The global economy appears to be in a recession and many companies are already preparing for it. There are indications that the crypto winter is here.
Despite the dreaded crypto winter, some projects continue to build. Cardano (ADA) is preparing for the Vasil hard fork upgrade while Ethereum (ETH) is drawing closer to the merge.
Supontis Token (SUP), away from the corridors of mainstream projects, is about to enter the presale phase where it will offer its SUP tokens to the public.
Building during a bear market is not easy. It takes grit, determination, and conviction in what you are building. Let’s take a look at the effects of a recession before delving deeper into these 3 projects.
The Effects Of Crypto Winter
Many people have been talking about the possibility of being in a crypto winter. A crypto winter happens when cryptocurrency prices keep falling and stay that way for a long time. This has happened several times before and the 2018 crypto winter is still fresh in the minds of many crypto enthusiasts.
The bear market has shaken crypto companies and they are now preparing for the worst-case scenario. Coinbase, one of the largest cryptocurrency exchanges in the U.S., is laid off 18% of its workforce and has already rescinded accepted job offers. This is not an isolated incident.
It is estimated that crypto companies laid off more than 1,700 employees in June as the effects of the crypto winter continue to bite.
The crypto winter is not just about falling cryptocurrency prices. It is also about the effects. Money is no longer flowing into the industry as it used to. Companies are quick to realise this and they are slashing operational expenses through job cuts.
This also slows down industry growth.
Old and established projects have a higher chance of survival because of the network effect and financial backing. However, this negatively impacts upcoming projects.
It causes new projects to push back on their launch dates and in some instances, abandon the whole operation. This kills off promising ideas. The last crypto winter saw the collapse of several projects. This cycle has already witnessed the Terra Luna crash.
The collapse of some of these projects serves as a lesson for future projects. It also shows that presale projects such as Supontis Token believe in what they are building.
Supontis Token (SUP)
Supontis Token (SUP) aims to eradicate the limitations to full blockchain interconnection and cross-communication amongst users on individual blockchain networks. SUP, the native governance token of the Supontis Token ecosystem, is a BEP-20 token built on the BNB Chain.
SUP will be the heartbeat of the Supontis Token ecosystem as it will be used to pay transaction fees to transfer assets from one blockchain to the other. The Supontis Token ecosystem will mint a total of 10 billion SUP tokens and 25% of the max supply will be offered to the public via a presale.
The Decentralised Autonomous Organisation (DAO) will be responsible for the governance of the ecosystem. SUP governance token holders will be members of Supontis DAO and they can vote on several governance matters. Only token holders who buy and hold a large number of SUP governance tokens can submit proposals.
Supontis Token is a new project with a vision to unlock the full potential of blockchain technology for the benefit of ordinary users, developers, and all crypto stakeholders.
Cardano (ADA) and Ethereum (ETH)
Cardano (ADA) is a well-known smart contract platform that has been around for many years. Cardano wants to implement Vasil, an upgrade that will improve the network’s scaling capabilities. This development will likely have a positive effect on ADA’s price.
Ethereum (ETH), which is the second-largest blockchain by market cap, is also gearing for the Merge, an upgrade that will see the protocol switch to a proof-of-stake network.
This bear market may have been rattled by the Terra Luna crash and a significant drop in crypto prices but there is a silver lining as both old and new projects are committed to building and developing their platforms.
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