There is now
little motivation in the market to buy crypto assets amid rising yields on
traditional low risk debt. The crypto market rallied when the Federal Reserve
(Fed) delivered its ultra-soft monetary policy, pushing bond yields to the
negative zone. Prices on crypto assets fell when the monetary watchdog
announced that it would be curbing its quantitative easing program. The same
situation was seen in 2018. Now the Fed announced it is going to hold interest
rates high throughout 2023. So, any rally in the crypto market could hardly be expected
in the foreseeable future.
However,
this does not mean digital assets should be put completely aside until better
times. Buying assets is always a better option during a market correction, and
not when they are rewriting their highs. Sometimes, crypto projects offer their
tokens to users before they officially appear in the market. There are many
stories about lucky users who got their tokens for free and then their price
rallied by hundreds of percent. Many enthusiasts dream of such offers. Often such
projects are fake and are used to run marketing campaigns, but there are numbers
of serious projects that reward their early-stage participants for being part
of the project and their support. Such rewards were initiated by 1inch and
Internet Computer, whose airdrops toped tens of thousands of Dollars. Hunting for
such promotions is not an easy task, and there is no 100% guarantee that the
story will be a successful one. Nonetheless, such a hunt could begin in search
of prominent projects whose tokens have not yet appeared in the market.
LayerZero
protocol for cross-chain applications could be examined in this regard. The
protocol enables cross-chain liquidity transfers in native assets. Its
documentation suggests the token ZRO could be issued. So, it is likely this
token will be launched when the bearish market comes to an end. In order to
receive such a promotion, the user has to perform several operations through
the applications. So, a user may choose the most popular DaaP application in
the network, like Stargate, and make a deposit into the account, even with
other stablecoins, and transfer tokens several times through different
blockchains and then withdraw the deposit. The user may also stake native coins
that are not too expensive in the current market situation, when most coins
have lost 90% and more of their peak values. However, it is important to
remember that many crypto projects disappeared from the radar after marketing
campaigns died down and therefore it is very unlikely that such projects would survive a long market correction.
Any action
in the crypto market now should be considered as long term without any hopes
for rapid returns in the coming months. Wise money management may bring
sensitive rewards in the future, while blind averaging of trades for dumped
coins would be against the interest of investors in any scenario.