How Can Fintech and Crypto Companies Succeed in 2023? | CSQ

The end of 2022 saw a major decline in overall confidence for a number of major cryptocurrency and fintech firms, particularly in the wake of the FTX collapse and Bitcoin’s price falling below the symbolic $20,000 for the first time in years.

Although the blockchain and crypto industries have been around for more than 10 years, their acceptance and general adoption was again hit by a number of obstacles. In recent days, the collapse of Silicon Valley Bank and Signature Bank has sent crypto markets into a frenzy, leaving fintech and crypto firms with lingering concerns about how their firms can succeed in 2023.

Despite huge crypto adoption, one of the biggest challenges crypto firms will still face in 2023 is how crypto regulations will unfold this year. The regulatory landscape for cryptocurrencies is still evolving, and there is considerable uncertainty around how different countries and jurisdictions will regulate cryptocurrencies. This creates challenges for companies operating in the industry, especially when trying to expand globally.

Security risks are also one of the biggest challenges facing crypto and fintech firms worldwide, as they are vulnerable to various types of cyber attacks, including hacking, phishing and malware. This was something the already bankrupt crypto exchange FTX fell victim to, when it said in January 2023 that $415 million in crypto assets were hacked from the exchange’s accounts. Moreover, the increasing value of cryptocurrencies is likely to make such attacks more sophisticated and frequent, posing a significant threat to firms and their customers.

Furthermore, as the use of cryptocurrencies continues to grow, there are concerns about the ability of existing blockchain networks to handle large transaction volumes. This can lead to delays, high fees and other issues that can affect the user experience and hinder the use of cryptocurrencies.

To top it all off, even though cryptocurrencies continue to grow in popularity, many remain skeptical or mistrustful. This is mostly triggered by the lack of education around how cryptocurrencies work, which is why it is so important for up-and-coming fintech and crypto companies to continue to educate users and the general public about cryptocurrencies and their potential uses, and address any security and regulatory concerns .

These challenges make it obvious that new companies find it increasingly difficult to enter the market. Starting a crypto or fintech company is more expensive than ever before, which can scare off investors and entrepreneurs alike.

When I started creating Gamdom, I wanted to merge two very challenging industries – crypto and gambling – and we have been lucky, as Gamdom has experienced success and rapid growth. After recently hitting 10 million global users and hiring sports legend Usain Bolt as an ambassador, we are set to grow even more in 2023 and 2024.

While it would be overly safe to say that Gamdom was not affected by the setbacks in the crypto industry that came with the demise of FTX and other obstacles, we managed to work around them quite well.

Many in the industry would say that the best way forward is to time launches and releases in accordance with market conditions. But at the risk of sounding controversial, I think that’s exactly what many crypto and fintech companies should avoid. The reason behind this is quite simple: while everyone is doing the same thing at the same time, you can differentiate your company by doing something different and unique, which I think has helped us differentiate Gamdom from the competition.

However, markets, especially crypto markets, are highly volatile, so timing your launches and plans in accordance with their performance is a generally risky move.

Another thing that will come in handy for crypto and fintech companies are stablecoins, digital assets designed to maintain a stable value against a specific basket of assets such as fiat currencies (often US dollars). Their utility is particularly important in volatile times as they are able to provide stability and predictability while enabling seamless and efficient transactions.

Focusing on stability is also something crypto and fintech companies should look into. The recent Silicon Valley Bank debacle, which saw the $USDC stablecoin briefly lose its link to the US dollar – as Circle said $3.3 billion of its cash reserves were with the bankrupt bank – is a good example of why crypto and fintech companies should make money. make sure to spread their portfolio and assets so that they maintain stability.

Overall, developing innovative technology and complying with regulations can also help both crypto and fintech companies succeed in the future. Collaborating with other companies and organizations can also help crypto firms expand their reach and credibility as well as gain access to new markets and customers.

I don’t think crypto and fintech companies need any more reassurance that 2023 could be a good year; I am quite bullish for crypto and fintech going forward. After all, winter has to end sometime.

Felix Römer is the founder of the electronic crypto gaming platform Gamdom.