TOKEN2049 in Singapore has come to a close. Here are three highlights from one of the most anticipated crypto conferences of the year.
TOKEN2049, one of the largest conferences in the industry, was held from September 18 to 19 in Singapore. The conference brought together prominent figures in the cryptocurrency space, who shared their thoughts on trends, developments, and priorities in the industry.
What will the cryptocurrency industry be like in three years?
One of the highlights of the event was a panel discussion titled “The Next Three Years in Crypto,” where several leaders from major crypto projects discussed where the industry is headed in the near term. Jeremy Allaire, CEO of stablecoin issuer Circle, Starshow founder and CEO of leading crypto exchange OKX, and Vitalik Buterin, co-founder of Ethereum, took part in the panel discussion, speaking about the future of the digital asset sector, and sharing stories from their past experiences as long-time participants and leaders in the space.
Self-care is key.
During the webinar, OKX’s Xu noted the importance of self-custody technologies for cryptocurrency storage, given their relatively high level of security. However, he also noted that the rise of self-custody in the crypto industry — meaning holding crypto yourself rather than using a third party, such as an exchange — does not mean there is no need to regulate the space.
Speaking about the future of digital assets, Shaw noted that the industry has seen many significant technological developments over the past 10 years. However, he believes that web3 applications and use cases need to evolve even faster.
Less focus on NFTs
Buterin said that one of the main advantages of digital assets is their international, borderless nature. He emphasized the idea that the industry has the potential to serve the needs of people around the world who do not have access to the traditional financial system.
He also pointed to the need for practical use cases to drive mass adoption of digital assets. Buterin called for less focus on expensive NFTs, arguing that they offer no real benefits to the industry or humanity.
The Ethereum co-founder also said he believes improving security in the crypto industry should be a major focus, along with trying to reduce transaction fees.
Vitalik comments on crypto accessibility and sings a song about crypto
Buterin also touched on topics such as accessibility of cryptocurrencies, their use as a means of payment, and security in the ecosystem as a whole.
He argued that it is no longer true to say that it is too early for wider adoption of cryptocurrencies. He compared the very limited awareness and adoption of Bitcoin (BTC) in 2013 to the situation just eight years later, in 2021, when it became possible to buy a cup of coffee with Ethereum (ETH) in Argentina.
While talking about the future of blockchain and cryptocurrencies, he also sang a song about cryptocurrencies:
Then a remastered version of Buterin’s song appeared on social media:
Arthur Hayes predicts market reaction to Fed rate cut
Also on the first day of the event, Arthur Hayes, co-founder of derivatives exchange BitMEX, delivered a keynote speech titled “Thoughts on Current Macroeconomic Events.”
Speaking on the same day that the US Federal Reserve was expected to announce its highly anticipated interest rate cuts – which it did later that day – Hayes said: expected That the cuts would cause markets to fall in the short term:
“I think the Fed is making a huge mistake by cutting interest rates at a time when the U.S. government is printing and spending as much money as it did in peacetime.”
Hayes noted that lower U.S. interest rates could lead to a market pullback partly due to concerns about the unraveling of the yen carry trade. Lower interest rates from the Federal Reserve, coupled with recent higher interest rates from the Bank of Japan, are narrowing the gap between U.S. and Japanese interest rates, making the yen carry trade less profitable.
The yen carry trade refers to investors borrowing yen at historically low interest rates, converting it into higher-yielding assets, such as U.S. Treasuries, and then investing in those assets. One of the drivers of the global markets’ decline last month was the possibility of the yen carry trade unwinding.
However, since the US Federal Reserve announced a 0.5% interest rate cut, Bitcoin’s value has risen by about 7%.
The next TOKEN2049 event – which is expected to feature over 200 speakers – is scheduled to take place this spring in Dubai.