The bearish trend in the market has dragged on and it’s time to talk about the weather, how to prepare for survival in the cold season.
It is very difficult to say exactly who coined the term “Crypto Winter”, but the media already in 2018 began to use this concept to tell users about the protracted correction. Like the seasons, the cryptocurrency market is very cyclical and the protracted period of decline in buyer interest and correction began to be called a long time ago. At the moment, we are already observing the third crypto winter (the first in 2013-2015, lasting 427 days, and the second in 2017-2018 with a duration of 395 days). The fall in the total value of bitcoin from the local maximum reached in all three cases almost 85%!
DAOs aren’t the only ones suffering from a protracted crypto winter. Losses are borne by all market participants. When the gloss of crypto projects falls, only the strongest projects that have an active community and a fundamental foundation remain on the market.
With a decrease in the cost of the native token of the project, staking programs become less profitable, which causes an avalanche effect of the sale. Such losses cause participants to abandon their positions and sell their coins. Participation in the community becomes less profitable and and because of this, the development of the project is hampered. Attracting new members becomes more difficult, and even more difficult is to convince them to become holders of DAO tokens. As you can see, the protracted crypto winter can have a very negative impact on the DAO community.
The only thing that I would like to say is that you need to be more demanding on the expenditure from the DAO treasury, it is worth reducing non-current expenses and preparing a stock for solid construction during the crypto winter. There are many examples of non-rational use of the budget, which led to very sad consequences.
Steps that can be taken by DAOs to prepare for future crypto winter or market downturns.
With a high probability of the onset of crypto winter, successful projects reduce marketing activity and increase the costs associated with the implementation of the project, to maintain and redeem their native token, as well as to encourage active and old participants.
If the native DAO token gains popularity and its use increases, there is a possibility that a protracted correction it will react noticeably weaker.
The DAO community community is its heart, the more active the internal work will be, the higher the chance that the DAO will be in demand on the market even during the crypto winter.
Robofi is a Defi platform that envisions a marketplace for revolutionary Dao crypto trading bots. Through its IBO (Initial Bot Offering) system, community members can maximize their earnings in an easy, simple, and secure way. We create a safe and transparent environment based on blockchain technologies that help developers bring crypto trading bot platforms to the market. In addition, individuals will have easy access to these bot applications, thereby generating more earning opportunities. RoboFi ecosystem is fueled by the VICS token.
VICS token has a distinctive and enticing concept. VICS is the BEP-20 token, built on the Binance smart chain. It is a core utility token in the RoboFi ecosystem, the reliable crypto trading bot marketplace. One important utility is to own the governance token of DABots and participate in an IBO (Initial Bot Offering) to receive additional incentives. VICS is available on major exchanges for trading.
I'm Carina, a passionate crypto trader, analyst, and enthusiast. With years of experience in the thrilling world of cryptocurrency, I have dedicated my time to understanding the complexities and trends of this ever-evolving industry.
Through my expertise, I strive to empower individuals with the knowledge and tools they need to navigate the exciting realm of digital assets. Whether you're a seasoned investor or a curious beginner, I'm here to share valuable insights, practical tips, and comprehensive analyses to help you make informed decisions in the crypto space.