Interview with DeFi Alliance partner Wang Qiao: DeFi faces two major challenges, and the market will welcome a bull market next year


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Wang Qiao, a partner of DeFi Alliance, accepted an interview with “Betwee” this week. He said that the DeFi industry is currently facing two major challenges, and the crypto market will usher in a bull market next year. Wang Qiao is a cryptocurrency trader and analyst. He previously served as the product leader of the blockchain startup Messari.

In this summer, the DeFi industry represented by liquid mining ushered in a blowout. It became a hot spot in the entire encryption industry in July and August. However, after entering September, DeFi gradually cooled down. DeFi was once sought after by investors. The price of tokens has also fallen sharply.

Wang Qiao believes that the development of DeFi is a process of “accumulating and developing”. He told BiTweet, “There are many reasons for the outbreak of the DeFi market. Year. For the emerging Year and other projects, it is indeed developing very fast, but it is also based on other existing DeFi projects.”

Regarding the market’s fall in September, he believes that the main reason is the correlation between the crypto market and the traditional market. At that time, the U.S. stock market fell sharply, which drove the downturn of the crypto market and also attacked the DeFi market.

Wang Qiao told BiTui, “In fact, the whole trend has been downward until now, and it has not yet reached the bottom.”

Many people in the industry compare the DeFi boom with the 2017 ICO. He believes that “DeFi and ICO are completely different” because “DeFi is a real innovation.”

This view of him coincides with the results of a survey published by the investment company DCG. According to a report by “BiTweet”, DCG pointed out that now innovators are more talented and professional. “The talents of corporate founders are impressive: many people have given up high-paying jobs to start companies in the private sector. They are better than the 2017 ICO. More commercial, more productive, and more ethical.”

Regarding the future development of DeFi, Wang Qiao said, “In the short term, I can see that the most direct application is DEX. They may grab the market share of centralized exchanges. There were a lot of DEXs in this summer, and then next It is very likely that some derivatives exchanges have a very large trading volume on centralized exchanges, but DeFi has been unable to do so because the smart contracts for these derivatives are very complicated, so the cost is very high from the user’s point of view. But now the technology is relatively mature, especially in the second-tier expansion, so there may be a decentralized exchange for derivatives next year.”

However, he also admitted that there will be “two major challenges” in the development of DeFi.

He told BiTweet, “One of them is regulation, and the other DeFi needs to be more relevant to real life.”

Wang Qiao believes that supervision is actually the most important issue. As a new financial ecosystem, DeFi will definitely harm the interests of the traditional financial industry during its development. The traditional financial industry and supervision actually have common interests. They cannot completely obliterate DeFi, but some measures can make it difficult for DeFi to be widely used. For example, requiring users to pay taxes every time they use cryptocurrency to pay, or requiring all DeFi projects to accept decentralized supervision. These regulations will make entrepreneurs very uncomfortable.

However, he emphasized that the regulatory agencies in most jurisdictions in the world are still relatively wise, but the United States has done very poorly in the past two or three years, so many encryption projects eventually went to other countries.

According to a report by “Betwee”, Ripple CEO Brad Garlinghouse also stated that the company may move to London because the Financial Conduct Authority (FCA), the UK’s financial regulator, does not believe that the XRP token it supports is a kind of Securities, “This will benefit Ripple’s operations in the UK.”

Regarding the future trend of the crypto market, Wang Qiao told BiTweet that it is very likely that Bitcoin will break the historical high of 2017 at the beginning of next year, because the current macroeconomic situation is conducive to the crypto market, and the central bank has a lot of To print money, institutions, hedge funds and large companies are all buying Bitcoin.

There is also the impact of PayPal’s entry into the crypto market. This may be the biggest and most important news in the crypto industry this year. If PayPal supports cryptocurrency at the beginning, all banks will study it, and they may already be doing it.

Wang Qiao also emphasized the impact of Bitcoin’s halving cycle. He pointed out, “Every Bitcoin cycle is three to four years. The last time was 16-17. Next year I feel that the time will be almost the same. This time and the previous The two cycles are not the same. This time it is the institutions that pull up the market. The first few cycles are all retail investors. So when the institutions pull the market up, retail investors will also come in. Of course, most people will pay attention to Bitcoin first, and then They will study some other tokens.”

Regarding whether DeFi is a bubble, he told BiTweet, “In fact, the real Silicon Valley is to blow bubbles. The best thing is to blow bubbles for a decade or two. The key question is that after blowing bubbles, there are real technologies that can Application, the bubble will not burst, and it will become real. It is a good thing for this bubble. Blowing bubbles can attract more money and attract more entrepreneurs. Back then, the Internet bubble was very big, but in the end, what was left was Several have also changed our humanity and society.”

Author Bi Tweet