Crypto industry focus: regulation, stablecoins, market crash

A visual representation of the cryptocurrency bitcoin.

Edward Smith | Getty Images

Cryptocurrency companies dominated the high street at the World Economic Forum in Davos this year, a notable difference between this edition and the last one in 2020.

The notable presence from the industry came even as the cryptocurrency market crashed. This was triggered by the collapse of the so-called algorithmic stablecoin terraUSD or UST, which saw its sister token Luna drop to $0 in May.

Meanwhile, global regulators are setting their sights on the cryptocurrency industry.

The World Economic Forum is the annual gathering of global business and political leaders that aims to set the year’s agenda.

Against this backdrop, it was the perfect time to catch up with some of the top players in the cryptocurrency industry. This is what I learned.

Thousands of cryptocurrencies could collapse

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

Blockchain is the technology that powers these digital currencies and platforms including Ethereum, Solana, and many others.

Many industry executives view the current market situation as unsustainable.

Brad Garlinghouse, CEO of cross-border blockchain company Ripple, has predicted that there may only be “dozens” of cryptocurrencies left in the future. He said that there are about 180 fiat currencies in the world and there is no actual need for many cryptocurrencies.

Web3 CEO Bertrand Perez likened the current state of the market to the early Internet era, saying that there were a lot of “tricks” and that many of them “didn’t have any value”.

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

Stable Coins: Talk of the City

You may have heard of stablecoins. It is a type of cryptocurrency that is supposed to be tied to a real asset.

Practically speaking, stablecoins like Tether or USD Coin, which are meant to mirror the US dollar one-on-one, are backed by real assets such as coins or bonds. They have a reserve of these assets in order to maintain the dollar peg.

Everyone wants to get more involved in cryptocurrency now, no one is ignoring the industry anymore.

Mihailo Bilic

CEO of Polygon

Jeremy Allaire, CEO of Circle, one of the companies behind the USDC issuance, said the terraUSD crash “made it clear to people that not all stablecoins are alike.”

“It helps people distinguish between a well-regulated, fully held, asset-backed dollar digital currency, such as USDC, and something like terraUSD.”

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

The industry welcomes the bear market

This feeling was echoed by other executives as well Say The skyrocketing price has pushed people to focus on speculation rather than product building.

″[The] The market, in my personal opinion, may have become a bit irrational, or perhaps a little reckless. And when times like these come, [a] Correction is usually needed, and at the end of the day [is] Mihailo Bilik, CEO of Polygon . said:// descriptor please ///.

Regulation is coming, but thinking has changed

Leave a Comment