Crypto Treasury Narrative Bears that is noticeably similar to DOTCOM-era’s thinking

The Crypto Treasury narrative, which has been the main feature of the current market cycle, in parallel with the investor’s sentiment from the DOTCOM period in the late 1990s and early 2000s, which led to a stock market sinking of about 80%, according to Ray YouSsef, founder of peer-to-peer lending platform platform nones.

The same excessive investor psychology that led to excessive investment in the first Internet and Tech companies During the DOTCOM crashing was not lost due to the presence of crypto financial institutions, YouSsef told cointelegraph. He said:

“DOTCOMs are an innovative phenomenon of the emerging IT market, along with major companies with serious ideas and long-term techniques, the breed for investment capital is also attracting lovers, opportunists, and dreams, as bold and futuristic visions in the future are easy to sell in the mass market.

Today, the global financial market is driven by the idea of ​​cryptocurrency, decentralized finances, and web3 revolution, ”he added.

He foretold that most of Crypto treasury companies will befizzle out and will be forced to offload their holdings, creating conditions for the next crypto bear market, but that is a Choose some will live and continue to accumulate crypto in a significant discount.

Crypto Treasury companies led the titles during the current market cycle, as institutional investment was that -tout as a sign that crypto grows from a phenomenon in a global class courted by countries-states and corporations.

Related: Crypto markets have dropped, but corporate proxies are worse

Not all crypto treasury companies are doomed; Responsible management can ease falls

Crypto treasury companies can ease the effects of a market collapse and even develop if responsible wealth and risk management are carried out.

Reducing the burden of a company’s debt significantly alleviates the instances of losses, and corporations that release new equity, compared to corporate debt, have a higher likelihood of surviving a collapse because equity holders do not have the same legal right as lenders.

If a company chooses to take a loan to supply crypto purchases, called debt, or spacing out when each loan tranche is due, is most important.

For example, if a company knows Bitcoin (Btc) tend to work in a four -year cycle, it can structure its debt coming for five years to avoid the presence of back loans when crypto prices are depressed.

Companies should also Invest in supply-capped cryptocurrencies Or blue-chip digital assets that are long-term and recover between cycles, compared to altcoins that can lose up to 90% of their value between market cycles and sometimes irrevocable.

Finally, companies with an operating business that make up revenue are in a better position than pure treasury plays with no funnel revenue streams on crypto purchases and operating as publicly exchanged acquisition vehicles relying on funding.

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