As the year comes to an end Venionaire’s Investment Director David Teufel summarised the crypto trends for 2023.
2022 on the one hand was a disaster for the crypto market, as it slid into another crypto winter. Our crypto fund “Tigris Web3” on the other hand, benefited from this low price environment as it started building its allocation in the very same year. How will this contrarian approach of Venionaire Investment pay off? Our Investment Director David Teufel is heavily involved in the management team of Tigris Web3. We asked him to share his view on the crypto trends for 2023.
What is “Tigris Web3”?
Tigris Web3 is Austria‘s first crypto fund registered as an Alternative Investment Fund (AIF), with the Austrian Financial Market Authority (FMA) managed by Venionaire Investment GmbH (AIFM). It is open for qualified (professional) investors in Austria.
Tigris Web3 invests purely in digital assets driving the most disrupting paradigm shift of the 21st century. The decentralisation and democratisation of the internet (Web3) will lead to a true reset of the infrastructure and dominance of today’s tech giants.
Our team is happy to schedule a meeting, in case you’d like to learn more.
With this in mind, lets take a look into 2023 and the upcoming trends:
We expect discussions and the controversy around Central bank digital currencies (CBDCs) to heat up, as central banks around the world either begin issuing digital money or increase their research and testing of CBDCs. The idea of a CBDC is to create a digital version of a country’s fiat currency. This digital version would be issued and backed by the central bank.
There are a number of potential benefits to CBDCs. These benefits include financial inclusion, faster and more efficient financial transactions, and reduced reliance on intermediaries. However, there are also a number of controversial issues surrounding CBDCs. Just think about the potential impact on traditional financial institutions and concerns about mass adoption.
In response to the growing interest in CBDCs, it is likely that we will see clear and strict regulation regarding non-central bank issued stablecoins. This will help to ensure that these digital currencies are used in a safe and transparent manner.
Despite the controversy surrounding CBDCs, we expect that the hardcore crypto community and their projects are likely to remain unaffected by CBDCs. These communities and projects are built on the principles of decentralization. They will continue to operate independently of central bank-issued digital currencies.
2. Decentralized Exchanges:
Decentralized cross-chain exchanges will – from our point of view – be one of the hottest topics in the crypto market, with significant growth in their trading volume. The loss of trust in centralized exchanges following major incidents will most likely drive this shift. As an illustration remember the FTX disaster and the controversy surrounding Binance at the end of the year.
Decentralized exchanges operate on a peer-to-peer (P2P) basis. That allows users to trade directly with one another without the need for an intermediary. This makes them more secure and transparent, as there is no central point of control or single point of failure.
Centralized exchanges will still play an important role in the crypto market. Furthermore we expect that decentralized exchanges will become more popular, because investors are seeking more secure and transparent platforms for trading their assets. Smart investors can benefit from investing in innovative technologies in this space.
In 2023, EU regulations for crypto assets will cause a major shift in the public opinion of it as an asset class, as institutions and corporates revisit their stance on digital assets. The introduction of DAC8 and MiCA regulations will provide a framework for the issuance, holding, use and taxation of crypto assets in the EU. This enables professional market participants to enter this market and use the technology without legal uncertainty.
The implementation of these regulations will most likely increase the speed and number of projects in the crypto and blockchain space. Accordingly also the number of developers working in these fields will increase. Major corporations from the “old economy” will be drawn towards exploring or even already launching new products and services using the advantages of blockchain and Web3 technologies. It is likely that crypto investing will become more complex for private investors due to these increased regulation and more complex taxation rules.
It’s high time now to think about managing your crypto taxes, as this will become a major topic for 2023. One way to take care of this would be using Blockpit. That is a tool that allows users to import their transactions, tracks their portfolio and calculates crypto taxes within minutes. As Venionaire manages the syndicated fund “EXF Alpha”, the investment vehicle of the European Super Angels Club (ESAC), and Venionaire’s Managing Partner (CEO) Berthold Baurek-Karlic acts as Chairman of Supervisory Board we have deep insights into this matter. So we know exactly that it is very important to get fast, reliable and compliant tools for crypto taxes.
Overall, 2023 is shaping up to be an exciting year for the crypto and blockchain industry. Developers and teams are already moving on from the turmoil caused in 2022. They are already working on far superior services circumventing fraud and regulators seeking to create legal frameworks. The goal is allowing corporations and institutions to explore and benefit safely from the advantage offered by Web3 technologies.
You can find more information about Tigris Web3 on our website. Are you a qualified investor under EU-Regulation? We will be more than happy to share our vision of a new internet paradigm with you.