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The Crypto-industry during the pandemic

Updated: Aug 7, 2024
Published: Apr 14, 2020
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The COVID-19 pandemic has left no stones unturned and crypto was no exceptions. It’s effect rippled all the way to an asset class generally viewed as uncorrelated. In fact, even the most liquid and dominating asset, Bitcoin, saw its price crash by over 40% on March 12th.

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It is well known that hard times leads to hard work in this industry, a lesson learned by most during the 2018 bear market. While prices were crashing, developer activity was on the rise and can be seen on the chart below for the Ethereum project.

[caption id="attachment_15585" align="aligncenter" width="2798"]size-full wp-image-15585 [Green line represents price and purple line showcases development activity; Source: Santiment][/caption]

The question then is: how is the crypto-industry evolving and moving forward during this crisis?

Crypto-Exchanges

The market crash was an extreme stress test to all exchanges as they needed to maintain full functionality during extremely high volatility and high volume time. The largest exchanges were not only able two navigate the troubled waters but this has pushed them further in development.

Binance, largest cryptocurrency exchange by traded volume, has been making strategic moves for a while now. Their latest have been acquiring CoinMarketCap, starting a new venture by getting into the mining business, they’ve improved their existing futures exchange infrastructure and are launching options trading.

Bitfinex, also one of the top exchanges, has taken this chance to listen to customers and have added staking to their platform.

FTX, the most innovative crypto-derivatives exchange by far, have introduced new “half-tokens”, are working towards an efficient and well-design mobile app UI and are ensuring only informed investors access the products by adding an “exam layer” before allowing users to trade leveraged tokens.

BitMEX, the largest crypto-derivatives exchange has entered into a turbulent phase as their matching engine neared a breaking point. This has opened their eyes in many ways it seems and they’ve seen the rise of new derivatives exchanges which led them to decrease their maintenance margins by 10% to allow for a more efficient platform.

Fundraising Campaigns

To fight this pandemic, the crypto-community went hand in hand to raise funds for victims. Binance raised millions of dollars for this cause, RippleLabs donated $200,00 out of their capital and many other cryptocurrency projects have done the same to get the world through this rough patch.

Market Trends

Investors and traders are becoming more mature and maintaining an edge is becoming more competitive. Therefore information must be seeked and research must be done, but it doesn’t end there. Analysing the data at hand is what can differentiate a winner from a loser and unless proven, an analysis technique would be obsolete.

Our research team has upped the ante and been hard at work looking at opportunities, evaluating market trends and reviewing in detail what the future may hold for crypto.

Successful investing is anticipating the anticipation of others” - John Maynard Keynes-

Anticipating where the industry and markets are headed through proven research is what leads to exceptional results. All of this information is formulated and shared with our members in order to offer information they can evaluate and open their minds to new perspectives.

Information and analysed data today can go a long way.

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