- Luis Buenaventura, former Yield Guild Games (YGG) country manager, discussed tips for crypto startups on how to survive bear market uncertainty.
- Buenaventura attributed YGG’s survival to conservative spending, discipline in cutting back on expenses, and making difficult decisions like downsizing teams and discontinuing projects.
- In surviving bear markets, crypto startups need to swiftly adapt, make the necessary choices to ensure the company’s survival, and demonstrate leadership by making tough decisions, according to the #CryptoPH Champion.
Former Yield Guild Games (YGG) Country Manager Luis Buenaventura discussed how the gaming guild stayed afloat during the bear market while others failed. He also gave tips on how crypto startups can withstand harsh market conditions.
Buenaventura shared this in an interview during the BitPinas Webcast on August 16, 2023.
How Did YGG Survive?
According to him, the main reason why crypto startups fail during the bear market is that they overspent and lacked the discipline to cut back on their spending.
For Buenaventura, YGG’s survival should be attributed to the experience of its personnel, who have been in the industry for some time. He also emphasized how they, as a team, become conventional when crypto winter comes:
“We need to be conservative, what does that mean? We need to be willing to do painful things like, maybe downsizing the staff, downsizing the team, or maybe letting go of the projects that we were really excited about but we can’t do it anymore because we want to stretch our capital.”Luis Buenaventura
He then proceeded to share that YGG had to discontinue a project that had been in development for six months and had already cost $20,000. They had to put it on hold because it required an additional $100,000 to launch, and they deemed it unlikely to survive the bear market.
“We had to make a lot of painful decisions like that and I think that is basically the recipe for surviving crypto winter. When you can see that your money is of a certain amount and it’s unlikely that you are not going to be able to raise more money anytime soon, you have to make the painful decision to just cut all sorts of things, even though these are the things you really love.”Luis Buenaventura
Tips to Crypto Startups on How to Survive Bear Market?
Meanwhile, Buenaventura highlighted that the crypto firms that are able to adapt to the changing market the fastest, including those that are the first to immediately decide to make choices, are the ones that will survive.
Citing his personal experience, the #CryptoPH Champion also stressed how important crypto-focused firms and startups are to have resilient executives to outlast the winter, especially since the market has been bearish for 18 months now.
“What you need to do is make sure that the company survives,” Buenaventura expanded, reminding company heads to learn to make difficult decisions, as this is what defines a good leader.
Read more tips on how to survive bear market:
- How Guilds Help Community During Bear Market – Real Deal Guild Co-Founder
- BlockchainSpace Shares Keys for Guilds to Thrive Amidst Unpredictability
- Women of Web3 Shares Tips to Keep Moving in Web3 Space Despite Bear Market
- [Event Recap 2] Role and State of Guilds in the Bear Market
- [Event Recap] Play-to-Earn in the Bear Market
- [Event Recap] Mid-Winter Fireside Chat Second Panel: Crypto PH Builders in the Bear Market
Bear Market News
Recently, as stated by CoinGecko’s 2022 Annual Crypto Industry Report, the industry witnessed a significant downturn as the total crypto market capitalization decreased by 65%, reaching $829 billion by the year’s end compared to the previous year’s $2.4 trillion high.
Also according to a recent CoinGecko report, trading volume on centralized cryptocurrency exchanges has experienced a notable decrease, with a decline in activity and trading volumes compared to previous periods. The shift could be attributed to a variety of factors, such as market sentiment, regulatory changes, or shifts in trading preferences.
In 2022, the number of active cryptocurrency developers saw a significant decline of nearly 60%.
This article is published on BitPinas: How To Survive Bear Market By Luis Buenaventura
Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.