To that end, the crypto scene in Singapore is pretty quiet – a stark contrast to what Monetary Authority of Singapore (MAS) CEO Ravi Menon called a “bloodbath” a few months ago. However, this industry still exists, despite holding a low position for the time being.
Certainly, many are still keeping a close eye on the industry and waiting to see what new developments may arise in the crypto space.
At the Tech in Asia 2022 Conference held yesterday (September 21), executives of successful crypto companies were invited to share insights on the future of the crypto space. electronics and especially how to build lasting companies in the Web3 space.
Navigating Bear and Bull Markets
One thing that all panelists agreed on is that navigating the boom and bust cycles that cryptocurrencies are prone to is key to ensuring that the company can stay afloat in the long run. .
In fact, Alex Svanevik, CEO and founder of Nansen, reveals that part of how Nansen manages to survive is that they manage their treasury to make sure they don’t crash when the market hits them. bear field appeared.
Thinking is that we want to protect our own position. We hired a trader with a different mindset so he could craft our strategies and manage our treasury in a way that protects the rest of the business. We make sure we can think backwards in terms of how we get our revenue, and that’s how we ensure that our treasury can last for a long time.
– Alex Svanevik, CEO and Founder of Nansen
Svanevik credits this thinking to traditional economics, where countercyclical fiscal policy is adopted by governments to save in good times and spend to stimulate the economy during recessions.
To illustrate his point, Svanevik cites the Norwegian oil fund, where profits from oil extraction and exports are invested in non-Norwegian assets and non-oil assets to insure that the company has a diversified portfolio.
Therefore, the bear market that has hit crypto companies like Three Arrows Capital and Terraform Labs is not as much of a concern as it could be.
Leon Foong, head of markets for Asia Pacific at Binance, agrees. He suggests that businesses at the end of the day are run by people, and people are susceptible to market sentiment. Therefore, it is important to be careful before conducting a hiring spree in bull markets.
Instead, Foong advises companies that the bear market is a good time to hire the right talent for the company, given the capital that has accumulated during the bull market.
Conversely, it may be better to focus on raising capital and taking care of the company’s cash runway during bull markets.
The future is reality, not ideology
The panelists also pointed out that the investment landscape for crypto companies is changing and investors are looking for better companies following the crypto market crash.
In particular, Akshay BD, Head of International Expansion at Solana, noted that “crypto startup teams are now held to a higher standard. Investors have been a lot more sober in the past few months and now they are more focused on deliverables.”
Therefore, Akshay advises entrepreneurs that while building their team, they should focus more on practicality, rather than ideology in their products, especially given the ethos of the money community. Electronic decentralization.
When teams look at what they’re building through a product lens, not an ideology, they’ll come to the conclusion that they want the minimum required data on-chain to help achieve interoperability. and the ability to combine.
– Akshay BD, Head of International Expansion, Solana
As a result, Akshay suggests that for crypto companies to be viable in the long term, they need to provide consumers with a product they can actually use — apps for crypto and other things. something like that, because “meaningful adoption only happens when we get people to use these apps.”
Web2 World is still relevant
But how exactly do companies get to that scale? For the panelists, the answer was simple – put apps and products as bridges between the Web2 and Web3 worlds.
While companies can rely on ideology to get consumers, this is not a long-term solution, according to panelists. Instead, they suggest that entrepreneurs should work with Web2 companies to create something new.
In fact, Foong suggests that such a partnership could benefit all parties involved. Web2 companies can provide a user base for new Web3 applications, while Web3 companies can build these applications for consumers, to be used through Web2 products.
There have been a lot of projects trying to launch tokens for the purpose of launching tokens, but during a bear market, these projects tend to end quickly. How many users will actually use their product if the token is taken away?
But for fantasy community projects, if they can layer tokens properly, they present a lot of interesting opportunities. Community projects really tap Web2 companies with real user bases and that gives us a real use case for these projects.
– Leon Foong, Head of APAC Markets, Binance
In addition, Foong also points out NFT as one of the new technologies in the Web3 world that can solve real-world problems. Referring to the soulbound token, Foong argues that the token can solve real-world problems for businesses that need to fulfill your customer obligations or to resolve intellectual property disputes.
Svanevik also shares this encouragement for the Web3 world to partner with the Web2 world, who pointed out that “on-chain NFTs can be placeholders for real-world NFTs” and on-chain NFTs The same can be used to represent-chain assets, such as assets or infrastructure, and other use cases such as providing loans can be made much easier through using smart contracts.
The Web3 world has seen its ups and downs over the past few years, and the industry has earned a reputation for itself. However, the industry remains at the forefront of technological advancement.
While only time will tell if the industry can reinvent itself and make itself useful to the world, but the panelists gave us a glimpse about what makes up their company’s success stories rather than embarrassing failures.
And their surprising success is not explained by the capabilities of the Web3 world, but by what they adapted from the world of Web2 and other non-crypto organizations. It seems like best practices exist for a reason.
Featured image credit: Screenshot of TIA 2022 Conference