Key highlights of TOKEN2049 Singapore

TOKEN2049 has concluded in Singapore. Below are three highlights from one of the most anticipated cryptocurrency conferences of the year.

One of the most important industry conferences, TOKEN2049, was held in Singapore on September 18-19. It brought together the most important figures in the cryptocurrency sector, who shared their opinions on trends, developments and priorities for the industry.

What will the cryptocurrency industry look like in three years?

One of the highlights of the event was a panel titled “The Next 3 Years in crypto,” during which several leaders of major cryptocurrency projects discussed where the industry is headed in the near term. Jeremy Allaire, CEO of stablecoin issuer Circle, Star Xu, founder and CEO of major cryptocurrency exchange OKX, and Vitalik Buterin, co-founder of ethereum, participated in the panel discussion and spoke about the future of the digital asset sector, sharing stories from their past experience as long-time participants and leaders in the space.

Self-custody is key

During the panel, OKX’s Xu highlighted the importance of self-custody technologies for storing cryptocurrencies, given their relatively high level of security. However, he also noted that promoting self-custody in the crypto industry (i.e. holding cryptocurrencies yourself rather than using a third party, such as an exchange) does not mean there is no need to regulate the space.

As for the future of digital assets, Xu noted that over the past ten years, the industry has seen many significant technological breakthroughs. However, he believes that Web3 applications and use cases should develop even faster.

Less attention to nfts

Buterin mentioned that one of the main advantages of digital assets is their international and borderless nature. He reiterated the idea that the industry has the potential to meet 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 attention to be paid to expensive nfts, arguing that they have no real benefits for the industry or humanity.

The ethereum co-founder also said he believes improving security in the cryptocurrency industry should be a primary focus, in addition to trying to reduce transaction fees.

Vitalik comments on the accessibility of cryptocurrencies and sings a song about them

Buterin also addressed issues such as the 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 valid to say that it is too early for more widespread adoption of cryptocurrencies. He compared the extremely limited awareness and adoption of bitcoin (btc) in 2013 to the situation just eight years later in 2021, when a cup of coffee could be bought with ethereum (eth) in Argentina.

While talking about the future of blockchain and cryptocurrencies, he also sang a song about cryptocurrencies:

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And then an improved version of Buterin's song appeared on social media:

Arthur Hayes predicts market reaction to Fed rate cuts

Also on the first day of the event, BitMEX derivatives exchange co-founder Arthur Hayes gave a keynote address titled “Reflections on Current Developments in Macroeconomics.”

Speaking on the same day that the US Federal Reserve was expected to announce long-awaited interest rate cuts, which in fact occurred later that day, Hayes provided that the cuts would cause market declines in the short term:

“I think the Federal Reserve is making a colossal mistake by cutting rates at a time when the U.S. government is printing and spending as much money as ever before in peacetime.”

Hayes noted that lower US interest rates could trigger a market decline in part due, again, to fears surrounding the unraveling of the yen carry trade. Lower interest rates from the Federal Reserve, coupled with recently rising rates from the Bank of Japan, narrow the gap between rates in the US and Japan, making the yen carry trade less profitable.

The yen carry trade refers to borrowing yen at historically low rates, converting it into higher-yielding assets such as U.S. Treasury bills, and then investing in those assets. One of the factors driving global markets lower last month was the potential unraveling of the yen carry trade.

However, since the US Federal Reserve announced a 0.5% cut in interest rates, bitcoin has gained almost 7%.

The upcoming TOKEN2049 event, which promises to feature over 200 speakers, is scheduled for this spring in Dubai.