TOKEN2049 Roundtable: Wealth Created by the Stock Market Will Flow Back to the Cryptocurrency Market Again
ChainCatcher live report, Dragonfly General Partner Tom Schmidt, DeFiance Capital Founder Arthur Cheong, VanEck Digital Asset Fund Manager Pranav Kanade, and Multicoin Capital Managing Partner Tushar Jain attended the TOKEN 2049 conference and reflected on the current strategic allocation in the crypto market during the panel titled "Institutional Crypto Allocation: Liquid vs Venture." They pointed out the risks that overly aggressive investment strategies may bring and emphasized the importance of learning from past market fluctuations. At the same time, the guests noted that although some crypto investment strategies performed exceptionally well over the past year, achieving gains of up to 120%, the overall market increase was only around 50%.Regarding the question that investors are generally concerned about—"Why choose specific crypto investment strategies over other equally performing strategies," the guests unanimously agreed that the professional capabilities of investment managers and their keen insights into market trends are key factors. They believe that paying management fees merely to hold assets is logically unsound, and the management of liquid funds relies more on expertise than simple exposure.When discussing the reasons for the differences in asset performance, market sentiment became an important topic. The guests pointed out that market sentiment is largely influenced by beliefs and expectations, leading to vastly different performances of various assets in the market. Additionally, the uniqueness of the crypto market requires investors to have a higher awareness of risk and strategic vision.Regarding the future prospects of the crypto market, the guests generally held an optimistic attitude. They emphasized that "the influx of retail capital in 2021 was partly due to the wealth created in the stock market ultimately flowing into cryptocurrencies, and the same thing will happen again." They believe that although the market may face volatility and challenges in the short term, in the long run, cryptocurrencies, as part of the emerging financial system, cannot be overlooked in terms of their value and potential. They also mentioned that each manager's strategy varies slightly, but all will closely monitor changes in the market and token economics.