VRM, as a partner of CV Labs, took part in the crypto summit, which raised together members of the crypto community from the Swiss Crypto Valley and beyond to look into the hottest trends in blockchain.

The CV Summit is held in the heart of Crypto Valley, which spans across Switzerland and Liechtenstein. With strong support from the Swiss government, this region (and particularly Zug, Switzerland) has become home to some of the most renowned crypto and blockchain companies in the world.

Read the summary of the panel session at the CV_Labs #Blockchain summit, where Vladimir Demin, the VRM Chairman and BO shareholder took part.

What will it take for institutional or even general mass adoption of DeFi?

⁃ The first component is greed. No one in this world is as greedy as Wall Street. If you understand De-Fi and how it can now provide a three-digit APY, it’s clear that this will be a magnet for all the financiers the world over.

⁃ Another matter is trust. In general, people do not trust governments and big corporations. Maybe this is different in Switzerland, though. But in Russia, China, Latin America etc. people got used to regular bankruptcy of pension funds, banks defaulting, and hyperinflation. Smart contracts work as long as there’s electricity, no matter what happens. For example, we operate the new launchpad platform – FLy launchpad, which is completely risk-free.

How it works: there is no better way to evaluate a project than its public price. So, we return all or part of the invested tokens to their holders in case of IDO project price dumping. We have done it a few times and the community loves us for it. Just because we want to make money, not steal it. This approach improves projects too. Early on, it was quite popular for projects to make half-assed tokens, run an ICO and then run off with the money! Now that is not possible. Projects need to cooperate with the members of their community, treat them right, and not screw things up.

When do you see this all happening and what do you think the landscape will look like over the next 5 or 10 years?

⁃ All people on the entire planet is going to be split into two unequal parts. One group will reject fiat completely, they will become the techno-priest nation, others will reject crypto. Even today, many professionals are claiming that crypto is backed by nothing and they continue to believe that something stands behind the USD.

⁃ Talking to Estonian officials I learned that after they successfully implemented e-citizenship, they still have to keep the whole off-line infrastructure running to serve retired people and those who are afraid of technology.

Should banks and institutions be scared of DeFi and are we looking at a complete black or white disruption or is there a way traditional institutions can ride the wave instead of against it and innovate with DeFi?

⁃ They should. No more easy money. The biggest profit always comes out of the black box, where people have no info on where the money goes.

⁃ They can. Still, the level of awareness is too low. People will keep believing in banks. Even today there are book stores and newspaper kiosks despite all news being faster to get from the net.

⁃ There is still a chance for big institutions to take it over. Many of the companies that were originally on the Fortune 500 list, no longer exist. So a new elite is being formed now but some of the classical financiers can still jump in. Just like how Nokia was a pulp factory before their decision to produce mobile phones.

What do people think about the regulatory uncertainty around DeFi, does KYCed DeFi go against the spirit of DeFi or is it a necessary evil in the short term?

⁃ Actually, DeFi is the polar opposite of regulation. Because any kind of regulation is central. Society can definitely regulate itself, but only if the rules are the same for everyone. When we have got both crypto and fiat at the same time it is not possible. So we are going to have a transition period that may last for some time.

Watch the full video of the first day of CV sammit here


Vladimir Demin

VRM Chairman

BO Shareholder