We have some experts to guide us on the latest trends in Web 3. Let's introduce our panel of experts who will be providing their insights on the current state of the industry and the direction it is headed in 2023:
Passionate about Fintech, DeFi and the future of finance,
with a background in psychology and business, Caren Schwannauer is the co-founder of Staq, a growth consultancy working with startup companies in the blockchain and Web 3 space to help them scale their team, get access to funding, and find partners in their business.
Zara Zamani is the Chief Solutions Officer at Chromaway and co-founder of the Neoki Metaverse platform. With a background in blockchain solution architecture and experience across various industries, including healthcare, logistics, gaming, and fashion, Zara brings a wealth of knowledge to the table.
Dr Amber Ghaddar is the co-founder of Allianceblock, a company building infrastructure in Web 3, and The 200 Billion Club; an organisation focused on supporting underrepresented and overlooked founders in the industry and a soon-to-launch VC fund; Amber will be sharing her thoughts on investment trends and the future of emerging technologies.
Mona Tiesler is a VC at a publicly listed venture capital fund based in Germany and lives in London. With years of experience in the blockchain space, Mona will provide her insights on capital deployment and investment strategies in the industry.
Now, let's delve into the latest Web 3 trends in 2023.
Investment in the Crypto Industry
The crypto industry has experienced a bear market, providing a slower-paced environment for building, researching, learning, and making more informed investment decisions.
In a bull market, capital is deployed easily and at high valuations, leading to negative consequences in later rounds and companies not surviving the bear market. VCs and investors are now focusing on more traditional criteria, such as building the right team, having a product with a use case, and adaptability to regulatory frameworks.
Sectors of interest include infrastructure and utilities with practical uses. Bear markets are opportunities for real builders to stay and sell in bull markets. The next bull market will not be about web 3 but rather a transition from web 2 to 2.5.
Profitability is Key
The tech industry has been overvalued due to the large amount of cash VCs had to deploy and the focus on growth at any cost. However, with rates increasing and inflation increasing, the importance of profitability is highlighted. Over-inflated valuations exist in both traditional tech and crypto.
In 2022, VC investment went to NFT and gaming, with 51% in the VR metaverse space. Tokens without real utility need to be addressed, and the complexity of blockchain needs to be simplified for non-tech profiles. Investors focus on infrastructure development, such as the Cosmos ecosystem, Avalanche subnets, and Para chains. A decline in VR metaverse investment is expected in the next few years.
Regulation and the Crypto Industry
The events of the past year in the crypto industry have been similar to the 2008 financial crisis, with a lack of regulation leading to over-leveraging, bad risk management, lack of transparency, and internal control. The push for self-regulation in the US has made progress, but the recent events may lead to more regulation, especially in the DeFi sector. Europe is more advanced in terms of regulation with MiCA.
The industry should focus on creating a decentralised metaverse that is ethical, inclusive, and benefits everyone. This can only be achieved by balancing regulation, decentralisation, and ethics. The industry should work with regulators to create regulations that benefit the industry and society. It's essential to have clear definitions of decentralisation to avoid misunderstandings and influence the regulations, risks, and liabilities.
The push for self-regulation has made progress in the US, but recent events in the DeFi sector may lead to more regulation. However, the consequences of regulations may negatively affect the crypto industry in the US, which is one of the largest markets. The word "decentralisation" has different meanings for different people, and it's essential to have a clear definition when discussing regulation.
Regulations in the Metaverse
In the metaverse world, there are two types of metaverses: closed and open. Closed metaverses are controlled by companies, while foundations and communities control open metaverses. Decentralisation at different layers exposes the industry to different regulations, risks, and liabilities. It's important to consider the user experience, security, and privacy while implementing regulations.
What do you think about the crypto industry's current state and the metaverse's future? Share your thoughts in the comments!