HodlX Guest Post Submit Your Post
This June the crypto market cap slumped under the $1 trillion mark for the first time since January 2021. The collapse of Terra left behind the biggest loss of wealth in recent history, with retail and institutional investors alike losing over $60 billion in funds and undermining the overall trust in the market.
We can see that the new crypto winter is at full blast. And many market participants are trying to draw parallels with the events of 2018, using the last winter to try and predict when the current one might end. But personally, I believe that this crypto winter will be very different from the last one, for several reasons.
Why will crypto winter 2022 be different from 2018?
It needs to be pointed out that the situation in 2022 is nowhere near the same as the one in 2018. When the last crypto winter started, the industry was just beginning to solidify its presence on the global stage, and most people around the world had no idea what Bitcoin, blockchain and the rest of these terms meant. The novelty of this market led to a massive spike in interest, which in turn took the form of the ICO (initial coin offering) boom.
The crypto industry was undergoing its first major expansion stage, with numerous startups taking advantage of using cryptocurrencies as a way to raise funds. It resulted in a major bull run, culminating in Bitcoin’s price reaching the $20,000 mark in December 2017.
However, this very ICO explosion…
