencies are not fraudulent by default, should be included in the main conversations about cryptocurrencies. need to confirm.

Tokenomics has a promise. The concept of tokennomics, the economics of how a particular token functions, behaves and interoperates with other tokens, has also taken a serious toll on reputation and finances recently. The (erroneous) blatant focus on prices and price increases driving the non-fungible token (NFT) space has soaked up much of the tokennomics conversation, especially for many projects. It is important to note that many token applications are price agnostic and are actively preventing the token from rising in price, and crypto advocates should support this view.

The foundation of many Decentralized Autonomous Organizations (DAOs), governance tokens and Decentralized Finance (DeFi) applications are integrated within the traditional finance aspects (clarity, comparability, and understandability) and the crypto space. increase. Despite meltdowns and bad actors in the space, DAOs and DeFi have proven use cases and continue to attract capital, making them a source of innovation across blockchain and crypto. .

Tokennomics and direct ownership of personalized information are here to stay.

Blockchain-based data delivers results. Even in a tumultuous time when cryptocurrencies recently entered another winter, or, for some, a quick freeze, the adoption of blockchain-based solutions by businesses has continued virtually unabated. Crypto advocates note that having traceable, transparent, and readily accessible records, not to mention immutable records, is an invaluable tool for individuals, businesses, and governments alike. is needed.

Even Jamie Dimon, one of the world’s most dedicated anti-crypto individuals, runs a financial institution that has actively developed and deployed in-house blockchain solutions to facilitate transactions. Despite the notable failures of other projects in 2022, 1) data is the lifeblood of every enterprise, and 2) blockchain-based data storage and management will bring quantifiable benefits already recognized. It doesn’t change the fact that it provides.

Data storage may not offer the same exciting discourse as creating new NFTs, but it should attract capital and talent, not the ire of regulators.

Crypto- and blockchain-based applications need a reset, and the WEF in Davos is the perfect opportunity to make this happen. Crypto advocates should exercise caution and act accordingly.