ReFiNitely #8: Bear Market Opportunities
In recent weeks, crypto markets have seen extreme volatility to the downside. These markets are not alone though, traditional stocks have been hit hard as well, as the Federal Reserve in the US continues to raise interest rates on the world reserve currency.
However, things are looking especially rough for crypto in the media recently because a large number of high profile ponzi schemes have been unraveling because they are unsustainable in bear markets.
Unfortunately, many of the platforms that have struggled over the past several months were some of the most popular in the industry, so it has given some outsiders the impression that the whole industry is doomed.
In reality, attention is misplaced in bull markets and flows to the lowest common denominator. Empty hype and big promises get all of the attention when times are good, because people are euphoric and overestimate what is possible in the short term.
Meanwhile, teams that are focused on building world changing products are often overlooked in all of the excitement, because their roadmaps tend to be less flashy and fantastical than the hype-driven vaporware.
Nature has a way of balancing these things though. There are positive and negative aspects to speculative manias, but they are unsustainable, and they only last for so long.
When the party ends and everyone leaves, the teams with real vision and a true product-market-fit continue to build, and their hard work finally sees its time to shine. These are the products that become the new blue chips during the next bull cycle.
There is no doubt that bear markets are brutal and they hurt a lot of innocent people, but they can also be a time of great opportunity for those who have the foresight and ability to make the most of it.
For investors, this can be a good time to find deals, and for builders, it is a good time to cut through the noise and bring your product to market.
This is how we are approaching these challenging market dynamics at Solid World DAO, and it seems that many other builders in the ReFi community have the same mentality. We are here because we believe this technology can help us solve very serious problems and nothing about that has changed.
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