The bear market is doing an adequate job cleansing the crypto space of bad projects and actors. Although it is a painful experience now, this cleansing is great for crypto’s future
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During the bull market, people often proclaimed that the bear market will cleanse the crypto space. Now that we are deep in bear territory, a popular opinion here is that the bear market did not do its job of cleansing this space. For instance, there was a post on this a little over a month ago when shitcoins were popping off
It is true that we have not gotten rid of all the shitty projects. However, I would argue that the bear market HAS cleansed this space of a lot of garbage.
A lot of the bad projects are down a ton
HEX dropped 99% FTT dropped 99% Luna dropped 100% Algo dropped 96% [yes, I count this one. It had 500%+ inflation in 2021. Sorry.] Shib dropped 92% Doge dropped 93% A lot of the NFTs (like pictures of rocks or monkeys) are now $0 All the other shitcoins that popped off earlier this year are also down a lot. PEPE dropped 79% from the high, for instance.
A ton of bad actors have been removed from this space
FTX is gone, taking a lot of bad actors with it, such as SBF and Caroline Ellison Do Kwon is gone The Celsius ponzi scheme died and with it Alex Mashinsky lost a lot of influence The Three Arrows Capital ponzi scheme died A lot of small exchanges died that mishandled user funds
Is there still too much money shinvested in bad projects? Yep.
Was the process of cleansing this space painful? For sure. RIP our portfolios.
Is this good for the space on the long term? If you ask me, absolutely. There were too many bad actors, and a lot of them got flushed out. Now it is time to build and innovate and be patient. The bull always comes back.
submitted by /u/Beyonderr
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