Seattle conference report
between those who were pushing the blockchain-backed currency versus those, particularly regulators, who felt the dangers far outweighed the risks. From the vantage point of mid-2022 the world feels a very different place and a crash in the value of virtual digital assets makes the discussion muted at most. However, by way of pointing to the future, it is worth listing panellists’ arguments for and against. In crypto’s favor are the fact that it is quick, cheap and irreversible. That last point is particularly important when operators are being hit by credit card chargebacks. Advocates also argue that the permanent blockchain record linked to individuals make KYC and age verification more straightforward too although the more cautious voices disagree. Aside from extreme volatility of value, there is, they say, a much greater likelihood of crypto transactions being linked to money laundering. They also worry about security weaknesses and the risk of hacking. At its core, cryptocurrency does meet a defined market need and is likely to survive in some form beyond the current market gyrations. The same cannot quite be said for non-fungible tokens which have yet to prove their value. Panellists saw the end of NFT gimmicks but did not rule
out the possibility that NFTs could find their place provided they could deliver something beyond a jpeg. One imagined Lebron James creating an NFT representing part of himself which could be played in the EA Sports NBA game. Fans could purchase a slither of Lebron and his value in the game would be determined by his performance in the real world. That blend of real and virtual would be similar to a fiat currency being backed by gold and was more likely to have value which would survive the ravages of sentiment and speculation. Startups are some of the fastest moving tech innovators and one of the most interesting panels concerned their legal needs. These can often be very different from established players in gaming, in fact, many will use legal advice to avoid being classified as a gaming company at all. Novel digital entertainment will often avoid the requirement to get a license and maintaining their non-gambling status is a key requirement of the counsel they seek. Many of the legal work with startups is at a fundamental level which starts by articulating the product to understand the legal touchpoints that are important. Using the mantra that the most successful entrepreneurs place bets with other
IMGL Magazine • July 2022 • 49
Made with FlippingBook flipbook maker