- All major players need to work with multiple infrastructure providers
- Companies Like Nasdaq Continue To Work On Bitcoin, Permissioned Networks And Stablecoins
Talia Kaplan CNBC Crypto World We spoke with Blockdaemon Founder and CEO Konstantin Richter about blockchain adoption following the demise of FTX and what cryptocurrencies will bring in 2023. Richter also broke down whether cryptocurrency adoption will decline after the failure of FTX.
Institutionalization of Chaos
Talia Kaplan: How do you serve your customers?
Konstantin Richter: We are a middleware platform. Make the cryptocurrency buying process seamless. All of these networks are open source and thousands of users control them. We institutionalize chaos.
TC: You wanted to work with FTX, but they insisted on running their blockchain infrastructure in-house…
KR: When it comes to transparency and trust, it’s important that all the major players work with multiple infrastructure providers and not just rely on their own infrastructure because of the potential for exploitation.
Will crypto adoption increase?
TC: This year we saw an increase in institutional adoption. Wall Street companies like Nasdaq are moving to cryptocurrencies. Do you think more will happen in 2023?
KR: I don’t necessarily think institutional adoption is slowing down. Companies like Nasdaq continue to work on Bitcoin, permissioned networks, and stablecoins. We are seeing continued growth this year. Larger tokens such as Bitcoin and Ethereum emphasize quality. I think the volume will be a little less. Consumer adoption slows in 2023.
TC: What would it take to turn it around?
KR: Regulation is part of the answer. We cannot speak for the entire industry. Regulators have a responsibility to do more to protect consumers by providing a clear framework within which businesses can comply. Otherwise, there are companies like FTX that claim to be regulated, but really aren’t. Another factor is general macroeconomics, rising interest rates. Common stocks will be affected more than cryptocurrencies.
TC: What advice do you have for centralized entities and DeFi post-collapse?
KR: These entities should be public, and they should be public about their board of directors, their stakeholders, and their primary investors. It is important to understand the motivations of stakeholders. For FTX it has been very profitable.I can’t say enough good things about Coinbase. You have ultimate transparency. they are a public company.
He added that DeFi is a solution to the lack of transparency as it provides externally verifiable software. The problem for him is that DeFi is complicated. He said it was community driven and there are no clear regulations at this time.
Still bullish on cryptocurrencies
When asked if he is still bullish on cryptocurrencies, he said he feels more bullish than ever before, adding:
I’ve talked to investors before and the general consensus is that what happened to cryptocurrencies is really bad. We all thought FTX was much better.Remember to check, not trust individuals. FTX was a one-man scam that used cryptocurrency components to solicit funds. The promise of cryptocurrencies to eliminate middlemen is truer than ever. The success of cryptocurrencies depends on the failure of the system. Crypto use cases are more relevant than ever.