The crypto market has been on gradual downtrend since prices peaked in November 2021. At the time, Bitcoin’s price was hovering above $65K, which is 40% higher than today’s prevailing price of $38K.
While some crypto natives are yet to accept that a bear market may have already commenced, technical analysis and macro trends predict that stakeholders might be in for a rough ride.
Given the current conditions, the big question is how retailers and innovators can survive the looming bear market. The former group has a handful of options, including staking one’s crypto tokens, dollar-cost average (DCA) buying and hodling strong cryptocurrencies such as Bitcoin and Ether.
Additionally, one can also choose to leverage some of the existing stablecoin interest accounts such as Celsius Network and BlockFi.
What about crypto innovators? This group is the backbone of developments in the digital asset industry. However, they suffer equally or even more during crypto market bloodbaths, which should not be the case.
The purpose of this article is to inform crypto Founders and CEOs on how they can avoid bear market pitfalls and make the most of turmoil market conditions. Let’s take a deep dive;
- Launching an Initial Dex Offering
An Initial Dex Offering (IDO) is a way of raising funds in crypto through decentralized launchpads. This crowdfunding method became popular following the debut of Decentralized Finance (DeFi) projects, where innovators launch native tokens that can be purchased by prospects looking to be part of a particular project.
Some of the existing crypto launchpads that can help innovators to raise money during a bear market include Polkastarter, DAO Maker and VENT. While all these platforms provide almost a similar utility, VENT Finance has taken the game a notch higher; this DeFi launchpad features a full-stack multichain community crowdfunding ecosystem.
What does that mean for crypto innovators? VENT’s launchpad not only enables early-stage products to access crowdfunding but offers extra support through incubation, marketing resources, expert guidance and strategy execution. More importantly, Web 3.0 projects leveraging VENT’s launchpad can remain compliant by integrating the platform’s KYC feature.
- Building on the Latest Trends
Though still a relatively new industry, cryptocurrencies have evolved by a magnitude since the launch of Bitcoin. How can innovators capitalize on the fast-paced nature of this industry? Well, it is actually simple; build on the futuristic trends.
This is the approach that was followed by some of the prominent projects, including Ethereum which was launched in 2015; the vision was to host Decentralized Applications (DApps).
Looking back, one can see why Ethereum die-hards were betting on the project as early as 2016. It is currently the leading smart contract platform with total value locked (TVL) of $113 billion, according to DeFi Llama.
Similarly, today’s crypto innovators ought to be keeping up with the latest trends so as to remain relevant. The bear market is also a perfect time to build, given that most of the surviving participants are genuine contributors to the ecosystem.
That said, there is currently a lot of speculation on the potential of Non-fungible tokens (NFTs). This is one of the areas where crypto Founders and CEOs should prioritize in preparation for the next bull market and adoption phase.
Notably, one does not have to build an NFT solution from ground up; existing crypto projects can also opt to integrate with NFT platforms to increase their underlying value.
- Follow Through on Milestone Delivery
This is another area where crypto innovators can capitalize during bear markets. As it stands, there are over 13,000 cryptocurrencies competing for the same market. However, their value differs greatly depending on a project’s resilience and milestone delivery. CEOs and Founders should borrow a leaf from the traditional FinTech industry where accountability plays a big role in the growth of a project.
So far, only a handful of crypto innovations have lived up to the expectations. More interestingly, those that have failed leave during bear market seasons. Why is this the case? For starters, there is a significant lack of accountability in crypto. Projects raise money and all of sudden go dark without any consequence.
On the brighter side, this situation presents an opportunity for diligent projects to not only survive during a bear market but attract more users once the hype comes back. It is therefore important for crypto innovators to set achievable milestones and deliver on them regardless of the market conditions; that is how Alpha can be built.
- Focus on Community Growth
Last but not least, innovators are better off focusing on building their communities during crypto winter. This means engaging more people through various social platforms such as Twitter, Reddit and Discord. In doing so, crypto projects increase their chances of booming once the market conditions change in favour of the bulls.
While it may sound like an uphill task, it is the only way for any crypto project to build solid fundamentals. Bitcoin started as a small community but it has attracted a large following over the years despite a few bear market seasons. Likewise, emerging projects should emulate the ‘community spirit’ to build a better foundation for testing or launching their products.
Based on historical stats, it is evident that crypto functions like any other market; sometimes up, sometimes down. However, the most important thing is for innovators to build valuable products round the clock.
This will ensure that momentum and morale are always high instead of depending on seasonal pumps to propel the market forward.