The Underlying Potential of Crypto

The events that happened in 2022 may have raised some questions in the minds of a few whether crypto will survive or not. The crypto industry saw the collapse of one of the big crypto exchange FTX back in November and before that there was a meltdown of the stablecoin Terra and its partner coin Luna as well as the implosions of other crypto projects.

At the end of the year, Binance also was confronted with large scale withdrawals and criminal investigations over it's compliance practices.

International Finance Corporation

A few months back, these companies were lauded as how vision and thinking boldly could help build in making a billion dollars company and now it looks like they offer different lessons.

These collapses sort of renewed the discussion of having a greater oversight for the industry. And the idea was to regulate the crypto space just like other traditional financial institutions in order to make them behave like them. But again, that looks to be a tough ask for the authorities because the crypto space is evolving rapidly.

It could improve things like consumer protection and market integrity but it might not change the underlying incentives in the industry and cease the fraudulent behavior it has attracted to date.

For the industry to go mainstream, it really will need to focus more on dimensions that closely monitor development in relation to actual customer and business needs

Crypto is transformative as it allows two parties to transact directly without the need of any intermediary. I can transfer the ownership of a digital asset and do other stuff with small friction and fee. That means, it gives me more control and bargaining power.

Entrepreneurs on Web3 who are focused on increasing choice and competition in the creator economy should assess the economic value they provide to creators and contrast it with the market leaders.

This could really remove the frictions and give the creators more power.

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