CommPRO Editorial Staff
Amid a downturn in the crypto market, the investors are taking a step back and recent events like the Luna fiasco have worsened things for the community. Bitcoin and Ethereum have fallen to less than half of their most recent all-time highs. Now, you will see less and less ambiguous projects that either FOMO driven or promising short term gains and the moon.
Typically, bear markets are characterized by increased supply over demand, low confidence, and falling prices. Pessimistic investors who predict prices will continue to fall are called bears. A bearish market, however, does not necessarily spell doom for the blockchain industry. Neither does it signal complete negativity where the crypto market is concerned, a bear market can also present opportunities. This may be a good time to look in to more tangible projects;
Real estate is a tangible and fungible asset.
Studies have shown that while the equities market and passive real estate investments reach the same level of growth, managed real estate assets tend to slightly outperform the stock market in long-term growth. Experts suggest thinking long-term when you consider investing in leisure real estate projects and select the markets where the tourism market remains strong so that there’s a continuous increase in demand for accommodation and leisure.
NFTs are unique and non-fungible.
NFTs have digital signatures stored on a blockchain. Although the value of cryptocurrencies has declined, NFTs have relatively held up. The Solana NFT marketplace Magic Eden saw more than a 45% rise in volume over the last 30 days. But like most tokens, NFTs are now available at a discount. A lot of investors now are buying NFTs at a low price and sell them at a higher price when the time is right. In addition, staking and investing in fractional NFTs is good and affordable way to make profit during the low season.
Real estate and NFTs.
In 2021 a boutique development company, Nesttree Properties is in the early stages of building an NFT farm village, a world’s first. The NFT-driven project is a 3 hectare leisure farm located in a tourist surfing spot in the Philippines. “This is physical space incorporated in to the blockchain. Our goal is bridging the digital blockchain to the more tangible physical real estate. We opened this land to the blockchain so that everyday people can have opportunity in owning a stake of a beach/farm resort, in which previously available only to the super rich” said Arthur Cantor CEO of Nesttree.
“What differentiates us from other Web3 companies and projects, he explains, is how it has real-world use cases, has value and utility, and is asset-backed. Our holders have access to fractional investment and membership. By owning the NFT it entitles you to be part of a community wallet that generates yield through the farm produce and the villa accommodations” he added.
After minting, the funds will be used for the development of NFT farm village in liwliw Zambales, a known tourist spot for surfing and farming. The leisure farm boasts 10 villa with amenities of a resort and a greenhouse farm. NFT holders will be able to earn through staking and trading digital and tangible assets with the perks that comes with being a member.
“This will be a Web2 experience with a Web3 backbone. People will very easily be able to engage with it specially to the crypto new comers. Given the bear market we understand that people are bound to look for the next trend, and it’s great that we are one of the first to do it.” says Christian Vasquez, Nesttree’s chief communications officer.
“Right now we are getting a lot of queries and interests from investors who understands real estate but new to crypto. So by bringing blockchain solutions to traditional industries, businesses, and physical assets, we are in a good position to attract more people into the world of crypto.” says Vasquez.
Final point on bear markets.
When you keep your savings in similar investments, you could put your money at too much risk or miss out on potential returns. Consider diversifying, or spreading your savings across several asset classes… Whenever you check your asset allocation, make sure your portfolio remains
diversified enough to maintain a risk level you’re comfortable with for both short and long-term investing.
During the 2008 recession the effects on the real-estate market were certainly felt, but the overall market bounced back within a two-year period, which was an outlier amongst comparable markets. For commercial real estate owners and investors, the prospect of a coming recession should offer pause, but not undue.
Source: Blockchain Wire