Market Cycles for Builders

Market cycles affect everyone. They are beneficial because they encourage funds flow from one peron to another. They also allign with human psichology as we are accustomed with various cycles and we tend to move out of a zone after some time.

But how do they affect builders? We are affected by drawdowns as VCs expect fast ROI. Although VC’s need to move money and know how financial markets work they are still recluctant to invest during bear markets. This is why liquidity outflow affects everyone. For us it is harder to raise funds are the conditions are generally tighter.

Currently, financial markets are like a loose canon. Most players are waiting for a rally to deploy capital. Builders, like us, want VC’s to move and inject liquidity to support the ecosystem. And we know this will happen as soon as the market sentiment changes. Because when a rally starts everyone will focus all the resources on the market.

What to do now? Work, build, observe. At least this is what we are currently doing. Building because we believe in our product and we want it ready for the next cycle. Because we know that this way we will have adoption and that our product will, along with others, be the locomotive for the next leg up.

Yes, we know it is hard. Because it’s psichology. If it was easy, anyone could have mastered it and could have just ridden the wave. But it’s not, so we have to learn and adapt. No matter what is your position in the market, if you are a developer, investor, hodler or degen, we all have the same battle and cope with the same sentiments and frustrations. But optimism and market knowledge are two important tools. We can see the market transforming every day and new narratives emerge. One of these narratives will be the basis of the next bull. We can all see a lot of tallented and hard working people as part of the market. We are all in the same conditions and we keep working for a common scope.

This is why I believe we should all do what we know best. But do something for the market to change for the better. No matter our skills, we should use them to attract attention and innovation to the market.

Clorophilla is all about technology and innovation. We want to develop this space through innovative solutions we believe will shape the ecosystem. This is what we do best and this is the direction we are willing to embrace.