Startups associated with the metaverse and blockchain continue to attract significant funds for their development. What awaits the crypto community with the advent of new technologies, and what are the latest industry developments aimed at
The last few weeks have brought news of the opening of new venture capital funds in the crypto asset sector. NFT platform Immutable has launched a $500 million venture fund, Multicoin Capital is investing $430 million in crypto startups, and Binance has raised over $500 million to establish its venture fund.
Although some analysts talk about the onset of crypto winter, another point of view is also gaining popularity. By “winter” they usually mean stagnation in the industry – a halt in the development of new projects, a slowdown in the development of existing ones, a prolonged ideological crisis. Now we are talking about the bear market and falling asset prices. Large injections into the sector and new developments do not stop.
Emergence of new liquidity pools
Many new projects will use new tokens within their ecosystems. The easiest and cheapest way to provide new tokens with liquidity is to create liquidity pools on DeFi platforms in pairs with existing assets.
This will lead to an increase in the DeFi sector of the funds currently used in smart contracts on a specific platform or in the whole market (total value locked; TVL). Many analysts of the sector speak about the imminent potential increase in TVL due to the arrival of traditional financial products in DeFi in their reviews .
Initial liquidity for new pairs will be provided by funds from the developers’ funds, then other users who want to receive tokens of new projects will join the supply of liquidity. Participation in new pools will in many cases involve swaps (temporary exchanges) of tokens held by users on platforms in order to obtain tokens of the desired pair. Thus, the appearance of even one new popular pair will inevitably lead to the popularization of other pairs of the platform.
Community Management Experiments
Part of the funds raised by the funds will be used to develop the functioning of decentralized autonomous organizations (DAO). So far, community management and DAO functioning models are at the very beginning of their development. Only 1%-5% of token holders participate in community management and voting on project development.
The crypto community strives for the participation of as many users as possible in the management of ecosystems. Project developers gradually improve current performance by creating new forms and formulas of management, sometimes even using material rewards for active platform users. The key role of the DAO in the development of the new economy was actively discussed by the speakers and moderators of the Gwei blockchain summit held on July 14 in Singapore.
3/6 @sunny_heyang (@HashKey_Capital): DAOs are cornerstone to a new economy; tons of great new tools to harness their power. However, we still need to improve voting equations, community engagement metrics and fund performance.
— Vadim Krekotin (@KrekotinVadim) July 14, 2022
Possible emergence of Killer App
An increase in funds for the development of new sector solutions will lead to an influx of new personnel, whose ideas may turn out to be breakthrough. Despite almost a decade of history, the crypto sector has not yet been able to produce the desired and expected by many Killer App – an application that demonstrates the undeniable convenience of new technological solutions for the general population, which would lead to an acceleration of the spread of the blockchain.
New venture funds estimate the appearance of such an application as the most likely in the field of gamified projects, among which there are a large number of play-2-earn and x-2-earn developments. X-2-earn means replacing the “X” in the phrase with any other action in order to receive rewards. For example, such an action can even be useful for the planet, the collection and recycling of garbage, “wrapped” in the format of a crypto game.
The wait for the Killer App began with the advent of Bitcoin and was most fully described back in 2014 in a video by recognized influencer and thinker of the crypto space James D’Angelo. For the emergence of the Killer App, a combination of many conditions is necessary. Thus, what is important for the sector is the number of attempts made in the development of various applications in order to increase the likelihood of a combination of all conditions to achieve the desired effect.
From the history of computer game companies, it is known that despite the technical similarity of many products, few of the games really became popular. Their success was facilitated by a combination of a large number of factors necessary for popularity, which turned out to be at the right time in the right place.
New earning opportunities and promotion of the sector
Users will be attracted to new projects to some extent through bounties and airdrops. Thus, users expect the possibility of small earnings without their own investment of funds due to timely participation in the proposed campaigns.
Keeping track of promising projects at their earliest stage can help you notice the message of the distribution of tokens or NFTs in time. A valuable digital asset can sometimes be obtained for the simplest actions – using a bridge between networks, swapping on a DEX, or providing liquidity in a new pair.
The increase in the number of projects under development will also affect the labor market. Designers, UI and UX specialists (user interface designers), copywriters, SMM managers, analysts and developers who are interested in further self-education in the field of blockchain technologies will be in demand in new projects.
You can get acquainted with the skills in demand in the most popular professions in the sector and the average salaries of specialists in the GoBankingRates material .
