Although we have seen Bitcoin fall by more than 60%, Ethereum by 70%, and other altcoins by 90% or even more from their all-time high levels, there are some very bullish signals. Investors continue to invest in crypto products/services, and companies have started adopting the Web3 tech. So is the bear market over yet?
Whales are entering the crypto market again
While digital assets like NFTs and cryptocurrencies are stuck in a strong bear market, Andreessen Horowitz aims to invest billions of dollars in crypto startups. Recently, they revealed that they formed a new $4.5 billion fund to invest in crypto and blockchain startups. This is Andreessen’s fourth crypto and blockchain fund, bringing the total amount raised for the asset class to $7.6 billion. The firm intends to invest in both project coins and corporate equity.
However, Andreesen Horowitz is not the only one seeing the opportunity here. Felix Capital, a venture capital (VC) firm, also joined the space by raising $600 million in new funding to invest in Web3 and blockchain startups. So while retail investors bleed in their investment positions, whales are slowly, but surely, entering the market with big bucks.
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Binance Labs, the company’s VC and incubator, has also announced the completion of a new $500 million investment fund. DST Worldwide Partners and Breyer Capital are among the fund’s leading global institutional investors. Limited partners included other prominent private equity firms, family offices, and companies. The new fund will invest in projects that can extend cryptos’ use cases and boost Web3 and blockchain tech adoption.
Mastercard joins the adoption train
Despite the present bearish mood in cryptocurrency market, Harold Bossé, VP of New Product Development and Innovation at MasterCard, is optimistic about the industry’s potential. Under certain conditions, he believes that broad adoption of digital assets and blockchain technology is imminent, and it’s rather sooner than later. Millions of people worldwide are already using or trading digital assets.
That is why Mastercard decided to support NFTs by making purchases available with their payment network. The company believes that purchasing an NFT should be made simpler and safer so the customers get what they want with less stress and confusion. Mastercard’s developments expand the potential consumer base of NFT creators to millions of people all around the world.
Mastercard announced a partnership with several Web3 companies like The Sandbox, Nifty Gateway, Immutable X, and MoonPay to enable NFT commerce. What else will drive the mass adoption if not large traditional corporations partnering with several Web3 leading companies?
The necessary sell off
While the crypto adoption helps many individuals and companies create generational wealth, new possibilities, products, and services, many scams cost the industry billions of dollars. The latest example, Terra Luna alone, wiped out around $50 billion from the market, drawing the whole crypto market even lower.
In 2009, Bernie Madoff, a well-known Ponzi mastermind, lost his investors approximately $60 billion. As a result, he was sentenced to 150 years in prison. However, Do Kwon, a creator of a popular cryptocurrency, Terra, lost its investors $50 billion, and what happened to him? He then created Luna 2.0. And that one is failing hard as well.
Huge crypto trends and positive sentiments help boost any crypto scam, which is why regular market sell-offs are necessary so these projects can die forever. Terra is the most insane example, but how can investors lose all their money on Luna, then buy Luna 2.0 and expect to make it back? This just won’t work, and we’ll have to wait for the market to find a bottom so a new chapter can begin.