How much did you lose when crypto crashed? If you’re like me, it’s not a small amount.
While I never really viewed it as real money anyways so it’s no big deal, the crypto crash had a huge impact on some people who put all their eggs in that basket, and on many projects that relying on an ever-expanding ecosystem — but definitely not a Ponzi scheme 🙂 — to continue to be viable.
You might think that’s true of web3 games and apps as well. But actually … not. From my latest post on my client Singular’s blog:
It’s a downer if you owned crypto. A disaster if you invested in NFTs. A cautionary tale for those who always had some reservations. And yet another chapter in the history of economics for those who are students of business history from the Dutch tulip bulb craze in the 1600s to the dot-com bomb in early 2000s. But whichever segment you fall into, the crypto crash might have been the very best thing to happen to web3 games and apps.
- On November 6th, 2021, Ethereum hit $4,811.90 US
- On November 10, Bitcoin hit $68,789.63
- In December, NFT sales hit over 100,000 per day, with a total value nearing $200 million
Today Bitcoin is in the low $20,000 range. Ethereum is just over $1500. And NFT sales have dropped by over half.
That sounds like it would be bad for web3 apps and games. And let’s be honest, it isn’t amazing. Installs of web3 apps — at least wallets and NFT collectible apps — dropped significantly.
But some of the top experts in web3, blockchain, play-to-own, and collectible space say that actually, the crash wasn’t all bad. In fact, it might just have been a much-needed slap in the face that will ignite real innovation.