Opportunities and risks in the Vietnamese blockchain market

Bright spot on world map

According to Lynn Hoang, Head of Binance Southeast Asia, Vietnam continues to be a bright spot on the world map, in the top 10 of Binance’s markets across many product lines.

Many projects built by Vietnamese people have become global icons in a number of fields. Blockchain is making Vietnam a leader in the field of new technology. And Vietnam has many advantages.

In addition to well-known products in the international market, the team of Vietnamese engineers continues to build many new projects to form a rich ecosystem with many derivative products. This is the big plus of the market.

Another positive point is that Vietnamese blockchain projects continue to receive foreign investment, showing that Vietnam is still the cradle that attracts many international investors.

“Hopefully we will have more good news, many millions of dollars from large international investment funds can continue to pour into Vietnamese projects. Last week, a Japanese billionaire came to Vietnam to learn about Web 3, metaverse projects,” said Ms. Lynn Hoang.

In the GameFi sector, Axie Infinity is leading the market, with a market capitalization of over $9.7 billion. At its peak, we had dozens of projects with a market capitalization of over $100 million.

Two million-dollar Vietnamese blockchain startups, Axie Infinity and Coin98, have been listed on Binance. Recently, Binance also led a $150 million fundraising round for Axie Infinity to deal with the aftermath of the hack.

“Right now, we also have thousands of different blockchain projects that have been built by Vietnamese people. If we look at the whole market, we see that Vietnamese blockchain projects are still succeeding, helping to light up their names. on the international blockchain map,” commented the Director of Binance Southeast Asia.

Purification stage

From a business perspective, Mr. Nguyen Viet Dung, CTO Krystal of Kyber Group said that the greater the opportunity in the blockchain market, the higher the risk. Especially this is the purification phase with the blockchain market in general and the Vietnamese market in particular.

“Many projects cannot hand over projects, leading to devaluation and loss of trust from users. Therefore, projects should invest more methodically, invest more in the platform to build a good team. , capable of handing over what has been promised to users,” shared Mr. Nguyen Viet Dung.

According to Mr. Dung, users also need to learn more about projects and teams, need to be more responsible for their investment. Investing is always risky, but users need to really understand that risk.

CTO Krystal divides risks in blockchain into three categories. First, projects go to call for capital and then cheat users’ money, call for investment and then hide, buy a house and buy a car, then don’t do projects anymore. This is a genuine scam.

Second, projects get hacked, resulting in users losing money. This is something no one wants. But the fault is still with the projects and they need to be held accountable.

Therefore, projects need to invest more in security processes, system safety, need to build products methodically, rather than just apply new technology and then build a product for users to use, but its safety is not guaranteed. That would be very dangerous for both the project and the user.

Third, and perhaps the most numerous, are projects that fail to deliver the product they promised to their users. That leads to the story of users losing trust, then being labeled as a scam.

“I think this is the other side of the opportunity in the market. Projects that raise capital are quite easy, so everyone can do it. Typically NFT games, GameFi recently. Every game promises to do things related to this. 3D, metaverse, VR… But as a technologist, I understand it’s not easy to build, it will take a lot of effort and resources, while there are too many projects, and the obvious question is who that do?”, Mr. Dung emphasized.