TOKEN2049 Singapore main highlights

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

One of the largest industry conferences, TOKEN2049, was held in Singapore from September 18-19. It brought together leading figures in the crypto space to share their thoughts on trends, developments, and priorities for the industry.

What will the crypto industry be like in three years?

One of the highlights of the event was a panel titled “The Next 3 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, Star Xu, founder and CEO of top crypto exchange OKX, and Vitalik Buterin, co-founder of Ethereum, joined the panel discussion and spoke about the future of the digital asset industry, sharing stories from their past experiences 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 levels of security. However, he also noted that the promotion of self-custody in the crypto industry (i.e. holding your crypto yourself rather than using a third party like an exchange) does not mean that there is no need to regulate the space.

Speaking about the future of digital assets, Xu noted that the industry has witnessed many significant technological developments in the past decade. However, he believes that web3 applications and use cases need to develop even faster.

Less focus on NFTs

Buterin noted that one of the main advantages of digital assets is their international, borderless nature, reiterating the idea that the sector has the potential to meet the needs of global people who do not have access to the traditional financial system.

He also noted that practical use cases are needed to drive mass adoption of digital assets. Buterin called for less focus on expensive NFTs, arguing that they have no real benefit to the industry or humanity.

The Ethereum co-founder also said that he believes that in addition to reducing transaction fees, the focus should also be on improving security in the crypto sector.

Vitalik comments on the accessibility of cryptocurrency and sings a crypto song

Buterin also touched on issues such as the accessibility of cryptocurrencies, their use as a means of payment, and security in the overall ecosystem.

He argued that it is no longer valid to say that it is too early for crypto to be more widely adopted. 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 in Argentina can be purchased for Ethereum (ETH).

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

Then an improved version of Buterin’s song appeared on social media:

Remix of Vitalik Buterin’s song at Token2049 in Singapore | Source: Lil Bubble Arthur Hayes predicts market reaction to Fed rate cuts

The first day of the event also featured Arthur Hayes, co-founder of derivatives exchange BitMEX, giving a keynote speech titled “Thoughts on Current Events in Macroeconomics.”

Speaking on the day the US Federal Reserve (Fed) was expected to announce its highly anticipated interest rate cuts, Hayes predicted that these cuts would lead to a decline in the markets in the short term:

“I think it’s a huge mistake for the Fed to cut 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 low interest rates in the U.S. could trigger a market decline, in part because of fears — again — of a pullback in yen carry trading. The Fed’s low interest rates, combined with the Bank of Japan’s recent hikes, are reducing the spread between U.S. and Japanese rates, making yen carry trading less profitable.

Yen carry trading involves investors borrowing yen at historically low rates, converting it into higher-yielding assets like U.S. Treasury bonds, and then investing in those assets. One of the driving factors behind global stock market declines last month was the potential pullback of yen carry trading.

However, after the US Federal Reserve (FED) announced a 0.5 percent cut in interest rates, Bitcoin gained approximately 7 percent in value.

The TOKEN2049 event, which will feature more than 200 speakers, is planned to be held in Dubai next spring.