hello everyone. Chain reaction
In us Chain reaction podcast This week, Anita and I talked with Kevin Rose and Proof Collective from True Ventures about the latest cryptocurrency crashes and the future of NFTs in the bear market. See below for details.
Last week we talked about regulatory efforts to track crypto crimes. This week the market will collapse and a new generation of crypto startups will find that you can’t pay for loyalty.
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Hottest take
This week has been a hassle for crypto investors, there is no other way to put it. But it was a different kind of annoyance than the previous crashes.
In short, hundreds of billions of billions of billions of cryptocurrencies have been erased from the world’s market capitalization this week as top coins such as Ethereum and Bitcoin have fallen sharply and other blockchain networks have essentially collapsed. .. Hundreds of thousands of crypto investors have been liquidated in the transaction as the token crashed indiscriminately. Meanwhile, Terra’s stablecoin blunder-my colleague Jacquie Here are a lot of details — Seems to have evaporated the wealth of tens of billions of cryptocurrencies in a day or two.
For many years of crypto traders, the intense downward pressure on the market may look like an old hat, but as the crypto market expands, the amount lost and the amount of people lost will be orders of magnitude higher than ever. Dramatically during this bull run. If the crypto market continues to fall into hell with hand baskets, web3’s paid acquisition budget will be reduced and exhausted, which will cause a lot of permanent damage to consumer onboarding.
After several years of betting on public stocks by Robinhood and r / wallstreetbets private investors, consumers are ready for cryptocurrencies and the industry has spread their arms to welcome them. Over the past few years, venture capitalists have been betting on consumer cryptocurrencies and betting on real-world gaming that boasts token and NFT integration. Meanwhile, web3 Acolyte has emphasized the “community” as one of the killer features of the crypto-based platform, acting in the best interests of the platform by giving users a financial interest in the platform. , Explains that the gospel can be spread accordingly.
All this worked well during the “up-only” era of this crypto bulllan, but there are some interesting parts now.
Giving users financial incentives to enjoy the product works well if those financial incentives are present, but the air is removed from the space and the user remains a naked, non-stimulating platform. When it comes to that, the situation is a little different. Play-to-earn gaming companies have raised billions of dollars for fun games only when they get rich or bad. Similarly, the NFT project has led users to a fun trading card-like mechanism only when money is flowing. Meanwhile, VC bankrolled web3 media companies, publications, and social networking companies that were overly reliant on crypto guessing while generally shipping bad products.
Some might read this as a general accusation of crypto-pongenomics, but another way to read this is the gold rush of web3, which blockchain founders have found it to be a great product. Being over-indexed, I forgot the meaning of loving something The sustainability of consumer desires or financial despair. Well, the crypto market could bounce tomorrow, but it’s not so true that you can only pay for loyalty for that long.
Pod # 4: Kevin Rhodes
Hello, Anita even here. In this week’s Chain Reaction podcast, Lucas and I talked about the cryptocurrency winter approaching investors. Today, overall public equity has been hit, the S & P 500 has fallen for the fifth straight day, and crypto-linked companies such as Coinbase and Robinhood have been blamed for market concerns.
Cryptocurrency prices are also plummeting. Bitcoin, the world’s largest cryptocurrency by market capitalization, has fallen by more than 50% since its peak in November. Analysts say it has fallen below $ 30,000 several times in the last two days. This shows an important threshold for coins. If the coin keeps falling, the loss can continue to grow. Terra’s UST stablecoin blunderPartially supported by Bitcoin, but certainly does not help the situation.
However, crypto bulls like to speak in decades rather than days and tend to get angry with volatility that doesn’t exist in the wider market. This isn’t the first time Bitcoin has plummeted, so it’s worth looking back in time to see how Bitcoin has progressed throughout the last major cryptocurrency winter of 2017. Hacking, regulation, and investor sophistication all came to mind for $ 12,000 in late December. From late 2020 to early 2021, the value didn’t start to rise significantly until it eventually exceeded $ 30,000 and then (almost) exceeded it.
This time, the situation of OG cryptocurrencies may be different. Now that far more private investors own Bitcoin, it will be clear over time if they can afford to survive the storm. In addition, emerging blockchains like Ethereum and Solana are already consuming Bitcoin’s competitiveness.With my latest features, you can read more about the issues that have plagued Bitcoin and what their backers are doing to boost Bitcoin. Here..
Check out this week’s Chain Reaction episode and don’t forget to hear Kevin Rose, co-founder of the Viral Moonbirds NFT project, share the Word of Wisdom in a recession.
Subscribe to chain reaction Apple, Spotify Or an alternative podcast platform of choice to catch up with us every week.
— — Anita Lamaswamy
Follow the money
Where startup money is moving in the crypto world:
- Cryptographic exchange KuCoin Raised $ 150 Million from Jump Crypto
- Cryptographic trading company Talos Raised $ 105 Million from General Atlantic
- NFT infrastructure protocol Co: Create Get $ 25 million from a16z
- NFT Marketplace Protocol Zora Get $ 50 Million from Haun Ventures
- web3 game startup LootRush Raised $ 12 million from a16z and Paradigm
- NFT startup Arianny Steal $ 21 million from Tiger
- NFT checkout startup paper Stealing $ 9.3 million from Electric Capital, Initialized
- web3 community startup highlight Earn $ 11 Million from Haun Ventures
- NFT Media Startup mud Get $ 1.2 Million from Collab + Currency
- Cryptographic game startup MechaFightClub Earn $ 40 million from a16z
Added analysis
Terra’s UST crash makes life of cryptocurrencies difficult as regulations approach
Last week, Stablecoin became the main stage of the entire conversation in the crypto world, with many factors shaking the industry. When the crypto market reacts with bearish sentiment, a major question arises: what does this all mean for the future of Stablecoin? Many market participants have considered what the future holds.
Shark Tank’s Kevin O’Leary talks about cryptocurrencies and why he is a professional stablecoin
Speaking of Stablecoin, Shark Tank’s Kevin O’Leary talked with TechCrunch on crypto-related topics such as cryptoregulation and thoughts on why he favors Stablecoin. He also talked about the institutions that enter the space and the types of companies that focus on the cryptography he creates if he decides to do so.
Coinbase’s NFT Marketplace is off to a dull start
In other news, Coinbase NFTs went into beta mode three weeks ago today, but haven’t been adopted yet, even after they were released to the public last week. According to one source, current expectations do not match expectations and it is unclear if this will happen. Given the scale of Coinbase’s crypto exchange, you might think that the NFT marketplace will also succeed, but some say it’s unlikely and an approach to enter the space.
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