Back to the list

Polygon Co-founder Predicts Bullish Trends For Web3 Amid Crypto Crash 


www.thecoinrepublic.com 16 June 2022 16:00, UTC
Reading time: ~2 m

Crypto Enthusiasts and Industry experts are expecting a lengthy crypto winter looking at the current conditions. However, Sandeep Nailwal, the co-founder of Polygon is of the opinion that in the long term Web3 is going to be bullish. The co-founder explained that the correction is more related to “macro” instead of fundamental weakness in the Web3 sector. 

Naliwal posted a series of tweets that predicted bullish trends for Web3 despite the current market situation. 

He then goes on to ask newbies to keep exploring and learning while builders should keep building as “Long-term Web3 remains mega-mega bullish.”

Nailwal further notes that if the Fed successfully manages to “remove” the uncertainty in the market, there could be a stop and proposed that “there is a lot of dry powder sitting on the sidelines to bring in aggressive bull rallies.” But taking into account the sticky inflation and stagflation concerns, such a scenario appears highly gloomy. He further added that most of them will also play in liquid markets.

Many VCs have increased a notable amount of capital. According to Nailwal, these entities even though would take a cautious approach in choosing their bets and acceptable valuations would be much lower but the exec expects the “thesis-based VCs to keep deploying.

The co-founder also estimated that after inflation hits a peak in the 3-6 months when Fed increases rates, the markets will eventually be able to find a bottom. Naliwal says that only after this “things become normal.” 

Lay-Offs In Crypto Firms 

A huge sell-off in crypto has been triggered by global stocks drop, investors emptied assets associated with risky. As a result, the market saw trillions of dollars in value sunk. The current volatility has eradicated both short and long positions. 

Many leading crypto platforms such as Gemini, BlockFi, Coinbase and CryptoCom, have cut down on their workforces, giving the dramatic shift in macroeconomic conditions as the reason behind the action. As of now. Crypto firms as of now are in quite a difficult situation. 

Binance is among the few firms that appears to be resisting the current market sentiment of cost-cutting plans and lay-offs. 

Recently, the chief executive of the exchange talked about having a “war-chest” to aid the platform amid a crash in the market. CZ believes that crypto winter is a great time to hire people.

Back to the list