The biggest setback for most startups in blockchain at the moment is the issue of the bear market, especially for crypto-backed startups, as the valuations have drastically dropped, the trading volumes have decreased consequently, and investors are moving away from the crypto space. Huge sell off events have happened which further dropped the liquidity and trading volumes. ICOs have stopped and people have started investing smartly, and cherry on the top are the security issues that are rising (51% attacks).
According to the analysts, the ones that would survive the bear market would be rewarded at the end once the bull run starts. According to the director of Litecoin, Franklyn Richards,
Just survive the bear market, its always more painful that you can imagine be prepared for it to last twice as long. Once you come out on the other end and interest picks up you’ll be rewarded
Litecoin has been one of the strong survivors of the market according to Franklyn. He stated talking to BlockPublisher,
The market downturn brought no setbacks as such.
Most of the startups in blockchain have recently laid off most of their employees because of the bear market and their affected operating cost due to the losses, the issue, however, didn’t much effect Litecoin. Franklyn explained,
The only issue for the Foundation is our operating value has decreased, but then again the majority of us working on it including myself and the other directors are all volunteers so operating costs are low.
The market is bound to rise and fall naturally so startups should be well prepared of the consequences. As stated above by Franklyn, “Once you come out on the other end and interest picks up you’ll be rewarded.”He further stated,
This is a cycle we see repeated so I’m not worried it just means the short term is going to remain negative as the markets try and regain a foothold and build a foundation to once more start growing in a more positive manner. There is a strong divergence in positive developments and price, but that’s just how this game goes and our long term outlook remains bullish in the space.