Crypto

Web3 Remains ‘Mega-Mega Bullish’ Despite Crypto Slowdown

Bitcoin and the cryptocurrency market downturn has left industry insiders anticipating a prolonged winter. But Polygon co-founder Sandeep Nailwal thinks the overall picture for Web 3 remains optimistic. The executive said the fix has more to do with “macro” than any fundamental weakness in the Web 3 sector.

Whats Next?

In the latest Twitter thread, Nailwal said Web 3 remains bullish despite chaos throughout the market.

“Long-term Web3 is still mega-mega optimistic, so newbies keep learning and builders keep building!”

Predicting a protracted bear market, Nailwal noted that if the US Federal Reserve succeeds in “wiping out” the uncertainty plaguing the market, there could be a respite, and suggested that “there is plenty of dry powder on the sidelines to bring in aggressive action.” bullfights”. However, the possibility of such a scenario seems bleak, considering concerns about stagnant inflation and stagflation.

Several venture capital funds have raised a significant amount of capital. Nailwal believes that while these entities will take a cautious approach in selecting their bets, acceptable valuations would be much lower, but the executive expects “thesis-based VCs to continue to roll out”. He also added that most of them will also play in liquid markets.

The Polygon co-founder predicted that markets may eventually bottom out after inflation peaks in 3-6 months when the Fed raises rates. Only then “will things go back to normal”.

cut jobs

As global stocks fell, investors dumped assets deemed risky, inadvertently triggering a cryptocurrency sell-off. As a result, the market saw trillions of dollars in value disappear. The ongoing volatility has destroyed long and short positions.

Amid a weak global economic outlook, many established cryptocurrency platforms including Coinbase, Gemini, BlockFi and CryptoCom have cut their workforce, citing the dramatic change in macroeconomic conditions. Crypto companies appear to be struggling to weather the storm.

Binance is among the handful of companies challenging the current market sentiment of layoffs and cost-cutting plans. The exchange’s CEO recently boasted of having a “war chest” to help the platform amid a falling crypto market. CZ even went so far as to say that crypto winter is a great time to hire people.

Featured image courtesy of Wild Digital

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