Sentiment in the cryptocurrency and decentralized finance space has been changing and evolving. The industry is also becoming more scrutinized and, inevitably, more organized. A few weeks ago, US President Joe Biden signed an executive order to streamline and focus regulatory oversight of this $3 trillion industry.
The order will prompt the government to examine the risks and benefits of cryptocurrencies, with a focus on consumer protection, financial stability, illicit activity, America’s competitiveness, financial inclusion, and responsible innovation. While the results of this order have not yet been developed, this moment helps lay the groundwork for greater clarity, predictability, security, and stability for decentralized finance (DeFi).
As with any industry, clarity on how DeFi and crypto should operate is important. Regulatory oversight by the US government will ultimately be helpful and should be welcomed by participants and organizations in the DeFi community.
In the meantime, There are many indications that the cryptocurrency and DeFi ecosystem is bursting with talent, creativity, energy… and capital hungry to participate. Denver recently hosted one of the biggest Ethereum conferences and hackathons of the pandemic era. For nine days in February, ETHDenver hosted more than 12,000 people at the in-person event to share ideas, build and reveal new protocols, curate investments, and mingle.
During the conference, word spread that a group of bright young people, in their 20s and 30s, had started a hacker house in Denver. Some of the most talented, smart and young hackers in the world were there welcoming venture capitalists to visit. The price of admission for a talk on the ground was $3,000 per person. Events like ETHDenver and the upcoming involvement and oversight of regulators reveal a path for an energetic, meaningful and proactive year in the cryptocurrency industry..
Talent meets creativity and money
Denver included an interesting and eclectic ecosystem of players, investors and builders. Culture and industry are getting stronger and deeper. When thirsty venture capitalists (VCs) are paying $3,000 just to talk to the smartest 19-year-olds in the country, it’s a bold sign of life in the industry. Denver showed us that space is much less fringe than it used to be.
These youngsters are, in some cases, leaving top schools to join DeFi teams or to develop protocols and products, and there is a lot of investment capital to support great ideas, tools and decentralized applications.
In the meantime, members of the first wave of cryptocurrencies have evolved into the so-called old guard, bringing stability, caution, and experience to help usher in projects, decentralized autonomous organizations, and protocols. VCs, gigabrains, and the old guard continue to be supported and energized by the legions of crypto troops, whose enthusiasm for investing, debating, and participating in the space continues to provide the lifeblood of DeFi.
A mixture is taking place that is creating a healthier ecosystem with bright ideas, experience, money and enthusiasm that will provide longevity to the industry as Web3 matures and evolves.
The battle for talent intensifies
One of the common discussion points in Denver was that everyone is hiring and struggling to maintain a source of talented, experienced and committed developers, engineers and technical experts. We can expect this trend to continue as the mainstream world becomes more and more interested in cryptocurrencies and DeFi.
Web2 talent from the likes of Facebook, Apple, Amazon, Netflix and Google are likely to be increasingly drawn to Web3And that’s a positive thing.
There is a lot of experience and expertise in traditional tech companies that can and should help build DeFi protocols, services and systems, thus decentralizing finance. Not everyone will be open to the risk or uncertainty of the cryptocurrency space, but that sense of risk is diminishing as Web3 organizations continue to receive large investments that provide plenty of mileage and room to build stability and comfort.
Web3 is starting to show its relevance, and it seems that we are taking a turn towards a more stable recruitment and retention of talent.
A bear market offers room for top builders
Anyone who has paid attention to the TradFi and DeFi markets in recent weeks and months recognizes that there has been dizzying volatility in prices and tokens. Entire markets have gone up and down for many reasons and could continue to do so for the next year or more. This scenario is probably one of many reasons the US government is willing to assess (and regulate) the industry..
True cryptocurrency builders don’t fold in bear markets, they thrive. A crypto bear market can be more productive, especially for teams focused on good ideas and creativity. Bull markets tend to be more consumer- or trader-focused, and the noise can often drown out or dull meaningful progress.
Good ideas within the developer community tend to surface during bear markets, gaining more airtime, visibility, reflection, and development. The DeFi space is becoming more academic, both in team building and hiring, and that brainpower will be critical as you focus on new ideas and solutions to existing problems..
This article does not contain investment advice or recommendations. All investments and trading involve risk, and readers should do their own research when making a decision.
The views, thoughts and opinions expressed herein are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Hart Lambur He is co-founder of UMA and Across. UMA is a decentralized financial contract platform where Hart leads a team of oracle design and financial contract researchers. He is also the co-founder and CEO of Risk Labs, the entity behind the UMA protocol. Previously, Hart was CEO of Openfolio, a personal finance tracking platform he co-founded in 2013. He also worked for Goldman Sachs, where he provided liquidity in US Treasuries for a diverse range of clients, including central banks, asset managers, money and hedge funds.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.