It has been said that you only get one chance to make a first impression. Perhaps the best example of this old adage is the cryptocurrency space.
From exit scams and money laundering, to unaudited code and high carbon footprints, the crypto landscape has spent the better part of the past decade scrubbing itself of its infamous past. For many, the sanitizing of the decentralized ecosystem was inevitable — simply a matter of when, not if. This mindset hindered the sense of urgency that should have been on display and may have ultimately contributed to the skepticism exhibited by mainstream institutional investors.
Today, however, the decentralized economy has grown into something much larger. Even in the face of market volatility, the culmination of decentralized finance, the nonfungible tokens craze, and the year-over-year increase in token prices have demanded the attention of these same investors who once shunned the decentralized economy.
How, then, do we convert this institutional interest into institutional investment? While the answer may be simple, the execution will likely prove far more challenging. Let’s take a look at what must be done in the months and years ahead to retain mainstream institutional interest and secure institutional investment.
Given last week’s dip, it’s natural to identify market stability as the most glaring problem within crypto. But, make no mistake, the primary (and most daunting) challenge facing the crypto space is security.
According to CipherTrace’s cryptocurrency crime and anti-money laundering report, major crypto thefts, hacks and frauds totaled $1.9 billion in 2020 — the second-highest annual value recorded. The good news, however, is that this figure marks a drastic reduction from the $4.5 billion in fraudulent occurrences recorded in 2019.
Significant, sustained measures have been taken by platforms across the space to make…