The Skill of Adaptation is Vital During a Bear Market


  • Adaptation is the most important skill to have during a bear market 
  • Learning from mistakes, both yours and those of others, can help you build a successful product 

The turbulence of the current market cycle has left investors searching for answers. For many, it was the first time they’ve experienced crypto losses. The regular investor could do little to affect the macroeconomic environment and was let down by the same platforms they’ve put their trust in. Mistakes were made, particularly by businesses and large institutions, but unfortunately, there is no guarantee that the lessons will stick.  

Reflecting on the events that unfolded gives us the foundation to commit to those lessons.  Adapting and learning from mistakes, both yours and those of others, is what contributes to the long-term overall market growth.  

Know the past to shape the future 


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It’s April 30, 2018. Nexo issues the first crypto-backed loan putting its name in history books as the one of the first crypto lenders. The idea takes less than two years to go from inception to realization. During this two year period, Bitcoin’s price breaks $1,000 for the first time and crashes by 50% shortly after. New levels of both hype and FUD were reached, but Nexo’s goal remains the same. There’s a need for a lending product in crypto, but the pressure of being one of the first shouldn’t come at the expense of providing a long-lasting product. Overcollateralization principles and learning from the mistakes and success stories of lending businesses in traditional finance are the reason why Nexo’s Instant Crypto Credit Lines are still here. Not only that, they are still the number one choice for people looking to take a crypto-backed loan. 

Fast forward to April 2022. Crypto cards aren’t any better than what you can find in a standard bank card. Rewards are there, but the two general mechanisms are both not very convincing. These cards either sell your crypto or are pre-paid in fiat (having little to do with crypto). The Nexo Card adapts to what the crypto investor believes in — the upside potential of the asset class. It is the world’s first card that works through a crypto credit line and uses the value of the user’s digital asset portfolio to finance day-to-day purchases. Borrowing can cost as little as 0% and keeps the client’s crypto intact. This innovation allows users to combine two of the main functions of money and attach them to crypto – it helps store value and is an efficient medium of exchange. 

Why does it matter? 
 For Nexo, ensuring everyone can build wealth freely in the digital age has always been the vision, and there are no shortcuts en route to this goal. Investors shouldn’t be left assembling the pieces of unsustainable business practices, and tackling this challenge is what is going to push crypto forward. Consolidation that helps the space grow, prudent risk management, and global licensing are what matter and will help us all get safely to the next cycle. Adapting to what the market throws at us and learning from the mistakes of the past will help us thrive.  

This post is commissioned by Nexo and does not serve as a testimonial or endorsement by The Block. This post is for informational purposes only and should not be relied upon as a basis for investment, tax, legal or other advice. You should conduct your own research and consult independent counsel and advisors on the matters discussed within this post. Past performance of any asset is not indicative of future results.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.