Mariano Maisterrena, CEO of HeirloomDAO, carried out an analysis, which he shared with Cointelegraph en Español, on the changes that could occur in the crypto ecosystem in 2023 and how they would impact exchanges, investing users and blockchain projects in general.
“What was a 2022 with disappointments and frustrations, today becomes hope. The year 2023 has just begun and the crypto world is looking forward to a rebound and eventual turnaround.”, said Mariano Maisterrena.
In this sense, the CEO of HeirloomDAO explained that this year, The future of the field of cryptocurrencies could be marked by the monetary policy defined by the Federal Reserve of the United States (FED) through interest rate movements.
“These rates are what the FED charges banks for lending them money.. As the monetary authority of the USA, can adjust them to influence the economy of the country and meet its objectives of price stability and full employment. If you reduce them, access to funds becomes cheaper, which can stimulate consumption, investment and thus help boost economic growth. Consequently, as there is more money available to the common public, more investments can be generated in the world of crypto”, explained Mariano Maisterrena. He also added: “In general, when interest rates decrease, the price of Bitcoin and other cryptocurrencies can increase. This is because, at that time, cryptocurrencies are seen as a more attractive alternative to traditional financial instruments such as time deposits or bonds, which offer lower yields”.
The expert said that Although there are many factors that influence the prices of cryptocurrencies, there is great expectation for an eventual drop in interest rates in the first quarter: “Experts agree that this is a highly possible scenario, since the level of inflation in the United States has been falling. Certainly, it can be good news, since it would increase liquidity in the crypto world in general.”.
The FTX case and a new regulatory context
On the other hand, Mariano Maisterrena stressed that, among the trends that are confirmed during 2023, is the greater transparency of financial institutions and brokers that store cryptocurrencies of their users.
“The recent collapse of FTX sent shivers through the cryptocurrency ecosystem: all the major coins fell and trillions of dollars disappeared from the market in a matter of hours. This put into question many other financial entities that were related. Just a few days ago, the BlockFi exchange also filed for bankruptcy. In addition, the famous Crypto.com platform suffered a large drop in its currency due to the rumor of not having liquidity of funds. The crash has not only permeated the last days of last year with fear, but has also complicated many exchanges in Argentina.”, indicated Maisterrena.
Faced with this situation, the CEO of HeirloomDAO stated that: “in 2023 we can expect proof of funds to become a standard of the industry. This is the way in which financial companies demonstrate through audits and the use of the blockchain that they have their clients’ reserves in their wallets and not elsewhere. In this way, large exchanges can give peace of mind about their solidity”. And he added:After disasters like the one with FTX, we already see more and more demanding users, which is motivating a change. Binance was one of the first exchanges to use proof of funds and hundreds of other exchanges followed. Lemon Cash was one of the first in Argentina to recently implement this transparency policy”.
In addition to the self-purification that is underway within the ecosystem, Maisterrena warned that external regulation may come from government authorities.
The CEO highlighted: “We will see changes in the official regulatory frameworks that pertain to cryptocurrencies. Many regulatory projects will be discussed in the United States and globally. Although greater scrutiny and state interference is expected, the foundations of the game will finally be laid in the long term and, possibly, we will have a regulation with clear rules in sections that today present confusing gray areas.”. He further noted regarding FTX: “Sam Bankman-Fried will have to face a difficult defense, the questions of the US government can be heard regarding the level of support and control that institutions like FTX managed”.
The new era of NFTs
Maisterrena also stated that NFTs will continue to be renewed and offer more and more attractiveness for investors and users in 2023: “We will see a clear emergence of variants with utility and intrinsic value. So far, the vast majority are digital art representations and collectibles, but in this year more than any other, the popularization of NFTs with greater functionalities such as virtual land certificates, avatars and more is expected.”.
“In 2023 the play-to-earn movement with the launch of new and promising blockchain games. Play to Earn is a concept in which players are benefited with game tokens, which have a market value. In other words, it is a model where the player is rewarded with money for playing. This model was born from the hand of Axie Infinity, a blockchain game that at the time, just by playing it, allowed players to earn a few hundred dollars per month”, explained the CEO of HeiloomDAO, who concluded: “This will be a great year for Play to Earn because many titles that were being developed will be released in 2022. I think this sector will consolidate even if macroeconomic trends stay the same”.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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