Senior CEO interprets the crypto market: Bear Market, DeFi innovations, and the future of DEX.

Interview with Cobo's Shenyu: The 2022 Bear Market Cycle, FTX Collapse, and Encryption Innovation

Recently, the co-founder and CEO of a blockchain company accepted an exclusive interview with a Singaporean blockchain media platform. As a seasoned participant who has experienced multiple rounds of cryptocurrency cycles, he shared his views and in-depth thoughts on various topics, including the current market, the impact of industry events, DeFi innovations, and the future of decentralized exchanges, while also explaining the reasons for his continued curiosity about the encryption industry.

###'s view on the current Bear Market cycle

The level of despair in the bear market of 2022 is not sufficient compared to previous ones. The industry has a history of over 10 years, accumulating a wealth of experience and lessons. We have basically understood the capability boundaries of existing blockchain technology. Solutions for scaling modular blockchains and layer two networks have also begun to emerge; although it will take another two to three years for them to be fully implemented, we can already see the light. Confidence and direction for the industry's future are much clearer than in previous cycles.

Views on major industry events

The essence of the incident at a certain exchange is still a human nature issue. Centralized exchanges bear too much responsibility, acting both as transaction facilitators and as brokers and custodians. It is very difficult for entrepreneurs to resist temptation. Historically, similar incidents have occurred repeatedly; it is just a matter of scale and whether they are exposed. In the future, such incidents may be avoided through technological means, allowing users to truly control their own assets. With the development of technology and the improvement of infrastructure, this issue will gradually be addressed.

The innovation space of DeFi

DeFi has moved traditional financial products that have been successful for over 200 years onto the blockchain in just two years. Currently, it mainly includes four major modules: stablecoins, DEX, lending, and derivatives, and the overall framework is relatively mature. However, there is still significant room for financial innovation based on composability above these modules. In the future, the core modules of DeFi may become standard protocols on the blockchain for other applications like NFTs and GameFi to directly call. There is still room for innovation in cutting-edge applications and risk balancing.

The Future of Centralized Exchanges

Cryptocurrency has been global from the very beginning and should not become a regional matter due to the background of its founders. Recent events may mark the twilight of centralized exchanges. Many institutional users have become aware of the industry's problems, and we are seeing a large amount of assets moving from exchanges to on-chain wallets. Decentralized exchanges have been able to meet most of the demands and may do even better. In the future, there may be a combination of decentralized and centralized methods to mitigate risks.

The development prospects of the mining industry

The mining industry has evolved from home miners to large-scale industrial mining farms. However, the ideal future may involve numerous small mining farms connecting to the global power grid, helping to regulate grid load and achieve efficient energy utilization. As chip iteration slows down and the lifecycle of mining machines extends, the trend of decentralization may re-emerge. In the future, home mining could become more profitable, and even earn additional income through participation in grid regulation.

The reason for maintaining curiosity in the industry

This industry evolves rapidly, full of innovation, with fresh things constantly emerging. It develops in a spiral manner, often repeating similar occurrences. Maintaining curiosity and continuous observation and thinking is important. Here, you experience and witness the unfolding of history every day, a feeling that cannot be compared to reading history books. It is precisely because it is so interesting and can grow quickly that it is hard to leave this industry. Once you delve deeply, it is difficult to truly "retire."