Crypto is deeply into the bear market at the moment and is struggling to make a surging move. This bear market has directly affected thousands of crypto startups, the newbies of the market have been crushed and others are just waiting for the bull run. Most startups fail to make a plan to survive the bear market and are left to ashes.
According to Steve Ip, the Co-founder and Chief Strategy Officer at MagicFew, was of the view that operating the business in a smart way is the key to survive the bear market. Tough decisions should be made, less risk should be taken and smart investments should be made. He further stated talking to BlockPublisher,
Make sure you have enough hard currency to operate your business. Reduce spend and focus on profitability, everything is about making sure you are profitable or bleeding less. Take less risky decisions and focus on practical solutions instead. Bear markets are also great for reinvesting into R&D to make your product/service better. The toughness forces companies to work harder for less profit making competition extremely fierce. Only the strong will survive. Survival is everything.
Franklyn Richards, the director of Litecoin, also thought that surviving the bear market is the key. He stated,
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.
During the bear market, the trading volumes have dropped drastically. People are moving out of crypto which as a result, is causing more plunge in the market. Crypto requires mass adoption and investor attention and trust, which in the opinion of Steve, can be brought through regulation. Regulation has apparently become a necessity for crypto at the moment, which would provide the investors with the security that there won’t be any scams or fraudulent activities. Steve further stated,
Regulation is by far the most important thing in crypto. The public opinion has soured and most people who were willing to invest into cryptocurrencies ended up losing their shirt. Companies need to be held accountable for their actions and regulations will help prevent fraudulent companies from succeeding. People need to know that by investing into cryptocurrencies, there is no market manipulation or scams. Wash trading needs to be made illegal and the public needs to be well informed of all companies who are listing. I think the public should still be allowed to invest without needing to become accredited, but they should be able to have all information. Asset backed tokens that are verified are also very attractive since they provide quick transfer times and liquidity.
Partnerships are also an essential part of mass adoption which the crypto space is lacking right now. Litecoin recently had a partnership with UFC, which boosted the graphs for Litecoin, as the attention grew exponentially. Sharing his views regarding partnerships, Steve stated,
Partnerships are great for crypto as they would be for any company stock. A great partnership that shows the company’s potential future earnings with real world application increases token holder confidence.