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> What puzzled me is how comes blockchain startups did not sell their crypto for fiat just after their ICOs.

I'm not sure what's puzzling: The startups who base their business around crypto believe crypto will rise in price. A crypto startup selling all their crypto because they think there's a high risk crypto will crash in value is also sending out a very bad signal to potential investors.

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> The startups who base their business around crypto believe crypto will rise in price

A startup may very well work on some blockchain technology while not believing that a particular cryptocurrency will rise in price.

But it is far less common to come across startups who believe this. Think of blockchain startups as the top 1% of the most optimistic investors who believed in the technology so much that they created companies around an immature infrastructure.

Selection bias explains why they held even even after a 90% correction.

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