Harflinger referenced the current scenario with an episode of Game of Thrones.
Traditional finance (Tradfi) seems optimistic about the opportunities in the crypto industry notwithstanding “Red Wedding” scenario. Dawn Harflinger, executive director of the Lillu’uokalami Trust, compared the current crypto scenario to the infamous carnage shown in HBO’s ninth episode of Season 3, The Red Wedding, Game of Thrones. Traditional players in the financial market spoke at the Consensus 2023 event on 26 April.
Tradfi investors ready to meet “Burning Buildings”
Asset managers remain optimistic about the opportunities in crypto, despite the effects of the harsh crypto winter and bearish market in 2022. Harflinger said at the event that she is looking forward to meeting the “burning buildings” of the market and refers to current regulatory actions and ongoing scenarios facing crypto entities.
She seemed excited to gain additional exposure to secondaries by directly participating in funding rounds of blockchain companies in their growing phase. This scenario provides investment opportunities in the crypto industry without being plagued by the inherent volatility.
Harflinger shared the stage at Consensus 2023 with the Director of Real Estate and Digital Assets for Texas Teachers, Matt Halstead, and the CIO of IOT Holdings; Dan Taperio. Halsted argued that investment in digital assets is an integral part of future technology, also emphasizing the wide-ranging impact of innovations in the industry created for the real world.
Citing the inherent volatility of cryptoassets, Halstead acknowledged the general willingness to adopt digital assets. “It’s not clear how the industry is going to develop, but we think the future is bright.” – Matt Halstead. He further added that the opportunities in digital assets are multi-faceted, and even if the valuation is on the way down, it is worth gaining exposure to.
Taperio argued that the current state of the digital asset ecosystem has been broader and deeper than in the past. There are several opportunities in various aspects of the industry. Also, the market now has a lower correlation with the market-leading cryptocurrency Bitcoin.
Taperio argued about the lack of correlation between digital assets, saying that this facility allows institutional investors to expand their horizons beyond Bitcoin towards discounted altcoins and tokens.
The traditional financial ecosystem is slowly recognizing the power of decentralized finance. There are several investment opportunities in the blockchain industry besides buying cryptocurrency and tokens. An investor can fund a project, and invest in the crypto entity, stimulating the growth of exciting products and protocols.
Blockchain technology has the upper hand compared to Tradfi, tamper-proof data storage, anonymity, transparency, smart contracts, etc. These benefits are now sought after by Tradfi to improve its operational capabilities.
CDs and DVDs made the digitization of music a reality, and applications such as iTunes and Spotify broadened horizons. The shift to digitization grew into images through apps like Pinterest, and videos went digital during the YouTube era. Blockchain technology is believed to bring digitization of finance. Such shifts created exciting investment opportunities, and the digital asset industry has repeated the same story.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional money exchange systems. She is also fascinated by the blockchain technology and its function.
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