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<p class="is-style-lead">TOKEN2049 has concluded in Singapore. Below are three key takeaways from one of the year's most highly anticipated crypto conferences.</p>
<p>As one of the major industry events, TOKEN2049 was hosted from September 18 to 19 in Singapore. It gathered influential figures from the crypto sector who exchanged insights on emerging trends, advancements, and the industry's priorities.</p>
<h2 class="wp-block-heading">What will the crypto landscape look like in three years?</h2>
<p>A notable feature of the event was a panel titled “The Next 3 Years in Crypto,” where prominent leaders from major crypto initiatives discussed the future direction of the industry. Jeremy Allaire, CEO of stablecoin issuer Circle; Star Xu, founder and CEO of prominent exchange OKX; and Vitalik Buterin, co-founder of Ethereum, shared their perspectives on the digital asset sector's trajectory, drawing from their extensive experience as long-standing leaders in the field.</p>
<h3 class="wp-block-heading">The importance of self-custody</h3>
<p>During the discussion, OKX's Xu emphasized the significance of self-custody methods for cryptocurrency storage, given their strong security potential. However, he also noted that advocating for self-custody — which entails individuals managing their cryptocurrencies rather than relying on third-party services like exchanges — does not eliminate the necessity for regulatory oversight in the industry.</p>
<p>Reflecting on the evolution of digital assets, Xu mentioned that the past decade has witnessed substantial technological advancements. Yet, he believes that the pace of development for web3 applications and use cases should accelerate.</p>
<h3 class="wp-block-heading">Shift away from NFTs</h3>
<p>Buterin pointed out that one of digital assets' primary strengths lies in their universal, borderless nature. He reinforced the idea that the industry has the opportunity to cater to individuals globally who lack access to conventional financial systems.</p>
<p>He also called attention to the need for practical applications to encourage the widespread acceptance of digital assets, advocating for a reduction in the focus on costly NFTs, which he argued do not provide real value to the industry or to society.</p>
<p>Additionally, Ethereum's co-founder expressed his belief that enhancing security within the crypto ecosystem should be a prominent objective, as well as efforts to lower transaction costs.</p>
<h2 class="wp-block-heading">Vitalik discusses crypto accessibility and performs a crypto-themed song</h2>
<p>Buterin also addressed issues such as the accessibility of cryptocurrencies, their role in transactions, and overall security within the ecosystem.</p>
<p>He insisted that the prior assertion of it being too early for significant crypto adoption is no longer valid. He compared the minimal awareness and usage of Bitcoin (BTC) back in 2013 to the scenario just eight years later, in 2021, when one could use Ethereum (ETH) to buy a cup of coffee in Argentina.</p>
<p>In between his remarks on the future of blockchain and cryptocurrencies, he even performed a song related to crypto:</p>
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<p>An enhanced version of Buterin's song later surfaced on social media:</p>
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</div><figcaption class="wp-element-caption">Remix of Vitalik Buterin’s song at Token2049 in Singapore | Source: <a href="https://www.youtube.com/watch?v=CQPFIK1ikDQ" target="_blank">Lil Bubble</a></figcaption></figure>
<h2 class="wp-block-heading">Arthur Hayes shares market predictions in response to Fed rate cuts</h2>
<p>On the first day of the event, Arthur Hayes, co-founder of the derivatives exchange BitMEX, delivered a keynote address titled “Thoughts on Macroeconomics Current Events.”</p>
<p>Coinciding with the day the U.S. Federal Reserve was widely expected to announce well-anticipated interest rate cuts — which did occur later that day — Hayes <a href="https://cointelegraph.com/news/arthur-hayes-market-crash-rate-cut-prediction" target="_blank">forecasted</a> that these reductions would lead to a short-term market downturn:</p>
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<p>“I think that the Fed is making a colossal mistake cutting rates at a time when the U.S. government is printing and spending as much money as they ever have in peacetime.”</p>
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<p>Hayes mentioned that the decrease in U.S. interest rates could result in market declines, partly due to concerns surrounding the potential unwinding of the yen carry trade. Lower Fed rates, combined with rising rates from the Bank of Japan, narrow the interest rate differential between the U.S. and Japan, diminishing the profitability of the yen carry trade.</p>
<p>The yen carry trade occurs when investors borrow yen at very low rates, convert it to currencies with higher yield assets, like U.S. Treasury Bills, and subsequently invest in those assets. Last month, one of the factors contributing to a plunge in global markets was the anticipated unwinding of the yen carry trade.</p>
<p>Yet, since the U.S. Fed announced a 0.5% cut in interest rates, Bitcoin has surged nearly 7%.</p>
<p>The next TOKEN2049 event — featuring over 200 speakers — is slated for this spring in Dubai.</p>
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TOKEN2049 Singapore: Key Takeaways from the Crypto Conference[embed]https://www.youtube.com/watch?v=CQPFIK1ikDQ[/embed]

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