Anyway, I’ve digressed a bit. Let’s get back to the point.

Founders used to be able to simply launch a token on DeFi’s pool2 and achieve the volume and user data they expected to get listed on a Tier 1 CEX. However, those days are gone. With every new cycle, founders have to adapt and rise to new challenges. One of the most critical but often overlooked challenges is not technical, financial or operational, but cultural.

So what does crypto culture really mean?

The term “crypto native” is thrown around a lot, like an MBA from a non-prestigious school—everyone has it, but it doesn’t mean much.

The term is supposed to represent a deep and unique understanding of how crypto works, but in reality few people actually have it. Being a crypto native is more than just reading a few white papers or doing a few meme trades. It requires an understanding of project management that goes beyond the technical, financial, or operational aspects. It is the ability to sense the subtle but important dynamics that drive community sentiment, power plays within an ecosystem, and even global regulatory changes.

If you are leading a crypto project, cultural competence is no longer optional - it is a core skill.

What makes cryptocurrencies unique

Cryptocurrency is more than technology, and more than finance. It is a unique space that blends multiple disciplines, combining technology, finance, game theory, and even global politics.

You can’t just understand technology and products and ignore capital markets until you go public like a traditional Web2 company.

You can’t just focus on the financial engineering of tokens and ignore product development.

You can’t just understand the market operation in one region without understanding the different power players and political interests in another region. Moreover, it all revolves around the financial populism and individual sovereignty at the core of Bitcoin, which is why it is often said in the cryptocurrency space that “community is everything”. The power of the community is the key to the success or failure of a project. It is not enough to just create a great product; success also depends on the grasp of community dynamics. Founders must go beyond the technical and financial aspects to understand and embrace the cultural foundation of cryptocurrency.

In my role at Primitive Ventures, we have a deep understanding of what’s happening in the crypto markets in the East and West, and often coach founders in our portfolio to understand these market dynamics. From tracking the latest consensus research published by Bay Area professors to evaluating the latest initiatives launched by Tier 1 offshore CEXs, our work revolves around helping founders navigate the global crypto landscape.

Founders who think there’s only one way crypto works often run into trouble. There’s no one-size-fits-all approach in crypto, and mastering each of the above factors is a must-have skill to excel in your career.

Dive Deeper

Many of the crypto founders we meet, both newbies and veterans who have experienced multiple market cycles, lack a true understanding of today’s crypto culture. Newbies often view crypto as an extension of the industry knowledge they bring to the table, while veterans may be stuck in the “good old days” of crypto and unable to adapt to the ever-changing environment.

There’s a tendency to rely on past knowledge, but the problem is when we force these old ideas onto how things work today, that’s when trouble arises. Have you ever heard former traditional finance practitioners turned founders spouting the buzzword of tokenization? Or a former mid-level manager at a large tech company completely ignored token economics when selling consumer applications? This situation is too common.

There is nothing wrong with these methods themselves, but the key factor that determines the success of your startup ultimately lies in your understanding of crypto culture.