Heating Up 🔥 #11: It Could've Been Worse
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This week in Heating Up 🔥 :
“It could have been worse.” Reflections on the Crash and Bear Market
News from all around ReFi
ClimateDAO Updates
“It could have been worse.”
As the entire crypto market plunged over 50% from $3.1 trillion to less than $1.3 trillion, countless projects, investors, and individuals experienced the emotional tidal wave of a market flash crash. Yet, as I interviewed a dozen founders, team members, & individual investors, the overall (& unfathomable) sentiment was that “it could have been worse.”
Will Masters sits in his Texas office in one of the hardest hit desertification regions of the United States. As he wraps up the phone call he is having with a highly positioned official from West Texas A&M University, he feels on-top-of-the-world. Months of pitching, presenting data, and persistent networking is finally paying off as the heralded research institution finally seems interested in ReFi and Web3. A true energizing workhorse, Will immediately calls one of his partners Scott.
Scott and his spouse are engaged in a strategic conversation regarding ReFi Punks and the Acre NFT project, which was a wildly successful fundraising effort that provided the resources to allow a full-scale launch of this charitable NFT endeavor. Scott answers Will’s call and the two talk about ReFi Punks’ stability and funds, which are secured through the year in the Angel Protocol along with millions of dollars in funds for over 50 other charitable groups.
Elsewhere, scores of projects and founders continue to pitch to VC’s and fundraise, plan go-to-market strategies, and put the finishing touches on months of grueling work that will finally pay off as launch dates near.
Daryl Edwards anticipates the arrival of Spring in Canada as he provides guidance and wisdom to his personal coaching clients. Corneile Uys, elsewhere in Canada, excitedly awaits the pending launchpad for ECORISE’s since-delayed governance token. And here at ClimateDAO, Elliot finishes a pitch to interested parties who have a keen eye on activist investing and grassroots shareholding via Web3.
Within 48 hours, these individuals and countless more suddenly find themselves in a dramatically altered landscape. VC’s and investor funds have scattered like mice. Friends and families of those who made fortunes in cryptocurrency are now back on their pedestals saying “I told you so!” and declare they are no longer interested in the digital currencies of the future. And those 50+ charities who stored donations and hard earned funds in the Angel Protocol watch as their UST held philanthropic money becomes virtually worthless. “It could have been worse.”
As the Fed rings alarm bells about “stablecoins” and regulations, the reality of the damage done and the lives and projects impacted goes unreported. The kneejerk fear-mongering reaction fails to acknowledge the true tragedy of the crash. While individuals losing money - some who I talked to lost amounts of over $1 million - is catastrophic enough, the losses emphasized from over a dozen interviewees were focused around the impacts to projects.
Angel Protocol’s own website states “simplified endowments that empower charities to having funding forever” It goes on to state “Angel Protocol has developed a platform providing easy access to low-risk, high-yield endowments… Your endowment earns ~20% interest through a savings product and his held in a cryptocurrency pegged to the US Dollars, reducing the risk of crypto volatility.” One cannot help but wonder how the charities that stored millions of dollars for sustainable development for poverty, Ukraine, clean water, renewable energy, climate action, and social justice feel about that “reduced volatility.” The ensuing bear market has not brought back the lost funds of these charities and projects. The flatlining charts on life support have not attracted many investors or VC funds back into the space. And yet, as Will Masters stated multiple times during our hour long conversation, “it could have been worse.”
Maybe the statements of hope were correct…dare I say it, could it have been worse? After all the problems that existed at the start of May 2022 still exist. War in Ukraine rages. Fuel prices continue to soar. Over 100 people have died in India and Pakistan as temperatures rage over 120 degrees Fahrenheit (49 degrees Celsius). 2022 remains the driest year on record in California. Over 10 million children are starving in Afghanistan, along with another 7 million in Somalia, Kenya, and Ethiopia. And ever-more violent hurricanes and tropical storms prepare to continue battering Africa and turn towards the United States.
These reasons, and plenty more, are why people like Will, Scott, Corneile, Daryl, and Elliot are still believers and active participants in this space. The mission has not changed, if anything it has only become more important and pressing.
The volatility of the markets - both crypto and traditional investment vehicles - are both influenced by market makers and consolidated money and power. Which is why grassroots and decentralized endeavors are necessary and seen as a threat. In fact, ClimateDAO is all about empowering activist investors and increasing access to impact investing in companies that have a track record of being greedy, unwilling to change, and taking advantage of an unjust and unethical market. These powers-that-be are well prepared to endure a bear market, are you?
As conversations shifted from reflecting on the impact of the crash, to rebounding from it and persevering through the proverbial storm, all too evident patterns emerged. The collected wisdom of those who have endured flash crashes and bear markets and beyond can provide us comfort, inspiration, and renewed determination during this challenging time and remind us of our vital and time-sensitive mission.
Navigating the Bear Market
This market “gives us an opportunity to reflect on what real innovation is and what is BS. It is time to refocus on utility and real on-the-ground impact. Speculation is a fool’s errand.” @tmoindustries
“Everything is possible, but from my experience when things are most bearish is when market makers fool everyone.” - anonymous
“I suspect this bear market will sweep away fraudsters, scams, and less serious projects. The projects that continue to build through the bear market will come out stronger on the other side.” -anonymous
“What we will find is the projects that are generating real value will be ones that come out stronger. It has become akin to traditional markets – with branding, products, longevity, etc.” - anonymous
“We will keep building through the tough times. This is where the wheat is separated from the chaff. Using the power of blockchain to incentivize planetary regeneration, what better mission is there than to dedicate yourself to this?” - Corneile Uys
“I’m still all in! I truly believe in this technology.” - Will Masters
If you, or someone you know, is struggling with the recent economic downturn, please feel free to reach out to contact@thecryptotherapist.io or @Web3Counseling for a list of resources and a safe place to talk with a professional mental health therapist.
If you are currently in significant distress, please utilize the national helpline here (chat or phone call options available.)
In Other News:
Connecting VISA and MasterCard with Polygon liquid pools, Mobilium makes on-ramping for mass participation in the carbon market easier than ever.
SolidWorld x Toucan & OpenForest
SolidWorldDAO announced partnerships with Toucan, the largest on-chain certified carbon credit meta-registry. Additionally, a partnership with OpenForestNetwork was announced as well.
After 3 phases of exclusive Beta access, public DOVU staking is now available! Enjoy access to exclusive multipliers in addition to DOVU’s generous base rate.
ReFi DAO + PrimeDAO + Impactafinance Launch Rate-a-thon
From June 13th-27th, participants who have signed up can a POAP and some of $25,000 in prizes for compiling a comprehensive report on professionally vetted and verified ReFi project, with the goal of increasing integrity, diversity, and inclusion.
ReFi DAO launches ReFi Talent Pool
If you’re a job seeker and want to be onboarded into top ReFi ventures, ReFi Talent allows for vetted companies to respond directly to your application.
Weekly Vibes:
Bonus Vibes for the Soul:
ClimateDAO Updates:
Team Updates:
🥷🏽Tac Ops🥷🏽
User Guide for Platform
Apply for grants
Iterate upon fundraising materials
👩🏽💻Platform👩🏽💻
Soft Launch of the platform for internal use
Make minor UI improvements
🌱Growth🌱
Reach out to partner organizations
Build content for LinkedIn & Twitter
Community
Building a roadmap minimum viable community (MVC)
Creating Discord Enhancements
Governance
Establish operating procedures with new team members
Flesh out User Journey on the platform as a building block for governance
Proxy
Upload 20 proposals to the platform
Iterating upon ClimateDAO’s business model and documenting
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💚💚,
The ClimateDAO Team