Crypto newcomers are troubled about deciding their next move as the market becomes unpredictable. Because of this, crypto community members handed out their advice to those trying to navigate through the cold crypto winter.
In a Twitter thread, nonfungible token (NFT) collector and trader Krissyos highlighted the importance of having a survival mindset during this time. According to the NFT collector, crypto and NFTs will “soar in the future.” However, Krissyos believes that many current projects are bound to fail.
Because of this, the trader noted that the top priority must be figuring out one’s risk tolerance, or the amount you are willing to lose, and dollar-cost averaging, which “restricts your potential upside to mitigate possible losses.”
Bobby Ong, co-founder of coin information site CoinGecko, shared that finding new potential projects and trying them out is one of his favorite hobbies. Quoting a tweet with a list of upcoming projects, Ong wrote that getting in early often becomes rewarding.
For long-time Bitcoin (BTC) and Ether (ETH) holders, Ong said that multi-year market swings will not make much of a difference. Ong advised these types of traders to spend quality time with friends, family and themselves.
3/ If you are a long-term BTC/ETH holder, multi-year market gyrations won't make any difference, so go spend quality time on yourself, family, and friends. Go for a jog, cycle, hike. Improve yourself technically and socially. Spend time with family. The market will still be here. June 12, 2022
On Reddit, user Kuzkokronk emphasized the importance of buying Bitcoin during this time. According to them, if community members are not purchasing BTC at this time, they will regret it “5 years from now.”
Crypto trading platform Gemini recently announced the layoff of around 10% of the company’s staff. In an announcement, the company’s leaders cited the “crypto winter” as one of the reasons for the move. On the other hand, digital asset exchange Coinbase also announced that it will take a breather on hiring and examine its headcount.
Meanwhile, Sam Bankman-Fried, CEO of FTX exchange, explained that the firm will not freeze hiring and will “keep growing” despite the current market conditions. Bankman-Fried noted that they will not be scaling back but will rather “keep pushing forward.”
With the surging popularity of nonfungible tokens (NFTs), many have taken to “flipping” these assets as a trading strategy. Around 64% of people in a recent survey said their top reason for buying an NFT was “to make money.”
Blockchain monitoring software company DEXterlab polled more than 1,300 people on Twitter about their NFT buying habits from late May to early June. Despite a majority looking to gain from NFT trading, less than 42% have made a profit so far, according to the results.
The second most cited reason for buying an NFT saw around 15% respond that it was to be part of a community and “to flex.”
“People are highly social creatures, so the desire to be a part of a community and show off isn’t really surprising,” DEXterlab wrote.
The team highlighted the success of the Bored Ape Yacht Club (BAYC), which has celebrities among its ranks along with exclusive perks like access to holder-only events or new popular NFT drops.
Though some NFT collections, such as those of the BAYC, can often see floor prices in the tens or hundreds of thousands, almost half of respondents said they were only comfortable paying a modest price of between $50 to $500 for an NFT.
Surprisingly, the second most popular answer had a quarter of respondents saying they are ready to spend in the upper limits of the poll, more than $2,000 per NFT.
Over the past 30 days, some of the largest “blue chip” NFT collections such as CryptoPunks, Mutant Ape Yacht Club (MAYC), BAYC and Moonbirds have seen their floor prices or market caps halve. In spite of this, these collections have continued to top the charts for the top NFT sales over the same period.
Though NFT prices have fallen across the board, there are still examples of NFTs that have defied the prevailing bear market.
Recently, a free-to-mint collection with no utility or roadmap called Goblintown topped the charts and has since remained in third place over 30 days seeing nearly $70 million in volume.
Currently, the collection has a floor price of 3 Ether (ETH), or around $4,000 at the time of writing, and the most expensive one sold netted 77.7 ETH on June 1, worth nearly $151,000 at the time.
Other signs point to a healthy market for those still holding out to profit from their NFT buys. Sales volumes for NFTs came in at $3.7 billion last month despite the market conditions, according to a recent DappRadar report.
The report also revealed that Solana NFTs posted their best trading month in the network’s history, generating $335 million in volume across all marketplaces — a 13% growth from April.
NFTs continue to create a robust market for themselves and widespread mainstream adoption looms. According to a CoinGecko report, the NFT market is projected to transact more than $800 billion over the next two years, though hodlers will need to wait a little longer to realize their profits.
Cross-border transfer service MoneyGram officially launched its stablecoin-powered payment channel on Friday, giving users the ability to send USD Coin (USDC) payments worldwide that can be withdrawn as cash by recipients.
The service is being rolled out across several key remittance markets, including Canada, the United States, Kenya and the Philippines, Circle and MoneyGram announced Friday. Global cash-out functionality will be available by the end of June. To encourage adoption, the USDC transfer service will carry zero fees for the first 12 months.
As Cointelegraph reported, MoneyGram’s new transfer service was built on the Stellar (XLM) blockchain and allows Stellar wallet users to send USDC to recipients around the world. The service is intended to bridge the gap between digital assets and physical cash currency, as well as demonstrate the utility of crypto payments.
Stellar Development Foundation CEO Denelle Dixon said the new transfer channel will help the world’s unbanked population access the digital economy for the first time. While estimates vary, the World Bank says that roughly 1.7 billion adults are unbanked, which means they lack access to an account at a financial institution. Whether through decentralized finance, central bank digital currencies or crypto-powered transfer and settlement services, blockchain technology has been posited as a potential solution to financial exclusion.
In related news, Circle announced Friday that it had a definitive agreement to acquire crypto infrastructure platform CYBAVO, which it believes will further pave the way for USDC adoption.
Circle’s USDC is the second-largest stablecoin by market capitalization and maintains a one-for-one dollar peg backed by cash and short-dated U.S. Treasuries.
This Daily Dose was brought to you by Cointelegraph.