Amid market crash, how is Austin's crypto and Web3 community holding up?

Lately, the crypto market is looking shaky.

The price of bitcoin fell by more than half from its high, the digital currency luna crashed to $0 and a type of so-called stablecoin TerraUSD has been described as dead.

Reporting from the LA Times notes that experts seeing a correlation between traditional markets and the cryptocurrency market is high right now, with plunges in one being followed by a plunge in the other. On Wednesday, stocks had their worst day in more than two years with the Dow Jones Industrial Average falling 1,164 points.

Crypto’s volatility has long been questioned, especially after SXSW this year was filled with Web3 enthusiasts and displays.

With 8% of Texans owning Bitcoin and many others involved in the local crypto and Web3 scene, what are they feeling amid the crash?

Amid market crash, how is Austin's crypto and Web3 community holding up?

In a written comment to Austonia, ATX DAO said a positive with the downturn is that “most of the speculative moneygrab type projects get washed out of the market, and the quality projects that deliver real value remain and gather more attention.”

The group went on to say it could work to their advantage as they carry out their latest project: a mural at Native Hostel that will have an NFT version. They’ll use sales toward donations to HOPE Outdoor Gallery, a local nonprofit that supports artists and creatives.

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Meanwhile, Yagub Rahimov, a founder of an Austin-based Web3 company explains that they aren’t really impacted by the crash.

Since the company known as Tested Web functions as a Web3 online reputation marketplace, it is utilizing blockchain technology without tokenizing.

“We are a share to earn marketplace. That means that any activity that users have on tested, we will be rewarding,” Rahimov said. “Those rewards are coming in the form of rewards points. And every quarter they can opt in to receive either a gift card or a check. We are not issuing any cryptocurrency. That's one of the important elements that I believe we got it right that way.”

With recent developments at Tested Web, Rahimov says he “couldn’t be happier.” After struggling to find tech talent in early spring, he’s had a hiring spree in the last 10 days and received a $1 million grant and partnership with Silent Notary, a blockchain-powered validation provider.

But his recent business success aside, Rahimov is noticing what’s happening in the markets and predicts that the correlation between the crypto market and traditional one will be broken.

“The way Bitcoin was introduced back in 2009, it was as a reply or response to the 2008 market crash,” Rahimov said. “And it really feels like we are in 2007, 2008, actually, early, early days of the market crash. And if it becomes that way, very likely that the winner is going to be those of decentralized parties.”

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