THE year 2022 wasn't an easy year for crypto as the market lost more than US$2 trillion.
Although cryptocurrency is a great investment, choosing the best cryptocurrency is a tricky endeavour given its volatile nature. Leaving matters to fate in the hope that the value will skyrocket in the future is not advisable.
Given FTX's fallout, Terra Luna's implosion and Bitcoin's loss of value which have severely affected the industry, it is not surprising that people are starting to lose faith in crypto's legitimacy and see it as a scam.
However, new developments and trends are surfacing this year, and they will continue to progress to mend the damage that was inflicted in the previous year.
Here are the new cryptocurrency trends to look out for in 2023.
UPWARD TREND
The macroeconomic downturn and the collapse of major unregulated crypto exchanges have fuelled uncertainty and declining confidence among crypto investors.
However, Luno Malaysia's country manager, Aaron Tang, believes that some developments that are in continuous progress will help ease the year 2023.
This will change investors' minds about crypto and overcome their doubts on investing in it.
As the crypto sentiment was also affected by global events, calls for increased transparency and regulations were amplified.
Based on the collapse of several major players last year, Tang sees strong calls for increased accountability from crypto exchanges.
"Digital assets exchange (DAX) needs to take proactive steps to operate with transparency and adopt a long-term horizon, putting customer safety and the industry's development as the top priority," he says.
He adds that DAXs give investors assurance that their digital assets are in good hands, knowing that it is more secure than those from other illegal platforms.
Meanwhile, non-regulated DAX is risky, since its legal resources are lacking in many areas.
CROSS-COLLABORATION
Apart from improved transparency and security, Tang suggests that crypto players look into collaboration and cooperation to drive industry growth.
"Cross-collaboration across companies can rebuild the momentum after the setback of 2022.
"Companies with high operational standards should come together and shift the needle towards a progressive and positive direction on topics of regulation, compliance and investor education."
INCREASED INDUSTRY REGULATION
Since the havoc we witnessed last year, efforts to regulate crypto assets are being taken more seriously than before.
This is because crypto has a more serious standing now as an alternative form of payment, currency and virtual accounting system.
"On the topic of enhancing regulation, there have never been louder calls for more robust discussions between regulators and digital assets exchanges in pushing for regulatory frameworks and provisions.
"Investors' interests need to be safeguarded, and this should be a priority for any crypto exchanges," says Tang.
Stricter regulations help create a safer environment for the market and reduce manipulations from other malicious parties. Investors will also get the extra protection they've been hoping for.
It has been forecasted that this year will be an economically challenging year for all. But Tang believes that crypto and blockchain developments will continue to advance and mature.
"There will be stronger opportunities for consumer education efforts, particularly in dispelling crypto misinformation and disinformation, as well as to empower credible crypto stakeholders," he says.
