2019 showed that the crypto market is no different from any other young and wild market. The most remarkable story to me is related to Crypto-Bridge, whose shutdown has ended a significant chapter of the masternodes market. It is no secret that any masternode scam’ success depends on 2 factors: high ROI and the emission control. It favours launching new scams, because inexperienced investors get persuaded by a high ROI at the start without realising that the project devs can crush the market at any moment. This perfectly fits the business model of CB which became every masternode investors destination and they made profits by selling listings and getting fees from wash trading. As long as stupid money stayed in the market buying scam coins, CB was doing well. By fall 2019 things started to shift and within a few months CB shut down. These events might not be correlated, but the timeline speaks for itself.
To conclude, the liquidity has left the market in favour of scam artists instead of supporting innovations. Easy money is no longer there and won’t appear any time soon.
Many projects, having the only purpose to make quick money, have been abandoned by the dev teams. Only those aspiring to innovate will stay in the competition. I had a chance to get a fresh look at the market in order to separate value creation from easy money chasing. The latter is known for various cases, such as the “next Bitcoin”, fastest tokenization platform, high ROI coin. Value creation will be the case of innovations, such as sidechains, atomic swaps, lightning network, decentralized finance. Our goal is to keep an eye on innovations to be able to adapt in the future.
I know that to some of you it might sound insignificant or too naive. Giant is not the project that should be concerned about the cutting edge tech since its weight on the crypto market is too small. Well, it took me shifting the whole paradigm in order to figure this out.
Because of Giant’s low start which had no funding and related liabilities we were free to change some of our plans and dismiss part of our activities. You can find enough projects that had to stick to early hyped promises and keep reinventing the wheel (creating new programming language). I am not even talking about those that performed exit scams.
Unfortunately, IT projects funding is broken. Today, the projects have to be oriented to mass investors in order to attract more money. Its tech and business model have to be quickly scalable and easy to understand. Even VC capital is looking for these kinds of projects to perform successful IPOs in the future.
That’s also the reason why so many projects try to fill Ethereum’s shoes as the major tokenization platform, as it provides an unlimited number of marketable use cases, although most of them don’t need blockchain at all.
However, I am not judging, because that’s the nature of things, natural selection, stupid money redistribution, whatever. People behind Giant simply were not in a position to enter the competition for mass crypto investors. We’ve planned our tech based on the IT and the business side of things.
We can continue implementing it in a bear market as well, although slower and in a less transparent way than expected. By the way, another good thing of the constraints is that we were forced to look for open-source solutions that would allow a decreasing amount of coding. In particular, we were lucky to find one smart contracts platform that uses so-called wrappers which are applicable to our codebase. Basically, the wrapper is a utility that connects the Giant Virtual Machine to the Giant blockchain in our case.
The main damage the market decline has caused us is the community decline. I am hoping that most of the users who used to be active in our project continue following it and will get back to the conversation once the tech has been made public. Although, the core team’s role remains overwhelming, additional expertise and social media resources are essential for any decentralized project. And let’s not forget that all the previous work left a public record, so the fair launch/no ICO origin will always provide additional benefit to the project’s image.
I believe that 2019 was the year that draw the line between crypto being an experiment and crypto being the new dotcom bubble. For Giant as for many other projects now there is no other option than bringing use cases and real users. So-called marketing and partnerships within the industry by themselves can no longer provide a positive image. The coreteam was and is prepared to take the long run. What about you?