Token2049
On April 18 and 19, 2024, the Token2049 event took place in Dubai, a meeting entirely dedicated to sharing knowledge, building networks and clarifying insights into Web3 technology. With thousands of attendees and hundreds of speakers, this event proved its worth once again. What is clear is that Web3 technology has already had a significant impact, and more importantly, is going to have an even greater impact.
Six Capital had the pleasure of attending Token2049 to gain valuable insights. A must go to for all Web3 pioneers. Here are some of the highlights we experienced.
What’s coming?
While it is difficult to predict exactly where technology is leading us, it is clear that the growth of Web3 technology is visible on several fronts:
- The number of users of Web3 technology is increasing and growth is accelerating.
- The number of products based on this technology continues to grow.
- More and more institutions and large companies are experimenting with and adopting this technology.
- Web3 is becoming an increasing part of everyday Internet use.
VanEck
Matthew Sigel, the head of digital assets at VanEck was on hand to speak about the different money cycles and showed that the money cycle in the crypto paradigm is changing. For example, it was abundantly clear that in less developed countries (Ghana, Nigeria, etc) there is a more positive attitude toward developments within Web3 than countries that are more developed such as Germany and France. So this is where we first heard the statement “Stimulation is better than Regulation.” A statement that says a lot by itself, but means even more when a major party like VanEck says it.
ETFs
The traditional financial institutions were also present and talked several times about the spot ETFs, here they talked about the great interest in the Bitcoin Spot ETF. But also about the upcoming Ethereum Spot ETF. Because the Ethereum ETF has more characteristics like a regular stock (e.g., turnover and dividends). Is it easier for them to incorporate into existing portfolios. Although the ETH ETF is unlikely to be approved in May yet, they expect it within now and a year.
Explosive growth
Also, with the developments of recent months, and the upcoming development, we see that there is a large group of investors positive about the Web3 market. Some key topics were the upcoming U.S. elections that are in November, the clear legislation being introduced and most important, the growing use of technology.
Because here again, several products have been launched. Zo heeft Telegram (een message app met 900 miljoen gebruikers en concurrent van Whatsapp) een Web3 betaalsysteem geïmplementeerd in de app waardoor al deze vele gebruikers direct betalingen kunnen doen, zonder tussenkomt van een bank! This is the first use case, they are building many more.
Now in the Netherlands we find it quite normal to pay tikkies to friends, or receive salary in your bank account. But right now there are still over 3 billion people without access to a bank, which can now receive and send money with just an Internet connection! And try sending a Tag to someone who has no euros….
Great separation between professional and immature.
Nevertheless, there remains a large divide between professional applications and immature projects. It is still possible to speculate on various memecoins and worthless projects, indicating a large proportion of users with the wrong mindset. Every day, thousands of projects are launched that contain little to no real value (e.g., a pyramid scheme), which therefore still makes it very important to do your own research and not be tempted by attractive-looking investments.
Some brief take aways
- “No verifiability = No accountability.”
It is better to verify than to trust blindly. In some situations it’s fine to trust people or parties, but when it comes to finances or other important matters, an option to verify is still nicer.
The phrase “Truth > Trust” has also been mentioned often.
- “Taking no risks is the biggest risk”
Countries that resist change in the financial system may miss the boat on these major digital developments.
- Stimulation > Regulation
Countries with strict regulations lag behind in new technologies due to limitations in development, which makes the concept of “regulation arbitrage” occur. So it is smarter to build entities in countries where there is clear regulation, rather than, say, in America where strict regulations make it almost impossible to develop in this market. The results of this are becoming increasingly visible.
Conclusion
A successful event confirmed by major parties attending, the large turnout of attendees (despite the severe weather in Dubai), the many Token2049 side events hosted and sponsored by international parties and the clear direction we are building towards.
Although the future is uncertain, we know where the big gains in technology, and thereby returns, can be made.
We learned a lot, enjoyed and look forward to Token2049 in Singapore.
