RATE Group | How crypto companies respond to market corrections
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How crypto companies respond to market corrections

17 Mar How crypto companies respond to market corrections

Posted at 22:05h in Cryptocurrency News by

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Market downturns, reversals and corrections are difficult periods for traders and investors, although the real issues occur for businesses operating within the impact industries.

ICO boom serves as brutal reminder

The cryptocurrency bull market in 2017 demonstrated how much comapnies, who raised millions in Initial Coin Offerings (ICOs), could suffer as their capital depleted alongside a market correction

Last February Coin Rivet spoke to Pillar Project CEO, David Siegel, who revealed the complexities of operating a company during a gruelling bear market.

In 2020 the cryptocurrency market has experienced another correction, with Bitcoin falling from $10,500 to below $4,000 as coronavirus fears sweep across the globe.

Tough calls

Tough decisions are crucial during times of economic uncertainty, which is why Antoni Trenchev, Co-Founder & Managing Partner of Nexo, decided to systematically underleverage by requiring 200%-500% of collateral for client credit lines.

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