FutureX launches, SynFutures Pre-DAO Committee — First #1 Meetup Highlights & Recap
SynFutures #Session 1 Highlights and Recap
SynFutures recently uploaded a video on YouTube from a just-concluded virtual meetup that was attended by venture capitalists and prominent members of different companies in the cryptocurrency world including Tom Shmidt of Dragonfly Capital, Tekin Salimi of Polychain Capital, Tracy Wang of Coindesk and Chris of Mr.Block. SynFutures was represented by Rachel Lin, co-founder and CEO. The discussion was majorly focused on the NFT market, its present state and future.
The Current State of the NFT Market
Tom discussed the onset of NFTs with the introduction of CryptoKitties and ways in which the market reacted to the project. According to him, it is rewarding to see the growth the NFT market has experienced in the last six months. A lot of players have joined the market to benefit from the current craze, with people making bots to be able to make hundreds of new projects.
As a venture investor, he cites that there’s no excuse to sit aside and ignore the many things happening around the world. Many investors have a very long term bullish view on the NFT market and believe that the current trend will last for a long period.
According to Salimi, the NFT craze has become mainstream over the past year and it’s undeniable that it feels like a bull market. Whenever there is random speculation, there is more innovation around an asset class. Salimi also claimed that the new direction NFT projects are taking is commendable, with prioritizing community owned and launched NFT experiments. It feels like there’s more direct ownership of the community over the asset itself and therefore doesn’t feel like a potential cash grab for the bull market. There is more evolution in the NFT class.
The future of the NFT market in term of trends and applications
The panel was also very optimistic on the future of the NFT market. Chris gave various examples of exemplary projects currently in the market with unique games and platforms for users. One of these is Solv, a platform that decentralizes healthcare by tokenizing data, identity, consent, transactions and payments.
Currently, there is a lot of focus on digital art collectibles and in game items in the NFT space. However, there are other potential NFT assets that have more utility. For example, individuals have contractual rights that have inherent value, though not to them per se. Therefore, it would be beneficial if they could sell those rights if there weren’t any effects on the original contract.
Rachael from SynFutures discussed another direction NFTs and the general DeFi space is taking; fractionalization. This is where a high value NFT is subdivided into smaller units such that holders can trade in them. NFTs have also adopted indexing where select cryptocurrencies are grouped together and weighted by market capitalization. Users can therefore trade certain categories of NFTs in these indexes.
The NFT space has also allowed for lending and borrowing to be conducted in an easier manner. Compared to traditional finance terms, users of these platforms can access loans faster and without following the tedious protocols.
Hurdles to be taken care of in DeFi and NFT space
In order to bridge the DeFi and NFT worlds , the panel discussed different ways these two spaces could be better.
NFTs are currently considered one of the easiest means for newbies to get into crypto. The newbies in turn gain more interest to learn about the whole industry, not just benefit from the rise of NFTs in the market. As a result, the DeFi projects have adopted certain elements from NFT projects while NFT protocols have done the same. This has helped bring more value to token holders.
Many projects in the space have also created ways to attract and incentivize collectible holders by providing them with new experiences and ownership of their collectibles in all forms. Governance is also an element that has been introduced in many NFT projects, giving holders more power in the ecosystem. It is therefore paramount that more protocols ensure absolute ownership such that NFT holders have full control of their purchases or winnings and can trade them across platforms.
New users are being faced with an entry barrier challenge where a lot of learning is required. For instance, they need to learn how to use MetaMask, decentralized wallets as well as exchanges. Additionally, network capacities are a hindrance whereby users are required to pay high gas fees which might be a hindrance to mass adoption. Therefore, there is a need to improve the infrastructure such that it is effective and accommodative, making it cheaper to use especially by large corporations.
New exciting projects
The panel then delved into projects they are currently excited about. Mrblock mentioned Solv, a project trying to fix issues in the staff market by predicting where a lot more projects are going to be anonymous and not going to set up an entity. In such situations, a lot of the projects look for investors that are going to like the new standard. The investors believe in the code and the founder, then invest and get an nft back. The entity is their future claim of the token. This might become a trend as people are getting more and more used to anonymous founders and a lot of the projects that become really popular are listed on tier one exchanges.
Solv is trying to standardize this practice whereby, if you get into a private deal and you want to access your position of that liquidity you don’t have to go to an otc. You can sell a portion of that and then someone that believes in that project can buy it at a discount price.
The other panelists were not able to discuss the projects they are currently excited about as they were out of time. The meeting ended with Tracy thanking everyone for their time.