Original author: Jerry@TPDAO
Almost at the same time as the enthusiastic Singapore Token 2049, the Web3 industry event in the West is also conveying emotions; this is an intersection of Eastern and Western thoughts and actions in the obscure market twists and turns of the bear market; with the big tide in April, we are in Hong KongThe final chapter of Hong Kong InsightsDifferent from the strong sense of home field and responsibility, Token 2049S Postscript will give us a better third-party perspective to observe, think, learn from and criticize - of course, we have no intention of deliberately criticizing.
There is no shortage of money on the macro side of the market. You see, in those days of Token 2049, the most expensive nightclubs and venues with the best sea views were all surrounded by the crypto world. Behind this small observation angle lies the basis for value judgment - the old exchanges, large institutions and traditional financial capital that now have money in their hands still continue the narrative methods of speculation, hype and bubbles in previous bull and bear cycles. , and has not followed the evolution of the encryption world into the golden layer of infrastructure and application ecological construction.
Therefore, we boldly judge that there are signs of decadence in the enthusiasm of Singapore Token 2049 - these old exchanges, large institutions and traditional financial capital will gradually be marginalized or even abandoned and divested by the crypto world. The most active in the Singapore market These market factor makers have entered a cycle of decline.
If you dont understand the context of our narrative, you may feel that this judgment is a bit out of place. You see, the most popular topic in the conference theme forum is compliance and supervision. And this is the basis for our further judgment.
If the theme discussion is held in Hong Kong, like the Hong Kong event in April, we recognize this theme judgment and further believe that Hong Kong is likely to become the worlds largest market in the process of integrating the crypto world and sovereign finance - although it is difficult and there are a series of problems To solve this problem, we have discussed it in Hong Kong Insights and will not go into details here.
In contrast, the United States has become the worst choice for Web3 entrepreneurship due to repeated SEO attacks. Even if it has the best local technology and projects, it is still looking for opportunities to leave the United States; the Middle East, with Dubai as the core, as well as Latin America and Southeast Asia, It has the best soil for nurturing the native encryption market, but it is not integration, because the local sovereign government also has the motivation to break through the US dollar order; Singapore is more embarrassed, even though it now has an international foundation, on the one hand it is trying to cooperate with the Middle East and Latin America and Southeast Asia engage in in-depth market-bound cooperation and mutual prosperity, but they are concerned about the relationship with the U.S. dollar market. It is difficult for them to make a decision, and in the end, both parties are unreliable.
In addition to the enthusiastic Token 2049 social bureau, there are also some pragmatic discussions and the progress of the builder who is immersed in development. We excerpted effective information from Singapore Token 2049 and Western Web3 Event, and supplemented it with information that did not participate in the event but was sending a construction signal to demonstrate that there is life in silence right now.
1. Erik Voorhees, founder of ShapeShift: Salvation is our own responsibility
Permissionless, I love this name, it’s one of the words that best captures the essence of our industry. It all started with the invention of Bitcoin about 15 years ago. Why is that moment important? Because it is permissionless. This property, more than any other, is the essence of cryptocurrency. This attribute is given to all good projects in the field, and if something is not permissionless we should at least consider it a stepping stone towards that goal.
But why is permissionlessness so novel and so difficult to achieve? In the world of money before cryptocurrencies, all movement of funds required someone’s permission. You might say cash is permissionless, but not if youre sending it across any distance. Try carrying $10,000 across the border and youll be quickly reminded that it doesnt work. No, cash is not even permissionless, and despite its many advantages, it is disappearing from society.
So be thankful that a permissionless form of digital currency was invented because it came at the right time. Why is all this important? Consider that almost all economic activities require money. In a world where most people struggle to put food on the table, the economic sphere is the virtual arbiter of life and death for billions. Most people don’t have the luxury of pursuing their passions. They work, they toil, they trade because they need to live. Therefore, money is crucial to our human existence. So we should care about its quality, we should care about its nature, we should care about who controls it.
Permission is often subtle, but its everywhere. Every time you pay with a card, you are granted permission. It seems as though licensing is a matter of whether you have enough money. But in reality, there is another, more subtle layer of approval going on.
Banks, financial institutions, governments, many parties along the line, are strangers to you, you will never meet, they all bless your every transaction and you dont notice because as long as you act like A citizen and permission exists. But if you need permission to spend money and transact, then you need permission to exist.
So why do we accept a world in which you can only trade freely with the conditional approval of strangers? This is certainly not freedom. You may not realize it, but what we are building is modern society’s economic defense against state predation and restriction. We say no to the continued infringement of license existence. It is our own responsibility to save us from this phenomenon.
2. MetaMask promotes Snaps and subverts MetaMask’s ecological interaction
On the eve of Token 2049, Consensys announced the launch of the first version of MetaMask Snaps to the public. According to the official website, MetaMask Snaps are features created by third-party developers that MetaMask users can install directly into their wallets.
At the initial launch, MetaMask Snaps will provide 34 Snaps features, including transaction insights that can identify potential security vulnerabilities, interoperability with non-EVM blockchains such as Bitcoin, and practical features such as Web3 notifications. These 34 Snaps features have been security audited and manually added to the whitelist by the MetaMask team.
In July, MetaMask plans to launch the Snaps protocol before the end of 2023, a system that allows anyone to safely extend MetaMask functions. Wallet users can access new applications and perform cross-chain protocol interactions. MetaMask previously described Snaps as an open source system that allows anyone to safely extend the functionality of MetaMask to create new Web3 experiences. This means developers can use Snaps to build specialized functionality on top of MetaMask.
3. Some progress of “Layer 2”
Scroll Lianchuang: Scroll is in the testing phase and the mainnet will be launched soon
Scroll co-founder Ye Zhang said at a roundtable discussion at Singapore Token 2049 that Scroll is currently in the final testing phase and will launch the mainnet soon. At the same time, he said that in the future, he hopes to see more developers building applications that solve real-world problems. Many large-scale applications, such as Uniswap, have been deployed on Scrolls test network. It is expected that after the launch of the main network, more Ethereum applications can be deployed on Scroll to solve various real-world problems.
Polygon Lianchuang: Ethereum is moving to a chain-to-chain model and will become the basic settlement layer in the future
Polygon co-founder Sandeep Nailwal said at a roundtable discussion at Singapore Token 2049 that companies usually have B2B and B2C models, but for Ethereum, until today it is more like a U2C model, which is user to chain model. And now Ethereum is moving to a chain-to-chain model. This means that within the next 2 to 4 years, Ethereum will become the base settlement layer, providing security, settlement guarantees, and security features to these chains.
Matter Labs CEO: Addressing data availability is expected to improve Ethereum’s performance and scalability issues
Matter Labs CEO Alex Gluchowski said at a roundtable discussion at Singapore Token 2049 that Vitalik Buterin established a vision centered on Rollup upgrades. He compared Ethereum to an island where only small houses can be built, subject to space constraints. The Rollup upgrade is like a skyscraper, allowing for more activity on the same surface. But even so, its capacity still cannot meet demand. Therefore, the ability to upgrade beyond Rollup is needed, just like regaining sea land expansion, this development will open a new chapter for Ethereum. EIP-4844 and sharding don’t solve Ethereum’s problems. A key challenge in the development of Ethereum is data availability, which is currently the most expensive and scarce component and has an impact on transaction prices, execution and storage. zkSync has two ways to solve this problem: one is to use state differences instead of calling data; the other is to extend data availability to off-chain places and seamlessly interoperate with Rollup accounts. These methods are expected to improve Ethereum’s performance and scalability issues.
Offchain Labs Lianchuang: It is currently cheaper to mint tokens on Layer 2, but Ethereum’s data costs will also continue to decline
Ed Felten, co-founder of Offchain Labs, said during a roundtable discussion at Token 2049 in Singapore that there are hundreds of billions of dollars in liquidity on Ethereum, a small portion of which has been bridged to various Layer 2 networks. In Layer 2, the activity is higher compared to the amount of TVL. Because on Layer 2, transactions are cheaper and gas fees are lower. There is another interesting thing happening, in addition to having the largest amount of bridge value from Ethereum on Arbitrum, more and more projects are choosing to launch their tokens directly on Arbitrum. Currently, the native tokens on Arbitrum are worth more than the bridged ETH or tokens. I think its a growing trend that tokens are also cheaper to mint and manage on Layer 2. EIP-4844 will be launched in the coming months and is the first step in this direction. But I think that over time the cost of data on Ethereum will also come down to the point where it wont be much higher than the cost of general commercial data storage. There will still be a desire to operate at lower costs, but the advantages of this external data availability solution will diminish as Ethereum will enter a stage where data availability becomes the most important part of its protocol.
4. Stablecoin, AI+, RWA and New Exchange
Nic Carter, the father of smart contracts: 25% of U.S. dollar stablecoins will be issued with crypto assets as collateral within two years
The U.S. dollar is currently the unit of account for 99% of stablecoins, which is a much larger share than the U.S. dollar’s share of foreign exchange reserves or international trade. This will continue to be the case, with USD-denominated stablecoins retaining at least 95% of the market share. Stablecoins not paying interest have led to the contraction of the stablecoin industry. Now that there are interest-paying stablecoins, the existing market will be forced to start paying some of the interest to holders. However, interest-paying stablecoins cannot be issued in the United States for regulatory reasons, which will accelerate the trend of offshore stablecoins. Additionally, the rise of crypto-collateralized USD stablecoins is a good thing, as it leverages crypto assets as a store of value and stablecoins as a medium of exchange. This is something very much in keeping with the native nature of crypto. So I think within two years there will be 25% of USD stablecoins issued backed by crypto assets rather than USD assets. Today, that proportion is less than 5%.
veDAO: Web3 investment decision-making platform driven by AI technology
First, the ranking of the first version of the veDAO homepage is sorted according to the amount of discussion by industry influencers on that day and in the past 7 days. As long as there is veDAO, I will not miss the popular projects and topical projects.
Second, veDAO captures the attention of the projects official Twitter, kol discussion, kol attention, token whale attention, and nft whale attention, and marks these data to form a dynamic increase or decrease. Whether it is rising, falling, or unchanged, or the data itself is actually constantly providing users with investment decisions, but different people will understand it in different ways.
Third, veDAO currently has 22,200 Twitter accounts of industry influencers. You can see pure industry influencers’ comments on the project. We also combined the function of chatgpt. No matter how complicated and diverse the content is, it can be summarized as Shorter text, described in terms of advantages and disadvantages.
Fourth, veDAO established an expert committee in May this year, and currently 140+ institutions have joined, including capital, funds, exchanges, influencers, and media. The governance committee is mostly composed of industry KOLs, so the results will be more referable. At the same time, the function of chatgpt summarizes all expert comments into a relatively streamlined analysis, which is also divided into advantages and disadvantages.
Fifth, smart money updates the smart money dynamics on the chain in real time and shares them with veDAO users. We will use veDAOs internal algorithm to sort out the operational commonalities of smart money and present the most simple, direct and large-scale reference value information to users. Use on-chain data to intuitively and quickly display the real-time dynamic changes of tokens, combined with smart money signals, to efficiently assist investment decisions. While tracking excess returns, veDAO stands on the shoulders of giants to minimize investment risks.
BGT: Exploring Event Release: Web3 and RWA Series
Following Hong Kong and South Korea, the Token 2049 side event held by BG Trade at 3 Temasek Ave, Singapore on September 13th continued the previous theme - Exploring Event Release: Web3 and RWA.
BG Trade CMO Hakan discusses the world of tokenization of real world assets (RWA) and BG Trade’s approach to redefining this growing space. BGT aims to become a native asset of Web3.0, while providing holders with airdrop opportunities for TOKEN assets of future listed companies.
As a bridge between the traditional stock market and the cryptocurrency world, BGT plans to build an ecosystem that anchors tokens and traditional stocks at a 1:1 ratio and breaks down the barriers between the currency circle and the stock market. For currency holders, they can obtain the stocks of the corresponding listed companies by purchasing tokens; and for listed companies, they can tokenize the stocks so that users who do not belong to their listed exchange area can also conveniently trade. Asset Allocation. This will enable freer and more efficient asset allocation across regions and fields.
BGT is a pioneer and demonstration in building this ecosystem. Through the Token anchored by Hong Kong listed companies, it has become the first tokenized asset in currency and stocks. Through the BGT project, the process of tokenization of stocks of listed companies will be standardized, and more listed companies will be helped to achieve currency-to-stock connectivity and build a new currency-to-stock ecosystem.
Olivex: Olivex 2.0 plan unveiled at Token 2049 conference
Security: Olivex will further strengthen its security measures to ensure that users’ digital assets are protected at the highest level.
Trading experience: Olivex 2.0 will provide a faster, smoother and more reliable trading experience to meet the growing demand for digital asset trading.
Features and Tools: Olivex 2.0 will introduce a range of new features and tools to help users better manage and grow their digital asset portfolios.
Global expansion: Olivex plans to expand its services globally to provide more traders with a convenient digital asset trading experience.
5. BitMEX co-founder and former CEO Arthur Hayes: The largest bull market in risk assets since the Great Depression
Why I think the next bull run will likely start in early 2024, which will be the biggest bull run not just in crypto but in risk assets since World War II and the Great Depression. Basically, what is GDP? I got this from Robin Paul, which is population growth, productivity and debt. Who can drive that kind of growth to pay off the debt when there arent enough kids? What solutions have central banks and governments proposed to address this problem? How do we keep GDP growing - print money.
Since 1970, we have grown from 110% to 360%. The worst part of this chart isnt just the terrifying 360%, the acceleration is equally chilling. It took us 10 years to increase growth by 100%, and during COVID-19 it only took us two years to increase it from 250% to 360%.
From a global perspective, we are in the late stages of a debt disaster. Each country has its own specific reasons why debt is unsustainable, but at a global level we are seeing accelerated debt issuance to make up for non-existent growth.
Even though we are in Singapore, we are in US dollar terms and most countries monetary policy is a reflection of US financial policy, so I spend a lot of time discussing the Fed and financial policy.
If youre a holder of U.S. Treasury bonds, the U.S. has to roll over nearly $8 trillion in bonds by 2026, and they have to find someone willing to take that debt and the prevailing yields in the market. Now think about it, how are they going to do this if the whole world is faced with the problem of too much debt and not enough population growth? Who will buy the debt?
What does a government do when it has a bunch of debt it needs to issue and no one is willing to buy it at an affordable yield? They will print money.
So if I look at the fiat liquidity issue from a global perspective and the U.S. as a reserve currency issuer, this is the largest currency issuance market weve ever seen, but we dont have anyone here willing to buy these at these yields thing.
6. UniSwapX: A system that solves the problem of economic incentives for intended counterparties
The Amm protocol of uniswap V1-3 faces issues such as user cost, transaction price, transaction link, routing service, LP incentives, etc. Todays Swap market situation can be said that MEV has completely surrounded the memory pool on the chain, and every large-scale Swap almost faces being pinched. Users always trade at the worst price, and the profits are divided by MEV.
The launch of UniswapX is to try to solve the above problems from another dimension by trying to reduce dimensionality by completely changing the AMM transaction mechanism. By definition: UniswapX is a new permissionless, open source (GPL), auction-based routing protocol for trading across AMMs and other liquidity sources. The reason why it is said to be one of the most cutting-edge and implementable Intents is that it is the most mature system that directly solves the economic incentive problem of intended counterparties.
Conclusion
It is difficult to summarize in one article, and there must be some omissions. Therefore, some friends may not be able to understand the purpose of our article. Therefore, we respond to the conclusion of the opening chapter at the conclusion and further elaborate our argument from another angle - decadence surges in enthusiasm, and vitality lies in silence.
One of the feedbacks from the scene was that many friends who had talked freely at the Hong Kong event did not show up at Token 2049 in Singapore, which made people feel sad. But in fact, this feeling is most likely an illusion - as mentioned at the beginning, the most active in 2049 are mainly large institutions, traditional finance and established exchanges. They have not made a move for a long time, even if some basic projects are overvalued. Value phenomenon, but at this stage, the market has crypto projects that are closest to the core narrative of the crypto world since Bitcoin, and are getting further and further away from large institutions, traditional finance and established exchanges. They do not have the ability to enjoy the Beta benefits of the crypto world, and if they are not willing to rely on luck to beat the Alpha benefits, they will be drowned in the delusion of trying to integrate into the crypto economy.
Therefore, Singapore, which seems to have enthusiastically gathered these large institutions, traditional finance and old exchanges, is also showing signs of decline like them.
On the contrary, the infrastructure construction of the crypto world, the practice of intention trading, the development of the Web3 application layer, and the composability brought by RWA to DeFi will bring the vitality of the blockchain industry and DeFi empowerment to the crypto market in this cycle. Web3 efficiency and corresponding native Token asset value. Who can occupy this high ground?
Therefore, we deliberately selected the above six key points to encourage us together!
Note: This article is produced by ThePrimediaDAO. Part of the content comes from on-site reports provided by ThePrimediaDAO ecological partners. Part of the content refers to on-site reports from friendly media such as ForesightNews, CoinVoice, Cointime, MarsBit, Gyro Technology, PANews, and Chain Catcher.
