“The consolidation of enough market influence in the hands of a few; otherwise known as “Whale” activity is not sustainable in a decentralized ecosystem. ”

These CeFi platforms use custodial wallets while providing high yield return on the staked assets and in turn, lend out those assets to institutions that pay higher rates. It was exciting for users to get as high as 90% APY on savings, but reality set in when these platforms halted withdrawals during the crash.

To prevent further liquidity issues, platforms like Celsius Network had to halt withdrawals, Finblox & Voyager lowered their withdrawals limit, while Babel Finance temporarily halted withdrawals. Blockfi would have suffered major liquidity pressures if not for FTX coming to bail them out with a $250 million credit line.

On July 13, 2022, Celsius, which attracted 1.7 million customers and $11.8 billion in deposits as of June, filed bankruptcy in New York. According to Reuters, Celsius “estimated its assets and liabilities as between $1 billion to $10 billion, with more than 100,000 creditors”. Previously on July 6, Voyager filed for bankruptcy after issuing a notice of default to the Singapore-based crypto hedge fund 3 Arrow Capital.

An article written in Cointelegraph highlights that some believe that most of the risks could have been mitigated if these platforms had better risk management processes in place. The article quotes three Coinbase executives’ take on the issue, stating that the whole crash was “foreseeable and actually credit specific, not crypto specific in nature. Many of these firms were overleveraged with short term liabilities mismatched against longer duration illiquid assets. We believe these market participants were caught up in the frenzy of a crypto bull market and forgot the basics of risk management.”

Overall there are lessons to be learned from this; we need more decentralized platforms.

One of the major advantages of using decentralized platforms is the non-custodial wallet feature; where users get to be in full control of their funds without any fear of restrictions of their assets. With these events, the term “Not your keys, not your crypto” has rung louder because interacting with platforms that take hold of your keys gives the platform control over your funds, which could be devastating. You can wake up one morning and not be able to access your funds because you’ve been restricted from making withdrawals.

Another advantage of decentralized platforms is transparency. Open and auditable transactions enable users to see what’s going on behind the scenes and where their assets are deployed. The bear market allowed users to be aware that CeFi lending platforms were taking larger risks lending out users’ funds to parties who couldn’t pay back.

The inability to withdraw at will from these lending platforms and the crypto market crash devastated many. Decentralized platforms give you control of your private keys, funds, and knowledge of where your assets are deployed. These are platforms we should all adopt.

The consolidation of enough market influence in the hands of a few; otherwise known as “Whale” activity is not sustainable in a decentralized ecosystem.

True decentralization is achievable when no singular person or group has total control.

Author: Becky

The post The Need For The Adoption Of A More Decentralized Space first appeared on Black Women Blockchain Council.

“The presence of women on- and off- stage was impressive – we filled panels, ballrooms and bars”

Self-characterized as the most important digital tech/blockchain event globally, Consensus2022 delivered with names like Edward Snowden, CZ (Changpeng Zhao, Founder and CEO of Binance), Mike Novogratz, and an interesting array of celebrities; along with oddly fun subjects like “Can the Little Guys Win or is  the Game Forever Rigged?” and “Exit Everything”.

The deep pockets evident throughout Consensus and associated side events was a sharp juxtaposition to the bear market keenly felt by many. Quietly acknowledged over drinks and private conversations (and the subject of some Consensus sessions), the bear market seemed incongruous with the WAGMI (We Are Gonna Make It) nature of Consensus this year, leaving slightly Las Vegas vibes – you know, a bit surreal.

I headed to Consensus a little pensive, with three plus days of networking ahead of me. This introverted Leo would rather be at home in her castle, but I pushed forward because the rewards of making great connections or accessing invaluable information simply by being in the room is priceless. Consensus afforded all of that and more. Most encouraging was the number, and expertise, of speakers from the African diaspora.

CoinDesk appears to have made a concerted effort to increase the visibility of underrepresented communities onstage (and hopefully within their own ranks). Similarly, the presence of women on- and off- stage was impressive – we filled panels, ballrooms and bars, LOL. At a lavish, Consensus-sponsored mixer for women, I was seated at a table with a young woman from Australia who had come in hopes of finding her tribe. A huge contingent of Australians had arrived for Consensus, but this young dev felt that despite shared origins, they weren’t her tribe. Another woman, managing  Shopify’s Web3 marketing, took great interest in this dev’s story and messaged her counterparts. Minutes later 3-4 team members came up to meet the (now) potential job candidate. Seeing how quickly relationships can develop with immediate and meaningful impact is the lure of Web3 and Consensus provided a platform for that to blossom.

Despite the stellar networking opportunities, a women’s chat group that I was in shared stories of demeaning treatment, confirming that Web3 is no panacea itself.

My commitment to learning, making connections, and stepping out of my comfort zone by traveling to Consensus yielded something I couldn’t have foreseen – confidence. I’m now more confident that I can forge a lucrative path for myself in Web3 doing what I love!

Author: Noi

Image Info: Lauren Halstead and Dez Bryant at Consensus 2022

The post Bear Market? Not for Consensus2022 first appeared on Black Women Blockchain Council.

“A project with a strong and good use case will always survive the bear market and recover from the loss in the bull run.”

One of the numerous lessons learned in a bear market is the importance of holding onto one’s investment. An investor/trader will only lose money if they panic sell when the market is down. A project with a strong and good use case will always survive the bear market and recover from the loss in the bull run. These lessons also help participants identify the importance of fundamental analysis when choosing their cryptocurrency.

In addition, the bear market helps the crypto community to understand, beyond the technical and fundamental analysis, other factors to consider when making decisions in this market. They are macroeconomic factors like economic downturn, inflation, government spending, bursting market bubbles, global financial crises, etc. The importance and impact on the crypto market by these economic factors cannot be over-emphasized.

The public’s reaction to the bear market varies for everyone. For some, it builds the hunger to learn more and prepare for future events. For others, it is a very depressing period, especially when they have lost a significant amount of investment. Ultimately, they withdraw from investing and see crypto as a scam.

Risk management is important to avoid losing more than the amount you can let go. The crypto space is a promising market with lots of opportunities for those who are patient and committed tom knowledge building. With efficient information, you will be able to pull through the hurdles of the bear market.

Author: Adeyinka

The post LESSONS FROM THE BEAR MARKET AND THE PUBLIC REACTIONS first appeared on Black Women Blockchain Council.

There is a general fear of investing in both traditional stock and crypto markets today.  Beyond inflation and increased interest rates, there are a host of issues contributing to this crash in crypto particularly.  Some of these include:

• The collapse of UST– where millions of holders watched their portfolios plummet due to a depegged stable coin
• Crypto lending platform Celsius– facing solvency issues and halting account activity
• Coinbase hiring pause and layoffs announced by Gemini and Crypto.com

All of these events have issued a hard blow to the crypto community and many in the market are reacting with panic leading to capitulation.  But it’s not enough to be reactive in this space.  Let’s take a look at proactive ways to minimize risk in a bear market.

“This is the very beginning of a global economic shift.  Know that you are here for the long haul.”

Survey   

Do your research!  One could argue that all cryptocurrencies are speculative, but none are more risky than those with no use case. Choose solid crypto projects with clear purpose and direction. This includes NFTs. Many of them have a value for their collectability, but look for NFTs with valued functionality as well. Remember that even stable coins have their own inherent risks.  Therefore, when building your portfolio, it’s wise to diversify your holdings to better protect yourself.

Secure

Some of the most reputable cryptocurrency platforms have been responding questionably to this economic downturn. It is vital to control and custody your own crypto. Many companies will focus on self preservation first and that means your assets may not be available to you when you want them. Hardware wallets are your best choice, but a non-custodial wallet beats leaving your assets on an exchange.

Stabilize

Unless you’re an experienced trader, don’t enter this market with sporadic short-term goals. This is the very beginning of a global economic shift.  Know that you are here for the long haul.  We’ve yet to explore all the life-changing ways blockchain technology will revolutionize the world.  Don’t see this bear market as a sign that you should exit crypto.  And whatever you do, don’t make decisions based on fear. Feelings change, as do markets.

Stand Firm

Some investors view bear markets as an opportunity to increase their long-term holdings. Many others wait for the trend to reverse.  One thing that history has proven is markets rise and fall, but there are great gains to be had during both.

Author: JaVon

The post UNSTABLE. Coins, Companies, Confidence. first appeared on Black Women Blockchain Council.