[Global Crypto Assets & Finance Conference 2021] “Crypto asset investment opportunities in the new market structure”_ Devin Huang / Founder of CabinVC

DUCATO
DUCATO
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3 min readFeb 4, 2021
  • Global Crypto Assets & Finance Conference 2021
  • Host: Delio DUCATO, Korea Crypto Finance Association (KCFA)
  • Date: January 27th — January 29th, 14:00–16:10
  • Website: https://conf.delio.io

Session 1: Current Status and Prospect of the Crypto Asset Financial Market in 2021

▣ Crypto asset investment opportunities in the new market structure

“Bitcoin has gone through two cycles since 2013, and is currently standing at the front of the third cycle,” said Devin Huang, founder of Cabin VC. “In terms of investment dimension decisions, the current market structure is large, the bitcoin price is “It can be judged to be almost the only indicator that promotes the conversion of the increase.”

The rising trend of crypto assets around the world

Looking at the growth and its data, the upward trend of global crypto assets, promoted by DEFI from July 2020, has not stopped even after the 2020 DEFI Frenzy. Considering the global financial easing, the direction of US-centered regulatory policies and the increase in institutional inflows, the bitcoin market price is expected to rise gradually in the future while still shaking.

Current Bitcoin’s global trading market structure

Devin Huang said, “Bitcoin retail transactions represented by PayPal, institutional transactions represented by Grayscale Investment, and in-trade transactions represented by Binance and Coinbase are formed. These three markets directly direct the price flow in the global trading market of Bitcoin. It is decided.” “Currently, the market’s investment motivation is already gradually operating in the secondary market, and the investment enthusiasm of this market is transferred to the primary market, and after the primary market explodes, it is transferred to the secondary market again.”

In addition, he said, “The market in 2021 should know that there is already a big structural change in comparison with the market in 2017. Blockchain technology is, As the entire blockchain functional network is almost already formed in 2020, the overall low-level structure of the already formed blockchain will be optimized differently over the next 3–5 years, and at the same time, the upper-tier applications and business forms of the blockchain will explode. In the investment field, there will be more investment opportunities in higher-level applications and business types, centering on blockchain sub-technology.”

DeFi status and scarcity of underlying assets

Devin Huang predicted that EX’s total transaction volume will be almost the same as Coinbase’s daily transaction volume, and the total amount of loans will be close to 10 billion dollars. Russia, SUSHISWAP is recording a daily trading volume of $335 million,” he said. “When AMM enters the layer 2 era, the total transaction volume of DEX will increase rapidly.”

The scarcity of underlying assets is a core limitation of DEFI liquidity expansion. In this process, companies introduce assets with positive cash flows, such as supply chains and consumer finance, into the DeFi ecosystem, or use synthetic assets of stocks and bonds. It is expected that there will be more investment opportunities through a method of introducing loans using off-chain assets as collateral.

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Hybrid DeFi 2.0 Blockchain Protocols for Finance