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From Bitcoin’s revaluation to the Axie Infinity data breach and the layoffs of major exchanges, crypto isn’t exactly having the best of times. But in many countries in Latin America, where the majority of the population yearns for a better financial future, investors are still bullish about crypto’s transformative power.
To understand how Latin American startups are preparing to weather the crypto winter, we spoke to five investors (TechCrunch+ subscription required) who are betting on companies that are taking a step away from traditional finance. They shared thoughts on the market as a whole and discussed how Latin America’s woes could create a tailwind for crypto.
For example, volatility is not a barrier to crypto adoption in countries like Argentina where legal tender is unreliable. When she became the Minister of Economy He left his job July 2nd on Twitter Everyone knows the local currency is depreciating against the dollar. But there was little they could do to take away the sting on Saturday. Web3 investor Matthias Niesensen found a solution: “Thanks to crypto, I was able to short the peso over the weekend!”
Nissenson said the situation taught him “how crypto can protect some people from their politicians.”
This focus on solving real problems for the general public is a common theme among entrepreneurs and investors in the Latin American crypto and DeFi space. But for it to work, startups must first address UX challenges.
“We recognize that we are still in the early days of crypto,” said Pato Jutard, Newtopia VC founder, “not only because the immature DeFi protocols need to prove their robustness and security over a longer period of time, but also because the overall user experience for crypto apps, especially for advanced ones, is still very difficult to use and understand.”
For example, boarding the Axie Infinity was not easy. The need for a simple UX is one of the reasons why investors are still hoping for game-to-find and similar models.
“There are a lot of options, like internships (Stepn), earning, etc.,” says Christine Chang, a fintech company. There are many exciting options for alternative sources of income and incentivizing desirable behaviors,” said Fintech company Gosa Ventures, the venture arm of the company.
Another source of optimism, Chang said, is that “LatAm is really ahead of the crypt curve in terms of women. “There’s something underwater when it comes to women in Web3,” agrees Argentina-based investor and author Claire Diaz-Ortiz.
Read the full survey to find out how crypto investors in LatAm think about the sector, why they view El Salvador’s experiment with bitcoin positively, and how to get there to vote.
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