TL;DR
2023 brought a new reality into cryptocurrency trading as users learned about regulation, trust, and transparency. This was followed by numerous IDOs that introduced notable and value-driven projects to the space and re-instill users’ hope.
Finally, we have the October bullish trend, which was maintained throughout 2023 as users expect the approval of Spot Bitcoin ETFs and Bitcoin Halving in 2024
Introduction
2023 was a turning point in cryptocurrency history, recording notable developments. The crypto space experienced a considerable change in market orientation and participation, institutional participation, and more stringent regulatory mechanisms. However, this is not the end of it all. The market also showcases impressive resilience, highlighting users’ and developers’ interest in building a more sustainable and enriching space for all.
The earlier months of 2023 were turbulent times in the crypto space; however, these developments did not obliterate users’ interest. Instead, participation in crowdfunding approaches like IDO grew gradually again, more innovation-driven projects were introduced, and eventually, the crypto landscape experienced a notable growth in price and participation.
Key Highlight of 2023
- Bear Market
The collapse of FTX represents a leading event that occasioned a bear market trend in the crypto space. When FTX and other affiliated financial institutions filed for Bankruptcy protection on November 12, 2022, it introduced a massive shock to the crypto space, leading more investors to lose trust and hope in the activities of cryptocurrency exchanges. There was a reported Ponzi scheme, uncalculated and unauthorized internal trading with investors’ assets, and more importantly, an unclarified relationship with Alameda Research. Here is an insight into what happened.
Late 2022 was the backstory of the sharp fall in cryptocurrency participation that eventually happened in early 2023 after Coindesk reported an unhealthy and shady trading relationship between Alameda Research, Venture Capital, and FTX, one of the leading centralized exchanges valued at $32 billion around mid-2022. The report highlighted that most of the assets held by the Venture Capital were FTX’s native coin, FTT, and other FTX-related or supported coins.
The report was followed by massive withdrawals by investors afraid of losing their assets. FTX filed for Bankruptcy Protection on November 12, 2022, to cushion the event and prevent a total run. A few hours after applying for bankruptcy protection, FTX announced an attack where $477 million was stolen from the exchange.
The bear market trend continued after the collapse of FTX for numerous reasons, permeating the idea that Centralized Exchanges are not different from traditional financial institutions and, therefore, restrict assets to users’ assets and lack transparency. This led to the adoption of decentralized exchanges and a growth in the usage of cold storage systems.
A Transparency Dashboard that allows users to verify the value of clean assets on a centralized exchange was introduced to showcase transparency and build a healthy crypto landscape.
Introducing Secured IDO Mechanism for Crowdfunding by Poolz Finance
Even when users’ trust was at its lowest, leading launchpads like Poolz Finance created avenues for safe investment opportunities. Being one of the most active Launchpads in the bear market, Poolz shows the rewarding capacity of cryptocurrency investment and achieves remarkable developments in the IDO ecosystem.
Introducing its two IDO models, the Risk-Free IDO and Secured IDO model, Poolz Finance creates a safe place for cryptocurrency investors to navigate investment opportunities in multiple projects without fearing losing their money. This development also reignites users’ interest, as displayed through multiple successful IDOs completed on the platforms. Here is what you need to know
Poolz Finance as a leading launchpad boasts over 130 successful IDOs and has raised over $40 million for innovative web projects in web3. The platform further enjoys broad participation with over 150,000 active users and over 30 million user base on different social media platforms.
Poolz boasts of its involvement in successfully launching some of the leading and value-oriented projects in the crypto space today like Carbon browser, ChainGPT, Friend3, DexCheck, Orbofi, and more…
Some recently completed IDOs on the platform also show impressive performance, showcasing a careful vetting process and users’ trust.
Recent IDO performance:
• Carbon – IDO sold out 400K with 40x ATH on listing.
• ChainGPT – IDO sold out 200K with 35x ATH on listing.
• Orbofi – IDO sold out 250K with 12x ATH on listing.
Quest-to-Earn and Poolz Boost
Another notable development of 2023 is the introduction of Quest-to-Earn platforms. This marketing approach is considered more suitable for projects in Web 3.0. Hence, contrary to the regular marketing system in Web 2.0, Quest-to-Earn projects like Poolz Boost introduce an approach tailored to project needs.
By keeping reward at the end of all tasks, the Poolz Boost marketing approach equipped upcoming projects with an ecosystem of interested participants who not only hear about the project but also understand its core values and share a common belief of growth and adoption.
SEC’s Influence on Cryptocurrency Landscape
2023 is also a year marked by institutional participation. Given the volatility of cryptocurrency and the consequential effects on national and global financial systems, the need to protect investors in the space has become the duty of regulatory bodies in several countries.
For this reason, the Securities and Exchange Commission (SEC) expanded its scope of participation in the space. By categorizing cryptocurrencies as securities, SEC maintained actions against leading exchanges like Coinbase and Binance. The result of its finding on Binance led to a penalty agreement under which Binance is paid a settlement of $4.3 billion, and its CEO and founder, Changpeng Zhao (CZ), stepped down after pleading guilty to a felony related to money laundering.
However, while the SEC’s intention to continue regulating cryptocurrency increases, covering about 10% of the market value, it has become more pertinent for regulatory bodies to consider the crypto landscape’s specific nature when formulating policies. On this background, many have condemned SEC’s stringent conditions as an attempt to jeopardize the prospective growth in the crypto space.
Innovation-Driven Projects: Combining AI, Cryptocurrency and Blockchain
Another development witnessed in 2023 was the notable amalgamation of Artificial
Intelligence, Cryptocurrency, and Blockchain. We have AI trading bots like Mizar, a project highly adopted through its IDO on Poolz Finance. SocialFi projects like Poolz Boost, Friend 3 and Dmail. Orbofi after its successful IDO on Poolz also equipped content creators with content creation tools that are swift and efficient.
Finally, the introduction of ChainGPT and its consequential launch of a Launchpad for
upcoming AI projects constitute a more exciting development to bring more AI projects to the crypto space in 2024.
The Bull came back
October 2023 marks the turning point for cryptocurrency because after months of bearish trend, the crypto space recorded 19% growth in market capitalization. Crypto traders and investors became optimistic again, and this was possible for several
reasons, including the rumored approval of a spot Bitcoin Exchange-Traded Fund.
While bitcoin regained its position as a truly rewarding cryptocurrency with a 28.1%
rise in price, coins like SOL and LINK recorded a massive 78% and 45% gain, respectively, only in October.
Towards the end of 2023, these coins have recorded even more gains in price, with BTC demonstrating an approximately 160% surge in price. The majority of market participants believe that the bull market is back, and this has been backed by a change in sentiment as exchanges report increased participation as 2023 runs out.
A LOOK INTO 2024: WHAT TO EXPECT
The events of 2023 set us towards an intriguing 2024. While expected developments are not certain, it is essential to highlight the notable changes that may shape the future of cryptocurrency in 2024 and, perhaps, in the coming years.
- ETF Approval
The speculated approval of a Spot Bitcoin Exchange-Traded Fund (ETF) in the US drives optimism and participation in the current cryptocurrency ecosystem. This was followed by a report that Blackrock has made an application to add ETF Bitcoin to the clearing house eligibility file.
Unlike the Future Bitcoin ETF, the Spot Bitcoin ETF represents access to a more secure bitcoin stored in a secure digital vault and managed by registered custodians. When investors hold a certain amount of bitcoin on an ETF, the ETF issues shares corresponding to the value or number of bitcoins owned.
Essentially, Spot bitcoin ETFs are securely held digital vaults with layers of security to reduce the risk of hacking. There is also a more stable price follow-up from the ETFs and liquidity.
- Bitcoin Halving
Bitcoin halving is historically associated with a subsequent bullish movement. Naturally, when bitcoin halving takes place, there is a reduction in the total amount of Bitcoin, resulting in low supply. The first bitcoin halving happened on November 12, 2012, when the price of BTC was $12, and one year later, the price of BTC reached $1,000. The last halving happened in May 2020, resulting in a price surge from $8,787 to $69,000 in November, 2021.
The next halving of Bitcoin is expected to be around April 2024, and market participants expect a corresponding rise in price relying on the historical trends.
Conclusion
The crypto space brims with opportunity, leaving investors with two things: The need to understand the market better and investment according to this understanding. While 2024 seems promising, it is vital to reiterate the importance of personal research and due diligence for profitable and healthy investment practices.
