crypto market slump: Focussing on innovation can be a better way to tide over slump in crypto industry

Synopsis

The combination of factors influencing the situation for the crypto industry may appear dire. Still, we need to remind ourselves that when situations get hard, it is the time we always find a way to get through such tough times. This time in history is genuinely a fantastic moment to start over and identify products and services that might cause further trouble to the crypto-industry, especially as and when things stabilize over the next several months.

Vijay Pravin Maharajan

Founder & CEO, bitsCrunch

Compared to a few months back, the prognosis for the whole crypto industry seems to have significantly shifted. Although everyone is thinking about Web3-based products and technologies like NFTs and metaverse, there is an apparent lack of trust in the industry. With a constant stream of bad news from the cryptocurrency community, even the most enthusiastic crypto aficionados are currently re-evaluating their opinions regarding the digital space.

With various cryptocurrencies across the world plunging to an all-time low without showing any sign of slowing down anytime soon, many crypto lenders in the industry are forcing themselves to take drastic steps like blocking transactions to control the volatility among crypto assets, and exchanges are planning on laying off staff to keep themselves in a steady situation.

Earlier this year, the US Federal Reserve decided to hike interest rates, following which investors started selling riskier assets, sending the prices of cryptocurrencies, tokens, and other digital assets on a bumpy roller coaster ride. In addition, the crypto business is currently experiencing a “perfect storm” of factors, a combination of rising oil prices, the war conflict in Ukraine, and the ever-looming possibility of monkeypox and the return of Covid-19.
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The Shiba Inu team launched a burn portal to help address the issue of the massive supply of SHIB tokens As of June 29, 2022, more than 400 trillion tokens have been burned to cap supply

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The combination of factors influencing the situation for the crypto industry may appear dire. Still, we need to remind ourselves that when situations get hard, it is the time we always find a way to get through such tough times. This time in history is genuinely a fantastic moment to start over and identify products and services that might cause further trouble to the crypto-industry, especially as and when things stabilize over the next several months.

For example, let’s consider the NFT domain. The full extent to which an NFT can be utilized in pop culture is yet to be explored.

Things have been excellent for digital artists, and this new technology of owning assets has the potential for the development of many fascinating methods to engage audiences.

NFTs can be developed with collaborations between musicians, popular gaming companies, and studios.

Creators can be encouraged to create NFTs that guarantee their worth improves as the holding time lengthens, adding value for everyone throughout the chain.

The idea of creating NFTs as a collection with a value higher can be explored.

Imagine holding NFTs for an entire sports team, where an individual or group of individuals can play across virtual leagues to win prizes and trophies.

There are many ideas which can be worked upon to make sure that when the industry restarts, collectors need to be aware of exactly what needs to be sought out.

However, none of these concepts will work unless the industry acts to make them so immediately. Currently, most organizations have frozen their marketing and sales expenditures due to the slump in the industry. The same amount of money and time may be allocated to future technology development and optimization in order to produce unforgettable NFT collections once the industry stabilizes. Presented By

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Bought onCurrent Value Buy (Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)Print EditionPrint EditionJul 19, 2022, 05:12 AM ISTExperience Your Economic Times Newspaper, The Digital Way!Read Complete Print Edition »

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Updated: 07/20/2022 — 14:00