It’s not too late to jump on board the blockchain train. The year 2018 has proven that the industry is far from dead, and even Binance CEO Changpeng Zhao is bullish on the future of blockchain and crypto. The industry certainly isn’t in a bubble, either. As Alibaba’s Ant Financial CEO Alipay CEO Joe Tsai said at Davos , “We’re investing in blockchain technology because we think it will be the foundation of the next internet.”
It’s been a wild ride for most cryptocurrencies this year. After a dramatic 2018, prices have been on a roller coaster ride since the beginning of July 2019.
March 15, 2018 marked a new beginning for the crypto market, as an entire new generation of companies came up with their own digital currencies. While some saw the coming of the blockchain and the rise of the ICO as a turning point in the crypto world, others see it as a death-knell. However, the first mover advantage is a key aspect of a market, and the crypto world is no exception. While many saw the year 2018 as a bear market for the crypto market, others believe that this year is the first year of a bull market.. Read more about crypto bear market and let us know what you think.
Crypto markets are at a fork in the road right now, after an enormous bull run at the beginning of this year that was followed by an abrupt stop and a 50% decline since April. Where they go next may provide insight into how market circumstances affect popular acceptance via artists, innovators, and celebrities who have become more interested in the area.
The market for nonfungible tokens (NFTs) and social tokens has historically been anecdotally linked with the wider crypto market. We’re seeing that connection fade as artists attract more non-crypto followers, although with a tiny sample size. If Bitcoin (BTC) and Ether (ETH) do not break out of their respective slumps and the market enters a bear market, there is a compelling argument to be made that the creator economy’s development will shield social tokens from the market’s impacts.
Related: On the fence: How long can a cryptocurrency bear market last?
The truth is that, for the time being, most artists’ fans are unconcerned with the price of BTC or ETH. They’re purchasing tokens to get access to special token-gated perks and new digital and physical methods to engage with their favorite artists and producers.
Whether the market is bullish or bearish in the next months, both situations provide distinct possibilities for our sector. Whether the market attracts new players in a bull market or shakes out the “weak hands” in a bear market, the near future offers a critical juncture for the creative and crypto economies.
As the NFTs cool down, the weak hands are weeded out.
Since the crypto bull market and NFT bubble exploded earlier this year, artists and celebrities have dominated the public discussion about cryptocurrency alongside Bitcoin. The NFT market has drastically cooled in recent months, with fewer big-name celebrities producing NFTs than in March. Is it possible that NFTs were just a fad, or will crypto alter the way celebrities and their followers engage in the future?
A few celebrities have undoubtedly utilized cryptocurrency for cheap endorsement money or to earn a fast profit. However, many of them are genuinely interested in seeing how crypto might bring them closer to their followers and let them to express themselves in new ways.
Related: The hype is over: How NFTs and art may help one other in the future
At the end of the day, influencers who exploited crypto as a “cash grab,” like previous generations of crypto tourists, will leave the sector amid downturns. We’re still talking to a number of genuinely interested artists about how they might use NFTs as part of a broader crypto engagement with their audience. The basis for artists and crypto has been solidly built to endure all market circumstances, whether they are household-name superstars or creators with an engaged, though more specialized, audience.
A watershed moment for the “middle class”
Creators with smaller and mid-sized followings have also looked at methods to interact with their audiences through crypto and NFTs, rather than letting Big Tech platforms to set terms.
More than 50 million YouTubers, TikTok stars, bloggers, and other content producers make up the creative economy. The industry is exploding: last year, ad expenditure on influencer marketing alone topped $10 billion, not to mention artists interacting directly with their followers. Crypto is becoming more prevalent in these direct creator-fan exchanges.
Despite the fact that the NFT market has retraced, innovators are still exploring the area, and the technology is progressing toward more functionality and usefulness. Million-dollar “market cap” economies are more prevalent than ever among crypto entrepreneurs. And it isn’t only cryptosphere founders who are succeeding in establishing crypto economies.
For example, Twitch streamer Alliestrasza’s 225,000 followers watch her play card games like Hearthstone and Magic: The Gathering Arena. With her network of ALLIE social token holders, Alliestrasza has created a million-dollar economy by providing unique advantages such as participation in fan competitions for different games.
We’ll see less and less connection between social tokens intended for active community uses/engagement and the wider, more volatile crypto market that may draw more speculative players as more producers create these types of economies with separate value and purposes.
Adoption in large numbers and creators
Many individuals who were early adopters of cryptocurrency may wonder why any of this matters. A peer-to-peer electronic currency system or a “global computer” are not Creator coins. True, they may not be. However, bringing new audiences into crypto and helping them realize the technology’s worth is the only way to see substantial growth in the sector. The acceptance of cryptocurrency is still in its early stages. Those will either have to utilize technology as it is now (which is happening at a very slow rate) or technology will have to develop more user-friendly layers that are attractive to people with less interest in or understanding of technology and finance.
Understanding the systemic transition from financial services digitalization to tokenization
One of the most apparent ways to accomplish this is to meet customers where they are – by engaging with their favorite celebrities and artists. However, the potential is not limited to artists and celebrities: Consider the adoption curve if every single person, brand, or website on the internet that might benefit from decentralization was tokenized.
Of course, the rate at which crypto and crypto-related products are created and accepted will be influenced by changing laws. For artists and celebrities all around the globe, particularly in the United States, this will be a crucial area to keep an eye on. Compliance with the Financial Action Task Force is already a requirement for crypto platforms that service artists.
FATF draft guideline focuses on DeFi and compliance
However, when technology and regulation come together and crypto is integrated into the everyday experiences of internet users, billions of people will be exposed to and grow more acquainted with the technology’s power and potential.
This may be the turning point we’ve been waiting for.
There is no financial advice or suggestion in this article. Every investing and trading choice has risk, and readers should do their own due diligence before making a decision.
The author’s views, ideas, and opinions are entirely his or her own, and do not necessarily reflect or represent those of Cointelegraph.
Kevin Chou got his start in the esports game industry as the founder and CEO of Kabam, a company that was ultimately sold for $1 billion. His foray into the crypto world started in 2018, when he co-founded and served as CEO of blockchain ecosystem Rally for two years. Content producers, developers, and others may use the company to take control of their own digital economy. In addition to his role at Rally, Chou subsequently created Forte, a game-centric blockchain platform, where he now serves as chairman.
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