On the last Crypto Banter Friday Banter of 2021, Ran Neu-ner, the founder of Onchain Capital and Crypto Banter, Jose Maria Macedo, the head of consultation at Delphi Digital, Daniele Sesta, the backer of Popsicle Finance, Abracadabra, Wonderland, and Vinny Lingham, the co-founder and CEO of Civic, shared their thoughts on investment strategies and narratives for the first six months of 2022.
- Metaverse and GameFi
- Web 3.0, decentralized social networks, decentralized option trading and DAOs
- Ethereum Layer-2 and cross-chain DeFi
Trend 1 – metaverse and GameFi
The metaverse will be one of 2022’s winners, says Vinny Lingham, while Jose Maria Macedo believes GameFi will continue to be a strong narrative.
“We are seeing so many developers, people that built some of the legendary games of the last two decades, shifting into crypto, doing play-to-earn models and doing it right from the get-go,” Jose Maria comments, adding that “at some point, there will be a large graveyard because there is a lot of garbage masquerading as play-to-earn with absurd valuations.”
Trend 2 – Web 3.0, decentralized social networks, decentralized option trading and DAOs
Vinny says Web 3.0 will be huge in 2022. “Web 3.0 is the notion that we do not have a single point of failure anywhere on the infrastructure,” he states. “We are moving to a point where Amazon can’t shut it down, a DNS provider can’t shut it down, you can have decentralized domain names, decentralized storage and decentralized computing.”
The 42-year-old South African entrepreneur expects that decentralized solutions will rise and compete with Amazon and Google in the same way Web 2.0 unbundled financial products.
Decentralised autonomous organizations (DAOs) will be big, comments Jose Maria, driven by regulation. “Regulation in a way is positive pressure for us because it stops people from doing things with multisigs, unlike private Telegram channels. Multi-signatures (multisigs) enable actual decentralization by encompassing some legal liability.”
What Jose Maria finds interesting about Web 3.0, he says, are the elements around identity where people can prove that they participated in a crowdsource, for example, without revealing their identity, something Vinny says blockchain protocol has been building for years.
Decentralized option trading, according to Daniele Siesta, is a necessity.
“I think decentralized option trading is well overdue. We must have a platform for that, as is demonstrated by retail traders coming to Robinhood. Seventy percent of retail action is on options because Gen Z understands leverage and futures are not for them. Options allow you to leverage without getting liquidated ‘til the end of the option.”
Daniele agrees DAOs will be massive but he disagrees about regulation. “… the most powerful (DOAs) will be the ones that can not be controlled by regulation. The ones that have more designers that are not from the US.”
Trend 3 – Ethereum Layer-2 and cross-chain DeFi
Daniele’s final narrative for the next six months is cross-chain DeFi, which can integrate everyone and allow them to benefit from many ecosystems.
Ran is predicting a frenzy for Ethereum Layer-2 scaling solutions, in Q1 2022, as well as decentralized social networks sometime next year “maybe Q1 and Q2”, and a decentralized metaverse (web 3.0) with decentralized storage, money, and computing power.
Crypto is driven by narratives! Our panel of esteemed guests outlined their strongest ones for 2022. The market has given us a gift, because it is down at the end of the year and this may just present us with an opportunity to buy into the strong narratives going into 2022. Place your best strategically! Happy new year!