Home / Brand Stories / Crypto Winter: PLCU and the Rise of Sustainable Projects In The Crypto Space

In this year's crypto market, prices are plummeting and volatility is high. Inflated and stagnant projects have damaged the sector. PLC Ultima, standing on a solid foundation of community growth, transparency, and sound technology, has better chances of surviving the storm than those who do not upgrade and improve themselves. 

Cryptocurrency investment has always been associated with blockchain technology's upheaval. Global inflation and irrational exuberance of shallow projects, however, created an intimidating environment, where the tech was irrationally overvalued. During the last year, crypto prices reached highs, but then started declining towards the end of 2021. During the first quarter of this year, this trend continued.

A few weeks later, the financial dam broke. Within a week, the crypto market dropped further than during the entire April. Terra’s failure was diagnosed to be the immediate cause of this crash. Once valued at more than $50 billion, Terra’s currency LUNA ended the week effectively worthless.

While the crypto market was undergoing chaos, there were still certain projects like PLC Ultima that continued their trend to grow. According to the experts, these are the projects that are constantly evolving and value their community- the key elements that make a project sustainable. 

A Flawed System Vs a Stronger System

According to Alex Reinhardt, Founder of PLC Ultima, an infrastructure project that provides stability to the core of business models with blockchain technology: “Failing products is proof that they were all substantially illusory, that they were all driven by inflated and unsustainable returns. What we can infer from this game of musical chairs is that the products with flaws will disappear from the market. That is nature's law to select the most suitable ones. Only those projects that constantly evolve their products for the betterment of the community will be able to survive".

Let’s dive deep into the TERRA system as an example to understand the basic flaw in the system. 

Terra was supposed to be a "stablecoin". To begin with, it was intended to create a cryptocurrency ecosystem with a crypto token with a fixed value of $1. As with the "reserve-backed model" used by conventional banks, stablecoins are exchanged for money and can be cashed at any time. Participants trust the stablecoin company to keep their money safe and accessible. 

Nevertheless, there had been a demand for stablecoins whose value was determined algorithmically rather than by bankers. A pair of currencies was created - LUNA and TERRA. The value of LUNA floated freely, while the value of TERRA was supposed to stay at $1. You could always convert LUNA into TERRA for $1. 

As TERRA's cost rose, LUNA owners were encouraged to print more coins. A low price of TERRA, on the other hand, incentivizes holders to destroy them in order to raise their value. The problem is that the system only works if LUNA has any value at all. Initially, it did thanks to their aggressive offer that paid 20% interest on savings. 

After the crypto market declined, investors started pulling their money out to cover losses elsewhere. As a result, a "death spiral" was triggered. As investors converted TERRA into LUNA, the price of LUNA decreased. Due to this, LUNA's price dropped even further after the next redemption, leading to a vicious cycle. Within a week, LUNA's price plummeted from $80 to one thousandth of a cent. It crashed hard!

During blockchain's expansion cycle, many fundamentally worthless projects proliferated. The current downturn is the holy cleansing flame that wipes them away. Clearly, these projects created a murky trap to mint the ephemeral tokens, deceiving hedge fund managers into believing they had a revolutionary market value.

PLC Ultima: A mark of authenticity and thriving community

Launched in December 2021, PLC Ultima envisioned creating an ecosystem that has something for everyone. The project establishes its stability by relying on fundamentals of the Litecoin blockchain. This rewards it with a dependable network that has an enhanced transaction speed, even faster than the Bitcoin blockchain itself. 

PLC Ultima boasts of its cryptocurrency mass-market, having an extensive user-base and is on a mission to make the use of cryptocurrency convenient enough to be used for everyday transactions. Their user-friendly products- Ultima Minter, Ultima Farm, Ultima Wallet, PLC Card, and Platin Hero are some of the choicest features pillaring the thriving community here. 

Crypto Winter or Crypto Climax: Credible projects to decide the future of blockchain

Creating legitimate projects that evolve with the demands and challenges of the community would be the key to establish an ecosystem of credibility and trust in blockchain technology, shaping its future to sustainability. It is wiser to get rid of hype-driven trash, sparing a greater proportion of the funds for more viable and utilitarian projects in future. 

Disclaimer: This article is a paid publication and does not have journalistic/ editorial involvement of Hindustan Times. Hindustan Times does not endorse/ subscribe to the contents of the article/advertisement and/or views expressed herein.

The reader is further advised that Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.

Hindustan Times shall not in any manner, be responsible and/or liable in any manner whatsoever for all that is stated in the article and/or also with regard to the views, opinions, announcements, declarations, affirmations etc., stated/featured in same. The decision to read hereinafter is purely a matter of choice and shall be construed as an express undertaking/guarantee in favour of Hindustan Times of being absolved from any/ all potential legal action, or enforceable claims. The content may be for information and awareness purposes and does not constitute a financial advice.

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