[author: Boris Richard]
Volatility continues to roil the crypto market in 2023 even as fear of a recession in the overall financial markets has started to subside. The massive drop in the capitalization of the global crypto market last year, along with the filings for bankruptcy protection by several crypto lenders and exchanges, has contributed to uncertainty in the crypto and decentralized finance (DeFi) space.
Despite these problems and the resulting calls for greater regulation, crypto and DeFi continue to see innovation as they mature.
In this video presentation, Boris Richard, Global Head of Crypto Advisory & Digital Asset Economic Disputes at J.S. Held, provides insights into the current and future landscape of the crypto market. Speaking at the LA Blockchain Summit hosted by Draper Goren Holm, the California-based blockchain venture studio and fund, he discusses both positive and negative developments surrounding crypto, DeFi, non-fungible tokens (NFTs), and blockchain technology.
Among the topics discussed are:
- Challenges facing DeFi, including excessive leverage, too much interconnectedness, issues of scalability, security, and market integrity
- Increase in hacks and losses of funds
- Greater compliance with Know Your Customer (KYC) and anti-money laundering (AML) rules
- Expansion of use cases for digital assets
- Increased institutional adoption of crypto
- The move to anchor the fundamental and utility value of tokens and decouple them from other macro and traditional securities markets
- Unintended consequences created by regulations and enforcement actions
See video here