DeFi (Decentralized Finance) allows individuals to perform various financial transactions without the need for a centralized intermediary. Its purpose is to democratize access to finance and promote financial inclusion which should lead to a better world for all of us. DeFi offers the ability to customize and conduct trades and loans without the need for permission, as well as the ability to manage counterparty risk. DeFi's scope is limited to these capabilities and does not extend to any other functions.
The fall of FTX has been devastating, but it has also reinforced the need for a player offering proper DeFi solutions.
The stagnation and lack of innovation in the DeFi space despite significant investment is a primary concern. This can be attributed to a combination of factors including impatience, inadequate research/development and failure to identify the appropriate product-market fit. This has led to a proliferation of poor token economics that prioritize short-term gains over long-term value, resulting in wasted capital and short sighted investments.
What Sigma Labs is Doing
Sigma Labs have further reduced its operations in certain areas to optimize our spending and remain focused on refining the value proposition for $SDEX while also making necessary changes to better suit the market. Pivot points and adapation are essential to survive the bear market.
These optimizations include:
- Explanation like 5 years old (ELI5)
- Heavy visual representations
- A multi-chain ecosystem
- Refactoring its token loop
- Virtually eliminating the barrier of entry
- Adjusting user experience for retail
For further clarity regarding the downfall of numerous crypto giants, Sigma Labs remains directly unaffected by the following notable events:
- Three Arrows Capital - bankruptcy
- TPS Capital OTC - exposure to 3ac
- Celsius Network - bankruptcy filing
- Voyager Digital - bankruptcy filing
- FTX/Alameda Research - bankruptcy filing
- Genesis Global Trading - withdrawal halt
- Genesis Block HK - permanent closure
Many "investors" are desperate and continue their attempts to redeem investments with large numbers of refunds requested or SAFTs sold at a discount. Many projects may run out of funding from poor token economics while others may be impacted by the situations at FTX, LUNA or other notable failures. As a result, venture capital fundraising has been on decline and some funds may shut down due to a lack of liquidity and/or being over-leveraged. Alternatively we believe there will also be opportunities amidst these difficult times for certain parties who are able to weather the storm.
Although we have been fortunate enough to avoid the direct impact of the tumultuous events of the past year, it does not mean that our operations will proceed as usual. The Sigma Labs team has had to swiftly adapt to the changing landscape and make substantial sacrifices to maintain our ability to achieve success. The economic downturn has also taken a toll on many individuals, leading to personal losses and added difficulties. As we move forward, it is crucial for our team to exercise caution with our financial resources while simultaneously working diligently to achieve more with fewer resources.
The prospects for 2023 are very promising; With the potential for a recovery from the bear market of 2022, new developments and applications of layer 1 and layer 2 blockchain technology and advancements in DeFi technology. All of these factors converging make for an exciting year ahead in the cryptocurrency markets.
We remain committed to our mission of revolutionizing DeFi for the next million users as we continue building towards that goal. We appreciate the support of our community and looking forward to becoming an outlier in the industry.