A Bear market.
The nightmare of every investor in the blockchain and cryptocurrency industry. Prices plummet, investments lose steam, and there’s nothing to do except to watch the red candles drop even lower while offering a silent prayer to providence.
Or you could build, expand, grow………if you are Flux.
A trip in winter.
June began with little or no excitement, just like any day for mainstream cryptocurrency in the past few months, but a few days later, Crypto-hell would break loose.
Bitcoin cratered down, alt markets plunged, and the ‘crypto crash’ became the trending topic on Twitter. Of course, the June 2022 fall was not the first bear market for projects in the cryptocurrency space. However, several factors (not excluding geopolitical tensions, regulatory uncertainties, rising inflation, and the stock market collapse ) caused a massive crash that could be felt in every wallet.
Just a few weeks earlier, the collapse of the Terra ecosystem had sent (and continues to send) shivers down the spines of many, with over $45billion turned into digital ash. Although the launch of Luna 2.0 was supposedly meant to birth a phoenix rising from ashes, it appears Terra’s wings are clipped as Luna continues to struggle after its launch.
Then came the rumors of the de-pegging of the biggest stablecoin, USDT. Even though Tether quickly debunks these rumors, it was not fast enough. The coin lost over $7 billion in market cap within hours.
Then the Celsius network hit the rocks.
Solana had to temporarily halt block production as the chain suffered another outage. Even though the launch of a new smartphone gave the market a temporary push, even that was not enough for the network to regain its market hold. Hit after hit eventually culminated in BTC treading the murky waters below the previously ‘strong’ support of $20,000.
In this harsh, seemingly unpredictable terrains of price fluctuation and volatility, one of the questions in the minds of many new (and some old) users could be;
Is Flux still worth buying and holding?
The apparent quick answer to this would be “Hell yeah!” but a few more specific details would be helpful, so let’s go back to Flux tokenomics.
The price of any cryptocurrency, like goods and services, is fundamentally determined by the laws of demand and supply. The higher the relative scarcity of a token, the greater it’s potential of seeing a promising price range. With this in mind, some factors largely determine the profitability and stability of a coin.
Maximum Supply:
The maximum supply of a crypto-token refers to the maximum number of tokens that will ever be created or issued. Once this supply is reached, no tokens will be produced or mined again. Why is this important? A predefined supply plays a very important role in creating predictable tokenomics and forecasting available supply, thus reducing risks. Flux has a maximum supply of only 440 million, with no inflationary or deflationary measures. New Flux is systematically added to the circulating supply through the mining and node operator block rewards described in the Flux economic model. The Flux maximum supply is capped at 440 million, and the circulating supply is governed by a transparent economic model.
Also helping the supply side of the equation is that Flux has been fairly distributed, with no pre-mine or large VC allocations. There are no significant holdings of Flux sitting in Venture Capital or advisor wallets ready to be dumped on the markets.
Lastly, a large amount of the Flux circulating supply is locked as node collaterals. Flux node operators are required to lock-up Flux while running nodes; this takes Flux off the circulating supply creating less supply for the markets. The more the Flux network grows, the more Flux will be locked out of the markets.
Flux tokenomics has created predictable, sustainable, and risk-mitigating market conditions for Flux traders and holders.
Use-case:
The utility it provides or confers on the holder makes any ecosystem, project, or token valuable or worth holding. Therefore use-cases are potent factors that influence demand. Flux is utility-based; the native token plays a vital role in the ecosystem as the medium for exchanging assets.
In addition, it is used to collateralize and provide incentives for the decentralized network of computational nodes (FluxNodes). Zelcore, the ecosystem wallet, uses $Flux to activate its 2-factor authentication system.
In practice, everywhere you are in the ecosystem, you need Flux. Hosting your decentralized application on Flux infrastructure requires staking Flux. If the rapid growth of decentralized applications on the network indicates anything, it is that Flux continues to be in high demand even in the currently harsh crypto-winter.
Team & Community:
Flux is more than just a cryptocurrency project; it is an ecosystem that provides the infrastructure, tools, and platform needed to power the Web3 internet. Beyond the crypto bull run of 2020, Web3 has proven to be more than just a ‘dot com’ bubble archetype.
Even when the surge of NFTs seems to have suffered a limp due to the hard biting jaws of the bears, Web3 has only continued to advance in scope and reach.
Flux has onboarded more than 50 DApps and entered into multiple partnerships since the beginning of the bear market, with no signs of slowing down. The ecosystem boasts a vibrant Web3 community and DAO governance (XDAO), where users play an essential role in decision-making.
The team behind Flux has also been relentless in the execution, fostering cross-chain partnerships and optimizing the chain for maximum performance. If a project is as good as the team behind it, Flux gets an A. This and many more establish Flux as more than equipped to survive the bear market and thrive through it……as it has always done.
Is this the end of Crypto?
When BTC crashed below the $20K mark, many doom-sayers predicted the death of cryptocurrency. How the market would never recover and massive crashes all around the industry will send the value of Crypto and associated technologies sinking into the inflation-abyss.
But that sounds all too familiar.
In 2021, authorities in the UK warned investors to be prepared to lose all their money. A month later, BTC hit a new high of $50,000. Even when Elon Musk’s terse announcement of Tesla’s suspension of Bitcoin payments coupled with China’s reiteration of its ban on cryptocurrency dropped a nuke on prices, Flux still survived the great crash of May 19th, 2021.
This is not the end for Crypto, Blockchain, or Web3. Flux is building a larger ecosystem, onboarding more technologies, creating faster nodes, and deploying new infrastructure (the Titan project is now in full swing).
We have a solid grasp of the solution we seek to provide, which is clearly outlined in our whitepaper. The vision is to power a secure, decentralized web where users come first, which has held even in the face of the raging storms of economic instability and inflation.
We are building the Web3 internet, making the internet free again, and creating opportunities for developers, businesses, and users alike to have a say in this new world. Join us: https://runonflux.io
Source and Credit: https://fluxofficial.medium.com/