COVID-19’s effect may impact the crypto based projects big time!

Over the past few months with COVID-19 emergence in the world everything has come into its grip and has affected things big time. COVID-19 has reached globally and affected the businesses globally and taken its toll on businesses such as tourism, travel , different industries and vice versa.

Apart from all these businesses getting affected it has also taken its toll on the cryptocurrency and its effects can be seen in the shape of altcoin price declining.

COVID-19 impacting small projects big time!

With altcoin’s decline in price it has directly affected the businesses that were part of these altcoins. Since COVID-19 has arrived globally, Bitcoin (BTC) has seen immense decline in its token price and left the miners and investors in shock.

All these things have created great panic among cryptocurrency users. Small projects that were part of any of the altcoins have suffered big time because the projects were depending on the digital currency’s trading and with trading they were getting the funds. In most projects the funding is generated through the sale of digital currency and currently everything got impacted due to COVID-19.

An example can be taken of the project named as Dash. In Jan 2018, the price of one Dash was like $1,000 and ultimately it kept getting the funds but in the current state of affairs the project has witnessed immense decline and because of it one Dash’s worth today is $67. That means it is trading on $67 now as compared to 2018 when it was being traded on $1,000.

For smaller projects it has become a big challenge to sustain in these unfavorable conditions as raising the capital has become a big task for them. With no big capital being generated, the small projects would not be able to sustain as they depend on the funding for development and continual of their respective projects.

Danna James

Danna is a journalist and technical writer with six years of experience researching and creating crypto articles, reviews, and how-to guides for different online media outlets, and academic journals.

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