The crypto market at present….

2022 has been exhausting, am I right? There always seems to be something happening. This has put the markets especially the crypto market under immense pressure.

The House of cards fell!

Weaknesses within the ecosystem have been identified in the worst possible way such as the Luna crash or the great liquidity crisis Celcius. This has “coincidentally” brought enough attention to raise regulators eyebrows. Rules are coming and you can best bet that regardless if the token is a utility or security…projects will require strict KYC/AML requirements.

Charity Token is well prepared for the roll-out by preparing our AML/CTF and other legal programs. We are registered with regulators and are awaiting further regulatory clarity.

Chris manski

Many projects will begin to “rug”, this will first be due to the “know your customer” laws for financial instruments. Next will come licencing for crypto securities and crypto commodities. Many more will leave until eventually you have a clean and regulated industry that are accountable to the public.

This is the next 18 months. With ISO20022 roll-out requirements due by November this year, expect to see crisis events that bring in the need for more rules. Focus on banks and who they are partnering with, are they testing platforms?…expect clarity for banking coins long before defi! Unfortunately, they don’t want to lose control of the currency so defi will ALWAYS be second best.

Currently, defi is dead. Presales are struggling, liquidity is shrinking and people just don’t seem to be interested in it like they were 12 months ago. BUT! that’s not to say new money isn’t entering the market. As prices fall, people that would never have thought about crypto….are entering! I’m a little shocked myself because of the recent events but I personally know many older people entering the market for the first time.

Prices are still quite inflated, many tokens have no “real world” use case and therefore how can they attract new money. Money velocity is CRUCIAL to a liquidity pool. Investors in LPs receive swaps fees on each transaction, so the more transactions on your platform the more investors you attract.

This is where I see Charity Token doing great things. Many users will be non crypto educated and therefore not as aggressive in selling tokens. The purchases will be small but many will have wallets. They will earn a share in fees on their deposit to then donate with a greater impact. By adding the donating element you add velocity and and consistency.

Defi will evolve to offer an easier way to include those without technical knowledge of the third party wallets. A confusing wasteland of digital wallets defi….

Anyway, best get some sleep.

Thanks for reading 📚

Chris ❤

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