In the ever-evolving world of blockchain and cryptocurrencies, the concept of real-world tokenization has been gaining significant traction. To delve deeper into this topic, we recently had the pleasure of hosting a fireside chat with Anndy Lian, an intergovernmental blockchain expert and book author.
The discussion was led by Faraj, the Chief Commercial Officer of Venom Foundation, a layer one chain out of Abu Dhabi focusing on stable coins and real-world asset organization globally. Faraj is also the founder of a large community of crypto executives, boasting around 2,000 members.
The guest speaker, Anndy Lian, is based in Singapore but often travels around the globe. He embarked on his journey in the crypto world in 2013 when he bought his first Bitcoin. By 2017, he had fully immersed himself in the blockchain space and has never left since. Lian advises different governments. At one point, he served as a blockchain advisor to an intergovernmental group.
The State of Real-World Tokenization
When asked about his views on real-world tokenization, Lian acknowledged the obvious traction the concept has gained over the years. He recalled how governments were skeptical when he first started discussing the idea around 2017-2018. However, the narrative has since changed. Today, governments and companies are more open to the idea, recognizing the straightforwardness of real-world asset (RWA) tokenization.
Lian believes that the technology for tokenizing assets is 100% ready. He sees big banks and governments pushing the RWA wave, indicating a promising future for the concept. However, he also highlighted a key issue: the revenue model behind some of these RWA projects. He questioned how these companies would sustain themselves and make money, especially given the liquidity problem associated with tokenizing certain assets like mid-level properties.
The Future of Stable Coins and Carbon Credit Tokenization
Discussing the future of stablecoins and carbon credit tokenization, Lian expressed that most government bodies he interacts with recognize that stablecoins are here to stay. He sees a future where more governments will embrace stable coins within a certain framework, which could lead to the acceleration of Central Bank Digital Currencies (CBDCs).
As for carbon credit tokenization, Lian sees it as a valid use case. He has interacted with several carbon credit exchanges and believes that the traceability of the credit itself would be very interesting.
The Impact of Tokenization on the Financial Industry
If tokenization is taken seriously and adopted on a large scale, Lian believes it could have a long-lasting impact on the financial industry. He envisions a future where transactions become more effective, with money moving from point A to B in a much faster and cheaper manner. He also sees the potential for 24/7 clearance and money transfers, leading to a more effective financial system.
The Next Driver of Mass Adoption
When asked about the next driver of mass adoption, Lian expressed his hope for more people to start talking about how they can spend their crypto. He believes that the next “wow” moment would be seeing more adoption, leading to a larger community and driving crypto to the next level.
Conclusion
The fireside chat with Anndy Lian provided valuable insights into the world of real-world tokenization, stablecoins, and carbon credit tokenization. As the blockchain and crypto space continues to evolve, these discussions play a crucial role in shaping the future of the industry. As Lian aptly put it, the key is to read, learn, and explore for oneself, rather than relying solely on influencers or hype.
World Tokenization Summit was held on 21st of November 2023 at Melia Desert Palm, Al Awir Road, Warsan 2, Dubai, United Arab Emirates.
https://youtu.be/KYX0aSa4qZ0

Southeast Asia (SEA), boasting a populace nearing 700 million and a rapidly expanding digital economy, has emerged as a focal point for crypto innovation and adoption. Nonetheless, the regulatory panorama for crypto in the region is intricate and constantly evolving, featuring diverse approaches and policies among different countries.
This article delves into the present state of crypto regulations in Southeast Asia, exploring the challenges and opportunities they present for both the crypto industry and users. Additionally, it anticipates regulatory trends expected to gain traction in the region come 2024.
The Regulatory Landscape in SEA:
SEA is now home to over 600 crypto and blockchain companies, having secured nearly $1 billion in funding for crypto, blockchain, and web3 startups in 2023. While the average crypto adoption rate in SEA was 3.56% in 2021, Singapore stands out with almost 10% of its population involved in crypto, surpassing the U.S. at 8.3%.
Despite these promising statistics, the regulatory environment for crypto in SEA is far from uniform or stable. Countries exhibit varying levels of openness and maturity in their crypto regulations, with some undergoing policy changes over time. Notable overviews of crypto regulations in major Southeast Asian countries include:
Singapore: Recognized as one of the most crypto-friendly jurisdictions globally, Singapore enforces a clear and comprehensive regulatory framework. The Payment Services Act, effective since January 2020, mandates crypto service providers to comply with AML, CTF, and consumer protection rules.Thailand: Adopting a proactive stance, Thailand's SEC regulates crypto activities, issuing licenses for various entities since 2018/19. The SEC also governs the issuance and trading of digital tokens under the Digital Asset Businesses Decree, and collaborates with other regulators to foster industry development.Malaysia: Operating under a framework similar to Thailand, Malaysia's Securities Commission oversees crypto activities. It mandates licenses for recognized market operators, regulates the offering and trading of digital tokens, and collaborates with the Central Bank of Malaysia for market stability.Indonesia: Displaying a more restrictive environment, Indonesia has sent mixed signals to the crypto industry. While the government has banned crypto as a means of payment, it recognizes crypto as a tradable commodity on futures exchanges.Philippines: Adopting a balanced and pragmatic approach, the Philippines regulates crypto service providers as remittance and transfer companies. Collaboration between the Bangko Sentral ng Pilipinas, Securities and Exchange Commission, and the Cagayan Economic Zone Authority aims to oversee and develop the crypto industry.Vietnam: Adopting a more hostile stance, Vietnam's State Bank has prohibited the use of crypto as a means of payment since 2017. However, there are indications that the bank is studying the possibility of issuing a central bank digital currency (CBDC) in the future.
Challenges and Opportunities in SEA's Crypto Regulations:
The diverse regulatory landscape in SEA presents both challenges and opportunities:
Regulatory Uncertainty and Inconsistency: The lack of clarity across different countries hampers cross-border integration and product interoperability.Regulatory Arbitrage and Competition: Disparate regulations create opportunities for industry players and users to seek the most advantageous regulatory environments.Regulatory Collaboration and Coordination: The complexity of regulations necessitates collaboration among regulators and stakeholders across different jurisdictions.
Eight Regulatory Trends Expected in SEA in 2024:
Predicting trends for 2024 involves considerations of the existing regulatory environment, market trends, and technological advancements. Anticipated trends include the evolution of regulatory frameworks, increased institutional engagement, the rise of CBDCs, growth in DeFi and NFTs, discussions on interoperability, education and awareness campaigns, technological advancements, and market consolidation.
Conclusion:
SEA provides a fertile ground for crypto, marked by a burgeoning market and industry. While Singapore leads with a transparent regulatory framework, others like Indonesia and Vietnam face uncertainty. Navigating this complex landscape requires a proactive approach, including compliance with evolving regulations and collaborative efforts among stakeholders.
Looking ahead to 2024, potential trends encompass regulatory evolution, increased institutional engagement, CBDC development, growth in DeFi and NFTs, interoperability discussions, educational initiatives, technological advancements, and market consolidation. These projections, though speculative, offer guiding principles for stakeholders in SEA's evolving crypto journey.

I was honored to be invited as a keynote speaker at the NFT 2023 Seoul conference, which took place on September 1, 2023, at the COEX Convention Center in Seoul, South Korea. The conference was a huge success, attracting many attendees from around the world who were interested in the latest developments and trends in the non-fungible tokens space.
The speech was titled “The Journey of NFTs in the Age of AI and Web3”. In it, I shared my insights on how NFTs have evolved and what their future holds, how artificial intelligence (AI) is creating new possibilities and challenges for NFTs, and how Web3 is emerging as a new version of the internet that is more decentralized, open, and user-centric.
In this article, I will summarize some of my speech’s key points and provide examples of NFT projects that illustrate them. I hope you will find them informative and inspiring.
What Are NFTs?
One of the topics that I covered in my speech was the basic concept and definition of NFTs. NFTs are non-fungible tokens, which means that they are unique and irreplaceable. Unlike fungible tokens, such as cryptocurrencies, that can be exchanged for one another, NFTs have their own individual characteristics and value. They are mostly digital items, such as artworks, music, videos, games, collectibles, and even virtual land, that users can buy and sell online using blockchain technology.
Blockchain technology is the backbone of NFTs, providing a secure and transparent way of verifying their authenticity, scarcity, and ownership. Blockchain is a distributed ledger system that records transactions in a network of computers without the need for a central authority. Each transaction is verified by the network and added to a chain of blocks that cannot be altered or tampered with. This ensures that NFTs are original, rare, and belong to their rightful owners.
The NFT market has been booming in recent years, especially in 2021, when it reached new heights of popularity and profitability. According to data from NonFungible.com, the total sales volume of NFTs in 2021 was over $12 billion, which is more than 20 times higher than the previous year. The average price of an NFT also increased significantly, from $142 in 2020 to $3,700 in 2021.
Some of the more popular and best-selling NFT collections in the market as of last week were:
Bored Ape Yacht Club: 7-Day Sales Volume: $52.2 millionThe Sandbox: 7-Day Sales Volume: $33.1 millionCryptoPunks: 7-Day Sales Volume: $17.5 millionArt Blocks: 7-Day Sales Volume: $13.2 millionDecentraland: 7-Day Sales Volume: $6.6 million
These collections feature different types of digital assets, such as pixelated characters, generative art, virtual worlds, and more. They have attracted thousands of buyers and sellers from around the world, who are willing to pay millions of dollars for some of the rarest and most coveted pieces. Just to put some figures to illustrate these NFTs. A Bored Ape Yacht Club NFT sold for $24.4 million at Sotheby’s auction house in September 2021.
A CryptoPunk NFT sold for $11.8 million at Christie’s auction house in May 2021. An Art Blocks NFT sold for $5.4 million on the OpenSea platform in August 2021.
How is AI Transforming NFTs?
Another topic I covered in my speech was the impact and potential of artificial intelligence on NFTs. I explained how AI is transforming NFTs by creating new possibilities for generating unique digital assets that can appeal to different tastes and preferences. I also explained how AI can integrate dynamic experiences into NFTs, making them more interactive and adaptive.
One of the ways that AI is creating new possibilities for NFTs is by enabling users to automatically create artworks using various algorithms and models. This means that users do not need to have any artistic skills or experience to create their own NFTs. They can simply use AI tools and platforms that can generate images based on their inputs, such as keywords, styles, colors, and more. Some of the examples of AI-generated NFTs include:
Artbreeder is a platform that allows users to create and breed images using neural networks. Users can choose from different categories, such as portraits, landscapes, animals, and abstract art, and then adjust various parameters, such as genes, mutations, and mixtures, to create unique images. Users can also combine different images to create hybrids and variations.GANksy is a collection of street art created by a generative adversarial network (GAN) inspired by Banksy. A GAN is an AI model consisting of two competing networks: a generator that creates fake images and a discriminator that tries to distinguish them from real ones. The generator learns from the feedback of the discriminator and improves over time. GANksy is a GAN that was trained on hundreds of Banksy artworks and then generated its own original pieces.Alethea AI is a platform that enables users to create and trade intelligent NFTs that can speak, interact, and learn. Users can upload their own images or choose from a gallery of pre-made avatars and then use a text-to-speech engine to give them a voice. Users can also customize the personality, mood, and emotion of their NFTs and teach them new skills and knowledge.
Another way that AI is transforming NFTs is by integrating dynamic experiences into them thanks to their self-learning capabilities. This means that NFTs can change over time based on external factors, such as data, events, user actions, and more. This makes them more dynamic compared to more traditional NFTs that often take the form of an image or audio file.
What is Web3 and How Does It Enhance the NFT Ecosystem?
The final topic that I covered in my speech was Web3 and how it enhances the NFT ecosystem. Web3 is a new version of the internet that aims to give users more control over their data and online interactions. Web3 is built on blockchain technology and includes features such as cryptocurrencies, NFTs, and decentralized autonomous organizations (DAOs).
Identity is one of the key features of Web3 that allows users to manage their online identities in a more secure and efficient way without relying on a central authority. Web3 identity solutions enable users to create and use digital wallets on the blockchain that store their personal information, such as name, email, phone number, address, and more.
Users can then use these wallets to access various Web3 applications and services, such as marketplaces, social networks, games, and more. Users can also choose what information they want to share with each application or service and revoke access at any time. Some of the examples of Web3 identity solutions:
MetaMask is a browser extension that allows users to access Ethereum-based applications. MetaMask acts as a bridge between the user’s browser and the Ethereum network, enabling them to send and receive transactions, interact with smart contracts, and manage their Ethereum accounts.Civic is a platform that provides identity verification services using blockchain. Civic allows users to verify their identity once and then use it across multiple platforms without going through the same process again. Civic also protects users’ privacy by using zero-knowledge proofs, which are cryptographic techniques that allow users to prove something without revealing any details.ENS (Ethereum Name Service) is a protocol that allows users to register human-readable names for their Ethereum addresses. ENS makes it easier for users to send and receive transactions, as they do not have to deal with long and complex alphanumeric strings. ENS also allows users to attach other information to their names, such as websites, social media profiles, and NFTs.
NFTs are another key feature of Web3 that enhances the ecosystem by offering a decentralized internet where users are not just consumers but active participants. They are unique blockchain tokens that allow users to transparently provide proof of ownership for things such as digital art, music, data, in-game assets, personal records, and more. NFTs also enable users to create, trade, collect, and showcase their digital assets on various Web3 platforms and services.
The Bottom Line
I wrapped up my speech by stressing the importance and potential of the fusion of AI and NFTs in the Web3 era, arguing that the convergence of AI and NFTs will allow us to create and own unique digital assets that can interact with each other and with the environment in dynamic and intelligent ways.
I also argued that Web3 will offer us a more democratic and decentralized internet where we can have more freedom and control over our online identities and experiences.
“Web3 is based on the idea of decentralization, which means that no single entity or authority can control or censor the network. This aligns perfectly with the core values of NFTs, which are based on the idea of ownership, which means that we can prove and transfer our rights to our digital assets. The fusion of AI and NFTs within the context of Web3 opens up a new horizon for innovation and creativity, where we can explore endless possibilities and have greater agency over our digital assets.”
Thank you to the audience for their attention and to the organizers of NFT 2023 Seoul.

Anndy Lian weighs in on the recent collapse of JPEX, a cryptocurrency platform that allegedly defrauded thousands of investors of more than HK$1.4 billion (US$180 million).
The collapse of JPEX has exposed the dark side of Hong Kong’s crypto industry and raised serious questions about its regulatory framework.
JPEX, which claimed to be a licensed and regulated platform, lured investors with flashy advertisements, celebrity endorsements, and promises of high returns. It offered its own native token, JPC, which could only be traded on its platform, as well as other popular cryptocurrencies such as Bitcoin and Tether.
However, in September 2023, JPEX suddenly suspended its services and announced that it was under investigation by the Hong Kong police for suspected money laundering and fraud. The platform’s website and social media accounts were taken down, and its customer service hotline was disconnected. Many investors found themselves unable to access their funds or withdraw their assets.
The JPEX scandal is not an isolated incident. In fact, it is the latest in a series of crypto scams that have plagued Hong Kong in recent years. In 2022, another platform called Black Cell Technology was shut down by the Securities and Futures Commission (SFC) for conducting an illegal initial coin offering (ICO) that raised US$30 million from investors. In 2021, a platform called MyCoin disappeared with HK$3 billion (US$387 million) from more than 3,000 investors.
These cases highlight the risks and challenges that Hong Kong faces as it strives to become a global hub for crypto innovation and adoption. While the city has a vibrant and diverse crypto ecosystem, with over 100 platforms operating in the market, it also suffers from a lack of clear and consistent regulation that leaves investors vulnerable to fraud and manipulation.
Hong Kong’s current approach to crypto regulation is based on a principle of “same risk, same regulation”. This means that crypto activities that fall under the existing securities laws are subject to the SFC’s oversight and enforcement, while those that do not are largely unregulated.
For example, the SFC has issued guidelines for platforms that offer trading of security tokens, which are digital tokens that represent ownership or economic rights in an underlying asset or business. These platforms must apply for a license from the SFC and comply with various requirements on anti-money laundering, investor protection, cybersecurity, and auditing.
However, most platforms in Hong Kong do not deal with security tokens, but rather with exchange tokens (such as Bitcoin) or utility tokens (such as JPC). These tokens are not considered securities under Hong Kong law and are therefore outside the SFC’s regulatory scope. As a result, these platforms operate in a legal gray area, where they are not required to obtain a license or follow any specific rules.
This creates a loophole that allows unscrupulous platforms to exploit investors’ ignorance and greed. By claiming to be licensed or regulated, these platforms can create a false sense of security and legitimacy among investors who may not understand the difference between security tokens and other types of tokens. By offering high returns or incentives, these platforms can entice investors to invest in their native tokens or other obscure cryptocurrencies that have no intrinsic value or market liquidity. By using complex and opaque mechanisms, these platforms can manipulate the prices and volumes of their tokens or cryptocurrencies to create artificial demand or supply.
The JPEX scandal is a symptom of a deeper problem in Hong Kong’s pursuit of financial innovation. While the city has been supportive of crypto development and has launched various initiatives to foster fintech growth, such as regulatory sandboxes and cross-border collaborations, it has also been slow and reactive in addressing the emerging risks and challenges posed by crypto activities.
Hong Kong needs to adopt a more proactive and comprehensive approach to crypto regulation that balances innovation with protection. Instead of relying on existing securities laws that may not capture the full spectrum of crypto activities, Hong Kong should consider developing a new regulatory framework that covers all types of crypto assets and service providers.
Such a framework should aim to achieve four main objectives: first, to prevent money laundering and terrorist financing; second, to protect investors from fraud and manipulation; third, to ensure fair competition and market integrity; and fourth, to promote financial inclusion and education.
To achieve these objectives, Hong Kong should consider implementing some of the following measures:
Require all crypto platforms to register or obtain a license from the SFC or another designated authority before operating in Hong Kong or serving Hong Kong investors.Impose minimum standards on crypto platforms regarding capital adequacy, risk management, governance, disclosure, auditing, and reporting.Establish a mechanism for monitoring and supervising crypto platforms’ activities and transactions, including their use of stablecoins or other forms of digital currency.Enforce strict rules on crypto advertising and marketing, especially on social media platforms where influencers may have significant influence over investors’ decisions.Hold crypto platforms accountable for any losses or damages suffered by investors due to their negligence, misconduct, or breach of contract.Hold influencers accountable for any false or misleading statements or representations they make about crypto platforms or products.Educate investors about the risks and benefits of crypto investments, as well as their rights and responsibilities as consumers.Encourage self-regulation and industry best practices among crypto platforms and service providers, such as adopting codes of conduct, standards of ethics, and dispute resolution mechanisms.
By adopting these measures, Hong Kong can enhance its reputation as a leading crypto hub that fosters innovation and adoption while ensuring protection and stability. Hong Kong can also position itself as a role model for other countries that are grappling with similar issues and challenges in the crypto space.
The JPEX scandal is a wake-up call for Hong Kong to take action and reform its crypto regulation. The city cannot afford to lose its competitive edge or its credibility in the global financial market. The time to act is now.
 
 
 

U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler has made headlines in the cryptocurrency space for his comments on the regulatory status of various digital assets. He has repeatedly stated that Bitcoin is a commodity but has been reluctant to say the same for other cryptocurrencies, particularly those issued through initial coin offerings (ICOs) or with some form of governance mechanism. He also expressed concerns about stablecoins and their potential impact on the financial system. What was his intention behind these remarks? Is he trying to protect investors, stifle innovation, or something else?

Gary Gensler, the chairman of the U.S. Securities and Exchange Commission (SEC), has garnered attention in the cryptocurrency sphere due to his views on the regulatory status of digital assets. While he confidently labels Bitcoin as a commodity, his stance on other cryptocurrencies, especially those linked to initial coin offerings (ICOs) or possessing governance mechanisms, remains enigmatic. Additionally, Gensler has expressed concerns about stablecoins and their potential impact on the financial system. This article delves into the motives behind his statements and whether they are driven by investor protection, stifling innovation, or other considerations.
Unpacking Gensler's Views and Motivation
To understand Gary Gensler's views and motivations, we must analyze his public speeches, interviews, and testimonies. This analysis will illuminate the consequences of his regulatory stance for the cryptocurrency industry and investors.
Gensler's Diverse Background
Before assuming the role of SEC chair, Gensler's illustrious career spanned the public and private sectors. He spent 18 years as a partner at Goldman Sachs, where he held various leadership positions in trading, finance, and technology. Furthermore, he served as the undersecretary of the Treasury for domestic finance and the assistant secretary of the Treasury for financial markets during President Bill Clinton's administration. Later, President Barack Obama appointed him as the chairman of the Commodity Futures Trading Commission (CFTC), where he oversaw the implementation of the Dodd-Frank Act and the regulation of derivatives markets following the 2008 financial crisis.
Gensler is not just a practitioner; he is also an academic and educator. He serves as a professor of the practice of global economics and management at the MIT Sloan School of Management, where he teaches courses on blockchain technology, digital currencies, financial innovation, and public policy. Additionally, he is a senior advisor to the MIT Media Lab's Digital Currency Initiative.
Gensler's Philosophy
Some observers have characterized Gensler as a "crypto-friendly" regulator, given his expertise and interest in the field. He recognizes the potential advantages of blockchain technology and digital assets in terms of innovation, efficiency, financial inclusion, and competition. He lauds Bitcoin as a "catalyst for change" and a "scarce store of value" that operates independently of governmental or central authority.
However, Gensler is not blindly infatuated with the cryptocurrency space. He comprehends the inherent risks and challenges it poses. He emphasizes the importance of safeguarding investors, maintaining market integrity, ensuring financial stability, and upholding national security within the crypto sphere. He has sounded the alarm regarding issues such as fraud, manipulation, hacking, money laundering, tax evasion, and the financing of terrorism in the cryptocurrency ecosystem.
In my personal opinion, Gensler's philosophy appears grounded in two core principles: first, that every financial product or service should be subject to some form of regulation or oversight; and second, that existing laws and rules should be applied consistently and fairly to all market participants.
Gensler's Stance on Bitcoin
Gensler's position on Bitcoin is unequivocal and consistent. He repeatedly asserts that Bitcoin does not fall under the purview of federal securities laws but is rather categorized as a commodity according to the Commodity Exchange Act (CEA). Consequently, Bitcoin's regulation falls under the jurisdiction of the CFTC, not the SEC.
This classification is founded on the Supreme Court's Howey test, which determines an asset's security status based on whether it involves an investment of money in a common enterprise with an expectation of profit derived from the efforts of others. Bitcoin does not meet this criteria as it lacks an issuer or promoter who can control its supply or value. It is decentralized and distributed among its users, who validate transactions and secure the network through proof-of-work mining.
Gensler's stance aligns with his predecessors at the SEC and CFTC, who also recognize Bitcoin as a commodity. Moreover, it reflects the functional reality of Bitcoin within the market. It is essential to note that Bitcoin is not exempt from regulation. As a commodity, Bitcoin is subject to anti-fraud and anti-manipulation provisions under the CEA and securities laws. Additionally, it is subject to reporting and recordkeeping requirements pursuant to the Bank Secrecy Act and the Patriot Act. Furthermore, Bitcoin derivatives such as futures and options fall under the regulatory jurisdiction of the CFTC. Bitcoin exchanges, platforms, wallets, and custodians are also subject to regulation by various state and federal agencies, being classified as money transmitters, broker-dealers, or investment advisers.
Gensler's intent behind classifying Bitcoin as a commodity seems to be a recognition of its unique characteristics and innovation while ensuring that it operates within a framework of appropriate rules and standards, safeguarding investors and the public interest.
Gensler's Stance on Other Cryptocurrencies
Gensler's position on other cryptocurrencies is less clear-cut and more nuanced. He has hinted that many of these cryptocurrencies should be treated as securities under federal securities laws, but he has not explicitly identified which ones or provided a definitive method for determining their status. He has also suggested that some cryptocurrencies may have characteristics of commodities or hybrid instruments that fall under the jurisdiction of both the SEC and the CFTC.
Gensler's stance is rooted in his interpretation of the Howey test, which he believes is applicable to most crypto tokens issued through ICOs or those with governance mechanisms. He argues that these tokens entail an investment of money in a common enterprise with an expectation of profit derived from the efforts of others, such as the developers, promoters, or validators of the network.
His viewpoint aligns with that of the SEC staff, who have issued guidance documents and enforcement actions against various crypto projects they deemed to be conducting unregistered securities offerings. Some federal courts have also applied the Howey test to crypto tokens in both civil and criminal cases.
Nevertheless, Gensler's perspective is not universally accepted or implemented. Certain crypto projects have challenged the SEC's authority and interpretations through court proceedings or administrative actions. Others have sought clarification or relief from the SEC by submitting no-action letters or proposing safe harbors. Some argue that their tokens do not constitute securities but rather commodities, currencies, utility tokens, or network tokens serving distinct purposes or functions unrelated to investment contracts.
Gensler's intent behind classifying other cryptocurrencies seems to involve asserting the SEC's jurisdiction and oversight over a significant segment of the crypto industry, which he believes poses substantial risks to investors and the market. He also appears to seek greater cooperation and coordination from the crypto industry to ensure compliance with existing laws and regulations or to pursue suitable exemptions or waivers.
Gensler's Stance on Stablecoins
Gensler's position on stablecoins is intricate and still evolving. While he has expressed concerns about stablecoins and their potential repercussions on the financial system, he has not proposed a specific regulatory framework or approach for them. He has also indicated that some stablecoins may be classified as securities, while others may fall under the category of commodities or hybrid instruments subject to the jurisdiction of both the SEC and the CFTC.
Stablecoins are digital assets designed to maintain a stable value relative to another asset, such as a fiat currency, a commodity, or a basket of assets. They serve various purposes, including acting as a medium of exchange, a store of value, or a unit of account within the cryptocurrency space. Furthermore, they facilitate interoperability between different blockchains and platforms. Stablecoins exist in various forms, such as fiat-backed, crypto-backed, algorithmic, or hybrid stablecoins.
Gensler's position arises from his evaluation of the risks and challenges posed by stablecoins to the financial system. He has highlighted concerns regarding transparency, accountability, governance, liquidity, solvency, market integrity, consumer protection, and systemic stability linked to stablecoins. He has also raised alarms about their potential use in illicit activities such as money laundering, tax evasion, and terrorist financing.
Gensler's viewpoint resonates with other regulators and policymakers who share concerns about stablecoins and their implications for the financial system. The Financial Stability Board (FSB), an international organization overseeing and making recommendations regarding the global financial system, has issued a report outlining ten high-level recommendations for regulating and supervising stablecoins. The President's Working Group on Financial Markets (PWG), composed of senior U.S. officials advising the president on financial matters, has also issued a statement advocating for a comprehensive regulatory framework for stablecoins.
Nevertheless, Gensler's perspective has not yet translated into concrete actions or proposals. He has indicated that he is collaborating with fellow regulators at the CFTC, the Federal Reserve, the Treasury Department, and other agencies to address the concerns raised by stablecoins. Additionally, he has expressed a willingness to engage with Congress and the cryptocurrency industry to establish a clear and consistent regulatory framework for stablecoins.
Implications of Gensler's Stance for the Cryptocurrency Industry and Investors
Gary Gensler's stance on Bitcoin, other cryptocurrencies, and stablecoins carries substantial implications for both the cryptocurrency industry and investors. Depending on how he executes his vision and how the industry responds, his regulatory posture could yield positive or negative consequences for the advancement, expansion, and adoption of the cryptocurrency space.
Positive Implications:
Clarity and Legitimacy: Gensler's regulatory stance could bring much-needed clarity and legitimacy to the cryptocurrency industry. By applying existing laws and regulations consistently, he could create a level playing field for all market participants, fostering equitable competition and cooperation.Investor Protection: Regulatory enforcement and accountability measures could enhance investor protection, reducing the risk of fraud and manipulation in the cryptocurrency market.Market Integrity: Gensler's oversight could bolster market integrity, curbing illicit activities and ensuring fair and transparent trading practices.Regulatory Framework: Engaging with Congress and industry stakeholders could lead to the development of a comprehensive and coherent regulatory framework for the cryptocurrency space, striking a balance between innovation and regulation.
Negative Implications:
Confusion and Complexity: By asserting the SEC's jurisdiction over a substantial segment of the cryptocurrency industry, Gensler may inadvertently sow confusion, uncertainty, and conflicts among different regulators and jurisdictions.Regulatory Burden: Imposing registration and reporting requirements on cryptocurrency projects and platforms could increase the regulatory burden and complexity, potentially stifling innovation.Deterrent to Innovation: Initiating enforcement actions and litigation may deter innovation and investment in the cryptocurrency space, as companies grapple with legal challenges.
Conclusion
In conclusion, Gary Gensler's regulatory stance on Bitcoin, other cryptocurrencies, and stablecoins reflects his background, philosophy, and intentions as the chairman of the SEC. He exhibits a nuanced perspective as a regulator who acknowledges both the potential benefits and risks associated with the cryptocurrency industry. He seeks to apply existing laws and regulations consistently and fairly to ensure investor protection and market integrity.
It is crucial to recognize that Gensler's stance carries significant implications for the cryptocurrency industry and investors alike. While it may offer clarity and legitimacy, it could also introduce complexity and regulatory hurdles. The ultimate outcome of his regulatory approach will depend on how he executes his vision and how the cryptocurrency industry responds to his actions.

Binance, the world’s largest cryptocurrency exchange by trading volume, is facing a legal challenge from the U.S. Securities and Exchange Commission (SEC), which accused it of violating securities laws and defrauding investors.
Binance and its CEO, Changpeng Zhao, filed court papers seeking to dismiss the lawsuit, claiming that the SEC has no jurisdiction over their activities and that they have complied with all applicable laws. However, the SEC has not given up on its pursuit of Binance, and has recently requested access to Binance.US’s software and documents, which was denied by a U.S. court.
The outcome of this case could have significant implications for the future of the crypto industry and its regulation in the U.S. and beyond.
How the Case Unfurled
The SEC’s Allegations The SEC’s lawsuit against Binance, Binance.US, and Zhao was filed in June 2023, following a months-long investigation into the exchange’s operations. The SEC alleges that Binance and Zhao engaged in a series of securities law violations, including:
Operating unregistered national securities exchanges, broker-dealers and clearing agencies in the U.S. — without complying with the registration, reporting and record-keeping requirements of the federal securities laws.Offering and selling unregistered securities to U.S. investors, including Binance’s own crypto assets such as BNB, BUSD, crypto-lending products and staking-as-a-service programs.Misrepresenting the nature and extent of their activities in the U.S., and subverting their own controls to secretly allow high-value U.S. customers to trade on Binance.com, which is not authorized to operate in the U.S.Misleading investors and regulators about the independence and oversight of Binance.US, which is allegedly controlled by Zhao and Binance behind the scenes.Commingling investor funds with their own funds and diverting them to third parties owned by Zhao, such as Sigma Chain and Merit Peak Limited.Engaging in manipulative trading practices that artificially inflated the trading volume and prices of crypto assets on Binance.US.
The SEC seeks injunctive relief, disgorgement of ill-gotten gains, civil penalties and permanent bans on Binance and Zhao from engaging in any securities-related activities in the U.S.
Binance’s Defense Binance and Zhao have denied the SEC’s allegations and have filed motions to dismiss the lawsuit. They argue that the SEC has no authority or jurisdiction over their activities, and they have complied with all applicable laws. They contend that:
The SEC has failed to provide any clear or consistent guidance on what constitutes a security or a securities-related activity in the crypto space, and has attempted to retroactively apply its vague and ambiguous rules to Binance and Zhao.The SEC has failed to show that Binance or Zhao have any substantial contacts or connections with the U.S., or that they have targeted or solicited U.S. investors in any way.The SEC has failed to prove that any of the crypto assets offered or sold by Binance or Zhao are securities under the federal securities laws, or that they have any characteristics or features of securities.The SEC has failed to establish that Binance or Zhao have operated any unregistered national securities exchanges, broker-dealers, or clearing agencies in the U.S., or that they have performed any functions or services that require such registration.The SEC has failed to demonstrate that Binance or Zhao have made any false or misleading statements or omissions to investors or regulators, or that they have engaged in any fraudulent or manipulative conduct.
Binance.US’s Response Binance.US, which is formally known as BAM Trading Services Inc., has also filed a motion to dismiss the charges against it.
It claims that it is a separate and independent entity from Binance and Zhao, and that it operates a fully compliant and regulated crypto trading platform in the U.S. It asserts that:
It has obtained a money services business license from FinCEN, a money transmitter license from NYSDFS, and a virtual currency license from NYDFS.It has registered as a money services business with FinCENIt has implemented robust anti-money laundering, know-your-customer, and cybersecurity policies and procedures, and has engaged independent auditors to verify its compliance.It has obtained approval from the SEC to list and trade certain crypto assets that are deemed securities, such as Grayscale Bitcoin Trust and Grayscale Ethereum Trust.It has cooperated fully with the SEC’s investigation and has provided all the requested information and documents, except for those that are protected by attorney-client privilege or trade secrets.
Binance.US argues that the SEC’s lawsuit is based on unfounded allegations and irrelevant evidence, and that it should be dismissed for lack of merit and jurisdiction.
The SEC’s Request for Inspection In a bid to bolster its case against Binance, the SEC has sought to inspect Binance.US’s software and documents, claiming that they are relevant and material to its investigation. The SEC asserts that:
Binance.US’s software and documents may reveal the extent and nature of Binance and Zhao’s involvement and control over Binance.US, as well as their access to Binance.US’s customer data and funds.Binance.US’s software and documents may show how Binance.US’s platform operates, how it determines the eligibility and availability of crypto assets, how it executes trades and transfers, and how it handles customer complaints and disputes.Binance.US’s software and documents may demonstrate whether Binance.US has complied with the federal securities laws and regulations, or whether it has engaged in any securities law violations or fraudulent conduct.
The SEC has requested access to Binance.US’s source code, user interface, application programming interface, database schema, data dictionary, technical specifications, user manuals, policies and procedures, contracts and agreements, correspondence and communications, financial statements, audit reports and other relevant records.
However, the SEC’s request for inspection was denied by a U.S. district court judge in New York. The judge ruled that:
The SEC’s request was overly broad, burdensome, and intrusive, as it sought to obtain virtually all of Binance.US’s software and documents without specifying their relevance or necessity.The SEC’s request was premature, as it had not exhausted other less intrusive means of obtaining the information it sought, such as interrogatories, depositions, or subpoenas.The SEC’s request was disproportionate to the needs of the case, as it would impose significant costs and risks on Binance.US, while providing little or no benefit to the SEC.The SEC’s request was unjustified, as it had not shown any reasonable basis or probable cause to believe that Binance.US’s software and documents contained any evidence of securities law violations or fraudulent conduct.
The judge concluded that the SEC had failed to meet its burden of showing that its request for inspection was relevant, material, necessary, reasonable, or proportional to the issues in dispute. The judge also noted that granting the SEC’s request would violate Binance.US’s privacy rights and trade secrets protections.
Implications of SEC’s Ruling
The court’s denial of the SEC’s request for inspection is a significant setback for the SEC in its lawsuit against Binance. It indicates that the court is not convinced by the SEC’s arguments or evidence, and that it is not willing to grant the SEC unlimited access to Binance.US’s software and documents. It also suggests that the court is sympathetic to Binance.US’s defense and claims of compliance.
However, the court’s denial does not mean that the SEC’s lawsuit is over. The SEC may still pursue other means of obtaining information from Binance.US or other parties. The SEC may also appeal the court’s decision or file a revised request for inspection. The SEC may also present other arguments or evidence to support its allegations against Binance.
The outcome of this case could have significant implications for the future of the crypto industry and its regulation in the U.S. and beyond. If the SEC prevails in its lawsuit against Binance, it could set a precedent for cracking down on other crypto platforms that operate in or target U.S. investors without complying with U.S. securities laws. It could also deter innovation and competition in the crypto space by imposing stringent requirements and restrictions on crypto platforms.
On the other hand, if Binance succeeds in dismissing the lawsuit or reaching a settlement with the SEC, it could signal a victory for crypto freedom and innovation. It could also encourage more dialogue and cooperation between crypto platforms and regulators to foster a more conducive and compliant environment for crypto development.
In any case, this case is likely to shape the future of crypto regulation in the U.S. and beyond. It will test the limits of the SEC’s authority and jurisdiction over crypto assets and activities. It will also challenge the definitions and classifications of crypto assets as securities or non-securities. It will also highlight the need for clear and consistent guidance and rules for crypto platforms and investors.
This case is not only a legal battle between Binance and the SEC. It is also a fight for crypto freedom or a fight for regulatory compliance. It is a fight that will have profound implications for the crypto industry and society.
 
Source: https://mpost.io/binance-vs-sec-battle-for-crypto-freedom-or-a-fight-for-regulatory-compliance/

Digital assets are digital representations of value, including ownership of financial or real economy assets. These assets have the potential to facilitate more efficient transactions, improve financial inclusion, and unlock economic value. To create a new digital asset ecosystem, central bank digital currencies (CBDCs), tokenized bank liabilities, and well-regulated stablecoins, along with smart contracts, can serve as mediums of exchange. However, these new forms of digital money need to demonstrate their utility beyond existing e-payment systems.

Programmability and Fungibility of Money

One touted advantage of digital money is its programmability, but there is ongoing debate regarding this feature. It is crucial to ensure that programmability does not hinder the ability of digital money to serve as a medium of exchange. Money's singleness should be preserved, and programmability should not lead to fragmentation of liquidity in the system.

Purpose Bound Money (PBM)

This paper presents the concept of Purpose Bound Money (PBM), which allows money to be directed toward a specific purpose without requiring direct programming of the money itself. PBM utilizes a standardized protocol that works with different ledger technologies and forms of money. Users can access digital money using their preferred wallet provider.

Background and Motivation

Efforts to digitalize financial services have gained momentum, but they face challenges, such as the proliferation and fragmentation of payment schemes and platforms. Consolidating these schemes into a single platform that is open and interoperable across all schemes would enhance user experience and streamline digitalization.

Models of Programmability

There are different models of programmability: programmable payment and programmable money. Programmable payment involves executing payments based on predefined conditions, while programmable money embeds rules within the store of value itself. Both models have their advantages and limitations. With the increasing diversity of CBDCs, tokenized bank liabilities, and stablecoins, a common framework for interacting with different forms of digital money is needed.

Purpose Bound Money (PBM)

PBM combines elements of programmable payment and programmable money. It consists of a wrapper that defines the conditions for use and an underlying store of value serving as collateral. This design allows existing digital money to be deployed for various purposes without altering its native properties. When the conditions are met, the underlying digital money is released and becomes unbounded.

Components and Roles

A PBM consists of a wrapper implemented as smart contract code and the underlying digital money. The PBM creator defines the logic, mints PBM tokens, and distributes them. PBM holders can redeem non-expired tokens, while PBM redeemers receive the underlying digital money when tokens are transferred.

Lifecycle of Purpose Bound Money

The PBM lifecycle includes the issue, distribute, transfer, redeem, and expired stages. PBM tokens are created, distributed, and can be transferred based on programmed rules. When the conditions are fulfilled, PBM tokens are redeemed, and the underlying digital money is transferred to the recipient. Expired tokens can be destroyed or paused indefinitely.

Conclusion

Purpose Bound Money offers a new approach to programmability in the digital asset ecosystem. By defining conditions within a wrapper and using existing digital money, it enables directed use without compromising fungibility or the medium of exchange function. The PBM framework provides a common language to interact with different forms of digital money and promotes interoperability within the financial infrastructure.

The rise of Non-Fungible Tokens (NFTs) has sparked a remarkable transformation in the cultural and creative economy, ushering in an era filled with new possibilities within the web3 ecosystem. NFTs offer creators unprecedented opportunities to monetize their work, establish ownership, and engage with their audience in exciting and innovative ways. This panel, organized by WikiEXPO explores the ways in which NFTs empower the creator economy and contribute to the development and prosperity of the cultural industry.

The panelists are Ganesh R, Co-founder, Firebond; Hanis Harmiles, Founder, Reinvent DAO; Tony Fu, Founder, NFT China; James Lee, CCO, Srarry Nift; Caesar Chen, Ethereum Developer & Anndy Lian, Intergovernmental Blockchain Advisor.

Direct Monetization and Increased Revenue:

NFTs provide creators with a distinct advantage: the ability to monetize their work directly, without the need for intermediaries. By minting and selling their digital creations as NFTs, artists can bypass traditional platforms and retain a larger portion of the revenue generated. This direct relationship between creators and collectors promotes a more equitable distribution of profits, ensuring that artists receive fair compensation for their contributions and fostering a sustainable economy.

Royalties and Secondary Sales:

A revolutionary aspect of NFTs is the inclusion of smart contracts. Creators can program these contracts to include royalties, guaranteeing them a percentage of future sales. This means that artists can benefit from the increasing value of their work over time or from subsequent sales on secondary markets. Such a system provides artists with a consistent revenue stream, incentivizing them to continue producing exceptional works and fueling the growth of the cultural industry.

Authenticity and Provenance:

Authenticity has long been a concern in the art world. However, NFTs tackle this issue by leveraging blockchain technology to establish transparent and immutable records of ownership and provenance. Each NFT is uniquely identified and linked to its creator, making it incredibly difficult to counterfeit or plagiarize digital assets. Collectors can now have confidence in the legitimacy and originality of the NFTs they acquire, building trust within the ecosystem and driving the demand for digital creations.

Tokenizing Intellectual Property:

NFTs extend beyond traditional visual artworks, encompassing a wide range of digital content such as music, videos, virtual real estate, and virtual goods. This ability to tokenize intellectual property opens up new avenues for creators in various fields to monetize their unique creations. Musicians, for instance, can release albums as NFTs, granting exclusive access to bonus tracks or backstage experiences. Filmmakers can tokenize movie memorabilia, offering collectors the opportunity to own iconic props or moments from their favorite films. This expansion of tokenization possibilities stimulates creativity and innovation, propelling the cultural industry forward.

Community Engagement and Collaboration:

NFTs foster direct interaction between creators and their audience, nurturing a sense of community and engagement. Artists can utilize platforms built around NFTs to communicate with collectors, offer exclusive perks, organize virtual events, and cultivate a dedicated fan base. This heightened connectivity enables creators to receive insights, feedback, and support from their community, resulting in more refined and impactful artistic creations. NFTs also facilitate collaboration between artists, encouraging the exchange of ideas, cross-disciplinary projects, and collective creativity.

Decentralized Marketplaces and Creative Freedom:

In the web3 era, NFTs are accompanied by decentralized marketplaces that empower creators with greater autonomy and creative freedom. These platforms eliminate the need for traditional gatekeepers, allowing artists to reach a global audience without geographical limitations. Moreover, creators have the flexibility to experiment with various pricing models, access real-time sales data, and maintain control over their artistic direction. By removing barriers and creating a more inclusive environment, NFTs unlock the full potential of the creator economy, fostering a thriving cultural industry.

Conclusion:

NFTs have emerged as a powerful force propelling the cultural and creative economy into uncharted territories. By empowering creators through direct monetization, royalties, authenticity, and community engagement, NFTs have revolutionized how artists interact with their audience and monetize their work. Through the tokenization of intellectual property and the freedom offered by decentralized marketplaces. As this technology continues to evolve, it promises to reshape the future of creativity, creating a more vibrant and inclusive ecosystem for artists and enthusiasts alike.

 

https://youtu.be/FBgbDuaXYE8

Best selling book author, Anndy Lian gave his speech titled “Think Bigger In the next NFT Summer” at NFT.NYC 2023. NFT NYC is a yearly event dedicated to NFTs and blockchain technology, which has quickly become a major focus of the art and collectibles world. This immersive conference and festival attracts a wide variety of participants, including industry leaders, artists, collectors, and enthusiasts, who come together to explore the possibilities of NFTs. Attendees can learn about the latest trends, technologies, and best practices related to NFTs.

The concept of NFTs (Non-Fungible Tokens) has been in existence for some time now. However, while it has gained considerable popularity, it has also raised concerns amongst some people. Many individuals have developed a negative perception of NFTs due to the hype surrounding them. There have also been instances of NFT wash trades, which are used to inflate NFT prices artificially. Additionally, some NFTs have no practical use, and some are regarded as securities, which is a regulatory issue.

Despite this, the NFT craze is far from over, and it could be just the beginning of a new era. Big names like Gucci, Porsche, Starbucks, Amazon, and Red Bull Racing have started investing in NFTs, which suggests that the market is gaining traction and legitimacy. This year could be the last NFT summer where people only see NFTs as a speculative asset.

In 1999, Bill Gates predicted that everything would be on the internet. Jack Ma did the same in China, but people thought it was impossible. Now, we are living in a world where the internet is an integral part of our daily lives. If we continue to use our current mindset to envision the future, we risk being left behind, just like those who laughed at the internet in its early days.

We need to broaden our minds and start thinking beyond the current limitations of NFTs. NFTs can be used for anything, from digital art and music to virtual real estate and gaming items. The possibilities are endless, and the new assets are in the digital world. Crypto natives need to think bigger and explore the true potential of NFTs.

Although we currently view NFTs as speculative, we must start using them in the future we create. Big brands have recognized this and are willing to invest in the technology. It is time for us to move past the current hype and start creating and exploring the digital world that awaits us.

The full video of this speech can be obtained at https://youtu.be/cLAP1htYwD4.

The cryptocurrency market has been experiencing some fluctuations in the past few months, leading many investors to wonder about the future of the market. Eugene Shilov of Founders Club sat down with Anndy Lian to discuss the crypto market cycle and his insights on cryptocurrency investments.

 

Crypto Cycle

Anndy first touched on where we currently stand in the crypto cycle. He emphasized that he looks at the numbers and believes that Bitcoin is in a good position right now. He sees Q3 and Q4 as being a good time to see how far Bitcoin can go this year. While he doesn't think we are going into a super bull cycle in the next one or two quarters, he does believe that there will be a gradual signal that it's going to come soon. He believes that after the FTX incident, the three arrows incident, and the bank crisis, it will take some time to clean up the market. Therefore, he sees Q4 as being a good time for the market to pick up.

When it comes to investing in cryptocurrency, Anndy offered some advice for retail investors. He believes that people should know their finances well and not go beyond their limit. Many people are willing to bet more money than they can manage, which is a big mistake. He encourages people to invest in cryptocurrency to get a proper return, but not to gamble.

Lian also suggested that people should look at the projects they are investing in and consider the long-term potential. He advised people to look at the team behind the project and what they are working on to determine if it's a good investment. he also highlighted the importance of diversification. People should not put all of their money into one coin or project, as it could be risky. Instead, it's important to have a diversified portfolio that includes multiple coins and projects.

He emphasized the importance of understanding the product and the project before investing in it. Many retail investors panic when the price of a coin fluctuates, causing them to criticize the project or even search for the founders. He explained that this behavior is a result of investors not understanding the investment cycle, the product, or the project.

The second point that Anndy stressed is the need for thorough research. He advised investors not to only research the project but also to understand when they can expect their return on investment. Many investors fail to realize their investment on paper, resulting in zero returns. Therefore, it is crucial to know oneself, the risk profile, the portfolio, and the timeline of investment.

 

3 Hot Topics to Look Out for in the Web 3.0 Era

Centralization vs. Decentralization

One of the most pressing issues in the crypto world is the debate between centralization and decentralization. Anndy pointed out, the trend seems to be shifting towards centralization, which is a cause for concern. Decentralization is a core principle of cryptocurrency, and it is what makes it unique. It allows for transparency, security, and a level playing field for all participants. Anndy went on to speak about the potential of decentralization and the need to redefine the term. He emphasized that decentralized products, apps, and economies are still missing in the market, and investors should keep an eye out for these opportunities. He encouraged investors to create their own ecosystems within a metaverse that is decentralized, sustainable, and can support the investors' needs.

He explained that decentralization is not only about getting rid of banks and governments but also about creating a new and sustainable economy that can exist on its own. He emphasized that investors should look at re-centralizing decentralized products and apps and redefine the value of what is already being done in the decentralized world.

NFTs

NFTs, or non-fungible tokens, have been a hot topic in the crypto world for some time now. They are digital assets that are unique and cannot be replicated. Anndy predicts that NFTs will continue to gain momentum, and we will see more use cases in the future. Brands are already collaborating with artists and creators to launch NFTs, and this is just the beginning. The potential for NFTs is enormous, and we are likely to see more innovation and creativity in this space.

AI and Decentralized AI

Artificial intelligence (AI) is another hot topic in the crypto world. Anndy believe that AI can play a significant role in the decentralization of the industry. With AI-powered decision-making processes, there is a new layer of trust that can be established, which is critical in a decentralized ecosystem. Furthermore, decentralized AI can be a step towards a new economy. It is a win-win situation for everyone involved as AI can make smarter decisions and enhance the blockchain technology's capabilities.

Gaming and Metaverse

The gaming and metaverse industry is another area that is likely to see growth in the coming years. The metaverse is a virtual world where people can interact with each other in a shared digital space. The gaming industry has been a fast adopter of blockchain technology, and it is likely that this trend will continue. Decentralization is crucial in this space as it allows for the creation of a sustainable economy. A good game with a strong community can lead to a more sustainable metaverse.

Raising funds

When it comes to raising funds for your project, timing is everything. If your product is ready and the market is ready, then it’s the right time to start fundraising. You don’t want to invest when the market is going to do badly and your product is going to launch only in Q3. Investors are usually impatient, and they are not looking at something that is 10 years down the road. They want to see the return on their investment as soon as possible.

Investors have different strategies when it comes to investment, and some may ask for a vesting period of five years. However, if your product is good, there’s no need to wait for five years. For instance, if your project is good, by the start of the first year, the valuation could be $10 million, and by the end of five years, it could be $1 billion. Therefore, it's crucial to give them tokens in the beginning when the valuation is low, rather than waiting for five years and giving them everything when the valuation is high. It's a win-win situation, and they don't need to dump the market.

Investing in the right product is essential, and not all venture capitalists (VCs) are looking at it from the same perspective. Anndy suggests that timing is crucial, and not all VCs are looking at it from the same perspective. They are using LPs' money, and as long as they can build a nice return, they have done their job. Therefore, it’s crucial to find the right investor who likes your niche and what you do.

Investment is all about investing in value, and it’s crucial to invest in something that you like. Investing in people is a serious thing to do because people change faster than the code. However, that should not be the case when we talk about investment. You cannot invest in the person because your debt is Bill Gates, for example. It's essential to invest in value, and that’s something that you need experience. Invest in something that you like, and you will definitely grow.

When it comes to raising funds for your project, it’s crucial to find the right investor who likes your niche and what you do. Timing is everything, and it’s essential to fundraise at the right time when your product is ready, and the market is ready. Lastly, invest in value, not in the person, and invest in something that you like, and you will definitely grow.

 

The Importance of Timing in the Cryptocurrency Market

Cryptocurrencies have revolutionized the financial industry, and with the advent of Web3, the industry is expected to become even more innovative. But with the market still a bit bumpy, investors are uncertain and it's not advisable to go for something that's too out of the box. Timing is crucial when investing in cryptocurrencies.

According to Anndy, if you want to be listed on exchanges like Binance or Coinbase, now is the best time. The market is not at its best, and you have the money to pay for marketing. Building your project's narrative is key to getting listed as soon as possible. While some may argue that you need your product up and running before you can list, there are blockchain projects worth hundreds of millions that are still in the testing phase.

The most defining word in Web3 space is community. Building a community is key to marketing your project in Web3. The CEO must interact with the community, and Twitter is an excellent platform to do so. Connecting with people, whether through a heart shape or a thumbs up, is how you build a community.

Timing is everything in the cryptocurrency market. Knowing when to invest and when to build is crucial. Building a narrative for your project is key to getting listed on exchanges. The CEO must interact with the community, and building a community is how you market your project. With these in mind, you're ready to tackle the cryptocurrency market.

 

Ending

Investing in cryptocurrency can be a daunting task for beginners, but it doesn't have to be. In fact, investing in crypto can be easy and accessible to anyone who is willing to try. The secret is to start small and try it out. Don't wait for the perfect opportunity, just take the plunge and see what happens.

One common question beginners ask is how much they should invest in crypto. The answer is simple: invest what you can afford to lose. You don't need to put in a large sum of money to start investing in crypto. You can start with a tiny bit of investment and see how it goes. The goal is to try it out and learn from the experience.

The key to successful investing in crypto is to be consistent and not rely on luck. You have to understand the fundamentals and realize your profit. Once you have made a profit, you can reinvest it in other things that give you a higher return.

It's important to note that you have to know yourself before investing in crypto. You have to determine how much you can afford to lose and what your goals are. Investing in crypto is not about luck, it's about understanding the market and being consistent.

If you're a hard-working person, you can get involved in crypto projects by checking out some of the trends on Twitter. This will help you understand the market better and determine when the right time is to invest.

It's important to rebalance your investments and not hold on to them forever. This is something that many crypto investors forget. Realizing your profit and reinvesting it elsewhere will give you a higher return.

Anndy ended the interview with his famous quote- “Not financial advice.”

https://youtu.be/qiQc2joO9FM

 

Founders Club brings founders from all walks of life together. Sergey Kochnev interviewed Anndy Lian, an intergovernmental blockchain advisor, investor and book author at Dubai, Blue Waters Island.

Current state of crypto

Anndy was also asked about the current state of the crypto market and Bitcoin's future. He believes that the overall sentiments are not bad, and there is still hope for the market. The market has had a good run, and even though the projection towards a $30,000 run is around the corner, it's just a matter of perspective.

He also believes that investing in crypto is a long-term game rather than a short-term one. It's similar to investing in the stock market, where there are fluctuations, and people should expect them. He mentioned that during the 2016-2019 ICO era, people were having 10x and 100x gains within six or three months, which is not the case anymore.

Regarding the main trends in crypto, He stated that institutions are looking to create products using a basket of cryptocurrencies. They are not only interested in buying Bitcoin, but they also want to invest in other crypto assets.

Another trend is the rise of NFTs. They can represent anything from digital art and music to in-game items and virtual real estate. NFTs have become increasingly popular in recent years, with some pieces selling for millions of dollars. But with the rise in popularity of NFTs comes the risk of scams and bad actors in the space. By arming themselves with knowledge, people can avoid falling prey to bad actors and ensure they're investing in legitimate NFTs. This is the gist of Anndy’s new book, NFT: From Zero to Hero.

The problem with NFTs and Web3 is that some people are simply jumping on the hype train without truly understanding the technology. It's important for people to understand the utility of NFTs and how they can be used in real-life businesses and games.

While some may argue that NFTs are simply a web2 experience, it's important to remember that technology takes time to adapt and for adoption to take place. It's similar to the dot-com bubble of the early 2000s, where it took a decade for companies to become trillion-dollar businesses. But with the cycles of innovation becoming faster, it's likely that the adoption of NFTs and Web3 will happen more quickly.

How to gain crypto knowledge

Sergey asked about how one can gain practical knowledge in the cryptocurrency market? When it comes to cryptocurrency investment, many people focus on the potential gains and forget about the possibility of losses. It is important to understand that the experience of losing is just as much a part of the journey as winning. Therefore, it is essential to have practical knowledge before investing in this market. The first step towards gaining practical knowledge is research. Do not just read articles, try it out for yourself. You cannot claim to be an expert in something you have not experienced. Some people claim to work in exchanges or on projects without even owning an NFT or understanding how dynamic the market can be. Practical knowledge is key. Educate yourself about the market before investing. Knowledge is power and this applies to any investment, whether it's real estate, stocks, or cryptocurrency.

You cannot just jump into the market, hoping to get lucky and make a profit. Many people bought Bitcoin when it was at its peak, only to lose out when the market crashed.

It is also important to remember that hodling or holding on to a coin is not always the best option. You need to make your own decisions based on your understanding of the market. Do not blindly follow the advice of others without considering your own interests.

Looking ahead

Looking ahead to the end of 2023, it's difficult to predict where the market will go. However, it's clear that true decentralization and self-custody will continue to be important factors in the development of Web3 technologies. As the industry evolves, it will be important to stay focused on what is truly decentralized, and to avoid being convinced or confused by marketing hype.

Q3 and Q4 of this year will be a more promising time for the gaming industry. It's also expected that bigger brands in the US will find a way to keep themselves in the game, while maintaining a good reputation. This is a significant advantage for the industry, as it will drive more positive vibes and traction. Web3 is expected to remain a good muscle within the US ecosystem, even without cryptocurrency. The industry is hopeful that this new technology will usher in a new era of gaming that is more secure, transparent, and accessible to all.

Anndy ended his interview by emphasizing that gaining practical knowledge in the cryptocurrency market is essential before investing. It is not enough to rely on theoretical knowledge or the advice of others. Research, try things out, and make your own decisions based on your understanding of the market. Remember, knowledge is power.

 

https://youtu.be/hBfSLCEGDYg

A great deal of buzz has been generated by a novel type of non-fungible tokens known as Ordinal inscriptions. What sets these NFTs apart is that all of their data is etched onto the Bitcoin blockchain, diverging from Ethereum NFTs which are reliant on off-chain metadata that can be altered. Here’s a closer look at Ordinal inscriptions and their potential impact on the future of Bitcoin.

Ordinal inscriptions are a type of NFT that can be created on the Bitcoin blockchain, which allows for all of the data to be directly inscribed on the chain. This is in contrast to Ethereum NFTs, which rely on off-chain metadata. Due to this distinction, Ordinals are considered a potential solution to the challenges that are associated with Ethereum NFTs.

 

Ordinal inscriptions serve as a means of organizing data on the Bitcoin blockchain. The Bitcoin blockchain functions as a decentralized ledger of all Bitcoin transactions, and Ordinal inscriptions provide a unique identifier for each transaction.

While these identifiers are useful for tracking and verifying transactions, there are concerns about the potential for issues, such as “transaction malleability,” to arise as a result of Ordinal inscriptions. Some experts have raised concerns in this regard.

The term transaction malleability refers to the ability of a third party to modify a transaction ID without altering the transaction itself. This can result in confusion and make it more challenging to track and verify transactions.

The concern with Ordinal inscriptions is that if they are not used correctly, they may lead to an environment in which transaction malleability is more prevalent. This could have the effect of making it harder to rely on Bitcoin as a secure and dependable method of payment and transfer.

Fortunately, many experts in the crypto community are aware of the potential risks associated with Ordinal inscriptions and are taking steps to mitigate them. One of the most significant efforts in this regard is the implementation of Segregated Witness (SegWit).

SegWit is a software upgrade that allows for more efficient use of the Bitcoin blockchain by separating signature data from transaction data. This helps to decrease the size of transactions and reduces their susceptibility to malleability.

Beyond SegWit, ongoing efforts are being made to develop other solutions to address the potential risks associated with Ordinal inscriptions. The Lightning Network is one such solution, as it is a layer of two solutions that enables faster and less expensive Bitcoin transactions by conducting them off-chain.

 

Should you be concerned? If you are a casual Bitcoin user, you likely do not need to be overly concerned about Ordinal inscriptions. The potential risks associated with them primarily affect those involved in more complex Bitcoin transactions, such as multi-signature wallets or smart contracts.

 

Despite the potential benefits of Ordinal inscriptions, there has been a lot of debate over whether they are a “good use” of block space. As more Ordinals are being inscribed, the cost of Bitcoin transactions has risen. Ordinals introduce additional, non-financial data on the Bitcoin blockchain, which can bog down on-chain confirmation times. This includes images, audio clips, and even games. Those not in favour of Ordinals see this as an impediment to the ability of Bitcoin to scale and reach full global adoption.

Inscribing non-fungible characteristics to satoshis, the individual increments of Bitcoin, may challenge its use in place of conventional currency. Ordinals challenge the fungibility of satoshis on the Bitcoin network, as all satoshis should be equal, or they begin to lose a significant trait of money. But Ordinals can alter the value of these units of money, much like rare collectible coins. This debate over whether these individual units must be deemed equal is unfolding before our eyes and needs to be understood.

Bitcoin is money, and that’s the largest and most important use case, impacting the most people in the world. In the end, I believe that Ordinals will remain niche. While Ordinals may be viewed as exciting, they are unlikely to become the go-to choice for many people who use Bitcoin’s block space.

Ultimately, the markets decide. One of the biggest yet baseless claims is that Bitcoin doesn’t evolve or change. While there may be some truth to this, any changes to the protocol should be slow and methodological. Ultimately, the markets will decide whether Ordinal inscriptions are a viable solution for the challenges associated with Ethereum NFTs.

One key factor to remember about Bitcoin, and any other digital asset, is that its success depends on market demand. If the market values the features offered by Ordinal inscriptions, then they are likely to be adopted and integrated into the Bitcoin network. However, if the market does not value them, then they will remain a niche offering.

While Ordinal inscriptions may pose some potential risks to the Bitcoin network, the crypto community is actively working to address these issues. As long as you take appropriate precautions to protect your Bitcoin holdings, there’s no need to be overly concerned about this discussion in the short term. In fact, these discussions help to strengthen and test the resilience of the Bitcoin network. I see lots of positivity in this.

 

Source: https://intpolicydigest.org/what-do-ordinal-inscriptions-mean-for-the-future-of-bitcoin/

India's Finance Minister, Nirmala Sitharaman, has stated that the Indian government is in "detailed discussions" with other G20 members to develop a standard operating procedure (SOP) for regulating cryptocurrencies. Given the current unregulated environment for cryptocurrencies in India and globally, India is seeking a collaborative effort, on the sidelines of the G20 Summit, to develop a comprehensive framework. Sitharaman emphasized the need for a globally coordinated approach to regulating cryptocurrencies in a recent meeting with the International Monetary Fund Managing Director Kristalina Georgieva.

The G20, comprising 19 countries and the European Union, representing around 85% of the global GDP, over 75% of global trade, and about two-thirds of the world population, is working with India to develop a "coherent, comprehensive approach" to regulate cryptocurrency mining and transactions.

In India, the cryptocurrency trade currently attracts a 30% tax and a 1% tax deducted at source (TDS). Although the government has not yet prepared a regulatory framework for cryptocurrencies, it introduced new crypto tax penalties, including jail time for nonpayment of crypto TDS. Meanwhile, India's central bank, the Reserve Bank of India (RBI), has continued to recommend a complete ban on crypto assets, including bitcoin and ether. RBI Governor Shaktikanta Das has warned that cryptocurrencies pose a risk to the country's financial system and will cause the next financial crisis if they are not banned. The Indian crypto industry has challenged the government's stance on cryptocurrencies, advocating for regulatory clarity and a favorable operating environment.

Sitharaman's call for a coordinated approach to regulating cryptocurrencies is a significant development that highlights the need for international collaboration to develop comprehensive regulatory frameworks for digital assets. The outcome of the discussions within the G20 will be closely watched by industry stakeholders and governments around the world as they could provide a model for regulating cryptocurrencies in other countries.

My humble opinion is that I have no objections to forming regulatory frameworks to protect users, but having uniform regulations throughout G20 countries may not work. The global cryptocurrency market is highly fragmented, with different countries and regions having different regulatory frameworks and approaches to cryptocurrencies. Cryptocurrencies are also highly diverse and complex, and any attempt to impose uniform regulations may not take into account the nuances and specificities of different types of cryptocurrencies. Moreover, there may be differences in the priorities and interests of different countries and regions when it comes to regulating cryptocurrencies. Finally, even if uniform regulations are agreed upon, enforcing them may be a challenge, given the decentralized nature of cryptocurrencies and their anonymous transactions.

In traditional finance, achieving global harmonization has been a long-standing goal of regulators and industry participants. However, despite years of effort, there are still significant differences in the regulatory frameworks across jurisdictions, and achieving uniformity is a complex and ongoing process. Therefore, it's possible that the cryptocurrency industry may also face similar difficulties in achieving global harmonization. Nonetheless, striving for uniform regulations is essential to promote transparency, consistency, and stability, which can help build trust and confidence in the industry, promote innovation, and protect consumers.

Ideal decentralization refers to a system or network in which no single entity has control or the ability to make decisions for the entire system. Instead, power and decision-making are distributed among multiple participants, making it more difficult for any one person or group to manipulate or control the system. This ideal state could be Web4. 

Web4 is not a widely used term and it's not a consensus definition, so it may refer to different things depending on the context. However, some people use the term "Web4" to refer to the next generation of the World Wide Web, which would be even more decentralized and more focused on artificial intelligence, semantic web, and the internet of things, among other things. It would be characterized by more dynamic, autonomous, and interconnected systems that can learn from data, communicate with each other and adapt to changing environments. This would allow for more dynamic and adaptable systems that can learn from data and improve over time.

It's important to note that Web4 is not an official term and it's not a widely accepted concept in the industry, so the extent to which it would be more decentralized than the current web (Web3) or previous versions of the web would depend on how it is defined.

New decentralization

The idea behind Web4 is to create a more decentralized and autonomous web that allows for more direct interactions between users and devices without the need for intermediaries. This could include the use of decentralized technologies, such as blockchain, peer-to-peer networks, and distributed systems, to enable new forms of online interactions and services that are not controlled by centralized entities. Additionally, Web4 could also have a greater focus on AI and machine learning, which would allow for more dynamic and adaptable systems that can learn from data and improve over time.

Some of the advantages of a more decentralized web include:

Greater security and privacy, as users have more control over their data and online interactions

More open and transparent systems, as there is no central point of control or failure

Greater resilience and robustness, as the network can continue to function even if parts of it fail

More innovation and competition, as there are fewer barriers to entry for new players

Web4 is seen as the next evolution of the World Wide Web, building upon the decentralized technologies of Web3. In Web4, the user experience is streamlined and frictionless, with the underlying technical details abstracted away. This means that users won't need to worry about the specific blockchain being used, the intricacies of ZK-Rollups, or setting the right gas limit for transactions. The gas wars and transaction fees of the current web3 will be a thing of the past.

Moreover, Web4 has the potential to create a circular crypto-economy that transcends physical and digital boundaries, making the need for fiat on and off ramps obsolete. This would be a significant disruption in the current financial system.

There are other interpretations of what Web4 could be, such as the "symbiotic web," which refers to a symbiotic relationship between humans and machines, possibly even utilizing direct brain-machine interfaces.

Overall, the transition from Web1 to Web2, and now from Web3 to Web4, is similar in that it is a gradual process that opens new doors and invites more people to participate. While Web3 is still in its early stages and considered experimental, Web4 is expected to be more accessible and user-friendly, making it more widely adopted by the general public.

Where are the opportunities?

Web 4.0 offers a wealth of possibilities for companies and individuals. The symbiotic web will enable the creation of more personalized experiences, allowing businesses to better understand their customers and provide tailored content.

AI-powered automation will improve efficiency, speed up time to market and lower costs, giving businesses a competitive edge and better customer service.

The combination of hardware, software and data will enable the development of new products and services, such as connected devices that interact with users and gather data for personalization.

Web 4.0 also opens up new revenue streams, like targeted advertising or subscription services, using data collected.

Additionally, VR and AR applications will allow for new ways for businesses to engage with customers, for example, creating an AR application that allows customers to interact with products in a 3D space.

In summary, what do we see in Web4?

1) Industry 4.0 full automation

2) Decentralized sustainable metaverse + AR + VR

3) AI making steps into the decentralized realm

4) Real decentralized app and economies

5) Real power back to the users

Web5 and Jack

In 2022, Jack Dorsey, the former CEO of Twitter, emerged as a leading figure in the development of Web5. He shared his vision for the next generation of the internet at the Consensus crypto and blockchain conference. Dorsey's team at TBD, the Bitcoin-focused division of his fintech company Block (formerly known as Square), supports him in this endeavour.

According to Dorsey, Web5 is a solution to the issues he has with Web3, particularly his belief that it will never fully achieve decentralization.

“You don’t own ‘Web3.’ The [venture capitalists] and their [limited partners] do,” Dorsey said in a tweet, referring to the billions being poured into Web3. “It will never escape their incentives. It’s ultimately a centralized entity with a different label.”

“Know what you’re getting into,” he warned.

Ending note:

Yes, it's important to note that true decentralization is a core principle of a decentralized economy. This means that there is no central authority or intermediary controlling or managing the network or its transactions. Instead, power and control is distributed among the network's participants, and decisions are made through consensus mechanisms such as voting or proof of work. Decentralization ensures that the network is resistant to censorship, fraud, and other malicious activities and that the network's users have full control over their own assets.

Perhaps, Web4 is a chance for us to redefine decentralization, reform and improve decentralization, and revalue the true meaning behind decentralisation.

Tag: #web3 #web2 #defi #gamefi #decentralise #value #blockchain