{"id":471127,"date":"2022-07-06T17:37:00","date_gmt":"2022-07-06T14:37:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/what-does-a-bear-market-cleanse-actually-mean\/"},"modified":"2022-07-06T17:37:00","modified_gmt":"2022-07-06T14:37:00","slug":"what-does-a-bear-market-cleanse-actually-mean","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/what-does-a-bear-market-cleanse-actually-mean\/","title":{"rendered":"# What does a bear-market \u2018cleanse\u2019 actually mean?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2c5a6ec2aaa\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2c5a6ec2aaa\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/what-does-a-bear-market-cleanse-actually-mean\/#%E2%80%9D_What_does_a_bear-market_%E2%80%98cleanse_actually_mean_%E2%80%9C\" >&#8221; What does a bear-market \u2018cleanse\u2019 actually mean?   &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/what-does-a-bear-market-cleanse-actually-mean\/#NFTs_Blessing_or_bygone\" >NFTs: Blessing or bygone?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/what-does-a-bear-market-cleanse-actually-mean\/#Blockchains_greener_pastures\" >Blockchain\u2019s greener pastures<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_What_does_a_bear-market_%E2%80%98cleanse_actually_mean_%E2%80%9C\"><\/span>&#8221; What does a bear-market \u2018cleanse\u2019 actually mean?   &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-2a0745c6><em>In his monthly crypto tech column, Israeli serial entrepreneur Ariel Shapira covers emerging technologies within the crypto, decentralized finance (DeFi) and blockchain space, as well as their roles in shaping the economy of the 21st century.<\/em><\/p>\n<p>The post-mortem consensus on the crypto market crash among industry leaders ranging from Polygon co-founder Mihailo Bjelic to billionaire crypto investor Mark Cuban is that bear markets are a healthy way of cleansing the market. The latter even referred to a line used by long-time crypto critic Warren Buffet to express his opinion of the matter.<\/p>\n<blockquote><p>\u201cOnly when the tide goes out do you discover who\u2019s been swimming naked.\u201d<\/p><\/blockquote>\n<p>Of course, no one in the industry would dispute the claim that bear markets weed out the weak, or, in this case, the nakedly corrupt. But we\u2019d be mistaken to leave the analysis at that as if more than $700 billion being wiped out overnight is something we should continue to accept from crypto markets. It\u2019s important to understand the major factors in this last bull run that led to its massive demise, and how to foster a more stable market going forward.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"NFTs_Blessing_or_bygone\"><\/span>NFTs: Blessing or bygone?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>We\u2019re five years out from the first monumental crypto crash spurred by the infamous initial coin offering (ICO) boom of 2017. As an industry still in its infancy, most of the projects sprouting during this period and driving investment were random coins claiming to be the next Bitcoin (BTC). The industry has developed quite a bit since then, and this time, other <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lications of blockchain drove the hype.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-07\/b678ac6d-5579-4cd7-845e-23fa653e25e5.png\"><\/figure>\n<p>So, what was the last bull run\u2019s version of scammy ICOs? Several factors contributed to the latest market boom that propelled Bitcoin to almost $70,000 per coin. But perhaps the most similar at their core \u2014 and yet often more ridiculous \u2014 to the ICOs of yesteryear were nonfungible tokens (NFT), a market that reached a whopping $25 billion in 2021. The industry perhaps reached peak hype when the NFTs from the Bored Ape Yacht Club (BAYC) collection were selling for hundreds of thousands \u2014 and later millions \u2014 of dollars in Ether (ETH). Celebrities got involved, as well as industry icons such as Adidas, Coachella and even the Super Bowl.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Beyond the hype: NFTs can lead the way in transforming business experiences<\/em><\/strong><\/p>\n<p>Then it all went south when everyone discovered more than 80% of the NFTs created for free on OpenSea were either frauds or scams. The cash-grab culture was put on full display in person at the NFT.NYC event in late June.<\/p>\n<p>That being said, it\u2019s not as though many in crypto deny that the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> behind NFTs will redefine ownership and play a major role in Web3. But how can we move toward that future without sams riding innovation\u2019s coattails?<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-07\/7a126d86-44b8-4737-a5e6-6ee3a3a648ba.jpg\"><\/figure>\n<p>It\u2019s actually quite clear-cut. A path forward for NFTs and the technology behind them is to tie them to desirable physical assets and harness their ability to authenticate and secure products.<\/p>\n<p>For instance, companies in the luxury goods industry have been exploring utilizing NFTs as a means to combat the proliferation of counterfeit items. Projects such as the Aura Blockchain Consortium, headed by luxury behemoths LVMH and Prada Group, harness the power of NFT technology for product authentication, supply chain transparency and data ownership for their physical products.<\/p>\n<p>It\u2019s not necessarily about selling a digital sneaker but enhancing the product and brand experience for their affluent clientele. Jewelry company Yvel, for example, launched a securities and trading platform tied to fine jewelry and precious metals as guarantees \u2014 actually pegging the NFTs to tangible products instead of JPEGS.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>NFT 2.0: The next generation of NFTs will be streamlined and trustworthy<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Blockchains_greener_pastures\"><\/span>Blockchain\u2019s greener pastures<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Surviving the bear market is not just an imperative for NFTs, but for more foundational crypto assets as well \u2014 which, by the way, haven\u2019t totally corrected for their tendency toward scams either. The collapse of algorithmic stablecoins is likely to cause a serious aversion for casual holders and companies from meaningfully exploring how to tie crypto to traditional assets, but that does not mean all hope is lost. The path forward here really does lie in focusing on creating a product that meets a real, tangible market need \u2014 not unsimilar from the solution to the NFT market collapse.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>What can other algorithmic stablecoins learn from Terra\u2019s crash?<\/em><\/strong><\/p>\n<p>That\u2019s a take we\u2019ve all heard before. So, how do we meaningfully get there this time? It all goes back to the basics of business. To thrive, startups need to find a problem that they are trying to solve, and that problem can\u2019t simply be that the founder isn\u2019t wealthy enough. So, what are the sectors on which meaningful coins can focus?<\/p>\n<p>Minimizing environmental impact and operating sustainably has long been a white whale for crypto and blockchain projects. A recurring critique of crypto and the blockchain as a whole are that they cause serious harm to the environment due to the emissions caused by token mining and other crypto byproducts. As of now, a majority of projects have been unable to shake off this stigma, but new developments can help spearhead a substantial change to this narrative.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-07\/3e741afc-1429-45b3-8f85-d1a8c0044622.png\"><\/figure>\n<p>In the wider business world, sustainability has quickly become a core value for a modern company to embody. While many of these corporate commitments are either superficial or encompass a<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.brookings.edu\/blog\/planetpolicy\/2021\/10\/25\/net-zero-carbon-pledges-have-good-intentions-but-they-are-not-enough\/\"> <\/a>nebulous promise to reduce carbon emissions by a certain year, there are more concrete steps that crypto can borrow from. One such development has been the adoption of corporate carbon credits, which, while imperfect, are a worthwhile way for corporations to offset their emissions and ecological footprint.<\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Green finance needs voluntary carbon markets that work<\/em><\/strong><\/p>\n<p>Though there have been major blockchains leading the charge on eco-friendly operations, such as Cardano and Algorand, allowing crypto holders the option to join in on the carbon market is another way to encourage sustainable development. Projects offering crypto-specific carbon credits or tokens tied to external carbon credits, such as CC Token, which opens access to investing in carbon credit futures for businesses and individuals, provide investors tangible value. Others are working to make the second-largest blockchain by market capitalization, Ethereum, more eco-friendly.<\/p>\n<p>The crypto and blockchain industry has been defined by its rambunctious nature and revolutionary ambitions. While any emerging industry is bound to be subjected to volatility, downturns and roadblocks, the latest bear market should send a clear signal to projects: It\u2019s all about finding a problem that needs to be solved, and actually using your product to solve it.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/p>\n<p class=\"post-content__disclaimer\"><em>This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.<\/em><\/p>\n<p class=\"post-content__disclaimer\"><em>The views, thoughts and opinions expressed here are the author\u2019s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.<\/em><\/p>\n<div>\n<div style=\"background: rgb(239, 239, 239); border: 1px solid rgb(204, 204, 204); padding: 10px;\"><strong>Ariel Shapira<\/strong> is a father, entrepreneur, speaker, and cyclist and serves as the founder and CEO of <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Social<\/a>-Wisdom, a consulting agency working with Israeli startups and helping them to establish connections with international markets.<\/div>\n<\/div>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/what-does-a-bear-market-cleanse-actually-mean\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; What does a bear-market \u2018cleanse\u2019 actually mean? &#8220; In his monthly crypto tech column, Israeli serial entrepreneur Ariel Shapira covers emerging technologies within the crypto, decentralized finance (DeFi) and blockchain space, as well as their roles in shaping the economy of the 21st century. The post-mortem consensus on the crypto market crash among industry&#8230;<\/p>\n","protected":false},"author":1,"featured_media":471128,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDcvYTY3MGQwNWEtYzNkMi00MDEwLWFiNWUtNjgxMDg1YWMyZDU1LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74894,74863,95118,74355,117,10595,76751,4965],"class_list":["post-471127","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-blockchain","tag-cryptocurrencies","tag-nft","tag-adoption","tag-business","tag-environment","tag-sustainability","tag-technology"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/471127","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=471127"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/471127\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/471128"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=471127"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=471127"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=471127"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}