Crypto.com CEO Kris Marszalek described the devastating drop in the market as a “very terrible day.”
Total market value losses in the previous seven days total $570 billion, or -33 percent. With markets frightened, there’s always the risk of additional panic selling as investors try to limit their losses.
Despite this, Marszalek points out that “nobody is doubting crypto’s sustainability,” in contrast to the overarching narrative of the last down market.
However, the last weak market was defined by the sheer quantity of initiatives that failed. And the same will be true again this time.
The crypto sell-off this week has put an end to any concept of a bull cycle. Every top 100 token, barring stablecoins, has lost double digits in the previous week.
Surprisingly, TRON has fared the best over the previous seven days, with only a 12% drop. STEPN, Fantom, and Gala were the heaviest impacted, with losses of 69 percent, 69 percent, and 60 percent, respectively.
According to Marszalek, no one is doubting the industry’s viability at this time. However, this does not guarantee that every proposal will make it to the next bull phase.
The website coinopsy.com categorizes deceased projects as jokes, scams, and abandoned. Sorting by date reveals that 753 cryptocurrency projects died in 2018, demonstrating the magnitude of the destruction inflicted by the bear market.
Although it is still early days, advances since 2018 have accelerated the space significantly. For example, there were 10,397 distinct crypto projects in February 2022, compared to 1,658 in March 2018.
With that in mind, it’s realistic to predict that hundreds of crypto ventures will fail during this bad market.
Do Kwon, co-founder of Terra, believes that practically all cryptocurrency startups will fail. In a recent interview before the storm, he stated that 95 percent of ventures will fail, adding that it is also entertaining to see enterprises collapse.
02 Feb 2023
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