Despite the significant potential for cryptocurrencies to revolutionize finance, most projects have turned into speculation assets. Such projects rely on hype to gain value and generate returns. Even then, bearish markets severely hurt such speculation tactics and may cause crypto projects to collapse.

Eventually, if crypto is to realize the decentralization mission, projects need solid backing, utility, and viability. One project working hard to achieve all this is SmarterWorx. The protocol has laid the groundwork for a self-sustaining and efficient ecosystem focused on trading artwork.

Understanding SmarterWorx

SmarterWorx is a decentralized protocol for trading fractionalized NFTs (F-NFTs) backed by physical artwork. The platform deploys a unique mechanism for growing its revenue portfolio through well-curated physical artwork. Further, SmarterWorx purchases physical art with high resale potential and adds value to the item through tokenization, safe storage, and insurance against damage. Afterward, the protocol mints F-NFTs for retail traders to invest. Then, the NFTs and their underlying artworks are sold on the SmarterWorx NFT marketplace.

SmarterWorx also generates revenue from trade taxes on its ecosystem. 4% out of 10% on sell tax and 2% out of 6% of buy tax are sent to the SmarterWorx treasury. The protocol deploys these funds to purchase additional artwork from the markets. This way, SmarterWorx always has artwork on its portfolio.

The $ARTX token facilitates activities on SmarterWorx. This deflationary token also stands the test of time with its SmarterBurn token depletion mechanism combined with backing from real-world artwork. So, the token’s value never falls during extreme volatility. Instead, $ARTX’s price floor rises rapidly. Gains for earliest backers could surpass 10X.

What is Shiba Inu?

Shiba Inu is a decentralized community ecosystem featuring one of the most popular meme coins, $SHIB. The ecosystem launched in 2020 amid the $DOGE meme coin craze and aims to replace Dogecoin as the dominant fun-centric token. Billed as the $DOGE killer, $SHIB rapidly rose through the crypto ranks. However, the hype died down with an increasing bearish sentiment this year. As a result, Shiba Inu is down 75% in 2022 alone.

Final Takeaway

Based on $SHIB’s performance, it is evident that hype-driven projects are susceptible to market volatility. Such projects often lack sufficient token utility, which causes holders to panic sell when markets turn bearish.

On the flip side, projects with a rigorous mechanism for holding up their tokens’ value can withstand extreme price fluctuations. SmarterWorx’s $ARTX is one such token. The project relies on a capped supply and a buy-back-and-burn technique that ensures $ARTX supply depletes over time. The falling supply automatically induces demand for $ARTX, causing the token price to surge.

For a project that remains resilient and records growth during a meltdown, SmarterWorx will swiftly rise when markets turn bullish.

 

Learn More Here:

Join Presale: https://smarterworx.io/buy

Website: https://SmarterWorx.io/

Linktree: https://linktr.ee/smarterworx

 

Disclaimer: This is a paid release. The statements, views and opinions expressed in this column are solely those of the content provider and do not necessarily represent those of Bitcoinist. Bitcoinist does not guarantee the accuracy or timeliness of information available in such content. Do your research and invest at your own risk.

The ongoing cryptocurrency market has continued to witness major liquidations. Following a $24 billion decline on 26 June, the total crypto market cap slipped by $9.17 billion on 27 June. At press time, the total liquidations over the last day stood at $137 million. It was down from $145 million as compared to 27 June.

Catching the first train out 

This certainly seems to be the case with cryptocurrency holders as highlighted in the latest Digital Asset Fund Flows Weekly report. CoinShares noted that digital asset investment products suffered over $420 million in outflows last week. In fact, this has been the largest since records began by a wide margin as depicted here.

In terms of assets under management (AUM), last week’s outflows were the third-largest on record, representing 1.2% of the entire AUM of all funds that CoinShares tracks. The worst was outflows of 1.6% recorded during the 2018 bear market.

Geographically speaking, Canadian investors offloaded around $487.5 million worth of digital asset products last week. Importantly, United States-based investors accounted for more than half of the inflows with $41 million.

Nevertheless, the void remains too big to close and even the king coin suffered the repercussions.

“The outflows occurred on 17th June but were reflected in last week’s figures due to trade reporting lags, and likely responsible for Bitcoin’s decline to $17,760 that weekend.”

Exodus #101

Bitcoin [BTC] led the exodus charge as outflows solely focused on Bitcoin. The king coin saw net outflows for the week totalling $453 million, erasing almost all inflows year-to-date and leaving total Bitcoin AuM at $24.5 billion, the lowest point since the beginning of 2021.

Apart from Bitcoin, other assets including Ethereum [ETH] ($10.9 million), Short Bitcoin ($15.3 million), Cardano [ADA] ($0.8 million), Tron [TRX] ($0.1 million), Polkadot [DOT] ($0.2 million), and other assets ($2.9 million) reported total inflows of $30 million last week. Overall, the result in net outflows reached a total of $423 million.

In addition, providers’ flow painted a similar picture as well. Stripping out the $493 million outflows reveals that other providers saw aggregate inflows totalling $70 million.

The withdrawals came from the Purpose Bitcoin ETF that stood at an amount equal to about 24,510 BTC. Furthermore, it is also likely that these enormous outflows are caused by a forced seller, thus leading to a huge liquidation.