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Why Did Cryptos Divebomb in Value This Year? 13 1945

We’ve all seen the headlines. It’s no secret that one of cryptocurrencies’ main traits is its skyrocketing volatility. When Bitcoin reached the dizzying heights of $20,000 in December last year, it sent FOMO rushing through those who hadn’t invested yet. And sparked off parties in the living rooms of those who had. Cryptos were on the up and up in 2017 and yet, this year has been positively dreadful by comparison.

So what’s going on?

Having reached a whopping $834 billion in value, CoinMarketCap reported that the market plunged sharply by over 66 percent, equating to a loss of more than $500 billion. Bitcoin’s value was slashed by more than half, and Ether and Ripple suffered similar drops.

All this upping and downing began to send shockwaves through the crypto and wider communities, provoking talk about whether the bubble is about to burst and if the end of digital currencies is in sight.

So What’s Behind Cryptos’ Fall?

There are a few schools of thought on this. Some say the fear of missing out late last year drove masses from the wider public to invest. This led to an over inflation of prices from which the market is only now beginning to stabilize, explaining the reason for the price dip. Others believe there are a combination of wider factors at play.

Negative Press

With the abundance of news of hacking scandals and the recent hack of Coincheck, which caused a $530-million loss for the company, security is a major issue for cryptocurrencies. And it’s one that’s causing many an investor to stay away or pull out. News of fly-by-night ICO teams raising millions of dollars and disappearing with investors’ money does little to add credibility either.

Tensions that are already running high are not eased by rumors of scam artists and dark deeds. Neither are investors happy to hear of increased regulation and investigation by the SEC, and concerns that many ICOs are being investigated and shut down. Economists around the world spelling doom and gloom and the Bank of Austria calling Bitcoin’s value “pure speculation,” have also served to fan the flames.

Added to that, the Chinese ban on cryptocurrencies altogether and the fact that India and other countries may follow suit, and it’s almost easy to see why cryptos plummeted.

A Comeback for Cryptos?

While some see it as the doomsday predicted by many, others see it as an opportunity to buy more or to hold. Your next move here depends on the kind of investor you are. One comfortable with sharp drops and rises, or one who panics about unexpected downturns.

After a dire start to the year, March has begun in a sprightlier way for Bitcoin, Ether, and friends. Bitcoin is clawing back its value, currently standing at $11,300. The market has surged by over $400 billion, and Ethereum and Ripple are flying high, increasing value by over 20 percent.

What does all this increase in activity mean for cryptos as we move into the future? A second surge in value, perhaps, with cryptos reaching over a trillion dollars? Or a crypto-style nuclear winter that sees digital currencies quashed by regulation? Either way, it’s going to be a wild ride.

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Christina is a technology and business communicator who has worked with high profile ICOs and blockchain influencers to break industry news.

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Stakester Brings New Experiences and Royalties to Gamers with NFTs Comments Off on Stakester Brings New Experiences and Royalties to Gamers with NFTs 601

Image Credit: Stakester

A cheat code NFT allows owners to accrue money, prizes and royalties in the context of popular games.

On Tuesday, Stakester announced its intention to launch a VIP pass in the form of NFTs that it says will enhance the experience for users of its popular gaming app. 

The app, which pairs gamers with real-life opponents, allows players to stake real cash and prizes on their competitive skills in popular games like FIFA 21 and Call of Duty: Warzone. It’s seen significant growth since its launch in 2020, and touts 100,000 members across 31 countries. 

With the forthcoming NFT drop, users will now unlock the potential for larger prizes, access to VIP arenas, and 50% of royalties on the secondary market.

“The NFTs embody Stakester’s vision of delivering electrifying gaming experiences through the thrill of competition,” says Tom Fairey, Founder and CEO of Stakester. “NFT holders will help us shape new, undreamt-of entertainment experiences as gaming becomes ever more powerful and immersive.”

Two levels of NFTs will be offered. At .1 and .25 ETH, respectively, the barrier to entry is high, but Stakester is hoping gamers will see the value of layered experiences and unlocking additional incentives with real-world value. 

“The idea of earning rewards, just like a normal reward scheme but built around NFTs, is totally fit for the future,” says Mike White, CEO and Strategist of immersive entertainment marketing agency, Lively.  “The whole idea of royalties is truly exciting.” 

Stakester’s 50% royalty incentive, Fairey believes, will create stakeholders out of the players on his platform.

 “As well as the increase in gaming utility, the NFT drops provide Stakester users with a chance to invest in the future of the company and, for VIP Legendary holders, there’s also an opportunity to benefit from a royalty share from certain competitions and to make a passive income from NFTs, regardless of whether they go up in value or not,” he says. “Stakester is one of the only platforms to offer this kind of bonus.”

White points out that Gala Games is doing something similar with Nodes which allow gamers to receive rewards like NFTs when they contribute meaningfully to the Gala Network.

He predicts that legacy gaming companies will be adopting similar NFT models, but the winners in the NFT gaming race are hard to predict, particularly since there’s so much attention around NFTs that it’s hard to differentiate between hype and long-term value. 

“I’m sure it will be an immediate success,” he says. “Will it be a long-term thing? We can only wait and see.”

Why Is Everyone Talking About NFTs? Comments Off on Why Is Everyone Talking About NFTs? 347

In this writer’s opinion the NFT hype is warranted — but not for the reason most people are investing. 

For those who’ve been in the space since Bitcoin’s early surge, you’ll remember the Initial Coin Offering (ICO) boom of 2017. The crowdfunding vehicle, which mirrored an IPO on the public market, brought with it massive amounts of investment into the blockchain space that seemed to mirror Bitcoin’s rapidly increasing value. 

In retrospect, none of it made sense. 

With all the hype, the investment in the space didn’t match due diligence. As of August 2018, investors had lost nearly $100M in ICO exit scams, a major reason we no longer hear about ICOs. 

From there, crowdfunding through token sales was rebranded alongside SEC regulation as Security Token Offerings (STOs). Additional fundraising iterations to enter the scene are Initial DEX Offerings (IDOs) and Initial Exchange Offerings (IEOs).

NFTs are having a similar moment to the immature and potentially reckless ICO market of 2017. The danger can be credited to a mix of hype and a widely unregulated environment with various points of entry and gatekeepers that are not incentivized to shore up fraud. 

As a result, many purchasers of NFTs are falling victim to a spectrum that spans undeserving projects on the mild end and outright scams at the extreme. Meanwhile, hackers are exploiting the unregulated environment. 

Just yesterday, $3 million in NFTs were stolen via an Instagram phishing scam. 

This writer, however, is still bullish on NFTs — just not the ones that are getting all the attention.

NFTs represent a concrete entry-point into the blockchain with a tangible utility and infinite disruptive implications. 

Here are a few.

Digital Assets as Social Proof 

As a Millennial, I personally have a hard time understanding the notion of owning and assigning value to a digital asset, but my kids don’t. 

I’ve written about how Gen Z has already adopted the concept of social proof in digital environments by assigning socially relevant value to digital assets like video game skins. 

As Gen Z ages and becomes an increasingly powerful consumer population, this experience will matter. Whether or not their purchase behavior translates to adulthood remains to be seen, but our kids are already leveraging digital assets in the metaverse to exhibit their position in the social hierarchy in the same way that my generation assigned value to Jansport-brand backpacks. 

Their concept of digital assets will be fundamentally different from ours, and NFTs are likely to benefit. 

But Why Are NFTs Relevant to Me Now?

Social proof is far from the most interesting use case for NFTs. 

In the near-term, NFTs can be utilized to store sale information of physical goods on the blockchain in order to eliminate nefarious actors in fraud-riddled industries like fine wine and art. 

Moreover, NFTs can disrupt any industry with a substantial secondary market. By coding royalties into the smart contract of NFTs, original sellers of wine, art and other trade-susceptible brands and industries can ensure they’ll capture a fee anytime an item is transferred. 

This solves a major problem for creators like photographers, artists and musicians that are notoriously underpaid in comparison to the value they create for brokers. It also has the potential to cut out middlemen like auction houses, record labels, and galleries to democratize the creator economy. 

Other Innovators Have Introduced Creative Use Cases for NFTs

Gary Vaynerchuk utilizes NFTs as tickets for events and other value-adds to his community. Forbes introduced a series of NFT Billionaires that will update alongside the real-time NYSE to gamify their user’s NFT experience in a way that’s brand-relevant. Foxies.art is using a gamified version of NFTs to fundraise blockchain education for women. 

The utility of NFTs is confined only by the imagination of our innovators. Whether or not NFT headlines today will remain relevant is yet to be seen, but one thing is certain: the disruption is only beginning. 

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