Upon the announcement of the Markets in Crypto-Assets regulation in the EU, fanatics and followers of cryptocurrency markets have been extremely tentative about what this may bring.
The initial confirmation was met with a general distaste, the thought of regulating decentralized systems was almost as though what was once owned by the people is now overseen by a central authority, something many would consider contradictory to the point of crypto.
While this is an opinion shared by many in the community, what MiCA can bring in terms of security into the space is undoubtedly a positive. Many blockchains and activities on there in terms of native tokens, NFT’s and DeFi applications are rife with scammers and many newcomers to the chains unfortunately fall victim to these scams. With a regulated space, the requirements to start a project of any form will be amended to reduce the chance of risk, making for a much more hospitable space for those looking to get involved in the crypto space for the first time.
Another great example of this is online casinos, namely those that only permit transactions via a handful of crypto options. With regulation, operators will have a guide of rules to follow, making the environment safer for the wider public. Blockchain technology behind bitcoin casinos are without a doubt a huge hit as of late, with bonuses and jackpots being structured differently using a selection of crypto, also inviting a different outlook on innovation in other table games and slots.
The SEC and the apparent risk of crypto
The SEC has not been shy in slamming the cryptomarket and while the case with Ripple’s XRP is still ongoing, experts seem to claim the case has already been concluded as a win for the crypto community. The murmurs surrounding this have already instilled confidence and buyers have flocked to stock up on their XRP while the price remains below a dollar.
This may be a good indication for the crypto community, but this does not come without caution. Many believe that the SEC will jump to another coin or chain once the case is done and this may be a concern moving forwards. The SEC has not been reserved when warning about crypto and still advises extreme caution when purchasing any coins, it may be a sign that further lawsuits may emerge which could cause lasting damage in the crypto scene.
With this in mind, the fact that MiCA is rolling full steam ahead is likely to create a domino-like effect with other jurisdictions outside of the EU rumored to use the framework as their own, creating a universal rulebook for all to follow. It’s not likely that the United States would stray far from what the EU set out and this should set some minds at ease. What’s for certain is that crypto-enthusiasts would jump ship should things become rockier in the States compared to Europe and the rest of the world.
NFTs - is the show over?
NFTs, or non-fungible tokens, have never been far from scrutiny and there have been countless examples of projects which simply do not work or benefit the holders long-term. After an astronomical rise in interest, the volume of various cryptocurrencies across different chains has drastically reduced since all-time highs during the summer and autumn of 2021.
The most concerning factor for the market of NFTs is that the biggest of the projects spoken about by millions on Twitter are no longer front-runners and the best example of this is the Bored Ape Yacht Club (BAYC). Once considered the holy grail of the NFT market, owned and flashed by some of the biggest personalities in the world. Cracks began appearing when multiple stories were released about the team of BAYC and potential bad faith in handing out these apes to various celebrities just to enhance the number of people that view them and force demand.
With the brand being scrutinized, many began selling off their apes and immensely popular celebrities started to return to their old profile pictures on Twitter, which was a massive reason interest began to die out for the brand. For many, however, the symbolism behind the various traits was considered offensive, with old Nazi uniforms, outfits found from old USSR military times and other traits which many were offended by when broken down.
While NFTs have immense potential to bring to the world, it’s not a secret that many project owners simply cashed in on a high-margin in-demand product with no real vision for the future. The possibilities of what you can do with NFTs are almost endless and should not be ruled out from becoming popular again. It’s not too far-fetched to believe that countless real-life uses can be brought forwards and ownership of data and assets is a heavy hitter in why non-fungible tokens will remain relevant.