What is a crypto winter and how will this impact NFT’s in the music industry?

“Winter is coming.” We might be in the dog days of summer but for some we’re in the middle of winter, a “crypto winter” to be exact. 

NFT expert James Shannon, founder of XONE and Auras Studios, says this is not a full blown crypto winter.

“I think the term crypto winter came from Game of Thrones. “Winter is coming”. An extremely ominous phrasing that refers to a period of time where cryptocurrency prices fall by 60-80% and funding ceases to come into the market. This occurred between 2015-2017 and again between 2018-2020. I believe that we are again in a downturn but not necessarily a full crypto winter,” says James Shannon, CEO & Co-Founder.
 

Here are James Shannon’s two reasons why we’re in a market downturn, but not a full on crypto winter: 

1. The number of people and active wallets in the space has exploded in 2021 as crypto and NFTs became mainstream. This is unlike any bull market before it and as a result I don’t believe we can look at 2022 in the same light as previous periods. 
2. The market believes in the underlying technology and therefore we are still seeing VCs fund companies in crypto. 

And the disruption is getting even bigger, eventually impacting NFTs in the music industry.

Shannon goes on to say that, “This downturn will affect the music industry in the exact same way that it will affect others. Rather than artists pursuing the quick cash grab by selling a collection of NFTs that don’t do anything we will see real use cases and business models emerge that can stand the test of a market dip. When interest pours back into the market those business models will be poised for success.”