Recent events have shaken the whole crypto-market. Many crypto-currencies have lost to their All-Time Highs, more than 90 percent of their value. Bitcoin is from its peak of around 20,000$ in December 2017, more than 80 percent of crashed. The crash can be attributed to many reasons, but mainly to the lack of acceptance of the main stream. What led to the end of 2017 or early 2018 to the rate of explosions was pure speculation, which led to a Bursting of the bubble.
There are many possible reasons for the Crash. There were not enough places where you could spend Coins, the technology was ready for Mass adoption, a lack of Standards, etc., many of these reasons led to the crisis. Unfortunately, all the investors who have tried to be rich, fast billion pumped into the crypto-market to lift the prices to a unstable level. The market had by this delusion, which made the current correction is inevitable. The sudden Explosion of the courses that attracted a lot of attention on the Blockchain-sector. With the attention investment, talent and companies in the world, the Blockchain, the recent Crash but it also led to that many of these companies are now on the verge of bankruptcy.
The Crypto Startup Scene
The entire Startup scene around crypto-currencies is diverse and attempts to profit from the next technological Revolution. You can find Startups that are trying to integrate the Blockchain technology in every field, from medicine to Finance. This has aroused currencies great interest to Cryptography, since many see the clear advantage of this new technology in their respective fields. The technology has some clear limitations, and some Start-ups focus on solving exactly these problems. Most of these Startups will be funded via an ICO, i.e. exclusively by crypto-currencies. The crypto Hype has also created an energetic crypto Startup scene, the falling prices of dynamic could lose.
How big is the risk?
The worrying thing is that many of these companies have kept part of their funds in digital Assets such as Bitcoin and Ethereum. This results in falling prices of these Assets, a liquidity problem. Many of these Startups don’t even have the funds to cover your daily expenses. This forced many of them to take extreme decisions. Crypto-Startups have had to dismiss large parts of their workforce, because the prices day by day reaching new lows.
The team of developers of Ethereum Classic, ETCDEV (Ethereum Classic Development), has laid the work down, since you lack the money to Work. ConsenSys, the largest among the crypto-Startups, reduced the number of its employees by 13 percent. This announcement came on Thursday.
SpankCoin, a Coin to Finance an adult entertainment service, announced that they will reduce your Team of around 20 employees and freelancers to eight. Spank chains rating currently stands at $ 6 million, while it were the beginning of the year, 190 million Dollar. Steemit, a platform for Content Creator, on the the users create the content themselves and upload , and then from the Community can be paid, has released 70 percent of its workforce, to reduce costs. Since 2012, almost 1.180 crypto-Startups of a plurality of risk were financed by the capital providers. Many Startups have been funded by ICOs, sometimes several billions of dollars have been collected. The regulatory authorities strengthen their influence on the crypto-market, which makes the Collection of capital even more difficult. Currently it looks for the current or the coming crypto start-up scene is not good.
Is this the end?
Start-ups are in General a risky Endeavor -that you bring much higher risks than normal companies. If you have, then, but success can bring you lots of Money and the risk of the investors to compensate for. Crypto Startups are no different. Most of them will fail, and the current market situation accelerates this. Even if it may look from the outside like an Apocalypse, shows a closer look at the current situation, that this might be coming Apocalypse in the long term, the entire Ecosystem will benefit. Startups will be forced to adapt in order to survive. You have to be restructured to be more efficient, and all this volatility, you can better prepare for the future. Also, the investors will be more careful in the future. If crypto goes Mainstream, will survive only the best Startups and the Rest will not be able to even enforce in the first place.
Disclaimer: Because of the buying and trading crypto-currencies with a significant risk of loss goes hand in hand, we speak of crypto Ticker not a recommendation to buy from. Please inform yourself thoroughly, comprehensively and, above all, independently from various sources that you trust before the acquisition of a crypto-currency.
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