Home Tech & Gadgets What is the winter of cryptocurrencies: what happens to Bitcoin, NFTs

What is the winter of cryptocurrencies: what happens to Bitcoin, NFTs

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The cryptocurrency market is going through a turbulent period, marked by declines, instability and declining investor confidence. Experts are talking about a so-called “winter of cryptocurrencies”.

Global companies that operate digital currency transactions are starting to take a step back in terms of business development. Due to the harsh market conditions, crypto managers are trying to approach as cautiously as possible.

Coinbase, for example, freezes employment until the turbulent waters of the market calm down.

Director Brock announced on the company’s official website that new hires are currently being halted. The official also said that he is canceling several job offers already accepted by potential workers, citing “current market conditions and ongoing efforts to prioritize business.”

Employees say they are disappointed with the company’s decision, and some of them say they risk serious suffering in their careers because of this. At least two people to be hired by Coinbase say they may lose their OPT (Optional Practical Training) visa due to canceled offer

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There are big problems in the NFT area as well

The company is also facing problems in the area of ​​NFT, launched in
May on a large scale.

According to Dune Analytics data from The Motley Fool, 4,132 people bought an NFT on the platform within 19 days of launch, and gross sales were $ 875,000, or an average of $ 46,000 a day. It doesn’t help that NFT sales are down overall, falling to about 19,000 sales per week in early May, compared to NFT’s 225,000 sales in September.

The company had big plans for human resources development for the current year. Massive employment had already taken place in the first quarter. 1,218 employees have been recruited by the company since the beginning of the year alone. Currently, official data for the first quarter of 2022 indicates a total number of 4,948 employees.

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It is also estimated that thousands of cryptocurrencies will disappear in the next period. The system has already reached saturation. There are about 19,000 cryptocurrencies in the world and not so many are needed, experts believe.

“I think the question is whether or not we need 19,000 coins today. There are maybe 180 currencies in the real world, ”said Brad Garlinghouse, CEO of Ripple’s cross-border payments.

Investors are increasingly fearful, and the risks in the market are high, given that not all currencies are worth buying, being extremely volatile.

“One of the effects of what we saw last week with the Earth issue is that we are in the stage where there are practically too many blockchains, too many currencies. This confuses users and poses certain risks for users, “Bertrand Perez, CEO of the Web3 Foundation, told CNBC at the World Economic Forum in Davos, Switzerland, last week.

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