Bankless 121 - The Bear Market Gift | Vance Spencer
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Jun 6, 2022 Vance Spencer, co-founder of Framework Ventures known for his savvy DeFi investments, shares insights on thriving amidst the 2022 Crypto Bear Market. He discusses how these downturns can birth legends and emphasizes the importance of Layer 2 ecosystems and GameFi. Vance highlights the unique position of Ethereum in the current market, comparing it with alternative layer ones and exploring its evolving role as both a productive asset and a form of money. He encourages listeners to seize this moment as an opportunity for future growth.
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Crypto's Current Position
- Crypto is currently experiencing a needed correction, washing out excesses and focusing on building valuable products.
- This bear market allows for more rationality and constructive development, similar to the period after the DeFi summer rally.
High vs. Low Conviction Rallies
- High-conviction rallies are driven by fundamentally sound projects embraced by institutions, like the initial DeFi surge.
- Low-conviction rallies, like the metaverse hype, are driven by speculation and lack strong fundamentals, but can birth good ideas.
Historical Parallels
- The 2017 ICO craze and the dot-com boom illustrate how markets overprice future success before evidence exists.
- These low-conviction periods are followed by corrections, but good ideas, like tokens and internet businesses, eventually prevail.