Adapt or Die: Surviving Crypto Winter at Re, the Blockchain Reinsurer
In the ever-evolving world of cryptocurrencies, one phrase rings ominously clear: adapt or die. As Re, the world’s premier blockchain reinsurer founded in 2022, we firmly grasp this maxim, navigating the tempestuous season of crypto winter with finesse and foresight.
Our team actively keeps a tight rein on our approach. As a company, we’re “default alive,” focusing on smart business decisions, careful underwriting, and keeping costs manageable without undermining our business outcomes. Our prime concern is to stand tall and steady, regardless of the season.
At this year’s Collision Conference in Toronto, Canada, Re’s Head of Data Engineering, Anand Dhillon, shared Re’s core belief in his keynote talk on the Growth Summit Stage in hopes of inspiring other entrepreneurs to shift their mindsets to growing profitability rather than growth at all costs. His perspective is, “We operate in a macro environment that doesn’t favor businesses that hemorrhage cash. Our mantra is to be a productive black box that efficiently converts a small amount of input money into a larger sum. The pace may vary, but the aim is to stay as close to cash flow neutrality and positivity as we can.”
For any digital currency business, navigating the unpredictable duration of crypto winter is no easy feat, particularly given the absence of a clear roadmap toward the inflection point of mass adoption. The duration could be 2 to 5 years before we hit that inflection point in the broader market. This trajectory is shaped significantly by both the geographical landscape and the existing regulatory frameworks, with unique stipulations in each region. In their absence, asset managers tend to err on the side of caution, often hesitant to tokenize, distribute, and sell premier products.
Today’s landscape is one of caution and hesitation, particularly towards stablecoins, stemming from their higher cost implications and associated risks. Yet, we see hope on the horizon with the potential introduction of Central Bank Digital Currencies (CBDCs) and the establishment of reputable stable coin issuers in the marketplace which would catalyze increased adoption.
The unfortunate truth is that without these advancements, newly founded companies lacking the necessary resilience may struggle to endure the challenging conditions of crypto winter. While Re is still a very new company, our commitment to adaptability and resilience remains unwavering. We operate as a ‘default alive’ business, prepared to meet whatever the future holds. Our perspective is one of optimistic realism — hoping for the best, preparing for the worst, and ready to tackle the actual.
