Why the bearish market makes reBaked more relevant?
Terra’s UST collapse has shattered the foundations, which led to the largest wealth destruction event in the short history of the crypto markets. The sharp sell-off across the market (particularly in Alts — most were down >50%), has left many in a state of shock. The market disruption has led to an extensive crisis of confidence in the prospects of crypto markets.
Till today, the extended damage will emerge and will affect more projects and investors, while it is expected that the fundraising activity for early-stage projects will be halted/ minimised.
A bearish trend is sweeping across the cryptocurrency market, making most investors and newcomers into the space wary of injecting funds. The fear of losses of investments by market participants is also having an impact on most projects in the cryptocurrency space. The resulting market slump is proving that the bust cycle on the bearish market is a stress test for thousands of projects in Decentralized Finance, GameFi, DAOs, and other sectors.
However, bearish markets are extremely important milestones in market dynamics that allow only strong projects with relevant use cases to hold their valuation and development firmly after the bust cycle. Bullish market cycles demonstrate that projects are always in a hurry to focus on attracting investors eager to earn quick money on various schemes, while disorienting developers to focus on activities that are investor driven, rather really impactful. Such an approach results in the projects’ failure to engage contributors and build a sustainable community.
To avoid any misunderstanding, there is nobody who doesn’t enjoy bullish markets, we hope our community members generate wealth and profit from their investments, and we truly hope that community members were not deeply affected by the current state of the market.
The concept that it is easier to buy rather than to build together does not hold true in a sustainable economy focused on long-term development. In bullish markets, projects raise money at relatively easy-to-conduct investment and seed rounds, focusing on fundraising instead of product development, leaving the crucial latter stage to a later time. That is precisely why the bearish market is a powerful stimulus for projects to focus on product development, true synergies, and community building.
The reBaked team understands the importance of bearish market opportunities and is determined to offer projects aiming at long-term development to take advantage of the many possibilities that such a period offers. The reBaked project aims to offer such instruments through its range of tools and governance by focusing on helping projects to get started on their path to sustainable and value-oriented product development.
As a measure aimed at mitigating risks under bearish market conditions, participation in leading market launchpads will be reduced, hence the need for reverse launchpads will increase. The reBaked approach revolves around supporting projects that place product development at the forefront. Early-stage projects are expected to have more difficulty in launching their endeavours, hence they will need to distribute and procure tasks, advisors, and experts from the community. This is the stage at which reBaked will provide its alternative support in market fielding and product deployment before potential contributors.
Early-stage venture companies that will be the most affected by the bearish market will reduce their activity, so more opportunities for community-driven financing will arise. The reBaked platform is intent on tapping into these possible avenues for scaling and providing hosted projects with more opportunities for traction.
Since tokens will become less liquid for teams to sell through markets, the reBaked platform will foster a community-oriented approach. reBaked will allow teams to deploy their assets to community initiatives and bounties as a means of increasing engagement and ensuring higher levels of support on the part of real users.
The bearish market is an excellent timeframe for both projects and investors to reevaluate their priorities and identify new opportunities for growth. The reBaked platform is intent on supporting decentralized project communities at such difficult times by providing the tools and venues necessary for maintaining high levels of interest and fair and equitable liquidity flows and distribution.
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