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Dragonfly partner: the listing of Coinbase will trigger a wave of acquisitions of crypto-asset financial services companies
After experiencing the abundance and magic of 2020, we know that now you are not in the hesitation and regret of to da moon, or in the optimism and longing of to da moon, there are also some “outsiders” who are eager to try and want to jump into this market. . In any case, there is still a big opportunity in 2021 (at the same time be sure to “drive” carefully).
If you want to choose a direction from Bitcoin, DeFi, Ethereum 2.0, Polkadot, and Filecoin, I think the first one I insist on is Bitcoin in 2021. Next year will be a year for more institutions to enter the venue, and the first act of institution entry is to buy Bitcoin. In addition, the listing of Coinbase in the United States will bring about more listings and acquisitions of “encrypted asset financial services” companies, and it will also help Bitcoin to gain mainstream attention.
In terms of DeFi, Dragonfly has invested in the layout when DeFi was in its most primitive form, and will support it for a long time in the future. The essence of blockchain is the Internet of Value. Starting from the form of Bitcoin bookkeeping, various types of decentralized finance (DeFi) have been derived in recent years. This is an innovation from 0 to 1. I think DeFi will show growth potential in two areas in 2021:
1) Enhanced availability and scalability, more localized products, and globalization from the first day of the DeFi entrepreneurial team, (Global from day one), and deepening of the convergence with the Asian incremental market.
2) Technological innovation is a grassroots, bottom-up process. China’s DeFi entrepreneurial environment needs to become more developer and enthusiast friendly, from pure economic participation to deeper development and community member governance.
Domestic practitioners need to work hard to eliminate information asymmetry, and help portfolios better understand the global market after fund investment. For example, all the Silicon Valley DeFi projects we have invested in will discuss their Asia Strategy (Asian market strategy) or Silicon Valley Strategy (Silicon Valley Strategy).
Participants in all industries should see that the most significant breakthrough that may occur in 2021 is the polarization of compliance. US compliance (Coinbase, BitMEX, XRP, etc.) is just the beginning. Companies that do not follow the traditional compliance route can achieve liquidity through tokenization. Financial services companies in Asia will continue to “super-platform/bank”, expand more business lines (whether in lending, trading, market making, etc.) and find ways to comply with regulations.
It is also foreseeable that more outstanding entrepreneurs (especially from Asia) will flood into the DeFi industry. On the contrary, for the track of centralized financial services, the dividend during the entrepreneurial window period is relatively small. As the next industry outlet, options will gradually increase, and companies serving this market will grow considerably. Finally, liquidity aggregation will also be a trend.
The general direction for next year is a bull market, but there will be ups and downs during the period, and individual investors should avoid leaving the market due to small market corrections. The essence of investment is long-termism and cognitive realization.