The crypto winter, as scholars may describe it has seen a vast majority of crypto assets depreciate by upwards of 90% against the US dollar ($). But shouldn’t this be a cause for alarm for the crypto startups underpinning these assets and the investors thereof?
Experts in the industry believe that the bear market effect is not only advantageous to investors but also paves way for startups to reevaluate and rebuild as a consequence, their asset class and the entire sector by extension
The bear market effect
Since the close of 2017 up to the beginning of 2018, which saw the crypto market soar to unprecedented heights, prices of such assets as Bitcoin and Ether traded near or at $69,000 and $4,300 respectively with almost all other assets enjoying a similar lucrative season. However a devastating period that proceeded saw the prices of a vast majority of crypto assets plunge by as much as 90% or even beyond with only assets with strong fundamentals surviving the market shock.
However, not all startups in the crypto sector fell victim to the bear effect. To some it was just another golden opportunity to reorganize and redefine the crypto ecosystem. For startups like Blockdeamon, a firm that majors in creating and hosting of computer nodes that underpin the blockchain network, it is a redefining moment.
“This is the most productive phase we have ever been in,” stated Konstantin Ritcher, the CEO of Blockdaemon adding that a majority of startups in the space are now turning to such companies for help in an effort to redefine their goals so as to fulfill on their ambitions.
Skepticism in the space
With many studying closely the curves in the crypto space, questions have started being raised on the practicability of the technology to deliver on its transformational agenda in real world. However, Adam Jiwan, the CEO of Spring Labs, the builder of decentralized credit-report system using blockchain technology believes the skepticism is warranted given the technology is just at its initial stage and its full potential has not yet been exploited
“The skepticism is warranted in many ways because this technology is nascent and untested at an industrial scale” Jiwan said adding that “our hope is this presents us with a great opportunity to recruit talent”. Jiwan believes the unfortunate layoff of crypto startup workers that preceded a prolonged bear market just presented another opportunity for such firms as Spring Labs to pick up new talented employees
