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Gustavo.馃彺鬆仹鬆仮鬆仴鬆伄鬆仹鬆伩 retweeted
WHERE DID WE GET IT ALL WRONG IN CRYPTOCURRENCIES?
I've been thinking about this for a while.
Every time the market slows down, people start looking for explanations. Some blame regulators. Some blame market makers. Others blame venture capital firms, influencers, or retail investors.
While all of these have contributed in one way or another, I think the real problem is much simpler.
Somewhere along the way, crypto stopped rewarding value creation and started rewarding value extraction.
a long ass 馃У
WHERE DID WE GET IT ALL WRONG IN CRYPTOCURRENCIES?
I've been thinking about this for a while.
Every time the market slows down, people start looking for explanations. Some blame regulators. Some blame market makers. Others blame venture capital firms, influencers, or retail investors.
While all of these have contributed in one way or another, I think the real problem is much simpler.
Somewhere along the way, crypto stopped rewarding value creation and started rewarding value extraction.
a long ass 馃У
14/x
If there's one lesson I've learned from watching this industry over the years, it's that valuation is not the same thing as value.
A token can have a $10 billion valuation and still be fundamentally weak.
A protocol can have a small valuation and still create enormous value.
The market eventually figures out the difference.
It always does.
15/x
Maybe that's where crypto needs to return.
Less focus on narratives.
Less focus on paper valuations.
Less focus on launching higher.
More focus on building products people actually use.
More focus on sustainable economics.
More focus on value creation.
Because in the end, value isn't something that can be marketed into existence.
It has to be created.
And that's where I think we got it wrong.