Why We’re Not Worried About A Bear Market.
And why you shouldn’t be either (although you should be thinking about it).
With the recent blood bath this weekend, it’s a great reminder that crypto markets in general are extremely volatile. While we don’t believe we are entering the bear market yet, it’s important to remember that it can happen at any time, and there’s nothing we can do about it. No one likes getting Rekt, definitely not us, so let’s chat a bit about this topic with our first installment on how we think about it.
Here’s why a Bear Market doesn’t worry us here at Bitcrush Arcade.
The benefit of doing a raise in a stable coin like BUSD is that we don’t need to be concerned with market fluctuations. If the market goes up, amazing! Crush coins and the market as a whole will benefit. If it goes down, development, marketing, etc. doesn’t skip a beat.
Our raise gives us almost 2 years of burn rate without the need for any profits. Considering we have a product, and it’s a casino, we are not worried about going two years with no profits, but it’s definitely a peace of mind.
One of the benefits of a small market cap raise is that we are prepared for either environment. If the market moons, our entire community benefits greatly. If the opposite happens, there’s not a ton of room to the downside. This wouldn’t be the case if we didn’t have a working product or needed 6 months of development time, but luckily that’s not the case. Don’t get us wrong, we can’t prop up the price during a bear market, but higher cap projects definitely feel it more. Plus it’s much easier for low cap tokens to bounce back quickly.
Everything we’re doing is designed to benefit the token price. From ongoing burns and lockups, to additional wager pools providing daily open market buy backs. Even in the case of the bear market, there will still be daily upward pressure on the price. Prices will go down, and that’s beyond our control, but daily actions are in place as an attempt to curb this.
Stable coin wagering pools. We will discuss this further down the road, but in bear markets, it’s a great idea to have a plan. Stable coins are a huge part of any successful bear market plan. By introducing stable coin wager pools, players can play safe and free from volatility, while the profits from these pools will be used to purchase CRUSH from the open market and distributed to the staking pools. This helps to both protect players and benefit hodlers.
Bear markets are a great time to experiment. Defi itself grew from the bear market. As the general population loses interest, those dedicated to the space have a lot more flexibility to take chances and experiment with new ideas and protocols. We’re no different. We have a lot of ideas we can’t wait to look into, and what better time than a boring bear market.
Finally, if you look back pre-Defi, into the crypto winter of Q1 2019, you’ll find something interesting. A quarterly “State of the Market” report by Dapp.com noted that 85% of all DApp volume, came from casinos and gambling. Read that again. 85% of all DApp volume, came from casinos and gambling.
This remained true for almost the entire year before beginning the shift to Defi. Essentially this means that in the middle of the crypto winter, the only thing keeping DApps alive was casinos and gambling. Back then the primary volume was on Tron and EOS no less as there weren't many options. This time around, with more hype on blockchains like BSC and others, as well as upgrades to Ethereum, I truly believe we’ll see a return to this in down time. I won’t attempt to forecast these numbers, but I do project a big return during bear season. The only recession proof industries historically have always been vice industries, and decentralized or not, history has shown this is no different…
I think one of the major catalysts for the bear market, besides Elon (jk-ish), will be the exhaustion of Defi projects offering gains for gain’s sake. I believe that like the end of the last bull run, tokens without a use case other than making gains, will begin falling apart. Tokens without real use cases will crash, losing people’s funds, and turning people cold on crypto once again.
This could be wrong of course. I know, “this time is different”, and maybe we’re in a “super cycle”. I hope to god all of that’s true, and it very well might be, but in the off chance it’s not, it’s great to have a backup plan.
While no one like’s a bear market, it’s not something you need to be afraid of. Just plan accordingly.
Drop us a line in Telegram and let us know your bear strategy. If we work together we can all Crush It!