If there is a big crypto bear market, is there really “gold” that can be picked up?

There is a saying, “The bull market is the easiest to lose money, and the bear market is the real time to make money.” Many people are confused as to why it feels like the opposite? How can a bull market lose money? Shouldn’t a bear market cut the meat? However, for those who have really crossed the bull and bear market, they have a deep understanding, because most people are too greedy to chase the lost money in the bull market, and the bear market that spreads panic is a good time to pick up cheap and undervalued chips.

Recently, due to the worsening of the cycle and the general environment, many big V have begun to predict the arrival of a bear market. If there is a big bear market, what cheap “gold” can be recovered?

From past experience, you can pay attention to projects that meet the following conditions :
1. Track direction with “future”
2. Projects with long-term value (can survive through bulls and bears for a long time)
3. The market value is relatively undervalued during the bear market project

It seems that it is not difficult to meet the above conditions. The following question will cite some projects with high certainty according to different tracks.

Former universe

There is no doubt that the ” next- generation Internet ” Metaverse is the most potential track, and it is still in the early stage of the development of the Metaverse, and there must be a lot of “gold mines” to be discovered in the future. The concept of Metaverse not only has encryption projects, but also the active participation of traditional Internet companies and hardware companies , which also brings a variety of “targets” of attention. If the Metaverse is the future, then the following companies or projects are likely to be big winners in this field:

As the two sandbox game platforms that are closest to the ideal form of the Metaverse , Decentraland and The Sandbox can be regarded as projects that have passed through bulls and bears, and they are also the few “gold” in the last round of bear market.

These two crypto Metaverse platforms have been recognized by a large number of external institutions, celebrities, and KOLs , and their cooperation has continued. Taking the recent example, Decentraland has attracted influencers such as JPMorgan Chase, Samsung, JJ Lin, Sotheby’s and other influential institutions and figures. Settled in ; The Sandbox attracted: HSBC, South China Morning Post, Lord Gou, Ubisoft, Shu Qi, etc., and even last month, a big V tweeted that “Meta is going to acquire The Sandbox” rumors (not yet Confirmed) , Yat Siu, co-founder, executive chairman and managing director of Animoca Brands, the parent company of The Sandbox, responded that Meta’s acquisition of The Sandbox was not a fact, but Animoca Brands has not yet commented on the matter.

Founded in 2017, Decentraland is an old-fashioned decentralized virtual world. Based on the first-mover advantage, it also accumulates rich content. Compared with The Sandbox, in addition to the first-mover advantage, the picture is more delicate, the visual effect is better, and the future experience of using VR will be better.

Compared with Decentraland, The Sandbox looks more pixelated, but this is its advantage. Its Game maker software can quickly design games without any professional knowledge. More ideas can be realized flexibly, and the games designed are more playable and open to play.

Layer 2

Recently, Reuters reported that Immutable X, an NFT second-layer expansion solution, completed a $200 million financing at a valuation of $2.5 billion, led by Temasek , and participating investors include Mirae Asset, ParaFi Capital, Declaration Partners, and Tencent Holdings. Not long ago, Polygon, a second-layer expansion plan for Ethereum, completed a new round of financing of US$450 million, led by Sequoia India, with participation from SoftBank, Galaxy, Tiger, and Republic. Just when institutions are slamming into the Layer 2 field, we should understand that this is the next big outlet.

If there is a big crypto bear market, is there really "gold" that can be picked up?

Source: L2beat

In addition to L2, where Token has been launched, there are several well-known projects that have released Tokens, such as TVL No. 1, Arbitrum with rapid ecological development, zkSync, the first zk-rollup compatible with EVM, StarkNet , etc. .

In short, if these projects are launched on Shenxiong, they are very worthy of attention.

More “Fi”

Finance is a powerful entry point for the implementation of encrypted applications. People have seen the application of concepts such as DeFi, GameFi, and SoicalFi .

As the DeFi with the most application value of the blockchain, some projects have passed through the bulls and bears and become an indispensable infrastructure for DeFi. These important DeFi infrastructures include Maker Dao, AAVE, Curve, Uniswap , etc., all of which have long-term value.

A few days ago, it was reported that the Central Bank of Brazil selected Aave and other 9 partners to assist in the development of CBDC; in October last year, a subsidiary of Societe Generale planned to raise 20 million through MakerDAO.

Now these DeFi applications have become an indispensable fintech infrastructure, and will continue to attract the participation of traditional financial institutions in the future.

Compared with DeFi concepts, GameFi and SoicalFi are much more novel, because DeFi has been mentioned one after another since 2018, and GameFi and SoicalFi will appear on the stage frequently in 2021, so the projects of these two concepts are also relatively new, and most of them are still It takes time to settle and validate to increase the certainty of success.

SoicalFi currently has no particularly prominent projects. At present, we have seen relatively well-known GameFi projects:Axie Infinity, which pushed GameFi to a climax, Gala, a game platform with the background of traditional professional game manufacturers, and many short-lived projects without high certainty , will not be mentioned here.

How can there be so much gold, you
must do what you can

The three conditions at the beginning seem to be very broad, but they are not. For some things that we are optimistic about, we are often overconfident, especially when it has been relatively successful, and it seems that everything is good. For example, it has entered the TOP10, which is called “mainstream”. But even if it entered the mainstream, so what? If you look back, the projects that entered the TOP10 in the past have been reshuffled every year, and many have even retreated or even disappeared.

Taking grapefruit as an example, who would have thought that the most popular and most promising projects other than Bitcoin and Ethereum would never return to the peak when they were launched in 2018. Therefore, what you think of as “projects with long-term value” is likely to be wrong . Either it is necessary to strictly limit the scope of “gold” in the bear market, or only a small amount of participation is required, with safety first.

summary

Although many people say that encryption is becoming more and more mainstream, there may not be too much volatility in the future, and there is still no conclusion about whether there will be a big bear market, but we can fully understand those things that are destined to come, such as the Metaverse, Prepare for Layer2, Ethereum 2.0, GameFi, SoicalFi, privacy computing, etc. In this era of “black swans” flying all over the sky, “the world is impermanent, just like the large intestine wraps the small intestine”, we must also pay attention to controlling risks. After all, the bear market itself is very dangerous, and not everyone can “boil”.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/if-there-is-a-big-crypto-bear-market-is-there-really-gold-that-can-be-picked-up/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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