The cryptocurrency market witnessed a major downturn recently as the total market cap plunged by 7.68%, with major cryptocurrencies like Bitcoin and Ethereum trading downwards. The market is currently exhibiting substantial volatility with rapidly fluctuating crypto prices, creating a warning for crypto companies as the decline has triggered multiple liquidations, resulting in a wave of long position liquidations. However, with the crypto market crash, many companies are diversifying their platforms to overcome the challenges and embrace the benefits of providing crypto services and products, considering how incredibly the market has performed in the past.
Below, we will look at different crypto companies and how they have diversified during the crypto crash across various sectors.
Online Casinos and Sportsbooks
The integration of online gambling and cryptocurrencies has given rise to many new online casinos and sportsbooks, offering various benefits to players and reshaping the entire gaming landscape. Many crypto companies are diversifying their platforms by entering the online gambling industry to provide attractive platforms for players seeking unique, secure, and innovative gaming experiences.
Customer Insights estimates that the online gambling industry would be worth $145.6 billion by 2030, up from $58 billion in 2021. Integrating cryptocurrencies into online betting platforms has provided players many benefits like decentralization, security, anonymity, privacy, fast and cost-effective transactions, provably fair games, attractive bonuses and incentives, global accessibility, and a dynamic gaming environment with emerging technologies. Crypto companies like FTX, a popular cryptocurrency exchange, are venturing into the gaming industry by offering crypto-related services to traditional gaming companies and serving as intermediaries. These crypto companies aim to provide modern variants of classic games like online crypto blackjack and roulette, allowing players to play rewarding crypto-based games.
Subscription Services
Subscription services include contracts between merchants and customers who make recurring payments to access services for a particular period. Many companies powered by crypto have started to offer subscription-based services to their users. This is because of the underlying benefits of using crypto for making payments for subscription services, such as greater access to new demographics, increased trust, and loyalty among users, instant access to deposits and other funds, reduced costs of transactions, improved security, and increased speed of transactions.
Non-Fungible Tokens (NFTs)
NFTs, or non-fungible tokens, have become popular even with the crypto crash that led to the fall of many major cryptocurrencies. With the recent surge in the NFT market, NFTs have taken center stage, offering lucrative opportunities for businesses and individuals alike. There has been an unprecedented increase in NFT-based transactions, with various non-fungible tokens finding their way into different industries, from music and digital art to virtual real estate. Many cryptocurrency companies are capitalizing on this NFT trend to diversify their offerings beyond art and showcase their abilities to represent a wide spectrum of virtual assets, including goods, real estate, and immersive experiences.
Mobile Apps
Several crypto initiatives are also focused on developing mobile apps, where investors can donate funds to aid with expansion and development, as well as computer servers. While this strategy carries considerable risk for both companies and investors, it can be rewarding in the long run if performed properly. As projects gain popularity, they tend to receive significant funding from angel investors and venture capitalists to assist them in serving their growing user base.
Token Creation
Another method crypto firms are diversifying amid the downturn is by developing their own native tokens. This enables cryptocurrency companies to create value for their holders by providing special privileges and perks linked with specific projects. Crypto tokens can also have an economic purpose, allowing holders to buy, sell, and bet their crypto for profit.
Conclusion
There are five different ways cryptocurrency companies are diversifying during the crypto market crash: through online casinos and sportsbooks, subscription services, non-fungible tokens, mobile apps, and token creation. Amidst the current crypto market challenges, organizations must remain adaptable and resilient. They must incorporate the best business strategies to expand their global reach, drive sustainable growth, and strengthen customer relationships in the digital era.
