Home Ethereum Web3 users will do more than just trade crypto: Ken Timsit of Cronos (interview)

Web3 users will do more than just trade crypto: Ken Timsit of Cronos (interview)

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Web3 users will do more than just trade crypto: Ken Timsit of Cronos (interview)

In a recent interview with CryptoPotato during EthCC 5 in Paris, Ken Timsit, Managing Director of the Cronos Channel and Cronos Labs, highlighted the network’s advantages over other competitors, talked about the current bear cycle and what Cronos is doing in preparation for the next bull run, the future of the internet and crypto, and much more.

Cronos Channel Vs. Cronos Labs Vs. Crypto.com

The Cronos Chain is a relatively new blockchain network supported by the popular crypto exchange – CryptoCom – which interacts with the Ethereum and Cosmos ecosystems. It is powered by Ethermint, allowing the porting of dapps and smart contracts from Ethereum and EVM compatible chains.

It doesn’t have a founder “because it’s an open-source project created by the Cosmos community that was then grabbed by a team and put into production,” Timsit said.

Being supported by CryptoCom means that all exchange users can operate on the Cronos blockchain, as well as all holders of CRO (the company’s native cryptocurrency). As such, Timsit estimated the total number of addressable users to be around 50 million at the time of this interview.

So far, however, only around one million “have migrated and created an account on the Cronos chain”, and the number of third-party applications created on the blockchain is around 300.

Cronos Labs, on the other hand, serves as the base for promoting the Cronos ecosystem. It runs a $100 million accelerator program, published in June, which seeks to invest in the first crypto startups that are likely to create the most innovative projects on Cronos.

However, Timsit stressed that his team does not believe in “walled gardens” and encourages contestants on Cronos to also go multi-channel.

The exec also informed that not all projects wishing to take advantage of the program need to have their own native token because “often times if you’re just using NFTs as in-game assets, you just need to have NFTs to create a business model”.

When it comes to DeFi protocols, however, Timsit believes they should have a native coin as they usually have many stakeholders.

“You use the token to make sure that every actor has the right incentives to behave the way you want them to. That’s why often tokens are useful for that particular reason. But, on our end, what really interests us , these are the apps that find a way to charge transaction fees to their users or monetize the protocol.

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Ken Timsit, Cronus. Source: Chronos

Recent Effects of Crypto.com Layoff

Asked if Crypto.com staff reductions had an impact on the two projects he leads, Timsit reassured that they were separate organizations, stating, “Cronos and Cronos Labs are independent from CryptoCom in terms of companies and entities.”

Nevertheless, the executive admitted that they were also affected by the drop in market prices and user interest. Strategies have changed because spending too much on marketing no longer makes sense today as it did several months ago.

He added that daily transactions are currently between 100,000 and 200,000 on the Cronos network, and peaked just before the last stock market crash at nearly 500,000.

Total Value Locked (TVL) peaked at $5 billion, but has now fallen to $1.5 billion. Still, that makes it the fifth-largest EVM chain, Timsit claimed.

“Do more than just trade crypto”

With so many giant VCs backing emerging projects from the oft-praised Web3 game and the metaverse vertical, Timsit also touched on the topic. He described it as a virtual domain that allows “self-custody of assets and direct integration with smart contracts.”

“Our vision is that this is the future of crypto. So, for anyone who is currently trading crypto, buying and selling crypto, we believe the next step for them is to use DeFi and Web3 games so they can do more than just trade crypto. They can borrow and lend assets that have meaning and utility in these virtual worlds; they can invest these assets in various yield-generating protocols.

However, he asserted that Web3 can only reach its full potential in environments “where you have applications that are compatible and composable with each other, which is the strength of the EVM ecosystem.”

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