The problem of a unified approach is what has for a long time prevented crypto and DeFi from taking scale as mainstream services. With countless applications existing with hardly any coherent connection in between them, lots of novice investors, even those particularly interested in the crypto market, are afraid to take decisive steps into that direction due to the absence of comprehensive guidelines of where to start from.
Besides, crypto is notoriously high on crime rates: from scams to hacker attacks, there are a variety of ways fraudsters can trick their victims into leaking their private keys and letting go of their hard-accumulated crypto savings. So far, the fact pertains clear: the crypto niche remains low on user-friendliness, which creates an additional demand for using a bunch of supplementing services. Quite naturally, the accumulation of solutions needed to be used for a simple blockchain operation increases the risk of market participants going bust. The need to create a unified approach, however, remains a crucial challenge hardly resolved up to this day.
Looking for someone who could share the expertise and give valuable insights into how the industry is going to progress next, I approached the CEO of Cryption Network, the multi-service blockchain technology network, to ask him the most pressing questions causing unrest in the crypto-industry, and the way how to get around them.
What critical changes need to be made in the structure of the crypto industry in order to help inexperienced investors to gain a strong foot on the market?
Right now the crypto industry is like the wild west. Inexperienced investors are susceptible to being duped or taken advantage of. Inexperienced should invest as little as possible to learn what the crypto is trying to do and how it is being valued. The structural changes can come from the government and from experienced investors by pushing what they think should be done. Right now there is no correct answer of how things should be done. It is very early and it is an iterative process.
From your perspective of an experienced entrepreneur, what are the pros and cons of investing into a cryptocurrency market?
The Crypto market can give you great returns but this volatility goes in both ways. You can also lose everything you have. Cryptocurrency and DeFi investing allow you to invest as you want without protection. This makes it riskier but potentially much more profitable.
Do you think the crypto- and DeFi industry is overhyped, or its best times are due to come yet?
In general I dont think it is correctly rated. When the crypto markets are heated there is a lot of extra hype around DeFi and when we are in a bear market it is underrated. Having said that the best times are definitely yet to come t
Can DeFi stay forever decentralized – or is there a risk of it eventually slipping down under someone else’s control?
Centralization or accumulation of power is deeply part of nature. There is a huge chance that it can go under someone else’s control. We need systems in place to prevent this which are being worked on but it's far from what we need it to be. It’s unclear if governance by itself can help in staking decentralization.
In your point of view, what are the steps that need to be made in order to ensure that DeFi and crypto-friendly regulations eventually come into force?
There needs to be good KYC and AML checks at all conversion from Fiat to Crypto. I don't believe there needs to be regulations in DeFi. Capital gains can be applied once you take an exit from crypto.
Knowing the amount of scam circulating on the market, how is it possible to switch the crypto industry into the user-centred approach?
Users need to be educated in crypto and crypto investing. Crypto Scams will always be a thing even after regulation. Over time the average user will be much more aware of crypto. Trusting specific crypto platforms to sell you only genuine tokens is the way forward in my opinion.
What, in your opinion, would prompt the crypto-industry to unify into a single knot of connections and expertise? What would be the benefit of it?
Projects in the crypto space are very open to partnerships. This means that projects should focus on solving niche problems or focusing on a specific area. The benefit is that we get experts on everything, tiger partnership and hence a tighter “knot” of connections.
Which services does Cryption provide to help mitigate the risk of participation in the crypto market?
The biggest risk comes from private key management. It is kind of a paradox. It has to be owned by the user without the platform's knowledge of it. But the platform also has some amount of responsibility for managing it.
Cryption network has a Mobile Wallet App which holds the users Private Key in the phone itself with Fingerprint scanner protection and can be exported by the user for safe keeping.We also have Social login (facebook, twitter, reddit, etc) where the private key is distributed between different nodes.
Who are the investors and global VCs that are already committed to Cryption – and how are you planning to drive new supporters in for the times to come?
We have a lot of great investors in cryption network, CMS holdings, Sandeep Nailwal (Angel investor- Co-founder of Polygon formerly Matic Network), GravityX capital, Master ventures, Ascensive Assets, X21 Digital, Waterdrip ventures, M AU21, GenBlock, Humayun Sheikh (CEO of Fetch.ai)
What are the milestones your startup has achieved so far – and what are the aspirations for the future?
We have had a successful IDO launch. Very quickly after that we launched our mobile app, and polydex.org. Along with that we have done many partnerships with projects like biconomy, Polygon, and Easyfi. We think the industry is primed for our products which can be used by the normal public with good UI/UX and abstracting out the blockchain.