With top cryptos down more than 80 to 90 percent from their peaks and total market cap down $700 billion, the bear market is in full swing. However, crypto winter is proving to be good for some firms in the crypto space that are focusing on building infrastructure and as per them, this is the time for projects to show their real potential.
Best part of Crypto Winter: It’s all about BUIDL
The crypto winter is in full effect but looks like not everyone is feeling down by these blues, at least not the firms that are building infrastructure along with those that are looking to pick up equity in projects that dropped quite considerably. This bear phase has been rather a productive one for some like Konstantin Richter, the chief executive officer of Blockdaemon, a firm that creates and hosts the compute nodes, “This is the most productive phase we’ve ever been in,” said Richter.
“Projects now need to show their colors. The time is up of raising a lot of money and talking a lot of talk,” said Richter recently in a panel discussion hosted by Bloomberg News.
Since hitting their peaks, Bitcoin has lost over 81 percent of its value and XRP and Ethereum has dropped more than 90 and 91 percent respectively. With the top 3 cryptocurrencies crashing so hard, investors started having doubts about blockchain technology and what it can actually deliver.
“The skepticism is warranted in many ways because this technology is nascent and untested at an industrial scale,” said Adam Jiwan, CEO of Spring Labs. “Our hope is this presents us with a great opportunity to recruit talent,” he said.
Sheri Kaiserman, the co-founder and principal advisor at Maco.la, an investment, advisory, and the recruiting firm says this validated their approach to making equity investments than buying initial coin offerings (ICOs),
“We felt like the best way to make money is to buy the infrastructure companies — the picks and shovels — that are helping build the foundation. They are coming down in valuation, which is the best part of the crypto winter for us.”
Blockchain technology is predicted to save billions of dollars by effectively handling data and transactions. But it is still in its early phases of either testing or development by corporates. And many projects still have plenty of money to spend on development say those ICOs that went live before 2017 as they were able to buy Bitcoin at about $1k or less compared to the current $3,600. “There are projects that are so well funded they’ll last for years,” said Richter.