If there is a major crypto bear market, is there really “gold” that can be picked up?

There is a saying that " it is easiest to lose money in a bull market, while a bear market is the time to really make money ". Many people are confused as to why it seems to be the opposite. How can you lose money in a bull market? Shouldn't you sell at a loss in a bear market? However, those who have truly experienced the bull and bear markets understand this well, because most people lose money in a bull market because they are too greedy and chase high prices, while a bear market with widespread panic is a good time to pick up cheap and undervalued chips.

Recently, due to the worsening cycle and environment, many big Vs have begun to predict the arrival of a bear market. So if there really is going to be a big bear market, what cheap "gold" can be picked up?

Based on past experience, we can focus on projects that meet the following conditions :
1. There is a track direction for the "future"
2. Projects with long-term value (able to survive bull and bear markets)
3. Projects with relatively undervalued market value during the bear market

It does not seem difficult to meet the above conditions. In the following questions, we will cite some projects with higher certainty according to different tracks.

Metaverse

There is no doubt that the " next generation Internet " Metaverse is the most promising track, and now is still the early stage of the development of the Metaverse. There will definitely be a lot of "gold mines" to be discovered in the future. The Metaverse concept not only has encryption projects, but also the active participation of traditional Internet companies and hardware companies , which also brings a variety of "targets" of attention. If the Metaverse is the future, then the following companies or projects are likely to be the big winners in this field:

As two sandbox game platforms that are closest to the ideal form of the metaverse , Decentraland and The Sandbox can be regarded as projects that have gone through bull and bear markets, and are also among the few "golds" in the last bear market.

These two major crypto metaverse platforms have been recognized by a large number of external institutions, celebrities, and KOLs , and the cooperation is continuous. For example, recently, Decentraland has attracted influential institutions and figures such as JPMorgan Chase, Samsung, JJ Lin, and Sotheby's ; The Sandbox has attracted the cooperation of HSBC, South China Morning Post, Gouye, Ubisoft, Shu Qi, etc. Last month, a big V even tweeted a rumor that "Meta is going to acquire The Sandbox" (unconfirmed) . Subsequently, Yat Siu, co-founder, executive chairman and managing director of Animoca Brands, the parent company of The Sandbox, responded that Meta's acquisition of The Sandbox was not true, but Animoca Brands has not yet made any official comments on the matter.

Decentraland was founded in 2017 and is considered an old decentralized virtual world. Based on its first-mover advantage, it has also accumulated rich content. Compared with The Sandbox, in addition to its first-mover advantage, it has more delicate graphics and better visual effects, and will provide a better experience for VR users in the future.

Compared with Decentraland, although The Sandbox's voxel graphics look more pixelated, this is actually its advantage. Its Game Maker software can quickly design games without any professional knowledge, and can flexibly realize more ideas. The designed games are more playable and open.

Layer 2

Recently, Reuters reported that Immutable X, a NFT second-layer expansion solution, completed a $200 million financing with a valuation of $2.5 billion, led by Temasek , and participated by Mirae Asset, ParaFi Capital, Declaration Partners, Tencent Holdings, etc. Not long ago, Polygon, an Ethereum second-layer expansion solution, completed a new round of $450 million financing, led by Sequoia India, and participated by SoftBank, Galaxy, Tiger, Republic, etc. Just when institutions are pouring large amounts of money into the Layer 2 field, we should understand that this is the next big outlet.

Source: L2beat

In addition to L2, where tokens have already been launched, there are several well-known projects that have yet to release tokens, such as Arbitrum, which has the highest TVL and a rapidly developing ecosystem, zkSync, which is the first zk-rollup compatible with EVM, and the highly anticipated StarkNet .

In short, if these projects are launched on Shenxiong, they are worth paying attention to.

More "Fi"

Finance is a powerful entry point for the implementation of crypto applications. People have seen the application of concepts such as DeFi, GameFi, and SocialFi .

As the most valuable application of blockchain, DeFi, some projects have survived the bull and bear markets and become indispensable infrastructure for DeFi. These important DeFi infrastructures include Maker Dao, AAVE, Curve, Uniswap , etc., all of which have long-term value.

A few days ago, media reported that the Central Bank of Brazil selected Aave and other 9 partners to assist in the development of CBDC; in October last year, a subsidiary of Societe Generale planned to raise 20 million through MakerDAO.

These DeFi applications have now become an indispensable financial technology infrastructure and will continue to attract the participation of traditional financial institutions in the future.

GameFi and SocialFi are much newer than the concept of DeFi, because DeFi has been mentioned since 2018, and GameFi and SocialFi really appeared frequently in 2021. Therefore, the projects of these two concepts are also relatively new, and most of them still need time to settle and verify to increase the certainty of success.

So far, SoicalFi does not have any particularly outstanding projects. Currently, we have seen some well-known GameFi projects: Axie Infinity, which pushed GameFi to a climax, Gala, a gaming platform with the background of traditional professional game manufacturers, and many short-lived projects without high certainty , which will not be mentioned here.

There is not so much gold, so you must do what you can.

The three conditions at the beginning seem very broad, but in fact they are not. We are often overconfident about something that we are optimistic about, especially when it is relatively successful and seems to be good in every way, such as entering the TOP10 and being called "mainstream". However, even if it enters the mainstream, what does it matter? If we look back, the projects that entered the TOP10 in the past have been washed out every year, and many have even withdrawn or even disappeared.

Take EOS as an example. Who would have thought that the most popular and promising project besides Bitcoin and Ethereum would never return to its peak when it was launched in 2018? Therefore, what you think is a "project with long-term value" is likely to be wrong . Either you need to strictly limit the scope of picking up "gold" in a bear market, or only participate in a small amount, safety first.

summary

Although many people say that encryption is becoming more and more mainstream, there may not be much fluctuation in the future, and whether there will be a big bear market is still undecided, we can definitely prepare for things that are destined to come, such as the Metaverse, Layer2, Ethereum 2.0, GameFi, SocialFi, and privacy computing . In this era of "black swans" flying all over the sky, "things are unpredictable, just like a big intestine wrapped in a small intestine", we must also pay attention to risk control. After all, the bear market itself is very dangerous, and not everyone can "survive" it.