Jamie Burke, CEO and Founder of Outlier Ventures said:
“As we enter 2023, what happens with crypto funding in Q1 will be critical as to whether we stay in a sustained bear market,”
“The strength of the venture market has persisted, with billions of funding still pouring into the space and high levels of capital waiting to be deployed,” he added.
Then again, Burke acknowledges that “the venture landscape is undeniably changing,” and that “fund managers going into 2023 are conserving capital” instead of the bull run’s strategy of “spray and pray.” He predicted that next year, many investors will “double down on existing, less risky investments from later-stage companies already showing growth.
1. Regulation Battles
2023 could be the year when regulatory conflicts reach their peak. “There’s going to be harsh crypto regulation proposed and an epic battle by the community to fight the parts of it that threaten decentralization,” said Laura Shin, host of the “Unchained” podcast.
2. The continuous growth of Web3 platforms
Alex Zhang, head of Friends with Benefit DAO, predicted: “Larger macro downturn market conditions should hopefully shift crypto projects away from speculation and more towards utility – one major utility category simply being meaningful, fun, social experiences.”
He hopes this will help “more meaningful Web3 social platforms and protocols,” and foresees growth in “interoperable identity, on-chain social graphs, and crypto-abstracted social experiences.”
3. The crisis is not over yet
“The contagion isn’t anywhere close to over,” said Cas Piancey, co-host of the “Crypto Critics’ Corner” podcast.
Piancey said that “companies, banks and funds are desperately hoping for the market moves past the FTX and Alameda collapse or strictly focused on their malfeasance,” but whether people like it or not, “you can’t wish away a credit crunch and exposure” to bad counterparties. We will see the closure of funds and the faltering of companies we didn’t expect – mostly simply due to the fact that the contagion is too vast and too difficult for us all to quantify.”
4. Bitcoin makes more mainstream
Alex Gladstein, chief strategy officer of the Human Rights Foundation, said he was “staggered by the number of bitcoin entrepreneurs and leaders from so many different countries.”
He has met people from rural Cameroon, the Democratic Republic of the Congo, Somalia or from conflict zones. They are all building Bitcoin together. That is why he believes, “global adoption is probably the number one story for next year.”
5. Focus on life outside of crypto/bitcoin/blockchain
When asked about his prediction for 2023, Peter McCormack, host of the “What Bitcoin Did” podcast, “played it off” and replied, “Real Bedford will win the league.”
This answer is seen as McCormack’s sincere advice to many in the space that they should focus on their other interests as the market enters a long cold winter.
6. Web3 boom
Cathy Hackl, Journey’s metaverse director, said fashion will continue to lead when it comes to Web3 adoption and asserted that “we will see further collaborations between Web3 personalities and consumer and luxury brands that want to explore new commerce models and customer touchpoints.”
Hackl also predicted that: “With the rise of generative AI, we might see blockchain play a significant role in helping us to distinguish between content created by AI and content created by humans.”
7. The recovery of NFTs
“The sustained high-risk appetite in NFT-funding in 2022 is a strong indicator that it will be one of the first sectors to recover next year,” says Burke.
“Throughout the past year, we were already beginning to see major NFT investments from major Web2 brands [Starbucks and Disney] and across Web3. … This shows no sign of stopping in 2023. Brands will continue to flock to NFTs,” he added.
8. Gaming and DAO keep growing
Burke is also optimistic about gaming, as “prominent Web3 game titles that have been in development for quite some time including Big Time, Star Atlas, Ember Sword, will finally see the light of day in 2023, either as full-fledged games or more playable demos.”
As for decentralized autonomous organizations (DAOs), Burke said: “Although it may seem that the current bear market has the industry to hit pause, the growth of new DAOs has accelerated exponentially, with each month in 2022 producing more new DAOs than 2021 witnessed altogether.”
9. Major exchanges become “disaggregated”
Exchanges to be disaggregated, custody, brokerage, and trading/price discovery get broken out into different players, just like in the traditional financial space.
This makes another FTX event unlikely, said Haseeb Qureshi, managing partner at Dragonfly Capital.
Then, Qureshi made the prediction: “When trust is low, incumbents consolidate. Coinbase, Binance, Uniswap will likely gain market share in aggregate, as people are less likely to trust smaller and weaker players. Network effects get stronger.”
10. Let’s rebuild space together
Sandra Ro, CEO of Global Blockchain Business Council, said: “Read the room and assess the damage.”
At the same time, he also gave some advice for the total space: “Regroup with humility, rebuild with integrity, regain trust, rise again.”
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision.
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