Block-the-Talk; Anurag Dixit of Kunji on why industry-specific knowledge is required around blockchain | The Financial Express

Block-the-Talk; Anurag Dixit of Kunji on why industry-specific knowledge is required around blockchain

It is believed that hardware/cold wallets with a combination of applications by companies are constantly upgrading the security of their ecosystem on both the hardware and software fronts

Block-the-Talk; Anurag Dixit of Kunji on why industry-specific knowledge is required around blockchain
While digital assets come with their own evolved features and tokenomics, some base characteristics in the project team can still help make a sound judgment, Anurag Dixit, founder, Kunji, said

Anurag Dixit, founder, Kunji, a cryptocurrency asset management firm, shares his views on how the blockchain space is still going through upgrades in terms of protocol and token standards with FE Blockchain.

What are the three best practices that today’s youth should follow when it comes to digital assets?

It is integral to study the whole cycle of boom and bust. How do things go south/break, and how do genuine players keep on building and performing in the next leg up? The downturn gives an opportunity to filter the noise and find valuable gems to invest in or trade-in.

It is always better to keep the refinement better. The crypto space has come a long way, but infrastructure and support-level developments are still being built. It’s easy to get lost between the tones of Twitter accounts, telegram groups, and discord servers in search of alpha. The truest sources of a company’s fundamentals are its GitHub code, on-chain activity, and company blogs for direct and clear updates regarding the path forward. As the space is still unregulated, many unsolicited channels, groups, and tweets are always shilling baseless projects to capitalize on the FOMO.

The basics still apply in researching and finding good companies. While digital assets come with their own evolved features and tokenomics, some base characteristics in the project team can still help make a sound judgment. A good team or A-team, a strong problem statement, a visionary approach, and the ability to maneuver through market, policy, and regulatory uncertainty are non-negotiable. While some of these traits can be learned over time by the team, practical understanding at the protocol or business level is needed to understand the opportunity and growth potential of the project.

How can blockchain be used to keep digital assets safe? Which are the apps consumers can use?

Primarily, hardware/cold wallets with a combination of apps by reputable companies (like Ledger) are constantly upgrading the security of their ecosystem on both the hardware and software fronts. Therefore, general cybersecurity measures like checking for keyloggers and air-gapping devices containing high-volume assets should be observed.

What are three tips you would like to give to people who dabble in crypto trading?

Risk Management: The first and most important one is risk management. While this is true for all market conditions, it is specifically important to survive in the current market conditions. Those who survive will be rewarded by the market, and the only way to survive is via a thorough risk management approach.

Harnessing the volatility – Being an emerging asset class, the crypto space is still maturing and still has a lot of volatility due to its global nature and constant upgrades on technical and business levels. While the volatility can be intimidating, the same can be captured with proper psychology and management to drive returns in tough downturn markets like the current timeframe as well.

The margin of error – A lot of the infrastructure around trading and investing is still being polished for special and edge cases. A lot of changes are continuously happening at the tech level. Hence, errors in trade execution should be anticipated, and a small margin of error in returns should be expected. While the trading platforms have come a long way, a loose thread can cascade into a snowball of liquidations. Trading on the NSE and BSE can still get you into technical halts. So, no system is perfect, but the predictability of error helps.

Which according to you is the country leading in the space and the Indian start-up ecosystem can pick up the best use cases?

At this point in time, it’s relatively tough to say which country will ultimately lead the charge pockets across APAC. Great projects have started to emerge from the USA and South Korea. While each region has had its own fair share of issues, Dubai seems to have a good balance of regulatory clarity, talent availability, and capital and is subsequently providing strong competition to the USA by being an early mover in the new-age tech industry. Though India has a huge talent pool of developers, the same needs to materialize in economic output and contribution to GDP. The competition is with highly developed countries, but the same comes with its own drawbacks.

On the use cases front, a lot of old data regarding land ownership and commercial transactions is yet to be digitized. The main issue here is the authenticity of current offline records. If the same is solved, the speed of economic growth in such hard assets will take a massive turn.

What are the disadvantages of blockchain?

New assets and business models are constantly emerging and evolving as the blockchain space is seeing constant upgrades in protocol and token standards. The mechanism to harness patterns and analysis from the same is also being developed on the fly. Hence, the data pipelines still have a curve to mature with ever-evolving economic and business models. While traditional methods and metrics may help, a lot of industry-specific and domain knowledge is key to deeper insights.

Follow us on TwitterFacebookLinkedIn

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

First published on: 29-10-2022 at 10:00 IST