The cryptocurrency world is in a panic! Because of the amazing operation of the US regulators. Do you still remember the turmoil of the Hong Kong River two months ago? ! Because of the cautious and prudent new policies of Hong Kong, the uplifting force that we expected to see in Hong Kong in June to bring to the crypto market did not appear.
The new policy in Hong Kong has been cautiously and steadily promoted during the delayed implementation process. The first core priority is to ensure the safety of investors' interests. This should be the most basic and most critical foundation for Hong Kong to effectively build a crypto economic center, but it has caused the currency circle to lose its restless excitement under the strict regulatory thinking.
But in fact, whether it is the development of the crypto economy towards the Web3 native market or the narrative of Hong Kong's global crypto center strategy, this is the best time.
Let’s start with this panic. US regulation does not reflect the top-level strategy of a major country. In June 2022, they ambitiously proposed the Lummis-Gillibrand Responsible Financial Innovation Act to ensure that the Web3 revolution takes place in the United States, but the thunder was too loud and the rain was too little.
Looking at the US regulation of Ripple, Coinbase, Binance and other core forces of the crypto economy before and after the Responsible Financial Innovation Act, there is no friendly directional planning to promote and protect the healthy development of the crypto economy. Their most correct starting point is the interests of ordinary American investors. However, when it comes to the lawsuit against Binance and Coinbase, it has become a mad dog biting, tearing off the disguise of protecting investors and directly attacking digital currencies. Their attitude is to extinguish the crypto economy.
Before the lawsuit, it was already clear that US regulation would ruin the crypto economy. In April, when the tide was surging into Hong Kong, we described it this way in our "Hong Kong News" series of articles: Against the backdrop of the Americans ruining the market over the past period of time, Hong Kong would become the main narrative of this round of bull market. This is the common perception of the entire crypto market, and it is also the fundamental motivation for the surge in Hong Kong's enthusiasm.
Therefore, we judged that this was the right time for Hong Kong. However, we once had an article in the "Hong Kong News" series titled "Hong Kong has almost no chance of becoming a "global encryption center", why", which made many friends understand that we were pessimistic about Hong Kong and criticized Hong Kong.
We would like to take this opportunity to explain again: We judge that it is "almost impossible" for Hong Kong to become a global encryption center. This is not us "blacklisting" Hong Kong's efforts in the field of encryption economy. We also fully expect Hong Kong to seize this historical opportunity to establish itself as a global encryption center. Therefore, we did not make a "impossible" judgment.
This article was completed under the turbulent mood that is surging in Hong Kong, because we are convinced that Hong Kong will become the main narrative of this round of bull market, so this restless force may bring vitality to the bull market. However, if Hong Kong simply gathers old cryptocurrency players who are scattered around to continue speculating in cryptocurrencies, it is more likely to destroy the narrative of Hong Kong becoming the global encryption center.
As mentioned at the beginning, this force is indeed unpredictable, volatile, and speculative. The slightest disturbance in US regulation scares them into panic.
We believe that the grand narrative of Hong Kong becoming the center of the crypto economy is perfectly combined with the development of the crypto economy towards the Web3 native market. This is a huge historical opportunity. For relevant discussions on the development of the crypto economy towards the Web3 native market, please refer to "The Value Logic of "Bear Market Bottoming Out" with "Civilization as a Stop"".
In this article, we describe: After the hard work of the early builders of the blockchain world, the infrastructure of the crypto world has been continuously improved, and the crypto ecosystem is moving from being limited to investment/speculative fields such as ICO, DeFi, NFT, etc. to the level of industrial and financial integration. With the crypto economy as the core, the economic system of the entire world will be reshaped, and the world's financial structure and order will also be rebuilt; on this basis, we can expect to see a prosperous scene of "blockchain/Web3" like the "Internet"; at that time, in addition to blockchain/Web3, network technology, hardware equipment and high immersion, delay-free applications related to the construction of the metaverse will also achieve considerable development; at that time, AI and blockchain/Web3 will meet here.
A group of crypto ecosystem builders who are forging ahead have brought us from the zero-sum speculation game in the currency circle to the construction of the blockchain/Web3 industry ecosystem. These crypto ecosystem builders and their Web3 native application market will be the mainstream in the future.
However, there are still challenges for Hong Kong to become a global crypto hub. Hong Kong needs to integrate the role of a "financial center" into the narrative of Web3/crypto economy, and needs to transform the restless power of speculation in the currency circle into capital to support the development of the Web3 native market. The key point lies in how the Hong Kong government can make good use of the capital allocation function of DeFi, which is native to the crypto economy system. Of course, the entry point of the Hong Kong government's current choice of trillions of off-chain assets on the chain is a relatively smart choice. In the next one or two bull-bear cycles, Hong Kong will focus on promoting the integration of virtual assets in the crypto economy with the real-world financial system, and can attack or defend.
So, how to realize the trillion-dollar market of off-chain assets on the chain? The Hong Kong government needs to use the native NFT function in the crypto economy to realize asset on-chain, on-chain title confirmation and transaction circulation. On the basis of NFT helping off-chain assets on the chain, the Hong Kong market can integrate on-chain assets into the crypto economy system through DeFi, and then become the capital to support the development of the Web3 native market.
So, don’t panic! Everything is getting better. The opposition and unity of “opportunities and challenges” are highly integrated with “the development of the crypto economy towards the Web3 native market and the global crypto center strategy of Hong Kong, China”
