The current Crypto sell-off crisis has many questioning if the crypto market will bounce back. This presents a modern dilemma that brings into question the validity of this newly emerging market, as experts compare it to the “dot.com crash” in the 90s. The implementation and use of Blockchain technology by startup companies play a crucial role in influencing how investors perceive Blockchain technology. New projects must refrain from having mainly digital assets representing the Web3 – Blockchain space. Instead, they can show value by solving a problem and pegging a new token (Coin) to a service, product, or even real estate. While the integration of a decentralized autonomous organization, which I will refer to as DAO, is one of the core uses of blockchain technology which resolves the governance aspect which is critical for building digital communities. Surely, building a community is great, but making gains out of the community that helps build the projects is an oxymoron. One of the web3 projects’ advantages is its ability to reward users for being early adapters. (HODL) holding your crypto as an early adapter seemed to be a thing of the past, get rich quick schemes “shady investment” emerge rapidly. Shady practices such as these push new projects to innovate and adapt security mechanisms to withstand tough times; one mechanism a web3 project can use is locked liquidity to control sketchy withdrawals from developers and founders. Make sure the project’s Governance is clear and defined, and of course where’s the DAO? What’s the benefit of you being a long-time holder? or how adaptable or feasible the solution that is being offered. innovators in the crypto ‘Web3’ space should have to demonstrate beyond the numbers of community members & NFT Perks that there is an actual value to their Token(Coin). for instance, if a project consists of other people buying and holding the token and not pegged to anything, then you are the project’s total value. Whereas, if you are the last buyer and the rest took their gains, then you have a sh** token, and you are gambling essentially risking it all. After my long journey of learning Blockchain Technology and Tokenomics, I decided to share with you some basics & Sustainable practices new and existing crypto adapters should look out for;
*Ensure that community ownership within the platform. *Certain funds must be delegated by the (DAO) representing the community. *Resistant to technical, economic, and governance capture. *Open Source & transparent.
BITCOIN (BTC) = Satoshi Nakamoto father of implementing blockchain immutable ledger and solving the double-spending problem. His vision was to support a fully decentralized “The Gold Standard”, transparent ledger. Bitcoin’s limited supply gives it the perfect scarcity, preventing it from being devalued by a limitless supply. Bitcoin will more than likely be needed in the future to facilitate trades and high-priced transactions.
ETHEREUM (ETH) = one word SmartContracts the abilities to build inside (EVM) Ethereum virtual machine is powerful and capabilities are endless, not entirely decentralized. *The Merge will be a huge shift and I believe it will be the start of a strong dominant position in the web3 space.
A StableCoin’s purpose is to swiftly have access to tradable money in multiple protocols. Thus, paving the way for you to take advantage of price arbitrage or obtain the buying position you seek. *also works if you want to sell your position at your target price, and want to protect your gains from being swallowed in volatility.
Algorithm StableCoins function differently, most have little to no collateral backing and instead use algorithms to maintain their target Fiat Currency Peg. These algorithms can also incentivize & manipulate investor behavior in efforts to stabilize the StableCoins price around the desired Fiat Peg.
For instance, a Web3 Blockchain startup uses a portion of their raised funds to buy “Revlon cosmetics”, and then distributes ownership with an NFT. The NFT then grants you access to a DAO (decentralized autonomous organization), then the startup can go ahead and create new Tokens – dApps -NFTS – Games, etc and have quarterly meetings w/ NFT holders and aim to create a less volatile environment that’s pegged to a real-life utility—owned by a large diverse community that essentially would have never had the opportunity to participate in such a project. Technology comes with amazing tools, one of them being able to unite & connect people to do greater good, with Trust & Governance provided by Blockchain immutable ledger the possibilities are endless.