cryptonews The team is reporting live blockchain economy london summit Which is running till 27-28 February 2023.
cryptonews had the opportunity to sit with lex sokolinThe Chief Crypto Economics Officer But Consensusto talk about a variety of topics including Current Market Trends, Crypto Regulation, and the much awaited Metamask Airdrop.
What factors are driving the crypto market right now?
cryptonews asked Lex about recent trends in the crypto market and what factors are driving them.
Lex stresses the importance of watching macro trend and correlations between different asset classes. Lex Says Crypto Is Now Considered To Be Just Another risk asset class, with its performance linked to other risk assets – when risk assets do well, crypto does well. Lex explained that Terra Luna had a major eruption last year, affecting every asset manager and custodial service that had exposure to it.
it resulted lower Belief In custody services and perhaps Greater Belief In decentralized solution And increased regulatory action,
Lex highlights that market drivers likely to enter now include recessionthat affects discretionary spending And it adds up to how many NFTs people buy. Lex also mentioned other drivers, such as Ethereum’s ability to stake and unstake with ethereum shanghai upgrade, Bitcoin’s ability to hold NFTsAnd fundamental advances in technologyWhich reinforces the strength of the technology story.
Finally, Lex Touched regulatory challenges In the crypto market, that remains difficult and will take some time to become more clear.
Fall in prices is a revaluation, not a major concern
Lex Sokolin discusses the possible timing of the next crypto bull market in relation to the current high-interest rate environment.
Sokolin suggested that just because the next bull market may be years away, does not mean that cryptocurrencies and blockchain technology are not valuable. Rather, it is a reflection of the current economic cycle that undervalues them. Sokolin pointed to Amazon and Netflix as examples of companies that survived through periods of devaluation and became more valuable afterward.
Despite the drop in prices, Sokolin noted that crypto has been surprisingly resilient and has remained relatively flat since the market crash. He suggests that this represents a revaluation of the entire market, with token and tech companies going from 50x revenue to 5x revenue.
To break out of this period of devaluation, Sokolin argues that two things must happen: radical secular adoption and a separate market regime,
Sokolin believes that fundamental secular adoption will occur over time as more people begin to use Web3 services and the utility of blockchain applications increases.
As for a different market regime, Sokolin advises against trying to predict when it will happen because it can lead to disappointment.
Overall, Sokolin remains optimistic about the future of crypto and believes it can move forward by surviving through the undervaluation of this current period. Important value in the long run.
Will MetaMask do an airdrop?
When asked about a possible MetaMask airdrop, Lex Sokolin replied with a smile that ConsenSys is exploring ‘all different ways to decentralize and tokenize our various products and initiatives’.
In particular, Sokolin explained that it is a delicate balance for a company like ConsenSys, which has a significant footprint, to ensure that its core infrastructure remains well maintained as many people rely on it. Are.
From an analysis and modeling perspective, the team has looked at a number of different permutations, and ‘it is in the spirit of the company to continue in that direction’.
Finally, Lex states that given Metamask’s systematic importance, they have to be careful about what they can do and when.
Lex’s vague response is likely to perpetuate and even intensify ongoing speculation about a possible airdrop, given that he didn’t outright rule out the possibility.
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