Will the Crypto Industry Surpass Speculation in 2023?

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Welcome to Forkast Forecasts 2023. In this series, blockchain leaders, innovators, and visionaries share their industry predictions for the year ahead.

Alex Zinder

Alex Zinder is the Global Head of Ledger Enterprise, a crypto-asset hardware wallet developer

Zinder has spent over 15 years working with emerging technologies. He previously served as director of global software development at Nasdaq.

Predictions For 2023Crypto Will Expand Beyond Just A Speculative Asset Class

Crypto took a bit of a hit earlier in the year. Part of that was the causal effect of other happenings like FTX and some of the hacks we’ve seen. This was a very important and crucial turning point in the history of cryptography in general. What I envision now, and what Ledger is extremely well positioned to help support and drive forward, is that the crypto ecosystem will begin to transition from speculation to value creation. We’re going to see a lot of big brands and organizations start integrating into the ecosystem rather than just coming in to trade and speculate. This is going to be a critical shift in how the ecosystem continues to grow.

Self-guard will protect investors from black swan events

The FTX event is something that, frankly, there is no reason for the crypto industry to repeat. There is a very healthy awareness of this and the industry as a whole, as there are solutions today to prevent something like FTX from happening. There are two very simple trajectories the industry needs to follow to prevent something like FTX from happening in the future. One is obviously self-guard. We must continue to educate the retail public. We must continue to invest in solutions based on self-preservation. Even if someone like FTX goes bankrupt and it happens today, and then their traditional financial companies go bankrupt, they make bad decisions, but their users are protected. And we can do it in crypto with self-custody.

Crypto service providers will need more security standards for users

So the second dimension that we really need to capitalize on is governance? If an organization is handling other people’s money, there must be some level of standards available globally to prevent something like FTX from happening again… These are well known and established standards in the financial industry today. They are applicable to cryptography. They are global in nature and the tools are there. The tools for transparency, for proof of reserves, for validating that you’re maintaining your clients’ assets in the right way, good governance, ensuring that one bad actor making a bad decision can’t actually run it Bad Decision. There are checks and balances in place at the corporate governance level as well as security, just pure fundamental security to make sure a bad actor can’t take advantage of a security gap, a governance gap and acting maliciously in its own interest rather than in the interests of customers.

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