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“This is exactly the time to build”, said Cointelegraph China co-founder and CEO Vadim Krekotin in a conversation about Web3 adoption at the recent Singapore Blockchain Festival.
Krekotin said that while he joined the market in 2017 during the bull market, it was after that year during the bear market when he invested in the best projects, teams, and products.
“I was waiting for this bear market, so people can can finally focus on the good things – bringing the value rather than making hype during the bull market. Crypto winter separates hype from innovation so it’s a very good time to build”, he explained
Web3 is many things
According to Krekotin, Web 3.0 isn’t just a buzzword simply because it includes many new possibilities such as DeFi, NFTs, and DAOs – which he describes as “the only acceptable governance model in Web3 and the metaverse”.
Krekotin also highlighted the key difference between Web 2.0 and Web 3.0 – the fact that 99% of all profits in Web 2.0 goes to investors and platforms, and only a small amount are allocated to users and content creators.
Citing the example of NFTs, Krekotin said that the technology is “not just about jpegs”, but has actual utility as a proof of ownership and a method to ensure fairer compensation for the creator economy.
“Last year, Spotify generated US$7 billion in revenue, but the average pay out to creators was US$630. But during the same period of time, the average pay out for NFT creators was US$174,000. This is proof of the creator economy and how it works”, he explained.
“Web 3 will democratise the web and align the interest of all the participants to build the system together”, he emphasised.
Entertainment to drive adoption
Krekotin’s vision for Web3 adoption is an interesting one because he believes that the main adoption driver will be entertainment. This is because Web2 applications such as mainstream social media platforms are easy to use, easy to promote, and have a “fun” side to them.
“For Web3, we need more companies and applications who are doing something for entertainment, so that people can easily and natively understand how to use Web3”, he said.
According to Krekotin, Web3 applications such as DeFi are great and important tools for crowd funding and borderless banking, but they are often too complicated for the man on the street to understand.
“How many of you are using DeFi in real [life]?… I think not many people can use it. It’s very hard to understand”, he opined
Krekotin expects that the gaming industry will be the one to provide a lower barrier of entry into Web3, as more than 3 billion people around the world (nearly half of the world’s population) are already playing games, making the industry a vast market to tap.
“This is exactly the thing that will dominate the market and bring on board the next billion users in Web3”, he said.
Krekotin is the co-founder and CEO of Cointelegraph China. He is also the founder of CBE China Blockchain expert (中国区块链专家) and the founding partner of Singapore-based venture capital firm Cryptomeria Capital.