On 24th January 2022, we were very honoured to invite Mr. Gabriel Goh (Investment Analyst, Signum Capital) for our inaugural Fireside Chat.
Through his experience working as an analyst at Signum Capital, Gabriel shared with us his thoughts on NFTs, Layer 2 solutions and what are the key factors that he looks at in a crypto project.
The entire session can be viewed on our YouTube channel:
If you’d like to have a ‘TL;DR’ version of the chat, here’s a recap of the key points that Gabriel covered.
DISCLAIMER: The information from this Fireside Chat is provided for informational, educational, and entertainment purposes only, and does not constitute any financial advice.
The likelihood of Ethereum continuing to grow
Ethereum can be seen as both a crypto asset and a network.
With the maturation of crypto as an asset class, there may no longer be huge swings in prices for cryptocurrencies like Ethereum.
Furthermore, the prices of cryptocurrencies may slowly become more connected to other asset classes such as stocks. This is because institutional investors have started to take an interest in this space and are looking to place more funds into cryptocurrencies.
As a network, most users may not have loyalty to a particular network, and will go to the network that has the lowest gas fees.
For a Layer 2 solution to gain more traction, they will need to offer a good experience for both the users and developers. By having these features, they will be able to attract users away from the Ethereum network.
The possibility of other blockchains having greater adoption compared to Ethereum
New developers may choose to build their applications on other networks if they meet some criteria, such as:
- Being easier to code on the network
- Having a large base of users on the network
If there are projects that are exclusive to a certain network, it may attract users who wish to use that project to that network.
However, one problem is that some of these projects can be easily copied onto other networks. As such, users may not have any loyalty to a certain project, particularly if the same project is found on another network with lower fees.
The need for multiple Layer 2 solutions
With the rise in the number of Layer 2 solutions, it may be hard to determine which projects will be a success, and which will fail.
However, it is possible for these solutions to co-exist with each other.
One example that was mentioned is the idea of multiple cities and countries, where each city is known for a certain strength. All of them can exist individually, but together, they form an entire ecosystem.
It is possible for Layer 2 solutions to follow a similar model, where each solution may provide a niche for a particular use case (e.g. NFTs, institutional financial services).
On Krystal’s platform, you will be able to trade on multiple Layer 2 solutions, including AVAX and Polygon.
Things to look for in a crypto project
These are some of the ‘red flags’ to a project that may deter an investor from investing into a project:
- The main strength of the project is lower fees compared to the current projects
- Vesting schedules which are very rushed
- The team uses a lot of buzz words or focuses on metrics (e.g. having 100,000 followers on Twitter) instead of the project itself
While looking at the team behind the project may be another method to evaluate a project, it may not be the best way. This is because some crypto projects have been started by anonymous founders.
Furthermore, it is possible for people to ‘fake their identities’, so deciding on a project just based on its team may not be good enough. One of the best ways to truly evaluate a team is by chatting with the founders.
This will allow you to understand the founders’ passion and commitment to the project.
If you are looking to invest in the latest projects in the crypto space, do keep an eye out for KrystalGO. We will be partnering with various projects to launch public funding rounds on the platform.
Newest trends in 2022
NFTs and GameFi are the latest trends in crypto, and they may be here to stay.
Both of these ideas are much easier to understand for retail investors, which can provide a bridge for the masses to onboard them into the crypto space.
One of the examples mentioned was Axie Infinity, which initially started off as just a game. However, now they have expanded to add on the Katana DEX and introduced yield farming as well.
Why are cryptocurrencies doing well?
One of the main reasons why cryptocurrencies could be doing so well is because the entire ecosystem is still in its early stages.
No one knows how to value these projects, which leads to a lot of speculative activity.
A key reason could be because people are staying at home more, with nothing to spend their money on. Once the COVID-19 restrictions are being lifted more and more, people may have less time to engage in these speculative activities.
Moreover, the massive valuations that crypto projects are currently receiving could be due to massive retail participation.
Thoughts on El Salvador adopting BTC as legal tender
Stablecoins could have been the better alternative for El Salvador, instead of adopting BTC as legal tender.
The 2 main reasons that El Salvador adopted BTC was to:
- Provide financial services to the unbanked
- Offer cheaper fees when remitting money
However, since BTC is quite volatile, it may not be that suitable for this use case.
And that’s it for the main points that were covered during the session. We hope to see you at our next Fireside Chat!
Krystal DeFi is a multi-chain platform to easily access popular DeFi services and manage NFTs.
Krystal is a convenient, single point of access to transact with leading protocols on multiple blockchains, including KyberSwap, Uniswap, Aave, Venus Protocol, PancakeSwap, SushiSwap et.al. To date, Krystal supports Swap & Earn services on 4 blockchains — Ethereum mainnet, Binance Smart Chain, Polygon & Avalanche.
Krystal brings users the best token swap rates via SmartSwap, its Smart Liquidity Aggregator that sources tokens from 30+ DEXes. Additionally, users can earn passive income, manage NFTs, participate in token sales via its launchpad KrystalGO, and access cutting edge portfolio management and market insights tools. Topping it off, Krystal’s one-of-a-kind rewards program earns users bonus incentives when they trade or successfully refer friends. Since its launch in April 2021, Krystal now attracts more than 108k monthly active users worldwide.
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