Crypto Market - Behind the Scenes - TOKEN2049 Singapore 2023

hey guys hey everyone uh for joining the session um as was introduced my name is Andre I'm co-founder and Magic partner of DWF and digital flaps and today's session I would like to spend this 15 minutes to show my and our vision how the market looks like now and what is going on Behind These charts on the exchanges and to what the following Trends are and how people behave behind this candles and charts on exchanges right I prefer to do things with kind of simple Manner and it's funny I like memes as you can see because I'm pretty sure that the worst things in the world that they was done with quite serious intentions and with quite serious face and to be professional is to be understandable for everyone right it's not to be too complicated and let's go um let's start with the thing that's why people love the crypto Market in general people join the crypto Market since 2017 and 2021 I mean large crowds of people because it is a chance to them to get rich very quick and people love this volatility people love uh everything which is related to this the second gamble they can go short they can go long they can trade 24 7 doesn't matter which time zone They are based and center and Central it's borderless it's easy to trade it's easy to make money it's easy to lose money that's why people love it and when the market is bullish a lot of people are coming for that it was in 2017 and then it was in 2021 but after that it was changed and this how the market looks like now right because nothing happens I would say in general Bitcoin is very close to stablecoin in terms of volatility right and some altcoins same uh alcohol is behind like certain coin market cap rank are eLiquid and uh there is no spot volumes no liquidity and the situations looks like this uh for those who remember these times to the winter of 2019 when bitcoin price was like approximately 2.5 k not raising volume and I remember the time when the whole whole Global had approximately 15 million trading volume a day it was completely nothing now it is not that extremely but in general today I checked the spot volume it is 24 billion including all these fake exchanges uh fake volumes Etc which is completely nothing it makes people frustrated and compared to bullish Market they don't see opportunities a lot of people they see risks and if two slides before you saw that you could get rich quick with current markets people see that they could kind of get poor very quick right and to be a kind of like this dude at this chart pour very fast right I suspect that he opens I don't know a long position or on BTC when it was like 30 with 100x leverage and then it's gone right he needs to serve us and this McDonald's at MBS about retailers right uh if you compare with institutionals institutional activity on the market is also decreasing and the funds I mean Native crypto funds they are also not so active now if you compare how let's say a startup could fundraise on 2021 it was super easy to fundraise like Millions right just for a week or for two weeks now it is complicated and activity is kind of dead less projects went to actually goes to exchanges less Iowa less lunch Parts less High volatility and because of this situation no entry points right and if you remember this bull market it's always ended by kind of Crash a lot of people are suffering because of losses they have impermanent clause or permanent laws right but they're in red numbers and they're looking how to improve the situation and how to find a way to get money back and it creates the current situation what we could see right now this is kind of liquidity Worth right because retailers and institutes know not hft and not other Traders not market makers I mean institutional funds who go along who go short uh the directional Traders right no not toxic over the flow I would say uh their activity is less and now hfts and market makers they compete with each other what that means right uh where activities as well where the market since 2018 we trade everywhere every product every coin like despite its Sports Futures options doesn't matter with rate everything right and when Market was bullish we could make like several basic points from traded volume right let's say we traded like some billions right several basic points this is perfect right because you could you have a lot of participants on the market who did wrong kind of trades right but now the situation looks like this that these guys don't act are not active but another market makers they need to provide liquidity they need to provide trading and because their professional players of this place right and the situation looks like this that top ones they compete with not top ones and not top ones they are slowly bleeding and leave the market and we could see some liquids on exchanges that it's decreasing plus some decisions which were done by Sac a lot of market makers from the US they make they might step back and they are kind of stopping solving projects and it also affects the market because they were huge and they are huge right but now they could do some kind of only prop trades and it also affects the market right and there's some the whole Market because of these situation is getting smaller but because of what was explained right we could see that people still need to trade but because of the market is getting small everything is being concentrated across and around like top coins I would say that it's mostly of course top 100 but not all of them and this is some altcoins which are by some reason nicely traded by people I know people love to trade it people love to trade it market makers and hfts also love to trade it it creates like liquidity it creates volatility it creates volume and this concentration also affects the market because if you could see behind this let's say two or I will select two to three hundred coins from the market the rest is that I could provide some example without the code name of course but compared to the last year exactly last year when we got started our kind of customer oriented part of the business not prop Trading we could trade some coins or I don't know buy or sell some coins for like one for one million a day or two million a day without any price impact that it was easy now the same coins it could be bought or sold from the market for 30k and it would move the price for 10 that's about the market it's not only about buying power but also about uh selling power right which is also important people don't want to buy something for 10K and pump it to 10 right it's it's not that great especially when this is small white coins right but it creates kind of fragileness right as I said now you could buy some coin because of the lack of liquidity or sell some coin it puts the price up down and it creates volatility but it creates kind of not confident behavior of Traders right but at the same time for some coins it creates opportunities you could see the previous examples on the market right I will not stress this points right but it was like billions trading volume on Futures it was like billion billion strategic volume on Sport and usually you could see that these coins are usually listed on binance or and other largest exchanges they have future market and they have spot Market why it is like this because sport is not active it is kind of dead and there is no volatility it's hard for people to make money right and to gimbal people want to have make money but if Bitcoin I know moves like for like two percent a day nobody is interested to trade uh I mean nobody in terms of retail and not professionals to try this Market you could go to Forex trade I don't know some Fiat currencies right with the same volatility then people go to the Future Market they use like 2050x Leverage of course A lot of them lose money but by Psychology by like kind of historical experience of financial markets especially from Forex those who lose money it's the better is the best client of an exchange because he will try to make money again and again who made money like come to exchange made money they are usually living because they're successful they don't need to win the market and that creates these opportunities right UC coins is volatile it's going up because something going up people trying to jump to this because people want to make money in order to cover their losses and new cameras are also coming to this people try to monetize volatility and the whole liquidity that we have on the market the whole Market activity is being concentrated on the particular coin it creates this I would say I'm not abnormal situations like we could see it when open interest is larger than market capitalization when small coins with let's say 50 million market cap have tens of billions trading volumes but it's nice people love it because it's kind of a sign and it reminds them like how it could be when the market is great and yeah I have less than three minutes and it is not prediction it is just my thoughts right how we see the market and what we are trying to explore for ourselves that's the every strategic strategy every fighting company have some should have some vision and so should have something to trade like right now right we do usually hft we don't care about the prices right we just trade it's quantitative trading but also we are looking to new startups new products right and uh kind of promising coins that you could have like directional position in order to leverage the current market situation and from my point of view uh the good opportunity is tokens will support a generosity's market and low market cap because because of clear situation right people want to gamble people will do it uh it's not clear not really [Music] correct to think that someone to do something behind it it's just crowds if you take a look at some psychology or books like I a big fan of Gustav Lebon this the crowd this legendary book you could see that when a lot of people are doing something together their skills and their kind of knowledge is going to less and less and this is common people's behavior right then talk is without the relatives uh with the sport and great spot volumes because when it's listed on derivatives now the market thinks that is bullish sign and Market goes to trade it exchange volumes because it's clear if it's traded on this device exchange especially on the federal one people should pay a lot of fees and it is a real retail interest and exchanges highly likely be listed and random Nobody Knows the future right nobody and something could happen just because it happens and regular macro trends of course we also need to be kind of oriented to the Future and from my point of view this market trends for the following maybe one maybe two years I also don't know future it's just my humble opinion it is that Carol apps because it is about scalability it is AI because yeah it's the strength right we will see good examples in our industry soon children Bots because it's easy everyone use it I don't know the quality of this technology right how it would work but it has a lot of people a lot of retailers it should work digital identity of course because we are moving to the world web 3 world and it should work nicely this Enterprise the derivatives and other booked access order booked access should provide uh text level experience digital activities important because a lot and a lot of exchanges are trying to implement kyc but some people who are crypto native they want to trade without it meme coins because this is a culture you can not cancel the culture people love it because MIM Quest is the pure Alpha right nobody cheat you that he will do something it's just you buy or you sell you just believe and option Market options is complicated it's not about this Forest options it's about option Market itself because if you take a look at traditional Market options are kind of 30 to 40 percent of the whole derivatives volume on crypto it is still two to three percent the potential upside is huge and Rainbow Market nobody knows but we could only believe right and uh try to do more right decisions right then wrong decisions it's easy to say but hard to execute that's why please do your own research it was not a financial advice and don't trust anyone right just trust your opinion because you're the only one responsible for your funds your income your money thank you so much