Pantera partner: the bear market is not so bad. It's a great time to invest

With the global macro-economy and the interest rate policy of the Federal Reserve bringing some risks to cryptocurrency investors, there has been a selling tide in the cryptocurrency market, and we may be at the beginning of a bear market. Although there seems to be a correlation between the stock market and the encryption market at present, during the last bear market, it took only 71 days for the encryption currency to get rid of this correlation and start an independent upward trend. I'm not sure if it's a bear market. Even we've experienced it.

Review what I wrote during the last bear market about《Why is this the best time to invest》Article. The following are the main points of this article:

  • The bear market is not so bad because companies will focus on construction and entrepreneurs will find the right direction
  • Top talent has entered and continues to enter the encryption industry
  • A bear market is a great time to invest, including equity, equity token mix and discounted saft (simple token agreement)
  • During the bear market, investors will find companies with great value and long-term potential


I firmly believe in the correctness of these views. At present, cryptocurrencies in the open market are indeed sold at low prices, while private market valuations often lag behind. During the bull market, most financing transactions are token transactions, while during the bear market, we will see equity transactions become the main form, because investors' demand for risky assets is reduced, and the projects launching tokens will be reduced. If the project does issue tokens, they will look for mature platforms such as exchange, coinlist and Republic to sell tokens.

During the last bear market, the innovative channels of investment were around the secondary market. Early employees, early investors and VC are unwilling to take too much risk. They want to buy the equity sold at a discount, and even the saft being cashed is also sold at a discount.

Finally, the number of financing transactions has increased in the past two years, so we can see a considerable number of mergers and acquisitions and integration during this period.

投资者


Here are some suggestions for Entrepreneurs:

  • Raise funds to ensure that the company's next operation will last for at least 24 months
  • Focus on cash flow and business model as early as possible to create value that can be used for exit
  • Reduce expenses; In the encryption industry, you should reduce your marketing expenses during the bear market and invest more money in the subsequent bull market
  • Review the service agreement and reduce it appropriately
  • Large companies should actively look for acquisition targets

In short, the best performing companies stand out from the last bear market, so we should have patience, sense of mission and toughness; Through the narrow gate, you will see the vast.