Crypto firms need to stop making avoidable dot-com era mistakes
Following reports of a number of major crypto companies struggling during the current volatility, they need to stop making avoidable mistakes that undermine the industry, lead to financial chaos for investors and job losses for workers.
So far this year Bitcoin has lost around 57% of its value, falling under the $20,000 mark last weekend for the first time since December 2020.
As I was quoted by Value Walk, Financial Investor, Invest Macro and Business Café, amongst other media, I’m certainly not criticising other firms, but recently we’ve witnessed some of the biggest players in the sector making massive, needless errors.
They opted to take out costly television advertising, went for highest-tier sponsorships, unparalleled recruitment drives and implemented lending models offering sky-high interest rates on crypto deposits.
Yet now, we have staff losing their jobs, client withdrawals being frozen and reduced investment.
Sadly, these companies have made some obvious, and preventable, dot-com era mistakes. These mistakes heighten financial chaos for investors and the effect of job losses for many people who were set on a fulfilling career in the future of finance. Not to mention they destabilise the industry due to the knock-on effect.
For the sake of their clients and the industry as a whole, these firms would be better off expanding via investing in top talent, development and innovation, as well as pushing for prudent regulation with financial watchdogs.
However, as I’ve said before, despite this recent crypto price drop, I’m continuing to accumulate Bitcoin. Indeed, I’m using this latest volatility as a buying opportunity to top up my portfolio at a lower price point, as I’m confident that digital, global, borderless, decentralised, tamper-proof, unconfiscatable money is, without doubt, the future.
I believe the crypto sector will rally, and it will be bounce back stronger than ever. Of course, lessons will be learned along the way within the industry, but the future of finance will be increasingly robust.