The currency circle panicked! Because of the magical operation of the US supervision. Do you still remember the restlessness of the big tide flooding Xiangjiang two months ago? ! Because of the prudence and prudence of Hong Kong's new policies, the Hong Kong that we expected to see in June would bring a high-spirited force to the encryption market, but it did not appear.

Hong Kong’s New Deal has been cautiously and steadily advancing in the process of delaying its implementation. The first core priority is to ensure the safety of investors’ interests. This matter should be the lowest and most critical foundation for Hong Kong’s powerful layout of the encryption economic center, but it makes the currency circle in The restless excitement was lost under the strict regulatory thinking.

But in fact, whether it is the development of the encryption economy towards the Web3 native market, or the narrative of the Hong Kong Global Encryption Center strategy, this is the best time.

Let's start with this panic. U.S. regulation does not reflect the top-level strategy of a big country. In June 2022, they ambitiously proposed the "Lummis-Gillibrand Responsible Financial Innovation Act" (Lummis-Gillibrand Responsible Financial Innovation Act) to ensure that the Web3 revolution takes place in the United States, too much thunder and too little rain.

Looking at the supervision of the core forces of the encrypted economy such as Ripple, Coinbase, and Binance in the United States before and after the "Responsible Financial Innovation Act", there is no friendly directional plan to promote and protect the healthy development of the encrypted economy. Their most correct starting point is to serve ordinary interests of US investors. However, when the lawsuit against Binance and Coinbase turned into mad dog bites, they tore away the disguise of protecting investors and directly attacked digital currencies. Their attitude was to extinguish the encrypted economy.

Before this prosecution, the trend that U.S. regulation would damage the encrypted economy had already been determined. We described this in the "Hong Kong Insights" series of articles in April when the tide flooded Hong Kong—under the background that the Americans have played badly in the past period of time, Hong Kong will become the main narrative of this round of bull market. This is a common perception in the entire encryption market, and it is also the basic reason for the surge in Hong Kong.

Therefore, we judge that this is the timing for Hong Kong. However, in our "Hong Kong Insights" series of articles, we once discussed an article titled "Hong Kong has little possibility of being a "global encryption center", why?" This made many friends understand that we are not optimistic about Hong Kong and black Hong Kong.

We take this opportunity to explain again: We judge that it is "almost impossible" for Hong Kong to become a global encryption center. This is not our effort to "hack" Hong Kong in areas related to the encryption economy. We also hope that Hong Kong can seize this historical opportunity to achieve achievements We are a global encryption center, so we did not make an "impossible" judgment.

This article is completed under the restlessness of the tide in Hong Kong, because we are sure that Hong Kong will become the main narrative of this round of bull market, so this restless force may bring vitality to the bull market, but if Hong Kong just puts the people living everywhere Players in the old currency circle gather together and continue to speculate in currencies, which is more likely to destroy the narrative of Hong Kong as a global encryption center.

As mentioned at the beginning, this force is indeed volatile, emotionally unstable, and speculative. The turmoil of American regulation has scared them into panic in batches.

We judge that the grand narrative of Hong Kong becoming the center of the encryption economy and the development of the encryption economy towards the Web3 native market are perfectly combined. This is a huge historical opportunity. For relevant discussions on the development of the encryption economy towards the Web3 native market, please refer to "The Value Logic of "Bear Market Bottom" from "Civilization Ends".

In this article, we describe: After the hard work of the early builders of the blockchain world, the infrastructure of the encryption world has been continuously improved, and the encryption ecology is moving from being limited to investment/speculative attributes such as ICO, DeFi, and NFT. At the level of industrial and financial integration, with the encrypted economy as the core, the entire world's economic system will be reshaped, and the world's financial structure and order will also be rebuilt; on this basis, we are expected to see an "Internet +"-like "Blockchain/Web3+" is booming; at that time, besides blockchain/Web3, network technologies, hardware devices, and high-immersion, no-delay applications related to the construction of the metaverse will also achieve considerable development; at that time, AI And blockchain/Web3 will meet in this situation.

A group of hard-working encryption ecological builders have brought us from the zero-sum hype and speculative game in the currency circle to the blockchain/Web3 industrial ecological construction. And this group of encrypted ecological builders and their Web3 native application market will be the mainstream in the future.

However, there are still challenges for Hong Kong to become a global encryption center - Hong Kong needs to integrate the role of "financial center" into the narrative of Web3/encrypted economy, and needs to transform the restless power of speculation in the currency circle into supporting the development of the Web3 native market The key point is how the Hong Kong government can make good use of the original DeFi capital allocation function in the encrypted economic system. Of course, the Hong Kong government’s choice of an entry point for the tens of billions of off-chain assets on the chain is a smarter choice—in the next one or two bull-bear cycles, Hong Kong will promote the virtual assets of the encrypted economy and the real-world financial system. The integration of the main battlefield, advance can attack and retreat can defend.

Then, how to implement the trillion-dollar market of off-chain assets on-chain, the Hong Kong government needs to use the native NFT function in the encrypted economy to realize asset on-chain, on-chain right confirmation and transaction circulation. On the basis of NFT helping off-chain assets on-chain, the Hong Kong market can integrate on-chain assets into the encrypted economic system through DeFi, and then become the capital to support the development of the Web3 native market.

So don't panic! Everything is getting better. The opposites of "opportunities and challenges" are united in the high degree of integration of "the development of the encryption economy towards the Web3 native market and the strategy of Hong Kong, China's global encryption center". (Author: Jerry@TPDAO, Daoist@TPDAO)