Crypto incubators have a responsibility to maintain fiscal discipline
Incubators provide a foundation for many crypto businesses and have a responsibility to ensure they take steps to survive in a bear market.
Expert grip
Contrary to popular belief, a bear market provides ideal conditions for startup founders and developers to work on technological innovations. The absence of market frenzy and speculative investing helps startups focus on fundamentals, which are beneficial in the long run. However, bear markets dry up the sources of capital and liquidity becomes the proverbial mirage of an oasis in the desert sands. Thus, startups turn to incubators who become messiahs with their network of angel investors and venture capitalists.
As incubators hold the key to funding, they are powerful enough to make or break a crypto startup. And, as Marvel's Spider-Man reminded us, "With great power comes great responsibility." Incubators therefore play a crucial role in guiding startups to adhere to crypto regulations to maintain fiscal discipline. To that end, mentorship and advisory support helps startups navigate the tricky legal terrain while generating profits for investors.
But why should incubators focus on budget discipline? The answer lies in the past.
Ahistoricism Could Mean Doomsday For CryptoPhilosopher George Santayana said, "Those who cannot remember the past are doomed to repeat it." Incubators have a lot to learn from the initial coin offering (ICO) craze of 2017 to avoid the same mistakes in 2022.
Crypto startups flooded the market in 2017, with ICOs quickly generating money for new ventures. However, the United States Securities and Exchange Commission (SEC) has heavily criticized crypto startups for applying the Howie test used for traditional securities.
A later report found that 80% of ICOs in 2017 were scams, and the legitimacy of crypto took a hit. But to be fair, there was an absence of crypto incubators to guide startups in the right direction.
Related:
Incubators provide a foundation for many crypto businesses and have a responsibility to ensure they take steps to survive in a bear market.
Expert grip
Contrary to popular belief, a bear market provides ideal conditions for startup founders and developers to work on technological innovations. The absence of market frenzy and speculative investing helps startups focus on fundamentals, which are beneficial in the long run. However, bear markets dry up the sources of capital and liquidity becomes the proverbial mirage of an oasis in the desert sands. Thus, startups turn to incubators who become messiahs with their network of angel investors and venture capitalists.
As incubators hold the key to funding, they are powerful enough to make or break a crypto startup. And, as Marvel's Spider-Man reminded us, "With great power comes great responsibility." Incubators therefore play a crucial role in guiding startups to adhere to crypto regulations to maintain fiscal discipline. To that end, mentorship and advisory support helps startups navigate the tricky legal terrain while generating profits for investors.
But why should incubators focus on budget discipline? The answer lies in the past.
Ahistoricism Could Mean Doomsday For CryptoPhilosopher George Santayana said, "Those who cannot remember the past are doomed to repeat it." Incubators have a lot to learn from the initial coin offering (ICO) craze of 2017 to avoid the same mistakes in 2022.
Crypto startups flooded the market in 2017, with ICOs quickly generating money for new ventures. However, the United States Securities and Exchange Commission (SEC) has heavily criticized crypto startups for applying the Howie test used for traditional securities.
A later report found that 80% of ICOs in 2017 were scams, and the legitimacy of crypto took a hit. But to be fair, there was an absence of crypto incubators to guide startups in the right direction.
Related:
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