Every market has its ups and downs and the world of crypto is no different. While bitcoin is currently at a four-week high (party time!) there are still some choppy waters ahead. The experienced trader may well be steering clear of the risks currently present, there are multiple reasons the serious, long-term investor should be looking at funds and projects in the current climate.
A bearish or volatile market does appear to present risk at first glance, and given the fact we are seeing heavy amounts of regulatory-based news around the blockchain landscape right now, these combined factors may persuade you to err on the side of caution. However, if you undertake enough research, or better still, entrust an experienced fund or entity to do so, there is so much potential to be found.
Value For Money
This type of market offers much more value when it comes to investment, with much more favourable valuations to be found across the market. These valuations are due to the current market conditions and sentiment, with projects lowering their investment ask or offering greater value to VCs and investors for equity, tokens or both, resulting in the likelihood of heavily increased ROI when more positive conditions return and projects are ready to launch.
Quality Over Quantity
It is an unavoidable factor in every sector, but this market cycle is the point at which the cream rises to the top. While of course diversification is a key component of a successful investment strategy, sadly not every project makes it through the ‘winter’ of a market cycle, but the ones that do will go on to provide value to both the space, and their investors. Those that are sacrificing where they can and focussing on building through this period due to the value they bring and their belief in the space will come out of this current phase in the perfect position to develop and succeed.
Talent Transition Continues
This factor is an incredibly strong indication of the growing belief around the future of blockchain technology and its use cases. Just recently we have seen a key figurehead at one of the biggest traditional gaming studios in the world making the move into blockchain gaming, and that is just one of many examples. For this to still be happening in the current market is a testament to the work already being done in the space and a great way to highlight how much belief is developing around what the future holds for crypto and blockchain.
As much as we would all love bear markets and volatile conditions to not exist, they are almost an essential part of the financial world, serving a number of purposes. Furthermore, these conditions are not all doom and gloom, with not only great value to be found for investors, but the fundamentally strong, future-focussed projects developing, seeing it through and positioning themselves to further evolve the space when the time is right.
About Maitri Capital
Maitri was formed in 2021 by an experienced management team, each with nearly 20 years of investment experience in multiple areas, from institutional investment management to the latest cutting-edge blockchain technology and crypto.
The joint experiences of the team enable Maitri to maintain the dynamic heart of crypto and blockchain investments whilst underpinning this with extensive knowledge of institutional risk management, compliance and oversight. This is augmented by crypto subject matter experts to provide holistic coverage of a rapidly evolving space.
Maitri Capital is the early-stage investor of choice for ambitious founders and projects.