The crypto market is amid another major market correction. While this may seem like a big issue for traders, experienced crypto users understand the market is an ebb-and-flow. They knew it was inevitable that the market would retract after hitting all-time highs.
Traders weren’t the only ones preparing for the market correction. Developers were also aware that the time would come. The main issue was no one was sure when. However, that didn’t stop certain sections of the market to make preparations. Yes, like the tale of the productive ants that stored up their food for winter, there are platforms and sectors of the market that have remained unscathed or even prospered over the last crash.
What Caused the Loses
There are a variety of reasons why the crypto market has been steadily declining over the last couple of years. A massive pandemic, followed by high inflation can be seen as some of the main causes. Additionally, there have been some major bankruptcies and scandals that have rocked the market.
At the core of the latest losses is the FTX scandal. FTX was the fourth-largest crypto exchange in the market. As such, it held incredible influence over market values. Additionally, the firm was owned by the same person who owned an investment firm called Alameda Research.
It was recently revealed that Sam Bankmen-Fried and a group of his friends created backdoors in the platform to siphon billions in crypto off the exchange without anyone’s knowledge. The trickery only came to light when the exchange competitor, Binance, reported discrepancies in the books.
A close investigation revealed that the FTX team had lost billions in customer funds from the exchange. These losses came mostly in the form of bad startup funding. Alameda research would often bail out failing crypto platforms. However, no one was coming to bail out FTX.
News of the exchange’s debauchery soon reached the public. This news led to a rush of users seeking to withdraw. This digital bank run led to the exchange losses laid bare for all to see. FTX was forced to pause withdrawals and eventually, file for bankruptcy. Subsequent investigations revealed that the majority of FTX’s backing was held in FTX tokens, the network’s utility token.
The Effects of the FTX Situation
FTXs collapse has had a resounding effect on the market. Alameda’s research was directly tied to no less than 130 different crypto projects at this time. These companies are now going under as the full extent of Alameda and FTXs reach is still a mystery. However, the effect on the market has been very visible.
The FTX crash has wiped billions off of the market. Cryptocurrencies like Bitcoin and Ethereum are trading at prices not seen in years. Most projects are down 60% or more. Despite all the doom and gloom on the news and social media, there are some companies and sectors that have seen a bump in value or users since the incident. Here are the top blockchain sectors on the rise during the correction.
Non-custodial wallets have seen a major bump in users since the incident came to light. For years, experienced crypto users have pleaded with newbies to not keep their funding on exchanges. Large CEXs (Centralized Exchanges) like FTX operate as custodial protocols. This structure means you need to upload your crypto to their network to trade.
The problem with this structure is obvious, you’re separated from your crypto. Is some instances, such as for many FTX holders, you may never be reunited with your precious assets again. These delays and losses led developers to focus on more robust non-custodial options in the market.
Non-custodial wallets are nothing new in the crypto indistry. These systems are set up to only allow the person with private keys to use them. Not even the developers can access your crypto without your private key. This level of security is ideal and should be the minimum for today’s traders.
Example of a Non-Custodial Wallet
An example of a non-custodial wallet that has seen considerable growth during the correction is the Trust Wallet Token. The TWT wallet saw its user base skyrocket by 300% since the start of the correction. People who had their crypto on exchanges are now realizing that there is no such thing as too big to fail when the people running the show are the problem. As such, traders are flocking to non-custodial options.
DEXS (Decentralized Exchanges) is the next sector of the market that has seen a boost in users since the FTX filing. A DEX operates in a peer-to-peer manner. The protocol doesn’t require you to register or upload your crypto. Instead, you can trade directly with others from the safety of your wallet. The funds only leave when the trade executes.
Non-custodial DEXs have been chiseling away at the dominance of large CEXs like Coinbase and Binance for years now. This latest incident has helped to once again trust their benefits into the spotlight. Since DEXs like the META Exchange never custody of your funds, there is little reason for a hacker to target it versus the massive payouts found on custodial exchanges.
The first DEX to hit the market with success was Uniswap. Uniswap revolutionized the market by introducing liquidity pools. This approach opened the doors for startups to secure funding in a streamlined manner. Uniswap is just one example of a DEX that has gained users since the crash.
As an early entry into the other market, it’s vital to understand that Uniswap doesn’t have all the bells and whistles like more advanced protocols such as the META Exchange. These next-gen DEXs include features like trading charts and tracking tools. There are also more advanced orders such as limit and stop loss. All of these features make DEXs like the META Exchange a wise option to consider.
Next up on the list is safehaven tokens. The concept of a safehaven token was born out of the stablecoin market. Stablecoins derive value from third-party assets such as fiat currency or gold. These tokens use these reserves to decouple their value from the volatility of the market.
Stablecoins have been around for a while and there have been many improvements in the technology over the last 3 years. One of the biggest developments is the creation of safehaven assets. These stablecoins add additional protections in the form of smart contracts. The advantage of this approach is that you can protect things like decentralization and asset value.
The best example of a popular safehaven token is the META 1 Coin. This token leverages the stability of gold and combines it with the efficiency of blockchain assets. Notably, the token gets its value from a basket of gold-related assets. This structure is ideal because it pegs the token to appreciating assets which improves its long-term store of value characteristics.
The META 1 development team recognized that fiat-pegged stablecoins were subject to the same bad monetary policies as their reserves. As such, today’s fiat-pegged stablecoin like TetherUSD experience the same inflation as their reserves. For long-term savers, these projects are not a viable option. There’s no need to save assets that depreciates over time.
The META 1 Coin appreciates alongside the demand for its reserves. Already the token has been put to the test. META 1 has continually increased in value since the start of the correction. META 1 is up 1.35% currently while tokens like Bitcoin are down 60%. Interestingly, some other factors have helped META 1 stand out.
Safehaven Asset Protection
META 1 introduces an asset protection model that changes everything. The system is set up to monitor the reserve value and all token trades. All trades must meet the minimum asset value to complete. This mechanism prevents issues like whale dumps. A whale is a large trader.
A whale dump occurs when a large trader decides to sell all of their coins without warning. The sudden influx in supply causes the price of the asset to decline rapidly. In most instances, the whale will first pump the price of the asset up to enable them to maximize returns during the selling stage.
No Whales in these Waters
META 1‘s develops wanted to prevent these incidents from occurring. The first thing they did was protect the asset value. The next step was to block whales from entering space. When you look at the history of whale manipulation, it becomes obvious that whales are usually trading firms, hedge funds, corporations, and government-related agencies.
Recognizing that these groups pose an inherent threat to the community, the developers have opted to ban them. META 1 now requires all users to prove they are humans and not working as part of a trading firm or corporation. The goal of the ban is to prevent centralization and build user confidence.
No Work Around
The ban on all non-humans is a good start but it doesn’t prevent these groups from disguising themselves as regular users and still attempting to manipulate the market. To stop this type of whale manipulation the developers have instituted a $5M token limit on all users. The token limit was decided based on the total circulating supply to ensure that no single trader can influence the price of the token.
METANOMICs Builds Wealth
The META 1 Coin is a core component of the larger METANOMICs DeFi (decentralized finance) ecosystem. The goal of the project is to enable anyone, from anywhere, to gain access to powerful wealth-generation tools. To this extent the Founder of the project, Robert P Dunlap, felt it was necessary to protect the network from outside influence. As such, META 1 Coin is incorporated outside the jurisdiction of centralized regulators.
Join in Minutes
This structure enables the firm to offer services to anyone globally. To further the strategy, the firm partnered with Onramper to streamline the fiat-to-crypto conversion process. In the past, this step required users to first convert their fiat into cryptos like Ethereum before then converting to other tokens. Impressively, META 1 users enjoy a direct conversion.
The Onramper portal was built to be easy enough for anyone to navigate. It has an interactive interface and supports +50 different fiat currency conversions. The Onramper portal streamlines onboarding and saves you money. It also helps protect your identity as large CEXs are notoriously intrusive on registration requirements.
It’s All About Passive Income
One of the biggest advantages that META 1 Coin users gain is access to the META VAULT. The VAULT is packed with helpful features to drive ROIs. For example, the META VAULT savings account pays out 10% APY. Your local bank provides you with around 0.03% on your fiat savings. This rate doesn’t even beat out inflation.
The META VAULT makes it easy for you to combine the appreciating value of META 1 Coins with a 10% APY. Additionally, it’s easy to use and takes only seconds to get started. The feature is open to anyone and doesn’t require personal information or credit checks.
Complete the Loop
The META VAULT also provides users with a crypto debit MasterCard. This card connects directly to your account. When you swipe your card, the corresponding value in META 1 Coins gets converted to the fiat currency of the region. The process takes seconds and the vendor receives fiat currency.
This approach has opened the door for large-scale crypto usage for millions globally. You can now easily convert your fiat into META 1 Coins, secure profits, and even spend your earnings at your favorite on and offline retailer. In this way, META 1 Coin creates a complete wealth generation loop.
Blockchain Sectors on the Rise During the Correction
Now that you have more insight into the overall state of the market following the FTX fiasco, you’re ready to continue your crypto career. Remember, it’s crucial to learn the valuable lessons that FTX has taught users like never leaving your funds on custodial exchanges or wallets if you want to stay protected. Thankfully, the crypto industry is much larger today and there exist sectors that remain profitable during this volatility and inflation.