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Startups: why you do not need to be afraid to launch a project in the bear market


Dec 21, 2022

Startups: why you do not need to be afraid to launch a project in the bear market

The cryptocurrency trips are experiencing a difficult period – Terra’s collapse in May brought down not only the promising Defi market, but also influenced the entire industry. War in Ukraine and record inflation also do not cheer the mood of investors and market courses. The young history of cryptocurrencies has already proved that the mood of the market is cyclical and replace each other. In the article we figure out why, despite the bearish market and the approaching crypto winter business, you should not turn your projects in the crypto industry and Web 3.0

Cryptosim 2018 vs 2022

To try to suggest that the market is waiting for, we compare it with the previous bear cycle of 2018. Dappradar resource recently issued a report in which he compared the events of two periods of a protracted crisis.

In 2017, the cryptosphere experienced the ICO boom – the market was flooded with numerous startups and companies that used cryptocurrencies in the financing model for their ideas. At that time, funds collected almost any ideas indicated by the words “blockchain” and “crypto” in their names. The situation resembled a boom of revalued Internet companies in the United States, known as the “bubble of bubble” in 2000.

The market was flooded with fraudulent projects and simply ill -conceived ideas that attracted millions of dollars, but never passed the road card until the end. According to Dappradar, about 90% of ICO era projects did not survive 6 months after launch. In parallel with this, launching futures based on bitcoin, rumors about the total ban on cryptocurrencies in Asia and the hack of the largest Japanese exchanger Coincheck – they brought down the Bitcoin course by 65%.

The cryptosim of 2018 lasted 18 months and not only the prices for assets, but also the interest of investors in the industry were low. But even despite the zero involvement of the majority, at that time many projects and ideas that exist so far have started. For example Axie Infinity, future giants Defi Uniswap, Aave, Curve and others. NFT markets have grown, Play-to-Earn Industry, metavseli and Web 3.0.

Map of companies that entered the market in 2018. Source: Cbinsights.Com

If you compare the cryptosim of 2018 with today’s market situation, you can find several important differences

The blockchain network has changed. At that time, we saw several isolated networks, in the features of which a small number of people were versed. Now it is a whole ecosystem that attracts tens of millions of daily users. Tools were developed that increase interactions, speed, scalability and convenience for users and developers.

The portrait of investors has changed. In 2017-2018, the crypto startups invested mainly small retail investors. Now there are large funds and corporations on the market that allocate millions of dollars for the development of projects in the blockchain and Web 3.0.

Large funds continue to invest in interesting ideas. If last period we observed a lull and extremely low interest in the sphere during cryptosim, now investors open additional funds and invest-coppers. For example, at the beginning of summer, the Huobi crypto exchange exchange announced the creation of an investment unit with a fund of $ 1 billion, and the A16Z crypto fund announced the opening of the 4th fund in the amount of $ 4.5 billion. Not only crypto funds are invested in blockchain companies. In the portfolio of the famous venture fund SEQUOIIA Capital, for example, startups such as Move-to-Earn Stepn and FTX crypto tour. And this fund is famous for the ability to find projects that in the future become unicorns.

Cryptocurrencies are accepted as a legal means of payment. Many people use digital funds every day: transfer to relatives, buy goods of large brands and even pay utility bills. For example, bitcoin was officially adopted in a number of South American states, and you can pay taxes using Tether in the Swiss commune Lugano.

The blockchain industry has changed. Now it is a diverse market, from Defi tools to the world of art and NFT. Multi -Milion brands Web 3 have grown.0, for example, The Sandbox and DecentRaland metavselnaya, which collaborate with Adidas, McDonalds, Gucci and others.

Speaking briefly, the cryptocurrency market in 2018 and now – incommensurable in scale. And if the so-called crypto-sabotage bubble did not burst then, most likely the market will stand and now. In the end, most blockchains of startups are not only a smart contract and a line on exchange graphics, and NFT is not just a line of code.

When is it better to enter the market

The answer to the question what is the right time to start turning your project into the blockchain industry-any. History shows that in the days of bear hibernation and bull’s race there were successful and unsuccessful projects. Of course, now difficult times and the market is in the phase of caution and waiting, but in general it will not be an obstacle to good ideas and concepts.

Some advice on projects that plan to start in the bear market.

  1. The idea is important. Investors now act with caution and carefully choose projects. However, this works in a plus – the market was cleaned of speculators who dump the papers as soon as possible. A more loyal audience enters good projects, which provides support.
  2. Build a strong community. A successful project is not only a cool idea. Do not forget that there are people outside the smart https://gagarin.news/news/obzor-vast-bank-kak-im-polzovatsya-i-v-cem-ego-osobennosti/ contract. The bear market is quiet, so you should focus on the formation and motivation of loyal followers.
  3. Make a project development plan. The wrong listing strategy can be expensive and slow down the development of even the most promising startup. The needs of the project and communities should be studied to choose the most promising exchanges and lanchpads.

If you want to promote your product in the cryptocurrency market, listing on one of the exchanges or conduct IEO – write to us: [email protected].

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