According to Kyle Samani, co-founder and managing partner of Multicoin Capital, the approaching crypto bear market will be substantially different from the last one.
Several analysts predict a bear market. Bitcoin is chugging along, just holding on to the 100-day moving average. When you include the Fed’s recent statement of greater tapering and imminent interest rate hikes, the picture becomes a little dismal.
On the other hand, Kyle Samani believes that the next bear market would be very different from the one that occurred in 2018/19. He points to several crypto initiatives that didn’t function and provided little or no use during the last boom market. He said that the excitement was based only on white papers, which he claimed were little more than promises at the time.
However, for this bull market, he says:
“This time around, that’s just not true. This time around, everything works. There’s real utility and you can see the value of that.”
According to a Business Insider piece published earlier today, VC funds have spent a record $30 billion in the crypto business. This is roughly four times the $8 billion invested in the industry last year.
According to the report, most of this money was put towards NFTs, DeFi, the Metaverse, and gaming initiatives. With this amount of money, companies in these niches may begin to detach from bitcoin and react less strongly to the apex of crypto’s gravitational pull.
Solana (SOL), Helium (HNT), and the Graph are three tokens that Samani’s Multichain Capital Fund has purchased and is extremely optimistic on (GRT). Terra (LUNA), which is up 13,861 percent YTD, and Kadena (KDA), which is up 7,658 percent YTD, are two more major winners for the portfolio (figures taken from Messari).