Since the birth of Bitcoin BTC -0.34%, the crypto market has experienced many ups and downs in just over a dozen years. When the time comes to 2022, the crypto industry seems to be in trouble again. After experiencing a series of events such as the continuous decline in the price of Bitcoin, the collapse of stablecoins, and the liquidity crisis of Three Arrows Capital, a depressed and depressed mood pervaded the entire crypto industry. Investors suddenly found that this year may be the highest in history. A tough winter.
In this round of bear market, institutions suffered heavy losses?
According to BTC holdings data from Tesla, MicroStrategy and Block, these three companies have lost nearly $2.5 billion in this bear market, including:
- The value of Tesla’s 43,200 BTC (equivalent to 0.206% of the total supply of 21 million bitcoins in circulation) has fallen by more than $700 million;
- The value of 129,218 BTC held by Microstrategy (about 0.615% of the total Bitcoin in circulation) has lost nearly $1.3 billion;
- The value of 8,027 BTC (about 0.038% of the total Bitcoin in circulation) held by Jack Dorsey’s payment company Block has lost nearly $150 million.
MicroStrategy CEO Michael Saylor previously revealed on social media that the company has $205 million in term loans and needs to maintain $410 million worth of collateral, but MicroStrategy has anticipated volatility and built its balance sheet to be in a bear market Continue to HODL.
However, there is no need to be too pessimistic, because on a macro level, current market conditions will not have a long-term impact on the prospects and growth of the crypto industry. For the platform side, this bear market can be regarded as an opportunity to shift the current focus of work to actively build and improve culture, products and customer service capabilities.
How can institutions quickly get out of the bear market?
Based on past experience, the bear market is indeed a good opportunity to self-precipitate, work hard to build and expand services, and even recruit. As an important part of the encryption ecosystem, the importance of the talent pool is self-evident. However, expanding recruitment is not blind recruitment, especially during a bear market, formulating a prudent and well-thought-out recruitment plan can enable companies to achieve sustainable growth. If a virtuous cycle can be formed, the entire ecosystem will continue to develop. Frankly speaking, if institutions can continuously recruit outstanding talents from all over the world and make full use of and optimize existing resources in this bear market, they will undoubtedly become the biggest winners in the next bull market.
This is indeed the case, as we can see from the talent strategies of those crypto platforms in this bear market. Some have made significant layoffs due to deteriorating performance and fears that the market turmoil will continue for a long time, hoping to alleviate the “over-hiring” or “over-spending” during the next bull market. There are many leading agencies among them. Before the crisis, they had been adopting aggressive human resources strategies and invested heavily in marketing, including inviting movie stars to do endorsements and spending huge sums of money to sponsor competitions. But now that the bear market is in power and the good times are over, they have to make the tough decision of laying off workers in order to ensure sustainable growth.
However, it is undeniable that before the recovery of the cryptocurrency market, more companies adopted the strategy of layoffs and self-protection, but some trading platforms were able to plan ahead. Many are suitable for products and services in a bear market to seize opportunities when the market recovers. Especially in the recent period of continuous large fluctuations, traders and investors need to plan their future in advance and choose the most reliable trading strategies and products to reduce losses.
Of course, in order to stand out in this marathon, strengthening products is one aspect, and compliance is also a very important part. With the continuous in-depth involvement of regulatory agencies, the relevant regulatory procedures are bound to become more and more clear and compliant, which also means that those institutions in the bear market that do not pay attention to compliance and regulatory requirements are easily eliminated. Therefore, how to adhere to the bottom line of compliance and implement high standards of financial security in services is undoubtedly the top priority at this stage.
Summarize
This round of bear market institutions has shown a trend of polarization. Some are furiously laying off staff for self-protection, while others continue to expand their business with great success. Throughout the short ten years since the birth of Bitcoin, the crypto market has experienced ups and downs, but every time it has always bottomed out and climbed to new highs, showing the resilience and potential of this emerging industry.
2022 is destined to be a year full of variables, so despite the current turbulence in the crypto market, the so-called “dangerous, organic”, this bear market is likely to be just the cryptocurrency market’s efforts to prepare for the next bigger rally preparation. For institutions, if they can take each drop as a test and an opportunity, and make better preparations for products, services and talent reserves in the process, they will be able to withstand market shocks and move from “crisis” Explore more “machines” in . To be a global leader in the crypto space and an “industry pioneer” in the next bull market, you need to let go of your hands and feet, instead of being intimidated and stuck.
