Space Summary
The Twitter Space The BTCFi Revolution hosted by swellnetworkio. The BTCFi Revolution focuses on staking mechanisms for assets like swETH, rswETH, and swBTC on Swell L2, offering users the opportunity to earn pearls by participating in staking activities. Swell L2 provides a platform for passive income generation through staking, emphasizing the benefits and rewards of engaging with the BTCFi Revolution. The system incentivizes stakeholders with pearls, creating a dynamic environment for potential yields and participation in the DeFi space.
For more spaces, visit the DeFi page.
Questions
Q: What assets can users stake on Swell L2 for the BTCFi Revolution?
A: Users can stake assets like swETH, rswETH, and swBTC on Swell L2.
Q: How can users earn within the system participating in the BTCFi Revolution?
A: Participating in staking activities allows users to earn pearls within the system.
Q: What is the purpose of the provided link in the description?
A: The link directs users to where they can stake and earn pearls in the system.
Q: What opportunities does Swell L2 offer to users?
A: Swell L2 provides opportunities for passive income through staking mechanisms.
Q: How are pearls relevant to the BTCFi Revolution?
A: Pearls serve as rewards or incentives for users engaging in staking activities within the ecosystem.
Q: What role does staking play in the BTCFi Revolution?
A: Staking mechanisms for assets like swETH, rswETH, and swBTC are central to the BTCFi Revolution.
Q: What benefits can stakeholders potentially gain from staking?
A: Stakeholders may benefit from yields by engaging in staking activities on Swell L2.
Q: Which assets are supported for staking on Swell L2?
A: Swell L2 supports staking for assets such as swETH, rswETH, and swBTC.
Q: How does Swell L2 contribute to the BTCFi Revolution?
A: Swell L2 facilitates the staking process for assets, enabling participation in the BTCFi Revolution.
Q: What is the primary focus of the BTCFi Revolution?
A: The BTCFi Revolution revolves around staking mechanisms and the potential benefits for users.
Highlights
Time: 00:15:42
Introduction to BTCFi Revolution Learn about the revolution's staking options and how to earn pearls on Swell L2.
Time: 00:25:18
Stake for Rewards Discover how staking assets like swETH, rswETH, and swBTC can lead to earning pearls.
Time: 00:35:55
Join the Movement Engage in the BTCFi Revolution by participating in the staking activities provided by Swell L2.
Key Takeaways
- Staking options include swETH, rswETH, and swBTC on Swell L2 for the BTCFi Revolution.
- Participating in staking allows users to earn pearls within the system.
- The link provided directs users to where they can stake and earn pearls.
- Swell L2 offers opportunities for passive income through staking.
- The BTCFi Revolution is centered around staking mechanisms for various assets.
- Users can engage with the BTCFi Revolution through the provided staking options.
- Pearls serve as the rewards or incentives for staking in the ecosystem.
- Stakeholders can potentially benefit from yields by engaging in staking activities.
- Swell L2 facilitates staking for assets like swETH, rswETH, and swBTC.
- The staking process on Swell L2 is central to the BTCFi Revolution.
Behind the Mic
Initial Greetings and Technology Check
Close. I love. I see some. I'll soon see. Hello. Hello, Tony. Hello. Hi. Hi. Hi everyone. Hello, hello. The mic is working well, Tony, I can hear you very well. Yes, I can hear you guys too. It's very clear. Yeah, yeah. Looking forward to the great conversation later. And I think your opinion is very exclusive and very insightful since we have the last conversation in last week. Yeah, that's really great. Thank you very much. I hope you know my two cent are worth of something. Yeah, very excited for that. Okay, let me check the other speakers. He's here or nothing. So I thought. I think Alex from nimble, the market lead.
Discussion on Backgrounds and Upcoming Topics
Hey Sonny, this is moonlight. So we are at KBW right now, and if we couldn't hear our response means over here in real life events and just give us. But right now. Yes, I can hear you clearly. Alyssa Mullal, head of community at Ningbo. Thank you. Okay, cool. Okay, then we will also have Yuyang from formatas and I saw you already on stage. You want to try the mic first? Yeah, sure. Yeah, working well. Thank you. And also we have Angelina from. Okay, cool. And since we have two minutes to go and. Yep, let's just be ready. Ndez.
Conversation Introduction
Yeah, guys, seems we are on the perfect time to kick off our today's conversation with our special speakers. And I saw there some request to the stage, but we will go to like have the roundtable discussion first. So guys, just make sure you will be there with us. And if you also have any question later, we will invite you to the stage and ask for the question. Yeah, so hello everyone, welcome to our today space. Sunny, the host of today. And we will have discussion. The panel centered on lower interest rates are coming. It's a bull market on the horizon. This topic is very charming and very attractive for the industrial people who really care about it.
Introducing Speakers
And yeah, we will have four speakers here with us and start this exclusive discussion. First of all, I think let's give our warm welcome to the speakers and see how with our audiences and also make a brief introduction of yourself and also your project a little bit. First of all, let's have Tony from Inc Finance, the founder and CEO. Hi, Tony. Hello everyone. Hi host. And really appreciate this opportunity to share our thoughts with everyone. And my name is Tony. I'm the CEO and founder of Inc Finance. And prior to joining the crypto industry, I was an institutional trader and was a fixed income derivative trader, asset backed and the mortgage backed security trader, and then asset manager.
Tony's Background and Project Description
Then I co founded up my own VC, focused on fintech and AI, medical AI. And then starting from 2018, I sort of delved myself into the crypto space and I advised two public blockchain projects. And then at the end of 2020, fortunately, to have a very strong institutional backing and a fantastic team. And we started our in finance project, which is a financial infrastructure for collaborative financial activities. Anything from DeFi liquidity pooling to web two, to web three adoption, to RWA underwriting. Any form, any activity that needs financial collaboration. We want to be the infrastructure to provide a no code, easy to access and flexible platform.
Moving to Next Speaker
So it's great to be here today. Thank you. Okay. Thank you, Tony, for being here and so glad to have you. Yeah, we have a conversation last week, and I really agree that you mentioned about the defi sector. Very insightful and looking forward to your sharing later. Thank you. And so, yeah. Next, let's have Alex from Nimble Network, the marketing lead. Hi, Sunny, this is Moon Lai and I am nimble's head of community. So I'd like to introduce nimble network as first, opening or building a sharing economy with all the tools that you need to build on monetized AI agents.
Nimble Network Introduction
And we also have our weekly AI panels across different social media platforms. If you guys are interested next time we could host it as well. We have already received over 48 million likes on Binance life. Thank you. Okay. Thank you, Monet. I'm sorry for that. I thought you were X and yeah, welcome and so glad to have you be here. Yeah. So next, let's have Yuyang, also one of our old friends. Yeah. Hi, yuya. Yeah, I can hear you. Hello, sunny. It's good to see you again. Yeah, yeah. So, hello, everyone. It's a great honor to be here with you.
Yuyang's Overview of Formattas
By the way, I am Yu Young, the ambassador formattas. So Formattas is a web three gaming platform that combines artificial intelligence and the centralized physical instruction network to create immersive and engaging gameplay experiences with our users. Moreover, we have already completed 35 games. So you guys, if you are interested in Formattas, you can start playing games instantly on Formata's website. You don't need to download and install games, just click and play. And this eliminates the hassle of dealing with large game files. Also, we have social quests, daily quests, and also we have weekly campaign to earn points, which will be convertible during mainnet launch.
Promotion of Future Games and Social Media
We are preparing to release our latest game, which is already in the testing phase, so please follow our twitter at formetas website, formetasio and you can check the link of Discord and telegram channel there so you won't miss anything important. Thank you so much, sunny. Okay, thank you so much Yuyan for the introduction and also the format has also a very attractive games platform and yeah, just be ready like to follow up their updates and something of their projects. Yeah, thank you. And later, let's have Angelina, the co founder of the Harmonvc.
Angelina's Introduction
Yes, hello everyone, I'm Angelina, also co founder of Homo Venture and we was founded in Hong Kong and in the early days it held a number of web three AI submits and formers with the Hong Kong Web Three association. And we are focusing currently we pay special attention to AI field and we believe that Hong Kong is one of the entry point for crypto asset complaints. So very glad to have chance discussion with every guys today. Thank you. Okay, thank you Angelina for the introduction and yeah, looking forward to what you guys are doing and sharing with us a little bit in the following questions.
Q&A Session and Anticipating Responses
Yeah, so I think that's all the speakers for our today's space and so glad to have you all here. And just make sure you guys already like to follow if you have an interest in their projects or their sectors you are interested in and make sure you will follow them to catch up these updates. So let's just cut to the chase. So here is the first question. Like with the anticipated interest rate cut expected in September, how do you foresee the market reacting? Could this trigger the start of bull market? So first of all, let's have Tony. So how do you think about this?
Tony's Analysis of Market Reactions
Well, this is somewhat of not so straightforward answer. I mean, we generally believe that the interest rates, the level of interest rates have a direct correlation to asset price, which is absolutely true. And if we think of debt instruments, fixed income products versus other type of rights and equities, you may find that based on very simple discount model, you would say that higher rates would depress asset price and the lower rates tend to support asset price.
Exploring Complexities of Interest Rates
Well, that is a very sort of a simplistic way of looking at rates and that is why central banks want to manipulate rates. But if you take a deeper look at this, things are not that simple, right. For instance, if everybody take a look back for the past year and a half since feds aggressively hiked the rates, yes. Bonds are whacked. Right. Bonds are killed. And would you assume that stocks will be killed? Yes, I know, right.
Navigating Risk Assets and Inflation
We all see the whatever, the seven sisters of the high tech leaders are not being killed. In fact, Navidia just took off. So our higher interest rates necessarily bad for risk assets? Well, the fact says, not necessarily depending on what kind of a risk assets. If we understand the deep root of why the feds had been aggressively hiking rates, we find out that, oh, okay, so inflation was out of control, they were behind the curve. So they want to overcompensate by jacking up the rates aggressively.
Market Reactions to Interest Rate Changes
But if that is the logic, the market is very smart. Market says, okay, what kind of a business that would benefit from a higher inflation? The kind of business that would use technology, particularly AI, to suppress the pricing pressure and any equity that will have that aspiration or the womb of imagination that deliver the kind of technology that can suppress inflation actually would benefit. So even though rates rise dramatically as a response to higher inflation, those risk assets, simply put, stocks, that type of stocks that can have a description of being battling the inflation, of curbing inflation, actually performed very well.
Differentiating Between Stock Performances
And then you look at the Russell 2000, those are small and mid sized companies who do not enjoy this benefit. They all go very poorly. So the answer to that question is quite complex. Now, let's reverse this trend. So the question becomes, now, if Fed's lower interest rate, what does it do to risk assets? Well, the same answer, it depends.
Conclusion on Interest Rates and Market Dynamics
It's complicated. Right. So why do they lower rates? Well, we show the trend that inflation is under control. If inflation is under control, we may argue those aggressive spending, using AI, using technology to curb inflation, that expenditure might not be necessary. Well, by that matter, those who, companies who are supposed to benefiting from the inflation will actually do poorly.
Counterintuitive Market Outcomes
That is why Navidia is getting whacked. Quite counterintuitive. Now, you lower rates, why do these hyper growth stock actually not perform? And reversely, you look at the Russell 2000, they actually performed very well.
The Complexity of Crypto Assets and Interest Rates
So depending on which world are you looking into, which sector are you looking into in asset market? It is not that simple. And answer, so we are in crypto now. To answer, will lower rates benefit crypto, we need to identify, say what crypto assets in the broader space. What does it represent? Does it represent technology? Does it represent consensus? Does it represent a general attitude toward risk? I think from a different perspective, you can draw different conclusions.
Institutional Drives in the Crypto Market
And if we look at the birth of this recent bull market, we see institutional drive by bringing into ETF as the major drive, the dominant force. What that means is that now the traditional stock investors are now in the play. So if we want to look at the BTC as a standalone asset class, it shows itself as a typical risk asset that doesn't serve any utility, it's just a risk asset. So from that perspective, we can derive a reasonable conclusion if the lower rates will tend to boost risk assets subaluation.
Support for Asset Prices and Market Dynamics
So in the general sense, we may say it's very supportive to a very general low utility, built on consensus type of asset, which sounds like BTCE ETF should do well because they're, you know, normal stock investors who understand this low rates and high valuation logic. But will it extend to a broader space, a broader crypto rally? We have yet to see, because then it becomes within sector the correlation. We probably all believe if bitcoin trades to 80,000, we in the crypto industry tend to believe.
Sector-Specific Caution and Supportive Trends
Well, that sets a foundation of a general rally which I personally subscribe to, but to what extent, I still believe that it depends on sector to sector, it depends on utility to utility project to project. So I would say supportive. Lower rates are generally speaking, supportive to asset prices, and it's generally supportive to those asset classes that don't have particular utility, but only represents consensus and risk appetite. And for our industry, I hope we can ride this wave, but I do not expect so called the big wavelengths or boat.
Market Expectations and Geopolitical Factors
We have to be careful to say what will survive, what would ride this wave up to you high. Thank you. Okay, thank you, Tony, for very informative sharing and very insightful. Thank you so much. And, yeah, like, so I think let's have Mona. Yeah, so how do you think about this question? Okay, so we're on the first question, right? Let me check. And yeah, of course I also agree with what Tony said and with the question was, with the anticipated interest rate cut expected in September, which is this month, and coming soon, and, well, of course we could not really foresee what the market will react.
History of Rate Cuts and Market Reactions
Right. And, well, perhaps the market direction to an incident interest rate cut could be quite dynamic. And if we look at the history, like in the past, historically lower interest rates have made borrowing cheaper and of course encouraging business to invest and consumers to spend, which, well, of course this is a great time for the holiday season in the US. Right now it's just September, and we're getting ready to welcoming the holiday pretty soon, in the end of October and also November till the end, especially this year, we also got the us presidential election coming up.
Increasing Market Liquidity and Bull Market Catalysts
And those factors often leads to increasing market liquidity and boosting asset prices, particularly in riskier market like equities and cryptos right over here. So in this context, the rate cut in September could indeed serve a catalyst for a new bull market. And of course everyone also has been waiting for the bull market, right? We could see the downward of lots of crypto prices from bitcoin, ethereum all the way Solana and of the Ming tokens as well as in the us market, it's also not performing well, right? Especially if it's airlines without positive economic indicators such as decline, inflation, improved consumer confidence and strong current earnings, etcetera.
The Role of Global Economic Environments
So definitely we do hope that will happen. However, it is important to know that while a rate cut could stimulate the market, the overall global economic environment and geopolitical factors will also play crucial roles in determining the market. If the conditions are right, I would say this could be the beginning of a sustained bull run. And that is why some people predict that starting from, we could anticipate another bull run starting from October and then toward next year. Of course, non financial advice.
The First Question Insights
Thank you. Okay, thank you moonlight for the very perspective sharing and different micro economic aspect to give us a very special insight on days. And yeah, let's have yang for sharing your opinion for this question. Thank you. Sure. I actually agree with the both speakers that we cannot foresee the market reacting. So despite the broader markets anticipation of the rate cuts that is expected in September, which is the current month, the crypto market remains under pressure.
Market Pressure and Long-Term Views
Users have noted the sluggish performance of cryptocurrencies like bitcoin. Ethereum indicates that the expected rate cuts may not trigger the bullish momentum that many hoped for. So rate cuts was the one of the concerns of our users as we know that September is tough, especially for cryptocurrencies, and I'm hoping for more positive outcome. Although the current market situation is challenging, short term negativity is often part of the market dynamics. And if you're maintaining or aiming for a long term view, it will help you to make more form and less emotional decisions.
Insights from Industry Participants
Okay, thank you Yuyan, for the sharing. That's really nice. And yeah, let's have Angelina. So how do you think about it? Yeah, sure. Like historical data suggests that, well, interest rate cuts can sometimes lead to bullish market condition by market borrowing cheaper and encouraging investors. So the immediate market reaction isn't always positive. And for instance, past rate cuts have not always prevented market downturns as seen during times of economic distress like post 911 or the 2008 financial crisis.
AI Integration and Market Improvement
However, in scenarios where economic fundamentals are strong and rate cuts can indeed feel bull market as potentially seen in reduction post recessions recovers. And also we can see the market has already pricing a high probably of a rate cut in September and with some traders and analysts suggest that a near certainty, and this price means that the actual might not cause as dramatic market move as might be expected if it were a surprise. And also the extent of the cut, maybe like 0.25 versus 0.5, could still influence market reaction.
Economic Signals and Market Confidence
And with a larger cut potential signal more urgency from the Fed. And this might boost the market confidence. But I would say there's a mix of optimism and caution. Some investors and analysts are cautiously optimistic and suggesting that, well, the rate cut might not save the day, and single handedly it could contribute to a more favorable environment for stocks if optimal pen is positive economic data. So market analysts suggest that cautious optimism with an acknowledgement that while the rate cut might not be the sole saver, but it could contribute to a more bullish environment if other economics start at lien.
Innovations Expected in the DeFi Space
Yeah, that's my answer. Okay, thank you, Angelina, for the very insight, for sharing. Yeah, just like wrap up for the first question. All of our speakers keep some similar insights, that a lot of help for the bull market to come, but also under pressure. And also there are a lot of factors to impact this. So just let's keep an eye for that. Yeah. Okay, so next, let's have this second question. Like in the upcoming bull market, what innovations do you expect to see in the defi space?
Reflections on Decentralized Exchange Innovations
What unique features might find the next generation of defi? And, yeah, let's have Tony to go the first. Okay. I think the last defi summer basically showed us mostly decentralized exchange and decentralized lending. And on the exchange side, on the tech side, I believe the swap has been the dominant force and has been a unique form of innovation since then. It's pretty, then it derives a form of swap which becomes a cross chain swap.
Innovation and Market Efficiency
So on that front, in terms of a point to point trading, I think we have seen enough of innovation. And in that space, meaning retail liquidity and market depth, I believe it's the depth that will dominate. And new form of trading. Trading has been there for what things we know for a thousand years. Right. So exchanging goods for some other things, that fundamental framework will not change it. Is that what technology will bring to boost the efficiency of that?
Use Case Focused Innovations
I think if there is more technology breakthrough or some kind of a deep model breakthrough that lift the efficiency in this kind of a swap, one thing exchange for another, that can topple the sort of centralized exchanges dominance, anything along that line probably will have a chance as innovation. Otherwise the market is just going to go deeper instead of broader. So that's on the exchange side. Then on the lending side, the DeFi that we know, the DeFi lending, the mostly that are familiar with, people are familiar with really collateralized the lending right.
Credit-based Lending and Real-World Economics
And there is a big missing part which is credit based lending. So I personally expect to see credit based lending. And in that regard, Inc. Finance tries to provide a framework for these operators to get access to the market easily and flexibly. Other than that, I think there is a use case aside from the technology itself, I think the use case here is more important. There are so many real world economics, I wouldn't even want to call them necessary assets.
Tokenization and DeFi Infrastructure
These are just economic activities that generates real value through tokenization and through DeFi. These values should be able to amplify to maximalized through DeFi infrastructure. If that kind of innovation is use case focused, the solution focused to bring the mass web two economy or fan based economy entertainment, to bring that kind of assets on chain. The reason for that is these activities are already real, they are already happening at mass scale in the real world, in the web tool world.
Looking Forward to DeFi Innovations
So if there is solution driven innovation that can bring these activities on chain through tokenization, through DeFi, through immutable system, that would be something very worth looking forward to. So that is sort of my two cent. Okay, thank you Tony for very detailed sharing like your exchange site leading side. Also the use case and a group video like that web tour reward essay to change the model for right now. That's really nice to hear about this.
Future Tools and Accessibility in DeFi
Yeah, thank you Tony. And next, let's have moon Nai for sharing your opinion updates. Oh yeah, sorry we're at KBW right now. Okay. Yeah, right now. So sometimes I can really hear. But anyways, let's share my two cent on the second topic. And if indeed just like previously we mentioned that there will be an upcoming bull market and what innovations that we could expect to see, especially focus on DeFi over here.
Wallets and Payment Structures in DeFi
Well of course, just like yesterday I also participated to a different DeFi space and I was saying that I would looking forward to seeing more easier to use wallet or some payment structures. And also the other day I interviewed another project that's based in Japan and they say that actually the japanese government is also quite supportive for project to issue stable coins there, which is also great. So definitely I would like to see these three parts, payment wallet and different kinds of regulations more supportive because DeFi might increasely intersect with traditional finance.
Bridging Centralized and Decentralized Finance
with more institutions exploring ways to incorporate decentralized technologies into their operations that we could see more and more Wall street top VC's or different teams or different institutions that they are starting to explore ways to hold cryptos. Right. So thereby, I believe, bridging the gap between centralized and decentralized finance is certainly really important, especially at least we need to using those methods, just like I mentioned, payment, wallet and regulations to encourage more everyday use of kurtos.
Focus on User Safety and AI Integration
And that is something that I'm looking forward to in the coming bull round. Thank you. Okay, thank you Mona, for the sharing. And I agree with you that the tools that could lower the access to more people to join and it's really nice to see more people join and also like to see the innovations in the DeFi sector. Okay, thank you moonlight for the very nice sharing. Yeah. So what's your opinion on this?
Data Privacy and Security in DeFi
Yeah, thank you for that, Sonny. For me, I want the features that highlight or prioritize the highest levels of data privacy, security and confidentiality, so that our users will be safe from security breaches, scams and phishings, and that their personal information as well, that it will not be used for hacking or scamming. Moreover, the integration of artificial intelligence will be fully utilized to assess potential risks and predict the market.
AI Enhancements to Traditional Finances
And AI can also, you know, integrate traditional financial systems such as partners with the banks or other traditional financial institutions in order to attract wider audience and enhance their usability in each transaction. So that would be my answer for this. Thanks, Annie. Okay, thank you Ian, for the sharing and yeah, it's great to see like you guys sharing the what you will see the future of the next generation of DeFi.
Integration of AI for Sophisticated Analysis
And that's really nice. Next, let's have Angelina and your insights on this. Yeah, for me, I more focusing on the AI integration in DeFi. So like AI's integration into DeFi platform will likely lead to more sophisticated risk assessment models and automotive trading strategies and personalize the financial advice. So this could democrate the access to high quality financial insights and traditionally reserved for those who could afford substituted financial advisors.
Optimizing DeFi Operations with AI
And also, I think AI will streamline operations with DeFi protocols by automating compliance checks and also optimizing smart contract execution and enhance users interface with predictive analytics. So this could reduce operational cost and improve user experience, also potentially attracting more users from traditional finance. Also you can see more AI models.
Real-Time Market Analysis and User Safety
Analysis data from Lacta x News and other social media could provide real time market settlement analysis and helping traders and investors make more informed decision based on the broader market. Psychological and also like the AI integration into defi not only enhance both the functionality and security of these systems, but also bridges the gap between traditional finance and digital economy and potentially leading to a more inclusive, efficient and robust financial ecosystem.
Challenges of AI in DeFi
So however, this evolution will also bring challenges, particularly around regulation, security and ensure that benefit equal and distributed across different user segments. So I still think so. For me, I think AI should be, you can see in DeFi. Thank you. Okay, thank you, Angelina, for these new like directions and why you got in the DeFi side sector.
Inclusive Financial Systems through AI Integration
And yeah, I heard a lot of like the AI innovation, the integration of and DeFi, both of them, like also you mentioned their trading strategy and for the economy, like the system operation. That's really nice. And yeah, for this question, I think that all our speakers have a very similar way, like to get this defy to more effections and also attract more people to join, also like the tools to help the people more easier, get easier way to join this and change like the people's life or the economic system operation.
Conclusion on Future DeFi Innovations
That's really nice. Okay, so here we go to the next question.
Integration of DeFi with Various Sectors
Like the DeFi can be integrated with variety sectors. In your opinion, which sector is most likely to achieve successful integration and lead the market? Yeah. So first of all, let's have Tony to share your opinion. There are a few sectors, I think, that would benefit from poor liquidity. So in a sense, like through collaborative operation, through a asset management type of operation, I think a few sectors can benefit. This one is we find that pooling funds to support sort of a regular DeFi liquidity. So we've seen innovative derivative of projects that need real asset backed market making. So that essentially is providing physical funding to allow the traders and the retail investors to achieve hyper leverage. And so at the back of this, risk management and asset pooling becomes very important. And that will provide what we call the feeder pool, a feeder pool together market making funds. So allow the retail traders to take hyper leveraged positions. So that's a sector we think would have a tremendous opportunity.
Opportunities in Crypto OTC Operations and Compliance
And another area is that the crypto OTC operations, as many projects going to the market where they have long lockups. So typically when the project team or the original VC want an exit before the lockup, they typically go to OTC. And traditionally OTC, the liquidity givers are other institutions. But we see a trend that very savvy long term retail crypto investors actually like these assets with deep discount. And if they can pull their funds together to form very decentralized, non institutional based OTC transactions, we see these DeFi activities can be extremely profitable and solve a problem, then, you know, the RWA space, the RW space really has two sides of it, right? So for the originators, the issuers, how do they achieve compliance? How do they operate in the transparent framework? That is a challenge. The way we see most originators, they all come up with their own facilities, but they only address the issuance. So everyone has their own solutions. And the market hasn't reached a point where they can use a SaaS like protocol such as in finance, so that they can just focus on the asset origination and not to worry about the underlying DeFi infrastructure which will put in the necessary facilities for them to do compliance easily.
Real World Assets and Themed Investments
So that's one thing. The second thing is that with RWA, these are what I would call themed investments. People who like real estate are unlikely to like art. People who like arts might not be, you know, might not care about IP, you know, music, IP. So if you look at this very diverse, totally dispersed, other weary space, you will find that underwriting is very important, not just because you can issue them, but who do you sell them to? So in the primary market, you know, something very much like investment banking process, which is the underwriting process will become very important. So if you, the originator, can face themed investors to pull their funds to provide a primary market liquidity, that will be a very interesting case for DeFi to be applied there. And then you want to build, you know, is there any defi activity, right, or defi infrastructure that can build the links to the real world economy?
Potential of Tokenization and Community Value
I mean, not necessarily assets per se, but the mass, let's say influencer economy, the fan and the Kol follower economy. If you can bring that kind of economy itself on chain to provide financial solutions that has the potential of maximizing the community value and to sort of even monetize a community value. And if you have that kind of a DeFi and that wouldn't have tremendous upsides on the space to grow because tokenization has this knock on effect of amplifying any underlying economic value. So that is what I can see how the existing DeFi infrastructure can integrate with these individual sectors. Okay, thank you, Tony for the very insightful sharing. And also like the infra part is quite the key part for the whole industrial to build. Yeah. So next, let's have moonlight to share your insights on this question.
Insights on DeFi Integration in Finance and Gaming
Yeah, of course, just like what Tony mentioned about, right. Otis is definitely really important and DeFi could integrate with different various sectors. And I also totally agree with the other. Yeah, our guest speaker from Harmon Venture talking about combination of AI technology and DeFi, hey, that is something that we are actually working on, which is great. And so the finance sector, particularly starting from traditional banking and asset management, is poised to achieve most successful integration with DeFi. And we could see more and more, just like I mentioned, that more and more institutions in the traditional finance are actually doing that. And of course, RWA reward assets and using real asset or other commodities and even equities, right. Has also the potential to revolution how these assets are traded and managed. And we could also see that more project teams are actually working toward us.
Examples of DeFi Integration for Transparency and Community
So by leveraging DeFi, traditional chinese institutions can actually offer more transparent, efficient and accessible services. Just like Tony also mentioned about that transparency, it's definitely a key. And that is why people embrace Kurtos and embrace Defi. Of course, beyond finance, we could also see gaming working in the gaming industry for several years. And we'll see that the gaming sector also has a lot of potential for Defi integration. And yeah, we could see the rise of Gamefi, especially lease go around in the taunt ecosystem where gaming and defi interact. Has already shown how in game assets can be tokenized and traded on various platforms or marketplaces. So all those factors could create new economic opportunities within the industry.
User Engagement and Participation in DeFi
The users could earn real world value from their in game achievement or their on chain achievement. Right. Which is definitely something that we could explore about. Thank you. Okay. Thank you moonlight for the very insightful sharing. Yeah. And could agree more like the more sectors to integrate it with Defi and I, the more possibilities we could see in the near future. Yeah. And next, let's have Yuyan to share your insights. Sure. Thank you for that, Sanya. I really love the insights of our speakers about the AI integration, the transparency and so on.
Gaming Sector as a Leader in DeFi
So for me, it will be the gaming sector that has a higher chance of being successful in leading the market, especially for finance and entertainment. For example, the play to earn part where DeFi can power PToE models, allowing players to earn real world value from their gameplay and so on. This can help our, I mean, this can help reward users about their participation and create sustainable ecosystem. Next, what I love the most is the moat is the community driven governance, which is the DeFi or the decentralized government. Models can align with the community oriented nature of many communities, which can build trust and participation with our users, which is currently we are now informata.
Community Engagement and Sustainable Ecosystems
So we do have campaigns with our users to participate, to reward them with points so that can be word them during the main net launch. So that would be my answer. Sunny, thank you so much. Okay. Thank you for the service. Yeah, and that's really nice to hear about that. The game fight integration. It will be great to see like the format. Also gamefight projects to see the wide world, the integration and then bring something to us. Yeah. Thank you. And Jan, next, let's have Angelina.
AI Integration and Future Possibilities
Yeah, I think I already go in detail, so I won't say too much about this, but I pretty agree with other guests, like saying about transparency or even game. It truly helped users to embrace the device like that thing. So. Yeah, I won't say that. Thank you. Okay, nevermind. Yeah, and I also agree with like Angelina first information before, like the AI integration. Yeah, there are a lot of possibilities for their integration and we'll see in the near future.
Tokenizing Real World Assets in DeFi Applications
And also for this question, we have exclusive question for Tony. So could you share some examples like how infinance has assisted originators in tokenizing rogue war essays and integrating them into Defi applications? Thank you, Amir. That's a great question to ask. When it comes to real world assets, we see lots of pioneering protocols doing the work. And to be honest, we see fundamental legal flaws in these platforms. For instance, the things about real world assets, for instance, a private debt, a private credit, they have a legal issue in the real world.
Challenges in Compliance and Legal Issues
So when you put a defi on top of these assets, there is an inevitable problem. For instance, there is a default and there is a suit, lawsuit in the court. Nobody even asked the question, who is the legal representative of these nameless wallets? You know, protocol that would pull individual wallets, right? Pull their funds, $100, $200 to collectively finance a loan. And let us say that loan has collateralized in the real world. If you look at you, if you've done this in the real world, you know, there is a huge legal challenge here. Who would go to the court on behalf of these things? If you understand the legal system in the court, there is a victim, right?
Addressing Legal Representation and Default Issues
Someone who would claim a. Right. Who are this someone? Who is that? So you put 1000 wallets that come up with 120k on the loan. The loan is backed by $200,000 worth of assets, right? And a collateral. And now the loan goes default. Now the collateral needs to be enforced. So somebody goes to the poor, who is that somebody? That is something that we see is totally unaddressed. So with inks solution, these pooled lenders will have the right, will have the opportunity through our infrastructure to elect a representative.
Decentralized Solutions for Loan Management
Now, what kind of entity or what kind of a person or entity or firm can actually represent these people? That varies from case to case, from jurisdiction to jurisdiction. There is not such a thing called one hat that fits all. So what we have built is an infrastructure that allow the syndicated lenders to be able to verify this legal representative in the real world, should something go wrong, right? So for instance, certain loans have insurance on it, okay? But the insurance company is very crude.
Challenges with Insurance and Representation
You can't say there are 500 claimant against this benefit. You can't do that, right? No insurance company would process a case like that. So should that be a trust? Should that be a legalized custody? Should that be a law firm? Who should that be to represent these 500 lenders? In this case, there comes our decentralized solution that these lenders and individual lenders can sit down and elect and approve a representative. But on the blockchain, this representative is just a wallet, right?
System for Lender Representative Verification
Is there any way to attach a verification, a qualification, a compliant, a regulated entity to expose its name, expose its qualification to this, to represent this entire group, if you want to call it's really a syndicated. And we allow that abundant self organized lending syndicates to sit together, right? To approve a risk manager, to approve a compliance officer, to approve a legal representative, to represent them, to take as the beneficial owner of those clock tropes. That's one very powerful solution for lots of issuers. Because if I'm an issuer, I want to walk away from my liability.
The Importance of Liability Management
You say, okay, I have $150,000 loan and it's backed by a piece of, I don't know, something, right? It's non divisible. You can't, you know, it's a financial NFT by its very nature, right? So if I go default on this, who is going to sue you? We see lots of pioneering RWA projects out there. They basically would require the project team to act as this legal representative. And as we all know, first of all, there's a regulatory issue. What license do they have? Your crypto project, what license do you have to be able to position yourself as such a legal representative?
Regulatory Issues in Crypto Projects
You can't. Right. From jurisdiction to jurisdiction, they vary. The real solution is to decentralize this as a protocol. You can organize these deals, but you should not take that role. And you should let the lenders, these are retailers, right? $500, $700. They want to earn that whatever 15% yield, fine, that's all cool.
Regulatory Hurdles and Governance Layer
But they need to be able to either based on jurisdiction or based on some other criteria to be able to elect. So we built a governance layer on top of this kind of self organized, to help the originator to overcome such regulatory hurdle, to overcome such legal hurdles so that these loans will have integrity. Otherwise, these loans really have no integrity from legal perspective. They don't stand a chance in the real world, hence the word real world asset, right? So we provide such an info to allow any originator to tap these self organized organizations. Some of these organizations are professional daos, right? The family office. They are funds, they are rich individuals, and they collect their lawyers, accountants, their trustees, whoever they may choose to be.
Investment Collection and Loan Integrity
And the originator, the asset originator, doesn't have to worry about the legality of these people who give the money to finance them. So that is a very typical use case for us to tap, right? And we are having great success in this. And we're very soon to launch our first RWA, a private credit global trade finance program, as a product line. And the lenders themselves, as I said, the family office, rich individual asset managers, and the project treasuries and corporate treasuries, so they can put money together, but they will elect collectively through Inc. Finance, as a framework with an immutable faction, with a proven identity verification. These are all plugins, and they are chosen by this body, this syndicate, through voting, through proposing, through nomination, to vote on the people who can act as the risk manager, who can act as the custodian, who can act as a legal representative.
Collective Decision-Making and Investment
So they sit together at the roundtable to put their money together to build their own governance structure such that the originator, if these people build a $2 million credit line to support one trade finance company, and that trade finance company can comfortably take their money without actually any legal risk, that is one very powerful use case. And we will debut this in a matter of two weeks on Polygon. Okay, thank you, Tony, for the very detailed information about Inc. Finance. And that's really nice to hear about what you guys are doing and like the use case, the very strong advantages of your project. Thank you. Okay, so next, let's have the last question.
Market Evolution and Economic Factors
Like with just one quarter lift in 2024, how do you see the market evolving? And what do you anticipate as the highest price BTC might rate this year? And, yeah, I think let's just give Tony a second to have a race and have moonlight to go first. Yeah, sure. As we are toward the end of the. Yeah, of the year, it's definitely unbelievable. We have been through so much. And so the market, I would say, is likely to be shaped by combination of macro economic trends. Right. We are closely paying attention to the us presidential election of the process and of course, the result. Right. And upcoming policies or regulations that might change our crypto space.
Political Impact on Cryptocurrency
And I actually, yeah, I can vote. I will not reveal who I'm going to vote for, but of course, I carefully study each of their political statement and then going to definitely make, I think, what's really important for me and also for not just the country, but also for all the crypto space. And so if we anticipate, and on top of that, we talk about interest rate. Right. If we anticipate interest rate cut, materialize and other economic indicators remain favorable, then we could see a surge investor competence that people well in the market. Right. And definitely wanted to continue to pour in their money. Right. And also, hopefully, the price of bitcoin and Ethereum as well as Solana will go up again. I'm not sure. I've seen a lot of people talking about 100,000 for bitcoin and 10,000 for ethereum and 1000 for Solana.
Economic Predictions and Volatility
I'm not sure if we could really see it happen by the end of this year, but perhaps one day. Right? Yeah. Well, in overall, this will largely depend on how macroeconomic factors such as inflation, global geopolitical tensions, talking about wars everywhere, evolve over the coming months, which is definitely really important. So non financial advice. But if you are interested investing in the cryptos, and you should also keep an eye on those dormant within the crypto ecosystem itself, such as advancement in blockchain technology and the adoptions bitcoin as well. If you're an ETF s rate and maybe upcoming, we could see some people talking about Solana.
Investment Opportunities and Market Behavior
So those factors could further influence crypto price dramatically. So that's my. Yeah. Some point of views and thanks to sunny. Okay, thank you moonlight for the details that you've mentioned and you observed in the daily ride. And that's really nice. Like, you can vote for, like the election. Okay, so next, let's have Tony. So you're ready for this question. I think you hit the right spot. Right. When we, when we talk about end of the year, then the biggest thing is the US election. Right. So I think the, it is quite clear and, you know, for politicians that these two parties have very dramatic ideologies, right.
Political Ideologies and Cryptocurrency
So the Democrats at this moment are leaning more and more towards a strong regulation and the big governments and the high taxing, so that fundamentally don't vote well for crypto industry. And so if the Democrats win, I think, you know, the Gary Gensler kind of guy will be staying in office and they will strengthen their regulatory, sort of the iron fist. And, you know, at this very moment, they are talking about being crypto friendly because we get the numbers in us. There are 50 million token holders, and it will be a very tight race. So if you have 10% of the 50 million, if they vote based on their crypto personal favor, that may tip the, let me just tip the election.
Impact of Election Outcome on Cryptocurrency
So the Democrats may say they want to be crypto friendly. I don't think they will be. On the other hand, if Donald Trump wins the White House again, I think politicians generally do not deliver the promise. But in the case of a crypto, it is a very easy delivery because it's not a big deal. And we are in the industry, we think it's a big deal. In the grand scheme of $100 trillion economy, it is not a big deal. And Donald Trump can easily make a political gesture to say, you see, I delivered what I promised. I want to be crypto friendly.
Future Predictions Based on Political Climate
So in that case, there can be initiative to be truly crypto friendly. In that case, I do see we will see some new high, particularly mainstream assets such as BTC. I can see we break new high to the end of the year. If Donald Trump wins, the White House US system is not like, he can make laws, he cannot make laws, but he will give guidance to the Congress to make crypto friendly regulations. Meanwhile, he will definitely not tolerate someone like Gary Ganzler. He would just loosen up all this enforcement as regulation, kind of a practice which has failed the court challenge again and again.
Potential Outcomes of Different Political Figures
So I think that will be a real boost for industry, particularly. I can see BTC reach new high by end of this year if Donald Trump wins the White House. But if Kamala Harris wins, I see a very doomed future. She will never deliver this because from the ideological point of view, the cryptos are everything against elite big government. So let's, for our own purpose, let's hold down the five wings. Then I believe we'll see high in bitcoin. Okay.
Closing Remarks and Market Insights
I think you are. You're finished. You finish like what? Your opinion. Right. Okay. So thank you, Tony, for the sharing and also like quite crucial part of the factor for the following, the rest of the year's impact. Also like the election part. Yeah, let's have another two guests like to see what they will see. So, yeah, how do you think about it? Yeah, sure. For me, it's not always positive or ascending trend that we always want, but the experiences that we have now is to embrace it and to be grateful because it will pass by and better days to come.
Optimism Amidst Market Challenges
As what I have said earlier, that although the current market situation is challenging, it is important to approach it with the right mindset. The short term is a broader market dynamics and maintaining and aiming for long term view. It can help you mark. I mean it can help you make more informed and less decisions, emotional decisions. So continuation for my, I mean the answer is for me, bitcoin might reach around 80,000 or $90,000 for this year, but I'm just being positive and if not then it's totally okay that to take this as the opportunity to invest and for sure it will as high as it as we didn't expect soon.
Insights on Bitcoin Predictions
That would be my answer for this. Sunny, thank you. Okay. Thank you for the sharing and that's really nice to hear your insight on this. And next, let's have Angelina. So what's your opinion? Yeah, sure. Like if about the market side, I think as the guest before said the anticipation of interest rate cut by the federal rivers with a high probability set of September could inject liquidity into the market and potentially boosting risk asset lighter cryptocurrencies.
Market Dynamics and Cryptocurrency Regulation
So this environment typically favors a set like bitcoin which might see increased investment as hedge against inflation or as high return asset in low interest rate scenario. But also let me say, let's say the hirfin event occurred in April 2020 for its impact on the reducing the supply of new bitcoin could continue to influence markets psychology and potentially driving a price due to the anticipate scarcity. And also the historical data suggests that post having period often lead to bullish trend.
Factors Influencing Future Bitcoin Prices
But through the few effect might be more pronounced in subsequent years. And also the market evolution could also be influenced by the regulatory news and macroeconomic indicators and global economic policies and for instance positive development in crypto regulation or economic recovery cycle signal or could further probably bitcoin price. But if talking about bitcoin price prediction for me I see many analysts and market segments on having point towards bitcoin potentially reaching new highs, especially like the range wide.
Price Predictions and Market Trends
But there's consequence the ground bitcoin potentially hitting the 100,000 to 110,000 in que. But this optimism is fueled by the technical patterns and historical performance post halving and the general market circle expectation. But given the ability and unpredictability of crypto markets, some might argue for a more conservative approach. But if bitcoin doesn't break out as dramatically as some predict, but it still benefits from the heavy end interest rate cuts.
Balanced Expectations for Cryptocurrency
So more consumerity and the estimate might be seeing bitcoin reaching somewhere between the 70,000 to 80,000 by the end of 2024. So. Given this insight, if all star alien with the favorable market condition, I think also with the regulatory news and continued investor insight, I think bitcoin could indeed see a peak towards around 110,000 in quote four. But however, consider the potential handles and volatile nature of cryptocurrency, a more balanced expectation might hover around 8000 to 90,000.
Final Thoughts on Market Predictions
This range accounts for both the bullish settlement and inherit risks and prediction crypto market movements. So that's my answer. Focused. But it's just saying around the analyst again, market segment. Yep. Thank you. Okay. Thank you, Angelina, for the insight, for sharing about their market and the following trending for the rest of the year. That's really nice. And yeah, that's all for all the questions we have today.
Conclusion and Acknowledgments
And thank you so much for being here, all of you. Moonlight and Tony, also Yuyang and Angelina, thank you so much. And we learned a lot for the defi and also the market trend for the rest of the year. Yeah, so I think that's all for today. And encourage all our audiences to follow our speakers and also their projects to get the updates and catch up the with the industrial update and also the news or some like the flash news right now. Yeah. And yeah, so thank you, Tony and Moonlight and also Angelina.
Farewell and Future Engagement
So let's have another conversation in the next time. Thank you all. Thank you, Sunny. Thank you all. The other, thank you so much. Thank you. Goodbye. Thank you. Bye bye. Same here. Thank you.
