The Great Crypto Crash
- 💥 The great crypto 2022 crash
- 🐂 Should we feel bullish about Crypto in 2023?
- 🌐 Around the WEB3 and Tech world this week
- 💰 Coins of the week
- 🙏🏻 Grateful for…
💥 The great crypto 2022 crash
Hard to believe that we have entered the last month of 2022. This year flew by but was full of events for the Crypto markets and web3 in general.
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Unfortunately, most of the events have not been positive, but the markets are not bleeding as much as one would expect.
Luna-Terra crash, Interest rate hikes, FTX collapse, The equity market, Major DeFi hacks, and Inflation figures are among some of the reasons why we have the valuations we have today.
A year ago, BTC was above $50k, today we are barely north of $17k. Ethereum was $4200 and now is $1200, all coins are way below their ATH.
Shares of Coinbase, Square-owner Block (SQ), top bitcoin miners Hive (HVBTF) and Riot (RIOT), crypto bank Silvergate (SI) and software firm MicroStrategy (MSTR) have all plummeted in the past month.
🐂 Should we feel bullish about Crypto in 2023?
I believe so. Despite a disastrous 2022, crypto is still alive and valuations are better than expected.
We are seeing the cutting of more than 20k tech jobs by web2 companies. As we mentioned before, many of these season tech workers will opt to work for web3 companies as they look into the future, These companies have continued to build during the recessionary crypto years and some will start to see gains.
Interest rate hikes will start increasing at a lower rate, which should ease inflation leading to more disposable income for some of us to invest. This should also give a boost to equity markets which have been mirroring the crypto markets.
The challenge is to create a safe crypto environment, hack-free (or at least fewer hacks), and find ways to regulate or avoid frauds à la FTX that can make the whole industry come down cracking.
This is a lot to ask, but the crypto space has proven to be relentless and always makes a comeback. Crypto became ubiquitous earlier this year after blockchain companies sponsored major arenas, sports events, and super bowl ads. All this collapsed due to rugs, scams, hacks, and a-holes who just took investors’ money.
Now that we have the world’s attention, the next comeback will be joined by more institutional investors, state and country funds (El Salvador will not be alone), and those who decided to join during the mass adoption of 2022, but are waiting on the sidelines to buy.
🌐 This week in the WEB3 and Tech world
- More than two-fifths of American adults under 29 have bought a product after learning about it from an influencer.
- Sales of electric scooters in France grew 42% in 2021
- In China: 31% of all cars sold last month were battery EVs or plug-in hybrids
- The New York Times has published misleading headlines about the FTX fiasco. “How Sam Bankman-Fried’s Crypto Empire Collapsed” and calling him an “Altruistic businessman” is by far not only misleading but borderline a lie. He also was interviewed by DealBook, after stealing more than $40 billion of client’s funds.
- Crypto lender Genesis allegedly owes $900M to Gemini’s clients: Report
- Sovereignty-backed IDs will soon be here making physical wallets a thing of the past. RNS, a digital Web3 identity platform, is at the forefront of making this real if regulation allows it.
- As non-custodial wallets become more demanded thanks to the FTX collapse, Telegram to build non-custodial wallets and decentralized exchanges, says CEO Pavel Durov.
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💰 Coins of the week
Fantom is an open-source decentralized smart contract platform for DApps and digital assets that was created as an alternative to Ethereum.
Fantom has the goal of overcoming the limitations of previous-generation blockchains and balancing three components: scalability, security and decentralization.
The project offers a set of tools to simplify the process of integrating existing DApps, as well as a detailed staking reward system and built-in DeFi instruments.