Reflections from a Bear Market

As the old adage goes, "Bear Markets don't wipe you out, they wear you out." The origin of this quote might be obscure, but its message holds true, especially in the realm of Non-Fungible Tokens (NFTs) and cryptocurrency. So, how do we remain resilient and productive during this downturn? By reflecting on past strategies, learning from our mistakes, and seeking ways to improve user experience, we can effectively navigate these challenging times.

In the last bullish cycle, there was a considerable push for NFTs. We spent countless hours trying to promote these digital assets, yet faced significant obstacles. One of the main hurdles was onboarding new users - a task that often proved to be overwhelming due to the steep learning curve of self-custody. In addition, our user interface (UI) and user experience (UX) were primarily developed by engineers and developers, which led to a platform that was far from user-friendly.

Despite these initial challenges, we're now witnessing a greater emphasis on user and customer experience deep within the bear market. Tools like Crossmint and platforms such as Starbuck's Odyssey through Niftygateway, are simplifying the process and making it more accessible to the public.

The recent success of Reddit is a prime example of this shift. They managed to distribute over 13 million digital collectibles to more than 9 million wallets, engaging a demographic that initially seemed indifferent, if not hostile, towards NFTs. Now, these same users are embracing what they prefer to call "digital collectibles." Similarly, Pudgy Penguins, an NFT project, has managed to become a trending item in the Toys & Stuffed Animals category on Amazon. By using familiar terms and platforms, we've been able to introduce a broader audience to NFTs.

However, as with any innovation, there are potential pitfalls. One such example is Ledger's attempt to offer custodial services to self-custody users with their Recovery feature. This move has been met with skepticism and fear, uncertainty, and doubt (FUD). A possible solution could have been offering the Recovery service with a new, separate device to alleviate these concerns.

The integration of custodial services within the NFT market is a complex issue. While there's undoubtedly a significant market for digital assets amongst users who don't use self-custody - think of the millions using Amazon, iTunes, Fortnite, Roblox, and Counter-Strike - the concept of ownership for these users is defined by their ability to buy, sell, and trade their assets. Can we introduce custodial services to this demographic without causing a backlash? Time will tell.

In conclusion, the bear market offers an opportunity for reflection and improvement. We've made significant strides in promoting NFTs and improving user experience, but challenges remain. As we move forward, it's crucial that we continue to learn from our mistakes and seek innovative solutions to the problems we face.