Key facts:
Iván Tello, from the Decrypto exchange, believes that weak projects go bankrupt in winter.
They recommend investors “become aware” of how bitcoin works.
The bear market of bitcoin (BTC) and cryptocurrencies has also extended to the traditional market and this is because the currency “managed to hack the traditional system, managed to get in and now is the one who controls part of that volatility that those assets are having” said Iván Tello, co-founder of Argentine exchange Decrypto.
Tello participated in a virtual activity called “How to survive the crypto winter”, organized by the Alianza Blockchain Iberoamérica for this May 20. The meeting was moderated by Mauricio Tovar, from the Colombian Blockchain Association. It also had the participation of Rodolfo Andragnes, from the NGO Bitcoin Argentina; and Matías Bari, CEO of SatoshiTango.
There, the executives shared their experiences in relation to the bear markets that bitcoin has experienced throughout its history. About this, Tello expressed that it is important to “de-dramatize” the fall of bitcoin and gave as an example, that this Friday On May 20, the shares of the MercadoLibre company fell more than BTC itself.
“Cryptocurrencies follow international patterns and these price drops are the consequences of past skyrocketing,” Indian Tello.
In that sense, all the panelists admitted having suffered from previous bearish periods, and having lost some money, “until they understood how the market works”.
In Tello’s opinion, whoever is “uncomfortable” today because of the market situation “is because he over-leveraged or over-sold.” On the other hand, he also pointed out that exchanges “are partly to blame” for the lack of preparation they give users.
All panelists advise investors to “be aware” from bitcoin and the market to be able to operate comfortably. “Weak hands can’t bear to have bought at $50,000 and now they sell, they panic.”
Andragnes and Bari recalled that the cryptocurrency has experienced several winters that have lasted up to a year. All recognized having lived difficult moments, those in which it causes capitulation. “In 2014 it was my first hard fall, my first long winter, I had a bad time,” Tello said.
Winter, for market purposes, refers to a prolonged bearish period. In that sense, Tello commented that he is “a believer in cycles and winter is one, it was going to come anyway.”
For Bari, it is important to understand market cycles and be grounded in both up and down periods. “Winters have their interesting side because represent an opportunity for flimsy projects to fall apartthey end up going bankrupt and the best ones remain».
In this sense, Tello said that that weak project could have been the stablecoin terra USD (UST) and terra (MOON) or any other. Tello mentioned Terra precisely because it was one of the projects that fell sharply in recent days.
As reported by CriptoNoticias, Terra collapsed due to a decoupling in the price of the UST stablecoin with respect to the US currency, dragging the rest of the market down, prolonging the well-known winter.
The topic of the stablecoin UST was conducive for the Decrypto co-founder to indicate that, although the market continues to register a dropsees significant adoption of this type of digital assetespecially by companies from Argentina and Peru, countries where the exchange he directs has its largest operations.
“I repeat, the growth and adoption continues to grow at a fairly rapid rate despite the drop in the price of bitcoin,” he commented.