The cryptocurrency markets are oversaturated. They have been for many years. Despite all the hype, the necessity of blockchain technology in every industry imaginable is yet to be proven. As prices continue to tumble, many projects need to suffer from a purge.
The bear market hasn’t just been unkind to major corporations within the cryptocurrency ecosphere. With the market still yet to find the promised bottom, it remains to be seen how many projects can sustain themselves in this uncertain environment.
The most recent news, still yet to be confirmed, is that the Haven protocol has pulled an exit scam. This may or may not turn out to be true. However, it isn’t particularly surprising that the rumours are there, and this will not be the last project to suffer this fate.
Many argue that the greatest time to build is during a bear market. Without the craziness of the bull run of 2017, hype has died down, and it allows the coders to build and improve their project and concept.
Unfortunately, many projects would rather spend their money on marketing than on solidifying their existing code. With technology consistently improving, keeping your project on the cutting edge of what is possible remains essential.
Many people will lose further money in this purge, which will heighten tensions. The purge overall will be beneficial to the space, though. Some projects will die due to the lack of funds, but don’t be surprised if many pull some form of exit scam.
The Wild West of cryptocurrencies still allows this to happen, and whilst many don’t wish for regulation, it seems that as a community, cryptocurrencies are not capable of policing themselves yet. Too much money can be made, which means scammers will thrive.
Stay safe out there, and be careful who you believe and where you put your hard-earned money.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.