Amateurish CeFi (centralized finance) is finally out. Wash your hands and move on, time to face the big boys.

After the Merge, the Flush.

Crypto is about to split into institutional CeFi and cutting edge DeFi.

What happens post FTX (and potentially Genesis) collapse?

TL;DR

• Finance overlords who for the last year have been closely watching the massacre while patiently taking notes, will take over CeFi. Time's over, kids must leave the room now.
• CeFi regulation will be negotiated by professional financial institutions. Blockchain investments will explode. CeFi will borrow the best of DeFi while staying centralised and regulated. Traditional banks will die.
• Massive investments will pour into bridging Web2 and Web3 thus creating a stronghold of Web2 players (financial and non-financial alike) with Web3 additional features and the legacy competitive moat.
• Retail will stay away from DeFi for a significant while, giving developers the time to complete the first stack of overarching DeFi infrastructure needed to level up to widespread adoption - which will come in 5 years - pushed also by the expansion of Web2 players into Web3.
• DeFi die-hards who have not left the space plus those on the DeFi edge pre FTX implosion will move en-masse to DeFi specific dapps, taking even more oxygen away from the remaining CEXs and existing CeFi applications.
• DeFi will benefit from the change of hearts and experimentation will blossom even further. Expect to see many more IRL applications. Expect the blending of NFTs, digital identities, on chain credit scores, sociality, global network states, under-collateralized micro-lending and borrowing pushing new entrepreneurship, advanced financial tools, inclusivity, democratisation, value creation and distribution. Financialization will be commoditised.
• The mid-term end state will see on the one side professional, regulated, institutional CeFi solution providers and on the other side innovative, futuristic, accessible, mostly unregulated DeFi / NFT applications fully integrated with the physical world. Both CeFi and DeFi will use blockchain technology. CeDeFi, or institutional DeFi, won't have any room to exist.
• Institutional CeFi will mostly use the Ethereum chain to build their version of the future of finance. Ethereum is where institutional CeFi and revolutionary DeFi agree.
• Rampant pump and dump investors and fraudsters will be pushed to the edges or out by the Big Boys club of serious money and much-longer-term approach.

Blockchain Context

JPM’s Jamie Dimon: Regulators Have Done ‘Nothing’ to Stem Crypto Fraud

What do you think these words imply? Are they the usual JD's crypto rant, while in fact JPM has been building massive CeFi infrastructure in the background?

No they are not. What they mean is: Regulators need help. We are here to save them. Let's sit at the table and design the rules of CeFi together. With love, JD.

Take this other news: $138B Fund Manager Ready To Jump Into Crypto Carnage

Guess where the fund manager comes originally from? You guessed it right, JPM. And why would he jump into the crypto carnage? Because the carnage is the flush the big boys were waiting for before coming in to clean up the mess and set the rules of the game.

The big boys (BB) simply waited for amateurish CeFi to dig its own grave. Now that it has, they can suit up and come to the rescue. Again.

By the way, BB will also need to expand their work force in order to effectively take CeFi over. I wonder where they'll find tech-sapiens though. Could Jerome Powell land a hand?

I suspect so:

While all this unfolds and even the best journalists miss the forest for the tree, DeFi keeps chugging along with no sweat nor fever, in sharp contrast to CeFi's collapse.

Uniswap, MakerDAO and Compound all worked and processed every trade and withdrawals. It is impossible for them to defraud anyone, it's in the code.

In reality the FTX demise has clearly benefited DeFi. And it even offered a short-term buying opportunity for those of us that scrupulously follow?a plan and fact checked the long term Ethereum thesis.?FTX gifted us with a 30% discount on ETH.

While navigating in the fog consider: nothing?has changed in the Ethereum technology, ecosystem, value proposition, core values, number of developers, investment thesis.?Nothing. ETH is still the same world-changing, earth-shaking innovation it was a week ago.

With one significant exception:?one piece of the ETH post merge composition has silently morphed. ETH has factually become ultrasound money. Which is to say,?deflationary.?Something worth celebrating.

And guess what? Institutional CeFi will mostly use the Ethereum chain to build their future of finance. Ethereum is where institutional CeFi and revolutionary DeFi agree.

Which is why the drying up of direct investments into the space will be short-lived. Not only that. Rampant pump and dump investors and fraudsters will be pushed out by the BB club of serious money and much-longer-term approach. FTX ventures was just one of many.

The bridging of Web2 - Web3 (Web2.5)

What if Google Maps partnered with Governments to create twin Metaverses and Real Estate NFTs?

Think about it. Google has already mapped the world.

Big Tech must transform itself or die.?Legacy business models have been evaporating.

Countless dethroned Web2 empires are rushing in panic to try and mirror, mimic or forcefully crash into the Eldorado party they have decided they now see in Web3.

Synchronously,?Web3 needs a physical layer 0?to go vertical in adoption. Web3 without Real World Assets (RWA) is like water without a vase.

RWAs already form the majority of global financial value. The fixed income debt market is worth an?estimated $127 trillion. The total value of global real estate is?approximately $362 trillion. Gold has just an?$11 trillion market capitalization.?

Now, imagine you sat at the board of directors at Google and you considered the points above. What would you do?

Real Estate has the highest TAM (total addressable market). Google has already mapped the world.?Google has been investing heavily in bridging the gap between Web2 and Web3.

If I sat at the board I would advocate for working with Governments to develop twin metaverses which would be building on the immense trove of data Google Maps already has on the physical reality around us.

Why could it work?

Because Governments could ultimately build permissioned twin metaverses of the physical space around us to enable seamless Real Estate dNFT trading, lending, loan modifications, renovations and Urban Planning.

Another example, Nike.

Nike just announced .Swoosh, a platform where you can trade virtual:

? Apparel ? Sneakers ? Accessories ? And other collectibles

Nike's virtual items will:

? Be wearable in games ? Unlock access to IRL events ? Unlock access to IRL products

Imagine an NFT that gives you shoes you can wear in real life, in games and gives you access to events. That's what Nike is building.

Nike will be working with the community to co-create virtual products. It will host creator challenges where you can earn a royalty from the virtual products you create with Nike.

This will onboard millions to web2.5. Nike is going on a tour across the US to educate their community on web3. The first city they're hitting is Austin TX. They will also be hosting tutorials online for anybody to access.

As a perfect example of a Web2 powerhouse expanding into Web3, Nike is also removing the friction: You don't need a Metamask or crypto to use .SWOOSH. You’ll be able to use a debit or credit card to buy Nike's virtual creations. And when you claim your .SWOOSH ID you'll be given a wallet that is created & managed by BitGo.

.SWOOSH is also eco-friendly: Nike is building .SWOOSH on Polygon (and Ethereum side-chain), one of the most eco-friendly blockchains available, which has pledged to become carbon neutral in 2022. This move will help change the negative branding NFTs have for many people.

Brands that have built on Polygon:

? Nike ? Adidas ? Starbucks ? Reddit ? Meta ? Robinhood ? Ebay ? Disney ? Stripe ? Adobe

Chainlink, the bridge-master

Chainlink will need a stand-alone post. Such is its importance in the global process of moving towards a Web3 financial and non financial world. I recommend to browse related articles and videos. Check out CEO's Sergey Nazarov video on their partnership with Swift for instance:

‘A solvable problem’: Chainlink founder Sergey Nazarov remains bullish on cross-chain future with SWIFT partnership

The birth of a new Nation

Don't check the price of BTC every day. The future is here. And it's not scary.