At the Point Zero Forum in Zurich held on June 22, Sopnendu Mohanty, Chief Fintech Officer at the Monetary Authority of Singapore, was invited to speak as part of a panel discussion.
The panel discussion focused on the topic of the current and future state of the global crypto markets, and other panellists included Ripple CEO Brad Garlinghouse, Crypto.com CEO Kris Marzsalek, and state secretary at the state secretariat for International Finance in Switzerland Daniela Stoffel.
Beyond addressing the current bear market that’s causing havoc within the crypto world, the panellists discussed three other key things:
1. Cryptocurrencies need utility for the ecosystem to be healthy
Among other things, panellists were skeptical of the current model of many cryptocurrency tokens and the current cryptocurrency ecosystem. A common criticism among panellists was that many coins do not succeed, and the reason for that is that they do not bring utility to anyone holding the coins.
In particular, MAS’ Sopnendu criticised the current model of the crypto ecosystem, saying that many of the coins have taken up a life of their own, and that the market value of these coins have increased far beyond what is reasonable.
Garlinghouse was particularly critical of the status quo, and compared it to the XRP tokens that his own company creates.
The vast majority of tokens will go away over a period of time, because they have no utility. Dogecoin is a clear example of it. It was never designed with utility in mind, the founders have left the project, and the coin price moves based upon the tweets of Elon Musk. I don’t think that’s very healthy for the crypto…