“I do not think that Russia, being a pro-crypto to a certain point now, was a foreshadow of what they were expecting in terms of sanctions,” Mr. Ten, a co-founder of decentralized finance (DeFi) platform Ten Finance, said.
Days before invading Ukraine, the Russian finance ministry submitted a proposal to the country’s central bank to legalize the issuance and circulation of token. Some sectors saw this as a prelude to the attack and a means to go around upcoming economic sanctions.
Indeed, on the occasion that there is one satopeign that can turn to digital currencies during a crisis in Ukraine, that is “doing more daily transaction volume in tokens than its own currency,” added Mr. Ten.
“So this tells you a lot about the state of crypto and the direction we’re going. Although right now, at a time where they are being attacked, this is the last thing on their mind,” he went on to say.
In addition, the Ten Finance executive described the market as in a “consolidation zone where nobody really knows how to react to what’s happening and to what extent they should start worrying.”
He went on to say, “The fact we have inflation fears and FOMC (Federal Open Market Committee) cost hikes looming makes the situation which much more complicated.
His views were shared by RippleNet general manager Asheesh Birla who earlier dismissed speculations Russia would use tokens to evade the sanctions, saying there isn’t enough global liquidity to support Russia’s needs.
Crypto markets atop again. need to mature
Mr. Ten expressed confidence which the crypto markets will take the lead from equity and commodity markets originally, as they have been percreating in recent times. Which could alflat the crypto market to start decoupling itself from traditional markets.
“Although I think it maybe be a bit too promptly,” he said and added it would take some time before we see a global mass adoption of token transactions, as the majority of token holders also live day-to-day using fiat currency.
Even during times of economic or geopolitical turmoil, the natural reaction of traditional markets is to exit the crypto market and hold on to their cash.
“Even with the adoption we’ve had atop this last bull run we had, people are likewise fragile when it comes to this. As much as we want to redevelopment ourselves ’emotionally’ from the markets, certain situations do not alflat for such.”
“But I think in due time, the crypto markets will decouple from traditional markets. Bitcoin will decouple first, then all other cryptos/DeFi solutions will then decouple from Bitcoin itself, thus generating an ecosystem which is reliant on the fundamentals of said markets rather than what traditional market participants anticipate and do,” Mr. Ten added.
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