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Interview with Standard Crypto Partner: Now is the Best Bear Market Cycle in History.

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Alok believes that the next cycle may be driven by new applications, as we are no longer limited by infrastructure as we were before.

Compiled and organized by: Deep Tide TechFlow

The Block interviewed Alok Vasudev, co-founder of Standard Crypto, in this episode. In the conversation, Alok discussed the changes and trends in the bear market and the reasons for market changes. Alok believes that each crypto cycle will have a new blockchain application to drive the bull market. They also discussed the potential of crypto games and economic crises, as well as the combination of AI, ZK, and blockchain.

5-minute read of this podcast notes, saving you 40 minutes of time.

The following is the main content of this conversation, which was interpreted and organized by DeepTech, and the main points were outputted:

Host: Frank Chaparro, The Block.

Speaker: Alok Vasudev, Co-founder of Standard Crypto.

Original Title: "Crypto's 'Best Bear Market Of All-Time'"

Podcast: "The Block"

Program: Link

Bull and Bear Evolution Trends and Application Layer Outbreak

Alok discussed some changes and trends in the bear market. He mentioned that in a bear market, the trading speed will slow down, but the quality of trading will improve. He believes that the current participants in the market are more serious and are no longer participating just because they heard that the crypto industry is cool or chasing hype. Now there are many founders who are entering the crypto industry for the second or third time, and these founders have richer experience and better understanding.

Frank and Alok discussed the reasons for the market changes. Alok believes that Larry Fink, CEO of BlackRock, changed his views on Bitcoin and cryptocurrencies, which may be an important factor in the market changes. Alok mentioned that the crypto market may have been undervalued in November and December last year because cryptocurrency and blockchain technology are the correct direction of historical development, and the market should reflect the balanced prices of these assets based on the progress made.

About the trend of the encryption market. Alok believes that each encryption cycle will have a new blockchain application to drive the bull market. For example, the bull market in 2013 was mainly driven by Bitcoin, the bull market in 2017 was driven by tokens and ICOs, and the bull market in 2021 is driven by DeFi protocols and NFTs. He believes that the next cycle may be driven by new applications, as we are no longer limited by infrastructure as before.

They discussed the biggest obstacle to the outbreak of the application layer. Alok believes that in order to make more consumer-level applications work, someone needs to have a wallet first. He believes that as more people start using wallets, the difficulty of using wallets should be reduced and become as simple as using a browser. This means that cryptocurrency wallets should become more user-friendly, accessible, and easy to operate, thereby promoting more people to participate in the use of cryptocurrency.

Alok mentioned the concept of "small network effects", which refers to the increase in value of a new product or service as its user base grows. Network effects are a common economic phenomenon that indicates the value of a product or service is directly proportional to its user base.

Alok's view is that there are now enough users to start forming small network effects in new products. This means that as more users begin to use a new product or service (such as a cryptocurrency wallet or application), the value of that product or service will increase. This increased value may manifest as a better user experience, more features or services, higher security, and so on.

Alok believes that social networks need to start relatively niche and not introduce a large number of celebrities from the beginning. Successful social networks are those that can cultivate their own celebrities, rather than those that introduce celebrities and require them to bring their own fans to the network.

Alok believes that the big opportunity for social networks lies in finding the Status Game of tomorrow, which may include NFTs and other cryptographic features. He thinks that a cryptocurrency-centered social network is a cool place because it has all the characteristics and is still relatively niche, but he believes that many cryptocurrency enthusiasts are on the right side of history.

The Potential and Economic Crisis of Cryptocurrency Gaming

Alok and Frank turned to a discussion about games. Alok mentioned an interesting investment strategy, which is to review the previous market cycle and identify projects that resonated but may not have been completely successful. He believes that these projects may be good investment opportunities. Alok gave two examples, Cryptokitties and Axie Infinity. Both games have achieved some degree of success, but also have some flaws. He believes that these games demonstrate the huge potential of games in the cryptocurrency market.

They discussed the economic crisis in the game and how to manage it. Alok believes that the economic crisis in the game may be caused by token price drops, market fluctuations, or other factors. He mentioned that game developers need to take some measures to maintain the attractiveness of the game in response to these crises. He believes that financialization is an effective solution that can help attract players and provide them with additional incentives.

Alok also mentioned that the financialization of cryptocurrencies and games can be achieved through token rewards, token economics, DeFi protocols, and other means. These financialization methods can help game developers attract players and provide them with additional incentives. He believes that this is an effective way to help games maintain their appeal even when token prices are under pressure.

Alok believes that Axie Infinity is an important milestone for many game developers, prompting them to delve deeper into the cryptocurrency field. He mentioned that the success of Axie Infinity demonstrates that games can remain attractive even under pressure from token prices. He believes that this is because the financialization of games can help attract players and provide them with additional incentives.

AI, ZK and the Combination with Blockchain

Alok introduced their investment philosophy, emphasizing their focus on finding entrepreneurs with potential rather than pursuing specific investment theories. They believe that the key to investment success is finding entrepreneurs with potential, rather than pursuing specific investment theories.

They discussed the intersection of artificial intelligence and the encryption industry, and Alok believes that there is a deep connection between the two. Alok mentioned that both artificial intelligence and the encryption industry are technology-driven fields that are rapidly developing and have great potential. He believes that both fields are exploring new business models and application scenarios, and both have the potential to have a profound impact on society and the economy.

Both the artificial intelligence and encryption industries require a large amount of data and computing power. The encryption industry can provide a secure, transparent, and decentralized data exchange and computing platform for artificial intelligence. At the same time, artificial intelligence can provide the encryption industry with more intelligent and efficient trading and contract execution.

Alok also mentioned that artificial intelligence can help the encryption industry better predict market trends and risks, and the encryption industry can provide more secure and efficient payment and transaction platforms for artificial intelligence.

With the development of blockchain and encryption industry technology, NPCs in games may have their own bank accounts and wealth. He believes that this will provide game developers and players with more opportunities for innovation and interaction.

For example, NPCs may engage in trading, investment, or other financial activities with players. This situation will make the game more interesting and realistic. Players can have more complex interactions with NPCs and experience a more realistic game world. At the same time, this will also provide game developers with more business opportunities, such as advertising, promotion, or other commercial activities through NPCs.

Alok Vasudev discusses the impact of technological advancements on the cryptocurrency market, particularly the progress of zero-knowledge proof (ZK) technology. Alok mentions that zero-knowledge proofs allow one party to prove to another party that a statement is true without revealing any additional information. This technology has many applications in the cryptocurrency field, such as protecting transaction privacy and verifying the correctness of smart contracts.

Alok believes that ZK technology will enhance the trustworthiness of the market. By using ZK technology, both parties in a transaction can verify the correctness of the transaction without revealing any other information. This will help increase the transparency and trustworthiness of the market. Secondly, ZK technology will help improve the efficiency of the market. By using ZK technology, both parties in a transaction can complete the transaction more quickly and securely. This will help improve the liquidity and transaction speed of the market.

Finally, ZK technology will help expand the market's application scope. By using ZK technology, the encryption industry can better meet users' privacy and security needs. This will help attract more users to enter the market and expand the market's application scope.

Impact of Market Cycles on Technology R&D and DeFi

Alok believes that market cycles play an important role in driving technological development. He explains that market cycles can inject funds into technology research and development. During a bull market, the price of cryptocurrencies will rise, and the assets of market participants will also increase. This means that there is more funding available for technology research and development. These additional funds can help develop new technologies, optimize existing technologies, or expand the application scope of technologies.

Alok pointed out that the progress of the cryptocurrency market has far exceeded past levels, with a healthier market foundation. The current cryptocurrency market has more participants, more applications, more technological innovations, and more compliance.

Alok specifically mentioned DeFi protocols and believed that they are the most ideal investment targets. Alok believes that DeFi protocols have the following advantages:

Low capital requirements: DeFi protocols typically do not require large amounts of capital investment, as they are based on blockchain technology and do not require traditional centralized infrastructure. This makes them ideal targets for venture capital.

Powerful Defense: DeFi protocols typically have strong defense capabilities because they are decentralized and not easily susceptible to attacks or manipulation. This makes them more stable and secure in the market.

High Operating Leverage: DeFi protocols typically have high operating leverage because they have almost no operating expenses, with users bearing the transaction fees. This allows them to operate more efficiently and earn higher returns.

Alok also mentioned that the revenue of DeFi protocols is different from that of software companies. Software companies usually have to bear high operating expenses, while DeFi protocols have almost no operating expenses, and users bear transaction fees. This makes DeFi protocols operate more efficiently and earn higher profits. Alok believes that DeFi protocols are the best business model ever.

Alok also expressed his hope for the revival of Bitcoin. He believes that Bitcoin may be going through a period of revival. He mentioned that Bitcoin used to be a vibrant ecosystem that attracted many developers and technology enthusiasts. However, over time, this vitality gradually disappeared. But he believes that Bitcoin is now recapturing this vitality, and many newcomers to the crypto market may not be aware of Bitcoin's potential.