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The author refutes the current pessimistic narrative in the crypto space, arguing that the root problem is not a lack of innovation but a dilemma of returns. By comparing the early development of the internet and artificial intelligence, the article emphasizes that the crypto industry is still in its growth stage and highlights the significant achievements already made.
Current Issues: Flawed token design, proliferation of low-quality projects, frequent fraud, and inefficient governance stem mainly from unclear regulations and low barriers leading to speculation.
Root of Pessimism: Market participants struggle to achieve excess returns, not a lack of innovation.
Industry Achievements: Bitcoin has become a $2 trillion asset; decentralized exchanges, on-chain lending, and derivative platforms have been built; new asset classes like meme coins and NFTs have emerged.
Historical Comparison: The early internet also experienced bubbles and failures but eventually gave rise to giants like Amazon. The crypto field is following a similar trajectory.
Future Outlook: Crypto technology is growing exponentially, with more successful protocols likely to emerge. The author calls for maintaining an optimistic attitude.
Summary
Author: MONK
Compiled by: Tim, PANews
Over the past year, many crypto natives on Crypto Twitter have lamented the state of the industry, devaluing the innovative potential of our field and asset class. While these criticisms point to real issues and often reflect genuine challenges in the crypto space, I believe this pessimism has gone too far, sliding into outright doomsday rhetoric.
In my view, crypto pessimism, though well-intentioned, is a dangerous and misguided mindset that has become widespread. This article will counter this pessimistic narrative by examining the current stage of development, showing that the reality is not as bleak as some portray.
First, let’s establish some common ground:
Most tokens and tokenomics are flawed in design.
The growing number of low-quality project builders is diluting the value of genuine contributors.
Fraud and wealth-siphoning schemes are rampant.
Truly valuable protocols represent only a tiny fraction of the entire crypto space.
Tokens with investment value are exceedingly rare.
Protocol governance is often inefficient.
The industry still faces numerous legacy issues that need resolution.
The root causes of these problems lie in:
A regulatory framework that remains unclear.
Crypto technology significantly lowering the barriers to asset creation and acquisition.
The persistent profitability of misconduct during industry development.
Fortunately, these issues are solvable or are inevitable byproducts of an open but immature industry. Deep down, I think we all understand this.
I believe the real reason for the recent surge in crypto market pessimism is that market participants find it increasingly difficult to achieve excess returns. This has led to a "death by a thousand cuts" sense of frustration and impatience.
This pessimism is not about a lack of innovation but stems entirely from the flawed structure of crypto assets.
Let’s review what we have achieved:
[Insert infographic or list of achievements here]
I believe these crypto products have found product-market fit or at least paved the way for crypto verticals that have achieved PMF. While such products are still few, with each building cycle, as infrastructure improves and knowledge compounds, we are creating more products of real value.
Some of you may see this chart and understand that good things take time, and the actual development trajectory may not be as bad as initially feared. Others, however, might dismiss it as "not a big deal."
To the latter, let me show you this:
[Insert image of early internet company homepages]
You probably don’t recognize them. These are the ancient homepages of early internet companies. Of course, they are entirely different from the internet we know and love today.
Here are some examples of publicly listed companies that failed after the dot-com bubble burst (source: Wikipedia):
[Insert list of failed companies]
Amazon’s stock price plummeted from a high of $107 to a low of $7 within two years, a drop of over 90%, and did not recover until 2010.
The number of true "failures" in the venture capital space is orders of magnitude higher. Thousands of companies that never went public likely wiped out most of the carried interest for venture investors.
Thankfully, we eventually ended up with these benchmark companies:
Amazon — founded July 5, 1994
Netflix — founded August 29, 1997
PayPal — founded December 1998
Google — founded September 4, 1998
Facebook — founded February 4, 2004
Similarly, AI, as an innovative technology category and growth narrative, rightly deserves attention. But I wouldn’t be surprised if we see the same power-law survival principle at work a decade from now.
[Insert image of top AI startups from Israel in 2020]
If 99.9% of speculators in top tech categories fail, why is this phenomenon so painful in the crypto space?
It’s because we’ve turned almost every project into a venture investment, slapping publicly tradable tickers on each one. We allow any developer to launch viable, investable "startup projects" without due diligence, leading to an explosion in the number of investable "companies." This exposes a vast number of retail investors to the experience of investing in low-hit-rate asset classes, further fueling the growing negative sentiment toward cryptocurrencies.
Imagine if every internet entrepreneur could raise funds directly from a crowd of enthusiastic retail investors with just a half-baked project, skipping the seed, private, and IPO rounds. Now add platforms like Pump.fun, where even the product is optional.
Of course, our asset class would be minefields, with stocks poised to drop 90% at any moment.
What Have We Actually Achieved?
Today, Bitcoin has become a $2 trillion asset, just 16 years after its launch as a cypherpunk’s pipe dream by an unidentified founder.
In the decade since we first gained programmable smart contract platforms:
We’ve built peer-to-peer internets resistant to World War III-level shocks, safeguarding trillions of dollars in value.
We’ve created upgraded networks far superior to their predecessors, enabling permissionless asset creation with a click and supporting billions in daily decentralized spot trading volume.
We’ve made tokenized dollars accessible worldwide, allowing instant, near-zero-cost transfers of any amount to anyone.
We’ve brought financial basics like lending and passive yield on-chain.
We’ve established transparent, borderless, no-KYC derivative trading platforms with volumes rivaling Robinhood, returning almost all revenue to token holders.
We’re reshaping market structures, creating new ways to buy, sell, long, and short assets, while pioneering entirely new asset classes like prediction markets and perpetual contracts.
We’ve made six-figure JPEGs a reality.
We’ve fostered absurd yet vibrant online communities, propelling meme coin valuations past those of publicly traded companies.
We’ve pioneered new capital formation models like ICOs and bonding curves.
We’re exploring innovative paths to financial and monetary privacy.
As I often say, we’ve provided everyone with internet access an emerging alternative to the financial system they’re forced into by nationality. Our alternative is younger, freer, more open, and more fun.
We offer the market opportunities to invest in epoch-defining technology every year, often at bargain valuations. Investors need only separate the signal from the noise.
Our team at Syncracy believes the crypto equivalent of "FAANG" is already taking shape, with new viable contenders emerging every year or two.
I often use this quote to help put the industry in perspective: "We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten. Do not let yourself be lulled into inaction." — Bill Gates
We expect crypto to advance linearly each year, pouring money into a pile of worthless promoters, hoping this year will yield better results than the last.
This inevitably leads to disappointment and losses for many. Yet, constant doomsday rhetoric and criticism of project development are unreasonable when every "real" tech project has endured similar growing pains. In crypto, the pain is just more intense because we all have skin in the game.
Looking ahead to the next decade, none of us can accurately predict the trajectory, nor do I believe innovation will follow our imagined timelines. Some years may be uneventful, while others will see explosive growth. It’s entirely possible that in three years, twenty protocols will achieve product-market fit, not just seven.
To see how the stories of early internet pioneers ended, look at the chart below. It took a full 15 years for a complete recovery:
[Insert chart of internet boom and bust]
But as we all know, what happened since then is:
[Insert chart of post-recovery growth]
Yet, just as the old guard, Wall Street elites, and senior U.S. government officials are finally paying attention and recognizing crypto as a legitimate industry, many of us early participants seem to be losing faith in the mission. I firmly disagree.
Bitcoin remains digital gold. We are still building new financial foundations, making the world better and more interesting.
For some of us, excess returns are still achievable through various investment avenues.
Choose crypto optimism.
The author refutes the current pessimistic narrative in the crypto space, arguing that the root problem is not a lack of innovation but a dilemma of returns. By comparing the early development of the internet and artificial intelligence, the article emphasizes that the crypto industry is still in its growth stage and highlights the significant achievements already made.
Current Issues: Flawed token design, proliferation of low-quality projects, frequent fraud, and inefficient governance stem mainly from unclear regulations and low barriers leading to speculation.
Root of Pessimism: Market participants struggle to achieve excess returns, not a lack of innovation.
Industry Achievements: Bitcoin has become a $2 trillion asset; decentralized exchanges, on-chain lending, and derivative platforms have been built; new asset classes like meme coins and NFTs have emerged.
Historical Comparison: The early internet also experienced bubbles and failures but eventually gave rise to giants like Amazon. The crypto field is following a similar trajectory.
Future Outlook: Crypto technology is growing exponentially, with more successful protocols likely to emerge. The author calls for maintaining an optimistic attitude.
Summary
Author: MONK
Compiled by: Tim, PANews
Over the past year, many crypto natives on Crypto Twitter have lamented the state of the industry, devaluing the innovative potential of our field and asset class. While these criticisms point to real issues and often reflect genuine challenges in the crypto space, I believe this pessimism has gone too far, sliding into outright doomsday rhetoric.
In my view, crypto pessimism, though well-intentioned, is a dangerous and misguided mindset that has become widespread. This article will counter this pessimistic narrative by examining the current stage of development, showing that the reality is not as bleak as some portray.
First, let’s establish some common ground:
Most tokens and tokenomics are flawed in design.
The growing number of low-quality project builders is diluting the value of genuine contributors.
Fraud and wealth-siphoning schemes are rampant.
Truly valuable protocols represent only a tiny fraction of the entire crypto space.
Tokens with investment value are exceedingly rare.
Protocol governance is often inefficient.
The industry still faces numerous legacy issues that need resolution.
The root causes of these problems lie in:
A regulatory framework that remains unclear.
Crypto technology significantly lowering the barriers to asset creation and acquisition.
The persistent profitability of misconduct during industry development.
Fortunately, these issues are solvable or are inevitable byproducts of an open but immature industry. Deep down, I think we all understand this.
I believe the real reason for the recent surge in crypto market pessimism is that market participants find it increasingly difficult to achieve excess returns. This has led to a "death by a thousand cuts" sense of frustration and impatience.
This pessimism is not about a lack of innovation but stems entirely from the flawed structure of crypto assets.
Let’s review what we have achieved:
[Insert infographic or list of achievements here]
I believe these crypto products have found product-market fit or at least paved the way for crypto verticals that have achieved PMF. While such products are still few, with each building cycle, as infrastructure improves and knowledge compounds, we are creating more products of real value.
Some of you may see this chart and understand that good things take time, and the actual development trajectory may not be as bad as initially feared. Others, however, might dismiss it as "not a big deal."
To the latter, let me show you this:
[Insert image of early internet company homepages]
You probably don’t recognize them. These are the ancient homepages of early internet companies. Of course, they are entirely different from the internet we know and love today.
Here are some examples of publicly listed companies that failed after the dot-com bubble burst (source: Wikipedia):
[Insert list of failed companies]
Amazon’s stock price plummeted from a high of $107 to a low of $7 within two years, a drop of over 90%, and did not recover until 2010.
The number of true "failures" in the venture capital space is orders of magnitude higher. Thousands of companies that never went public likely wiped out most of the carried interest for venture investors.
Thankfully, we eventually ended up with these benchmark companies:
Amazon — founded July 5, 1994
Netflix — founded August 29, 1997
PayPal — founded December 1998
Google — founded September 4, 1998
Facebook — founded February 4, 2004
Similarly, AI, as an innovative technology category and growth narrative, rightly deserves attention. But I wouldn’t be surprised if we see the same power-law survival principle at work a decade from now.
[Insert image of top AI startups from Israel in 2020]
If 99.9% of speculators in top tech categories fail, why is this phenomenon so painful in the crypto space?
It’s because we’ve turned almost every project into a venture investment, slapping publicly tradable tickers on each one. We allow any developer to launch viable, investable "startup projects" without due diligence, leading to an explosion in the number of investable "companies." This exposes a vast number of retail investors to the experience of investing in low-hit-rate asset classes, further fueling the growing negative sentiment toward cryptocurrencies.
Imagine if every internet entrepreneur could raise funds directly from a crowd of enthusiastic retail investors with just a half-baked project, skipping the seed, private, and IPO rounds. Now add platforms like Pump.fun, where even the product is optional.
Of course, our asset class would be minefields, with stocks poised to drop 90% at any moment.
What Have We Actually Achieved?
Today, Bitcoin has become a $2 trillion asset, just 16 years after its launch as a cypherpunk’s pipe dream by an unidentified founder.
In the decade since we first gained programmable smart contract platforms:
We’ve built peer-to-peer internets resistant to World War III-level shocks, safeguarding trillions of dollars in value.
We’ve created upgraded networks far superior to their predecessors, enabling permissionless asset creation with a click and supporting billions in daily decentralized spot trading volume.
We’ve made tokenized dollars accessible worldwide, allowing instant, near-zero-cost transfers of any amount to anyone.
We’ve brought financial basics like lending and passive yield on-chain.
We’ve established transparent, borderless, no-KYC derivative trading platforms with volumes rivaling Robinhood, returning almost all revenue to token holders.
We’re reshaping market structures, creating new ways to buy, sell, long, and short assets, while pioneering entirely new asset classes like prediction markets and perpetual contracts.
We’ve made six-figure JPEGs a reality.
We’ve fostered absurd yet vibrant online communities, propelling meme coin valuations past those of publicly traded companies.
We’ve pioneered new capital formation models like ICOs and bonding curves.
We’re exploring innovative paths to financial and monetary privacy.
As I often say, we’ve provided everyone with internet access an emerging alternative to the financial system they’re forced into by nationality. Our alternative is younger, freer, more open, and more fun.
We offer the market opportunities to invest in epoch-defining technology every year, often at bargain valuations. Investors need only separate the signal from the noise.
Our team at Syncracy believes the crypto equivalent of "FAANG" is already taking shape, with new viable contenders emerging every year or two.
I often use this quote to help put the industry in perspective: "We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten. Do not let yourself be lulled into inaction." — Bill Gates
We expect crypto to advance linearly each year, pouring money into a pile of worthless promoters, hoping this year will yield better results than the last.
This inevitably leads to disappointment and losses for many. Yet, constant doomsday rhetoric and criticism of project development are unreasonable when every "real" tech project has endured similar growing pains. In crypto, the pain is just more intense because we all have skin in the game.
Looking ahead to the next decade, none of us can accurately predict the trajectory, nor do I believe innovation will follow our imagined timelines. Some years may be uneventful, while others will see explosive growth. It’s entirely possible that in three years, twenty protocols will achieve product-market fit, not just seven.
To see how the stories of early internet pioneers ended, look at the chart below. It took a full 15 years for a complete recovery:
[Insert chart of internet boom and bust]
But as we all know, what happened since then is:
[Insert chart of post-recovery growth]
Yet, just as the old guard, Wall Street elites, and senior U.S. government officials are finally paying attention and recognizing crypto as a legitimate industry, many of us early participants seem to be losing faith in the mission. I firmly disagree.
Bitcoin remains digital gold. We are still building new financial foundations, making the world better and more interesting.
For some of us, excess returns are still achievable through various investment avenues.
Choose crypto optimism.
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