Even in a Bear Market, there are always growth opportunities. Whether that comes from investing, trading, holding, or building, people and companies are helping grow and stabilize the blockchain space, such as Sam Bankman Fried, FTX Exchange founder. He and Brian Armstrong, founder of Coinbase, signed the Giving Pledge established by Bill Gates and Warren Buffet. In the blockchain world, The Giving Block has been created for similar reasons, and it shows a synergy between traditional finance and bleeding-edge technology like blockchain; that synergy is a lesson that it takes all of us to make the world a better place and that this is not a one-way street. Mainstream adoption flows both ways, and the world is finally beginning to pick up on it.
Traditional institutions and venture capital firms are learning hard lessons and tightening their pursestrings and due-diligence processes to ensure that incidents like Celsius Network and BlockFi never happen again. From an institutional standpoint, as Warren Buffet says, “buy when there is blood in the streets.” Many blockchain funds and family offices are buying up distressed assets, especially cryptocurrencies, where there have been increases in trading volume across the board, but that does not reflect the prices of the tokens and coins being traded. Typically this indicates that the whales of the world are ready to open their coffers and invest when most tokens, projects, and companies are “on sale.”
Thanks to FTX Exchange, Sam Bankman Fried has become a billionaire, and quite the generous one, promoting crypto and blockchain through private acquisitions and mainstream ones like FTX Arena in Miami. The deal closed at $135mm and gives FTX exclusive naming rights for 19 years. Crypto.com did the same when they bought the naming writes to the famous Staples Center, now the Crypto.com Arena. According to the LA Times, this deal went for over $700mm and gives Crypto.com 20 years of naming rights. Let us not forget that blockchain is not just about trading cryptocurrencies and get-rich-quick schemes. Sam Bankman Fried has been buying distressed assets, mostly cryptocurrency exchanges, to increase access to cryptocurrency investing. Sam also purchased a stake in Robinhood, a leading example that traditional and blockchain finance will work together instead of being a winner-take-all scenario.
Blockchain is designed for a decentralized world; many people are calling that Web3. This technology integrates blockchain applications in everyday technology, such as plug-ins for browsers. Web3 applications can do everything from cybersecurity protection to crypto wallets like Metamask. Web3 also allows people to keep their private information safely in a decentralized environment. This also ties into corporate security and safety and why companies invest in blockchain technology to keep up with the latest trends in FinTech and Security.
As for mass adoption, the more institutions, regulators, and consumers come together, the more educated and cohesive environment blockchain will become. There are already multiple blockchain funds worldwide, particularly in the MENA region; however, due to unclear regulations at a federal level, most companies are trepidatious about putting their money into projects until there are clearly defined rules and regs within the United States.
Although the market cap of cryptocurrencies is currently suppressed, this is the time to start doing research if you are new to crypto and for those working on projects, keep building. The industry is cyclical; just like all other sectors of the economy, the bearish market will turn bullish again. Blockchain and cryptocurrency have gained the world’s attention and made transformative changes only a little over a decade old. Thanks to Sam Bankman Fried and others like Brian Armstrong and Galaxy Digital, so many blockchain projects have been and continue to be created even in this recession.
This is just the beginning, and we are still in the adoption stage. It is never too late to educate yourself and get involved in blockchain where you best see fit.