Stacking Economics and Regulation – The Future of Crypto Investment

On April 14th, at the 2023 Web3 Carnival in Hong Kong, Zero CHU, the head of Bitnet Asset Management, shared his views during a roundtable discussion on “Stacking Economics and Regulation”. He pointed out that ETH’s PoS mechanism and huge liquidity will attract investment institutions and family offices to pledge ETH. With the emergence of projects such as lowering the threshold for pledge and new LST machine gun pools, it is believed that the pledge track will unleash a new round of innovation and flywheel. The regulation by the US Securities Regulatory Commission does not mean that the crypto community will fall into a passive situation, but rather promotes communication. Bitget is committed to building its own compliance team, promoting licensing matters, and is currently actively applying for licenses in Hong Kong and other places, actively communicating with regulatory authorities.

Zero CHU, Bitget Asset Manager: ETH’s PoS mechanism and high liquidity will attract investment and pledge

Are you curious about the future of crypto investment? The 2023 Web3 Carnival in Hong Kong offered a glimpse into what’s to come. During a roundtable discussion on “Stacking Economics and Regulation”, Zero CHU, the head of Bitnet Asset Management, shared his views on the subject. He mentioned how ETH’s PoS mechanism and huge liquidity will attract investment institutions and family offices to pledge ETH. Let’s take a closer look at what this means for the crypto market.

The Appeal of ETH’s PoS Mechanism and Liquidity

ETH’s PoS (Proof-of-Stake) mechanism allows holders to stake their coins and earn rewards for supporting the underlying network. Compared to traditional Proof-of-Work (PoW) systems, PoS can be more energy-efficient and scalable. Additionally, ETH’s liquidity, meaning the ease with which the token can be bought and sold, is attractive to investors looking for flexibility.
According to Zero CHU, these features make ETH an ideal asset for investment institutions and family offices. By pledging ETH, they can earn rewards through staking while also enjoying the token’s liquidity.

The Emergence of New Projects

Zero CHU also mentioned the emergence of projects that lower the barrier to entry for staking and new LST (Liquidity Staking Token) machine gun pools. These projects aim to make staking more accessible and profitable for a wider range of investors. As a result, the pledge track is expected to undergo a new round of innovation and growth.
This trend is in line with the broader crypto market, which is constantly evolving and expanding. As more people become interested in crypto assets, new projects and products will emerge to meet their needs.

The Role of Regulation

One issue that may cause concern for some investors is regulation. However, Zero CHU believes that regulation doesn’t necessarily spell doom for the crypto community. In fact, he argues that it can actually promote communication and cooperation.
Bitget, a cryptocurrency exchange, has taken steps to address regulatory issues. The company is building its own compliance team and seeking licenses in Hong Kong and other locations. By engaging with regulatory authorities, Bitget hopes to create a more stable and secure environment for crypto investment.

Conclusion

The future of crypto investment is characterized by innovation, growth, and regulatory challenges. However, there is reason for optimism. As Zero CHU points out, the combination of ETH’s PoS mechanism and liquidity, along with the emergence of new projects, means that the pledge track is poised for growth. Additionally, companies like Bitget are working to address regulatory issues and promote stability and security in the market.

FAQs

1. How does staking work in ETH’s PoS mechanism?
– In ETH’s PoS mechanism, validators are chosen to create new blocks and verify transactions based on the amount of ETH they have staked. Validators earn rewards for their work, which are distributed proportionally to their stake.
2. What are LST machine gun pools?
– LST (Liquidity Staking Token) machine gun pools are a type of staking pool that offers high rewards for a short period of time. They are designed to incentivize investors to lock up their tokens for a limited time.
3. How does regulation affect crypto investment?
– Regulation can make it more difficult for investors to participate in the crypto market. However, it can also provide a framework for stability and security, which can attract more investors to the market.