Despite the ‘Red Wedding’ Scenario in Crypto Tradfi Sees Hope

Traditional finance (Tradfi) seems optimistic regarding the opportunities in the crypto industry despite the “Red Wedding” scenario. Dawn Harflinger, CEO of Lillu’uokalami Trust, compared the current crypto scenario with the infamous blood bath shown in HBO’s Game of Thrones ninth episode of season 3, The Red Wedding. Traditional finance market participants were speaking at Consensus 2023 event on April 26.

Tradfi Investors Ready to Run into ‘Burning Buildings’

Asset managers are still optimistic about the opportunities in crypto, despite the effects of the harsh crypto winter and the bearish market of 2022. Harflinger said during the event that she is looking forward to running into the ‘burning buildings’ of the market and referring to the current regulatory actions and ongoing scenarios faced by crypto entities. 

She seemed excited about getting additional exposure to secondaries by participating directly in funding rounds of blockchain companies in their growing stage. This scenario provides investment opportunities in the crypto industry without being bothered by the inherent volatility. 

Harflinger was sharing the stage at Consensus 2023 with the director of real estate and digital assets for Texas Teachers, Matt Halstead, and the CIO of IOT Holdings; Dan Taperio. Halsted argued that investing in digital assets is integral to the future of technology, also emphasized on the extensive impact of innovations in the industry created for the real world. 

Referring to the inherent volatility of the crypto assets, Halstead acknowledged the general willingness to adopt digital assets. “It’s not clear how the industry is going to evolve, but we think the future is bright.” – Matt Halstead. Further adding, he said that the opportunities in digital assets are multi-faceted, and even though the valuation is in decline, it’s worth getting exposure to. 

Taperio argued that the current situation of the digital asset ecosystem has been broader and deeper than in the past. There are multiple opportunities in various aspects of the industry. Also, the market now has a lower correlation with the market-leading cryptocurrency Bitcoin. 

Arguing about the lack of correlation among digital assets, Taperio said this facility allows institutional investors to expand their horizons beyond Bitcoin towards discounted altcoins and tokens. 

The traditional finance ecosystem is slowly acknowledging the power of decentralized finance. There are multiple investment opportunities in the blockchain industry besides buying cryptocurrency and tokens. An investor can fund a project, and invest in the crypto entity, fueling the growth of exciting products and protocols. 

Blockchain technology has the upper hand compared to Tradfi, tamper-proof data storage, anonymity, transparency, smart contracts, etc. These benefits are now sought-after by Tradfi to enhance its operational capabilities.   

CDs and DVDs made the digitization of music a reality, and applications like iTunes and Spotify expanded their horizons. The shift to digitization grew to photos through apps like Pinterest, and videos went digital during the YouTube era. Blockchain technology is believed to bring the digitization of finance. Such shifts created exciting investment opportunities, and the digital asset industry has repeated the same story.  

Nancy J. Allen

Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.