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<p>Here are the five most important lessons companies can take  for themselves after living through one more winter of the crypto market in 2022.</p><p>By<a href="https://www.entrepreneur.com/author/vladimir-gorbunov" rel="noopener noreferrer nofollow"> Vladimir Gorbunov  </a></p><p></p><p>2022 was an important year for the crypto space. We will all remember the bankruptcies of major global companies: Luna, <a href="https://www.entrepreneur.com/news-and-trends/celsius-network-files-for-bankruptcy-customers-unlikely-to/431460" rel="noopener noreferrer nofollow">Celsius Network</a>, <a href="https://www.entrepreneur.com/business-news/ftx-meltdown-tanks-crypto-ecosystem-and-customers-wallets/438814" rel="noopener noreferrer nofollow">FTX</a>,  BlockFi and others that left investors with massive losses. The bear  market has dramatically affected the crypto economy and investors&#39; portfolios.</p><p>Just like in 2013 and 2017, the market moves in <a href="https://www.entrepreneur.com/en-au/technology/as-the-crypto-winter-enters-a-period-of-max-pain-heres/430634" rel="noopener noreferrer nofollow">cycles</a>. First, we had the crypto summer, where everybody was hyped about their profits and gains. Then came the crypto autumn, and investors started to see red in their portfolios. But investors&#39; portfolios started bleeding when the crypto winter got underway, and even some big reliable companies went underwater.</p><p>In this article, I want to focus on some of the most important  lessons I have taken for myself and my company after living through one more winter of the crypto market.</p><h2 id="header-0">1. Money management strategies are everything</h2><p>2022 is the year of fallen legends. Companies believed to be reliable borrowers, like <a href="https://www.entrepreneur.com/business-news/who-is-caroline-ellison-alameda-research-ex-ceo-lawyering/441147" rel="noopener noreferrer nofollow">Alameda Research</a>,  borrowed funds without collateral and ultimately went bankrupt due to  improper money management. On top of that, other standout names in the  crypto space, such as Luna, Celsius Network, FTX, and BlockFi, also went  bankrupt against all market expectations.</p><p>2022 showed that different approaches need to be used to track company assets, oversee their liquidity and provide collateral for  obligations. The mistake many made was blindly placing faith in a  company because of its size and reputation instead of analyzing the  fundamentals.</p><h2 id="header-1">2. Stay away from toxic assets</h2><p>The  future market leaders are the companies who survived unscratched  problems related to Luna, Celsius Network, FTX or BlockFi and do not <a href="https://www.entrepreneur.com/money-finance/6-things-good-and-bad-you-should-consider-before-investing/307585" rel="noopener noreferrer nofollow">hold toxic assets</a>. These are the companies with the potential to launch new products and ideas.</p><p>From  personal experience, I can say that 2022 was when my company delved  into exploring new directions. It proved that the standard earning tools  on the market just recently have no future. So we chose to focus on  developing new products that can fix the ongoing problems of the crypto  market. I believe that doing this — answering a pain point of the sector  and providing a reliable service to alleviate it — is a crucial step in  maintaining your company&#39;s viability in tumultuous market conditions.</p><h2 id="header-2">3. Watch out for tokenomics</h2><p>When looking at a company, all performance indicators are important. What good is it to have great management and a <a href="https://www.entrepreneur.com/topic/business-model" rel="noopener noreferrer nofollow">business model</a> if the tokenomics are not good? People are first and foremost investing  in the token itself, making tokenomics an essential piece of providing a  stable development.</p><p>Bad tokenomics often gives valuable insight into whether the company&#39;s <a href="https://www.entrepreneur.com/en-ae/starting-a-business/four-factors-you-need-to-consider-to-build-a-sustainable/316493" rel="noopener noreferrer nofollow">business model is sustainable</a> over the long term. Look for projects with tokenomics designed to serve  the investors, not the developers. Watch out for high inflation rates  and other red flags, which are often signs of an unsustainable business  model designed to enrich the very few.</p><h2 id="header-3">4. Don&#39;t follow the hype</h2><p>This  year proves that the market is often wrong. During the crypto summer,  many coins and companies grew on hype. Investors hopped on the train and  followed the crowd ignoring the lack of solid fundamentals and  prospects of future growth. However, when the bubble popped, their  portfolio suffered.</p><p>Luna, for example. The company had $50 million in assets but still promised <a href="https://www.bloomberg.com/graphics/2022-crypto-luna-terra-stablecoin-explainer/" rel="noopener noreferrer nofollow">20% interest payments</a> in its own stablecoin currency. That meant $10 billion in payouts to people holding funds in its protocols. The business plan was too good to be true, but tons of people fell for it and lost everything when the stablecoin proved not to be that stable after all.</p><h2 id="header-4">5. Teamwork is essential</h2><p>In times of market turmoil, <a href="https://www.entrepreneur.com/topic/teamwork" rel="noopener noreferrer nofollow">teamwork</a> is more important than ever. The keyword is flexibility; the market is  unpredictable, so it&#39;s the team&#39;s job to adapt to any changes rapidly.</p><p>The market has very short business phases meaning that companies need to be <a href="https://www.entrepreneur.com/en-za/news-and-trends/more-flexibility-in-emerging-market-thanks-to-affordable/334316" rel="noopener noreferrer nofollow">highly flexible</a> and able to adapt to new realities. Bear markets often make it impossible to plan too far ahead. Focus on what&#39;s in front of you, prioritize clients&#39; objectives, predict what products the next phase of the market will be interested in, and prepare them in advance.</p><p>Furthermore,  the bear market can also be a great time to generate revenue and offer products that alleviate investors&#39; fears. Additionally, with the right money management skills, companies can alleviate clients&#39; anxiety by  investing their funds in discounted assets.</p><h2 id="header-5">Stay positive. The bear market will be over soon</h2><p>The <a href="https://www.entrepreneur.com/business-news/two-more-reasons-this-bear-market-isnt-over/430433" rel="noopener noreferrer nofollow">bear market</a> is not easy, but staying optimistic is essential. Take a step back and realize that earning on the crypto market is a long-term game; that&#39;s the wealth-building secret.</p><p>My opinion is based on analyzing past phases, where typically, the crypto winter lasts 4-6 months, then comes the spring. It will be essential for companies to enter with a big user base, good products and opportunities to scale up their own business.</p><p>Companies need to  pay attention to the costs and build teams out of people who believe in the market more than ever. Teams should have crypto enthusiasts that understand the market and products well. Having pros on the team is essential, so do not let them slip through your fingers.</p><p><a href="https://www.entrepreneur.com/author/vladimir-gorbunov" rel="noopener noreferrer nofollow"> </a><img src="https://academy-public.coinmarketcap.com/optimized-uploads/b1ab5047f8f74a2d85043d35b0bcb614.jpeg?format&#61;pjeg&amp;auto&#61;webp&amp;width&#61;100&amp;height&#61;100&amp;crop&#61;1:1" /></p><p><a href="https://www.entrepreneur.com/author/vladimir-gorbunov" rel="noopener noreferrer nofollow">Vladimir Gorbunov</a></p><p>Entrepreneur Leadership Network Contributor</p><p>CEO and Founder of the crypto firm Choise.com</p><p>Vladimir Gorbunov is a professional entrepreneur, CEO and founder of the crypto firm Choise.com that combines elements of  centralized and decentralized financial solutions within a single  marketplace. He is an accomplished strategy manager and startup builder.</p><p>Read full article: <a href="" rel="noopener noreferrer nofollow">https://www.entrepreneur.com/money-finance/5-bear-market-lessons-from-a-crypto-entrepreneur/442131</a></p>

Vladimir Gorbunov CEO and Founder of Choise.com for Entrepreneur.com: 5 Bear Market Lessons

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Інші статті, опубліковані 9 лют. 2023 р.

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