Past Bubbles and Woonkly’s Sustainable DeFi Model
The Business Model is the Cornerstone of any Project
Bitcoin history is only a few years long, yet plenty has been written about it. And more will come for sure. The first-ever digital currency has led to all types of critics, from believers to sceptics. There are those who believe BTC and alts are only bubbles, the assets do not carry real value — according to them. Is this the case? Do we live in the crypto bubble?
2017: From $1k to $19,783.06
The all-time high value of Bitcoin was registered on Dec 17, 2017. However, during Jan 2017, the Bitcoin price was barely around $1k — how could anyone expect a nearly x20 revalorization in 12 months? The ICO craze contributed to the pumping of the cryptocurrency, there were hundreds or even thousands of ICOs those months appearing out of the blue.
Most of them no longer exist today. The projects mostly a) never reached their soft or hard cap, b) run out of money regardless. I remember several projects that caught my attention back in the day. In 2020, maybe 1 out of 20 projects is making do, and even fewer have a sustainable model these days. Back then, the focus was on getting funds with crypto rather than building new tech.
Crash of Early 2018
As many people cashed a lot of money in late 2017 thanks to the all-time pump, many more burned the following days. People believed BTC was going to pump forever — but it didn’t. Any strong movement in markets is always corrected to some extent, in that case, the price dropped by as much as 50% within days. The late buyers burned their money.
2018–2019: Finding a New Balance
The ICOs fade out in 2018 while the world slightly attempted to know about cryptocurrency. The first-time bubble had recently popped, the asset was questioned by many and condemned by others. By the end of 2018, the balance was of depreciation but it steadily crawled up in 2019 having various peaks.
2020: COVID-19 stroke worldwide
During Q1 2020 markets felt the reduction of the economic activity and cash flow. Thus, markets crashed massively, most assets have not recovered to previous levels. Bitcoin also “felt” that tendency, hitting a 30%–40% depreciation mid-March. However, soon after the price started to ramp up progressively — and so it continues today. Will we see another all-time high by the end of this year?
Bubbles Always Pop
The ICO craze created a bubble in the cryptomarkets. When it exploded, the shrapnel jeopardized users and projects alike. Moreover, the bullish trend can garner momentum much quicker than it takes to come back after a crash. There are numerous examples in the markets, let’s take a look at S&P 500:
This year, for instance, the markets crashed mid-March. It’s taken no less than 5 months to go back to previous levels. However, it is yet unclear if we are seeing another bubble caused by money printing from central banks, i.e. liquidity into the economy at the cost of inflation. Are we about to see another crash soon?
Woonkly’s Model is NOT a Bubble
Telling apart projects with a solid basis from those of dubious origin is hard. Scammers often make a decent job hiding their flaws, they try to trick you into giving them money first without a second thought. Today, only the businesses with a real foundation prosper, that is the case of Woonkly.
- A solid team,
- A sustainable model,
- Fully licensed for business activities,
- A transparent ecosystem.
Despite the market global crash and a trojan hack performed by ex-employees of the company that purposedly depreciated the token, the value is on its way to the listing levels of Sep 2019 again. In fact, were it not for the hack that cost thousands of dollars to the company, the token would be in last year’s prices.
- A community supporting the project,
- Weekly seminars about the project evolution,
- In-house development of new features and upgrades for the platform.
There are many projects out there. Some of them will be rock stars, most may not make it — sadly. It is a great moment to jump into the blockchain community to learn about the awesome tools being developed. However, when it comes to trusting our funds, precaution is advised.
Woonkly offers a passive income program, the Woonkly Share Token (WST), and an active way of getting Woonks through its platform. You can try it today for free at www.woonkly.com!