TOKEN2049 returned to Singapore in September 2024 to spark more debate, collaboration, and networking among thousands of crypto industry players. As the world's largest crypto event, TOKEN2049 is by now a stand-out entry in the industry calendar. But could the 2024 edition prove to be the most significant yet? Forces inside and external to the crypto scene might make it so.
From political endorsements to growing TradFi involvement and maturing global regulation, a seismic shift for crypto could be occurring. As the doors to TOKEN2049 Singapore open, there's arguably never been a better time to be in crypto, nor a better time for the industry to gather and plan for the future.
What narratives do we expect to dominate the discussions in Singapore? And, how might they alter the crypto landscape? Let's take a look.
Crypto becomes a political football
The 2024 U.S. presidential election is fast approaching, and as candidates Donald Trump and Kamala Harris jostle for position among voters, crypto has emerged as something of a political football. Despite some indifference from both candidates towards crypto in the past, Trump and Harris have more recently adopted a pro-crypto stance. We saw Trump speak at the Bitcoin 2024 Conference in Tennessee in August 2024, having called for the U.S. to become the "crypto capital of the planet." Harris, meanwhile, has recently been endorsed by Ripple co-founder Chris Larsen, and is considered a more crypto-friendly candidate than the man she's replaced, Joe Biden.
It's hard to say whether these moves are a politically motivated pivot or a genuine shift in opinion, but either way, the crypto industry may see the U.S. adopt much more favorable crypto policies from 2025, regardless of the election winner.
History has shown us how the crypto and stock markets are impacted during election years, with prices responding to political rhetoric, crypto-related regulation, and economic stimulus. However, with numerous other factors also swaying the crypto markets, the only real certainty is that uncertainty lies ahead. Regardless, TOKEN2049 Singapore arrives at an opportune time. Many of the traders and project owners in attendance will likely be pondering how the election could impact their prospects during 2025 and beyond, making it a key talking point among attendees.
Spot ETFs take crypto mainstream
Elections aside, TOKEN2049 Singapore opens just months after arguably one of the most significant developments in crypto history — the approval of spot Bitcoin and Ether ETFs. Although some crypto purists have raised concerns that ETFs could lead to the further centralization of asset ownership, the financial vehicle has helped to bring Bitcoin and Ethereum to a wider audience. Now, traders can gain exposure to crypto without carrying the risk of asset ownership.
Much commentary followed the approval of spot Bitcoin and Ethereum ETFs in January and July 2024, respectively, particularly around their impact on asset prices. However the crypto markets fluctuate as a result of ETF-related inflows and outflows, their mere arrival signals an acceptance and validation of crypto by authorities outside the industry itself. Many believe such endorsements deserve further scrutiny, as crypto continues to pursue wider adoption.
TradFi turns to crypto
The approval of spot Bitcoin and Ethereum ETFs spotlights another significant advancement for crypto — the increasing involvement of major TradFi players in an industry that could be considered a threat to them. JP Morgan, Grayscale, and Goldman Sachs are just three of the numerous TradFi giants represented at TOKEN2049 in Singapore, as each continues to capture a piece of the Web3 pie. Onyx, for example, is JP Morgan's permissioned blockchain system used to process non-crypto transactions between banks and financial firms. Goldman Sachs, meanwhile, has pledged to launch three tokenization projects by the end of 2024.
Like the aforementioned spot ETFs — which Grayscale now issues — the investment in Web3 projects by TradFi leaders is further evidence that crypto presents a new alternative to conventional financial methods. A growing mentality of "if you can't beat them, join them" from TradFi leaders could encourage other financial firms to consider their own adoption of Web3 technologies.
Web3 continues to multiply
Zooming out to look at Web3 broadly, reports show the market continues to grow. The global Web3 market reached an estimated $2.18 billion in 2023, and is predicted to rise to $65.78 billion by 2023. At the protocol level, the privacy and security segment holds the largest share, while among applications, decentralized autonomous organizations (DAO) have captured most of the market. These findings could point to future dominant areas of Web3 adoption. For example, the growth of DAOs might suggest an increasing move towards decentralized governance models among newly launched companies that favor a less hierarchical organizational structure. Various use cases for the DAO model and other complementary technologies will surely be seen during TOKEN2049, as the event seeks to define what comes next for crypto.
Crypto regulation takes shape globally
Beyond the growth of Web3 and the closer involvement of TradFi, many would agree that the rise of crypto regulation globally is of most significance. Crypto laws exist to protect users and provide exchanges with a clear framework to legally operate within. Meanwhile, regulation can encourage crypto adoption by providing skeptics with reassurance that they have protections, and that exchanges will be held accountable for their actions. What's more, crypto regulation is becoming a competitive battleground among nations, as governments compete to attract crypto talent and related companies with favorable regulation.
With the first measures of the MiCA regulation in Europe going live in June 2024, Dubai's Virtual Asset Regulatory Authority helping position the emirate as a crypto hub, and the Monetary Authority of Singapore supporting the nation's crypto growth, this vital piece of industry infrastructure continues to strengthen.
The final word
The crypto space has experienced numerous false dawns in the past, with glorious peaks followed by troubling troughs. Behind the headlines and hype, progress has undoubtedly been made — even when asset prices suggest otherwise. By ignoring volatility and focusing on what matters — regulation, infrastructure, and adoption — many would argue that there's never been a better time to be in crypto. As TOKEN2049 Singapore arrives, our industry has the ideal opportunity to regroup, fix a plan, and capitalize on the positive forces influencing crypto today.
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