Friday, April 14, 2023
Published April 12, 2023, "How the Crypto Winter May Help Save the Digital Asset Economy" unpacks crypto industry fumbles from 2018 and late 2022, with commentary by experts from Paxos and cryptocurrency market data provider Kaiko.
Michael Coscetta, head of revenue at Paxos, stated the report is designed to help crypto industry practitioners employ blockchain technology best practices to drive positive business outcomes and regain consumer and investor trust.
"The market upheaval of late 2022 and 2023 had far-reaching impacts on every corner of the global economy," he said. "More importantly, this turbulence spotlighted several key shortcomings and opportunities that the world economy must reckon with – particularly when it comes to how blockchain has been used and how it should be used at an enterprise level.."
In the report's Executive Summary, Coscetta conceded "crypto winter" brought failures, fraud and regulatory ambiguity to the nascent crypto industry, "These events have cast doubt on the future of blockchain in the minds of some," he wrote. "Yet in time, these forces may have also created a more efficient environment – with regulatory involvement – that will eventually help the digital asset economy to flourish."
Noting this is not the first catastrophic event in crypto's short history, Coscetta recalled a cooling off period in November 2018 when cryptocurrency markets lost $70 billion in market capitalization and $700 billion in crypto assets.
During this time, he stated, overall crypto market cap plummeted from $821 billion to $100 billion by the end of the year, losses that were partially offset in 2021 by a "pandemic rebound, an NFT summer, a GameFi explosion, celebrities shilling for crypto on screens everywhere, Bitcoin at $60,000 and venture investment [raining] cash onto the ecosystem."
While much has changed since 2018, researchers found market cap fell from $2.9 trillion to a low of about $800 billion during the current crypto winter before reaching $1 trillion in 2023. The report also noted that crypto enthusiasts continue to believe in the core values of blockchain: transparency, efficiency and security.
Pointing out that Paxos takes a global approach to modernizing the financial system, Coscetta said the company's products are designed to replace today's inefficient and outdated financial plumbing with an agile and open financial ecosystem.
A free, downloadable copy of Paxos's "How the Crypto Winter May Help Save the Digital Asset Economy" is available at paxos.com/crypto-winter-leadership-perspectives/. 
The Green Sheet Inc. is now a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals. Click here for more information.
Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.
