The Elephant in the Crypto Room May be Your Next Big Investment Opportunity

If you asked 10 crypto VCs, traders or self proclaimed experts what will be the next sector of crypto projects to go to the moon the answers will likely be similar: Crypto gaming, Web3 (whatever that means and it may mean many different things), Crypto social networks etc. This seems to be the consensus nowadays amongst experts. All these are fairly reasonable estimations that seem to naturally extrapolate from current crypto trends. Without challenging these predictions however, I would like to suggest a less obvious candidate that may emerge in the coming year as the next crypto winner.

 

But first some background. There is an elephant in the crypto room that is not properly addressed, and that elephant’s name is regulation. Crypto people seem to frame this issue as a temporary inconvenience that is sure to subside overtime. They address the subject briefly when raised, but then quickly move on to other matters as if it doesn’t merit a more in-dept discussion. The general mood is that while we’re not there yet (sigh, rolling eyes) we are on a slow but inevitable journey to regulator acceptance. I see this history of crypto-regualtor ping pong as something different, more along the lines of a status queue of terror, where both sides know a clash is inevitable but are waiting for better timing, meanwhile stocking on ammunition. Regulators statements and actions about crypto seem more to go in circles than in slow progression, as if regulators are stalling for time. 

 

The truth is that anyone paying attention to the direction crypto is moving in, knows that its fruition will undermine the power of many current power holders, including governments. One way or another, it is highly likely that at some point in the future, a much more decisive crackdown on crypto is imminent (leaving aside for now the debate on how likely it is to succeed in eradicating the crypto ecosystem). When that crackdown happens, some of those commonly ignored flaws in the decentralization of most crypto blue chips will suddenly become more noticeable, as regulators are easily able to take down these projects effectively. 

 

But some people are paying attention to the elephant in the room, and are developing a whole category of crypto projects that aim to complement the decentralization puzzle by decentralizing all aspects of the metaverse, including the frontend, hosting, networking, storage and compute assets that are currently strongly embedded in web 2.0 for the most part.

 

These projects fall under several main categories: storage, cloud services, privacy enhancement (zero knowledge), networking, compute services and more. Some notable projects in the space are: Akash, ICP, Arweave, Filecoin, Fluence, Denet, ArGoApp, Ceramic and many more. The growing number of projects in this space and the VC capital invested suggest an imminent crackdown is on the minds of many.