So far so good. But if everything is so transparent, then how come the global crypto market has already experienced an alarming number of life-changing crashes? At the start of 2020, the entire market was estimated to be worth more than $3 trillion, but a crash in June 2022 led to a recent valuation of less than $1 trillion.
That’s down to the speculation and Gudgeon isn’t phased: “To be honest I've seen a few of these crashes up close and I've stopped caring about them.” The folks losing money in these crashes, he says, are the ones hoping to make a buck, buying into the hype and not doing their research, or simply prospecting on novelty products.
Compared to other cryptocurrencies, he says, the Gyroscope stablecoin offering is designed to be insulated from these types of crashes as it’s asset-backed, meaning that every unit of digital currency corresponds to a range of assets that diversify more than price risk, and that diversity is automatically factored into the system. “Compared to USDC, where you have to trust a company to maintain a bank account, with what we’re building you can just see the state of the reserve through a computer terminal,” he says.
By creating a stable digital currency, Gyroscope hopes to empower individuals to transact and trade on and offline without having to rely on banks and without being exposed to the risks of other volatile crypto assets. It's a similar premise that underpins Strickler's work at Metalabel, where he and his team are creating tools to help communities of creators to better distribute their products away from exploitative systems.
Here, too, the emerging market has been volatile, with the value of NFTs and other tokens flip-flopping to such an extent that the idea of investment in these products seems deluded. While Bored Ape Yacht Club NFTs initially sold for $1-3 million, they have drastically depreciated in value since their launch.