This report has been compiled keeping the June 2022 crypto market scenario in perspective. This time frame is important as we at Glitzkoin are confident that, a similar situation could repeat itself in the near and distant future. Bitcoin has dropped below $20,000 and a whole group of cryptocurrencies, have performed well below expectations. While it is not unlikely that, crypto markets would recover – the fact is that, the fundamental parameters that trigger a similar crisis are likely to persist.
So should you purchase Bitcoin in such a scenario. A BTC price point below $20,000 would have seemed unimaginable, just a few months before the June 2022 market slump. Without making predictions and whipping up market hype, we will outline a few issues that you should consider, before you consider buying Bitcoin.
That Bitcoin prices have been manipulated is no secret. This has been the case for years. No one seemed to mind BTC prices being pumped as, many investors did end up making a profit. We reached a point when even a $50,000 price for Bitcoin, seemed quite ordinary.
A small group of big volume Bitcoin investors, are known to generate interest in the crypto by spreading exaggerated and at times, fake narratives. Investors have now fortunately become more aware of these gimmicks, this has made it tougher for scammers to fool investors.
Let us not forget the April – May 2021, crypto market crash. Investor confidence took a severe dip, the market never really recovered from that crypto slump. The situation was triggered by a massive Bitcoin selloff, by one of the richest men on the globe. He apparently wanted to prove that Bitcoin was as liquid as conventional cash. Small and medium sized BTC investors suffered significant losses, confidence in big crypto pundits took a hit.
A number of high profile crypto analysts function as paid influencers. These personalities are paid to spread information, without considering the authenticity of the narrative. Exaggerated price predictions and false narratives of upcoming events with high potential, are common.
In the past couple of years, several financial loans have been issued with Bitcoin being designated as collateral. The thought that BTC, would fall to levels below $20,000 or even below $30,000 never struck anybody. Expect chaos here as collateral values drop and not all, loan takers would be in a position to fill in additional assets to spruce up collateral requirements. We could reach a point where loan givers, are left with no option but to dump the Bitcoin being held by them as collateral.
It would not be long before investors look for legal ways, to tackle false and exaggerated narratives peddled by paid crypto influencers. These narratives were what resulted in Bitcoin prices and overall crypto market value, becoming grossly inflated. Not tough to guess that, BTC is unlikely to get the benefit of these scam influencers in the future.
The LUNA debacle has severely dampened interest in cryptocurrency. Investors are less than enthusiastic to risk their hard earned money on cryptocurrency. This mood will have a negative impact on Bitcoin and crypto markets in general.
Saved the most important issue for the end! The sad truth is that crypto legislation has so far been incapable, of tackling major crypto scams and frauds. While some cases have surely been handled swiftly, we have other cases involving well know faces in crypto space that, have been either left lightly or never tracked at all.
The keywords for Bitcoin now are volatility, risk and loss. Investing at this point can be stressful and you, must be mentally prepared for high volatility and risks. Also make an estimate of just how much loss you could bear, you might want to be conservative when arriving at this answer
The above list is surely not exhaustive. Things are fluid in crypto space, so you should stay updated with developments. We would strongly suggest that, you develop skills required to make your own evaluation. Do not blindly believe anything that you read or see – this no matter where that content comes from. This also applies to content published by Glitzkoin on various platforms.
GLITZKOIN: A quick recap of the Glitzkoin project and the GTN crypto token. The project was launched to improve the demand for natural diamonds and to enhance, the efficiency and productivity of the multibillion dollar industry.
The DiaEx diamond trading platform was developed using Stellar blockchain resources. The GTN token was launched as part of the project and is designated, as the mode of payment on DiaEx. Promoted by second generation diamond veteran Navneet Goenka, Glitzkoin assigned a multifaceted role to the GTN token.
The trading platform was completed in 2019 and was put through rigorous testing in early 2020. A team of diamond dealers subsequently did a pilot run on DiaEx with, actual transactions made on the platform. This process was largely successful and revealed a few areas for improvement. The Glitzkoin tech team was handling the minor adjustment when, the pandemic and subsequent lockdowns slowed down the process. The management will reschedule the full launch of DiaEx once the health crisis eases.
Talking about the multifaceted nature of the GTN token, the project is also focused on further increasing usage for the crypto – this aside from crypto exchange trade and the payment usage on the DiaEx platform. The concept is to have operators of various businesses, accept the GTN token as a mode of payment in their operations. Moving this idea forward Glitzkoin has confirmed a partnership with online ticketing giant Myticket.asia, wherein clients of the ticketing portal could use the GTN token as a mode of payment. Technical requirements for the integration of systems on both sides is at an advanced stage, nearing completion. Reviewing the challenges that the entertainment industry has been going through during the COVID pandemic, both managements have decided to set a launch schedule when the situation starts to normalize. The arrangement setup between Glitzkoin and Myticket.asia will form the blueprint, for similar deals to be negotiated with other business operators.