You may not realize it, but the blockchain world is highly volatile.
OpenSea’s non-fungible token (NFT) volume has dropped by over 90%, and almost everyone has heard about the multi-billion dollar scandal and subsequent collapse of FTX, Celsius, etc.
Anyone who has been in the investment world for more than a minute knows business tycoons Warren Buffett’s As the famous saying goes, “Be fearful when others are greedy, be greedy when others are fearful.”
Important reasons: A recession is a great opportunity to buy assets cheaply and ride the rebound. Given that the prices of blockchain-based assets have fallen significantly, it may be a good time to start buying the decline.
This generally raises the question of whether blockchain technology will take hold. If so, this could be a strong buying opportunity as blockchain-based markets find a foothold in the post-collapse world.
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If investors can accurately predict the future of this market, it can be of great benefit to those who get it right. For example, even if Bitcoin were to return to highs, he would be up nearly 300% after a 73% drop.
Despite concerns, retail investors are still investing millions in blockchain-based startups, so it doesn’t appear to be phasing. game flipFor example, has already raised over $600,000 in StartEngine from everyday investors, and anyone can invest. Gameflip is a gaming marketplace where you can buy and sell over $140 million worth of game items, including blockchain-based items.
Private investors are not the only ones who are optimistic about the investment prospects of the blockchain industry. Venture capitalists (VCs) are still investing billions in the space, and VC funding in blockchain is actually more in 2022 than he is in 2021. This includes VCs in which he has invested $10 million in Gameflip alone.
So while sentiment in the space still exists, it doesn’t necessarily matter if you can’t invest for the long term. One of the biggest criticisms of this space is the lack of regulation. States have already cracked down on certain types of blockchain-based investments, but the federal government has largely been silent.
It may be turning around, but it’s not entirely clear. Companies across the country have called for regulation, but the intentions of the Securities and Exchange Commission (SEC) are still unclear. The SEC recently issued guidance to public companies on disclosure of risks associated with their association with cryptocurrencies, indicating they are investigating the situation. However, this is not enough.
If the regulatory framework continues to develop positively, institutional investors and the broader retail investor base may reopen this space as an investment vehicle. This will develop a more sustainable investment climate and ideally prevent losses from fraud, fraud and other financial crimes that deter investors.
If sentiment from the SEC and other regulators is shifting, blockchain-based assets could rise on positive regulatory news. For example, following the SEC’s updated guidance on disclosures, Bitcoin rose about 3% in the following days.
Startups like Gameflip are traditionally long-term investments. If you believe in the long-term outlook of the industry, investing in startups is a great way to make money despite high volatility.
Gameflip is one of the top US marketplaces for buying and selling in-game and blockchain-based assets valued at over $140 million. Investments are speculative and illiquid, but investments in equity crowdfunding are heavily regulated, making startups an excellent escape route to investing in the blockchain space, where regulatory frameworks exist, and virtual It has the same upside potential as a successful currency project.
Although the blockchain market has experienced considerable volatility, there may still be considerable advantages for investors who can see the value.
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