During the crypto winter of 2018, many cryptocurrencies crashed by over 90 percent, but it hasn’t been all bad for firms building infrastructure in this field.
A new report from Bloomberg suggests that the bear market was a very productive time for some in the industry.
It has also been a good time for investors who want to gain equity in projects whose valuations have dropped significantly.
Was the Crypto Winter Productive?
According to Blockdaemon chief executive Konstantin Richter, the crypto winter was the “most productive phase we’ve ever been in.”
His firm creates and hosts computer nodes that are used in blockchain networks.
He said that for Blockdaemon, things have been going well because many projects in the crypto space are turning to Blockdaemon for help so they can deliver on their ambitions.
At a Bloomberg hosted panel discussion Richter said:
“Projects now need to show their colors. The time is up of raising a lot of money and talking a lot of talk.”
Are People Skeptical About Blockchain?
The prices of cryptocurrencies reached record highs in December 2017 and January 2018.
At the time, Bitcoin reached a peak price of $20,000 while Ethereum traded for more than $1,300.
Since then, the price of both the cryptocurrencies have fallen drastically, and now they are worth less than a third of their all-time values.
The public and investors seem to have concerns on what blockchain tech can actually deliver in the real-world after hearing so much about its transformational potential.
Spring Labs CEO Adam Jiwan noted that the skepticism in the industry is warranted because it is in initial stages and its implementation on the industrial scale is still untested.
Spring Labs is currently working on a decentralized credit-reporting system.
Maco.la, an investment, advisory and recruiting firm based in Los Angeles is one of the beneficiaries of the fall in digital currencies in the past year.
The firm’s co-founder Sheri Kaiserman said that the firm decided to make equity investments last year instead of getting into ICOs.
They are looking to purchase equity stakes in ‘picks and shovels’ companies which are building infrastructure that helps lay a foundation for the industry. Kaiserman believes that it’s these types companies that Google or Microsoft may be interested in.