How crypto exchanges handle the bear market, Bitrue CMO

As the crypto bear market rages, investors have had to deal with several exchanges and platforms that restrict / block withdrawals due to “extreme market conditions.”

This is why we have contacted Adam O’Neill, CMO at Bitrue. In this interview, O’Neill gives us an overview of what has led to these limited withdrawals and what crypto exchanges can do to survive the bear market.

Bitcoinist: Can you give us an overview of what Bitrue is and what it is you do in the company?

Adam O’Neill: Bitrue is an all-in-one cryptocurrency platform, it focuses on the interests of individual users. Our mission is primarily to provide people around the world with viable options for building their wealth, an opportunity that has been shut down within traditional financial systems.

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As Chief Marketing Officer in Bitrue, I monitor all our events and communication with users. In addition to my team, we launch three or four new events every day, whether it’s new yield breeding options presented to our users, some meaty analysis of coin trends or a bunch of other content designed to provide more context and information. On top of that, we hold AMA sessions with the founders of coin projects

Bitcoinist: The bear market has ravaged the place lately. What are Bitrue and other exchanges doing to survive such market conditions?

Adam O’Neill: The key to survival in a bear market is preparation. For everyone in the crypto industry for a while, we now know that the markets are going through periods of long-term growth followed by sharp retreats, generally following the price trend of BTC. We have had good growth since 2020 or so. Yet only a fool can expect it to last forever. At Bitrue, we have been careful not to overdo it, minimizing our exposure to risky debt and other factors that have killed some of the big names in recent months.

Total market cap falls below $900 billion | Source: Crypto Total Market Cap on TradingView.com

Beyond that, the key to survival right now lies in the business foundation. You listen to your customers and provide them with services of genuine value. For example, we have identified stack coins and meme coins as the two most important areas of customer interest, so we offer attractive investment rates on both.

Bitcoinist: We have seen many platforms and exchanges that limit withdrawals. What do you think this means for the future of crypto?

Adam O’Neill: It is a very bad look for an industry that is allegedly proud of decentralization and detachment from the traditional financial systems. Ultimately, however, I do not think this will have a long-term effect on the industry.

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Bitcoinist: What factors cause these platforms to stop / restrict withdrawals of certain cryptocurrencies?

Adam O’Neill: What is happening with these exchanges right now is mainly a bank run. Banks operate on a fraction of the reserve process where they only keep part of the debt they owe their customers as liquid assets (with the rest going to things like real estate and other illiquid investments that benefit the bank). If customers suddenly start withdrawing a lot of cash, the bank cannot find money back to its customers. The same thing is happening in crypto right now.

While we see more people returning to the old school mentality with “not your keys, not your crypto” and choosing to keep their belongings in their own private wallets.

Bitcoinist: What does the Bitrue team think about how stock exchanges should behave during the crisis?

Adam O’Neill: Stock exchanges are big business now and they have many ways to entice users to get back to them via credit card repayment, wagering options, convenience, etc.

When a crisis arises and quick decisions are made for millions of dollars, many people lose sight of the human element. There is no such thing as a small or large amount of cash because different amounts have different meanings for different people. $ 100 may be nothing for one person, but for another, a loss of $ 100 can mean that they go to bed hungry that night. If a crisis arises, an exchange should think about minimizing the general difficulties their user base may suffer. It is not just about protecting values ​​for shareholders.

Of course, if a business wants to be taken seriously, it should also do everything it can to avoid going into a crisis in the first place. Some things can be unavoidable, such as natural disasters. Assume, however, that we can attribute the blame for an incident directly to the company itself (eg overexposure to risk). In that case, the business should absorb as much of the loss as possible, and minimize the impact on customers.

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Bitcoinist: What are the possible consequences for the crypto market, and will it ever recover?

Adam O’Neill: The markets operate in cycles, and although it can be challenging to be optimistic below the absolute bottom, we can look to history for guidance towards the future.

Bitcoinist: Do you think cryptocurrencies like Bitcoin and Ethereum will ever regain their all-time high? Will the market value of crypto rise above $ 3 trillion again?

Adam O’Neill: How many times have we seen Bitcoin crash, and how many times has it been declared dead by the media? And yet it reaches every time a new ATH a few months or years later. What evidence is there to say that this cycle has been broken?

Featured image from TIME, charts from TradingView.com

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