Crypto’s Big Problem Nobody Wants to Talk About

[Ethan_Crypto]

There’s a quiet crisis happening in crypto and it all comes down to one thing: most companies didn’t build real businesses.

Instead of focusing on revenue, many crypto projects chose to focus on their token price. Everyone chased big valuations based on token hype, not actual money coming in. So they never built products that people would pay for.

Instead of making money from users, they made money from investors. They raised huge amounts from venture capital, launched tokens at high prices, and then tried to keep those token prices high using tricks like airdrops, grant farming, or paying people to use their product.

It worked for a while. But only while the market was hot.

Now the market has cooled. Venture capital money is drying up. And because most of these companies never built real revenue streams, there’s nothing to fall back on. No money from above, no money from below. Just empty tokens.

That’s why we’re seeing the space struggle so hard. And it’s also why the fat app thesis is looking stronger every day. Apps, tools people actually use, have a better shot long term even if they’re hurting now too. Because when this shakeout is over, only the projects with real users and real revenue will survive.

[JeromeTash]

That's what happens when people want to get rich overnight. When people so Bitcoin go from a coin that was valueless to one of very high value, they thought they would also create their own coins that are copycats of BTC and then selling them to people promising that they will be the next big thing. Meanwhile, what they are trying to sell is just hot air with no working product.

[TastyChillySauce00]

Instead of making money from users, they made money from investors. They raised huge amounts from venture capital, launched tokens at high prices, and then tried to keep those token prices high using tricks like airdrops, grant farming, or paying people to use their product.

This is so wrong, VC usually buy at really low price, take example celestia, VC bought when the price was so low even after celestia lost 90% of its valuation these VC still got 10x profit if not more.
The loser is always the retailers here, although I somewhat agree with most of your points.

The problem is, both VC and their users always want token generation event to extract value from the project, you don't see a random project getting valued half billion dollar anywhere else except in the altcoin market.
I even think the main reason developers are creating project because they want to do TGE.

[btc_angela]

Now the market has cooled. Venture capital money is drying up. And because most of these companies never built real revenue streams, there’s nothing to fall back on. No money from above, no money from below. Just empty tokens.

It's because the market is saturated already, that's why there are no new projects that stand up and become the next big thing. Although there are a lot of great projects still, but the thing is that we also shifted our attention, from getting to this great project, to make money, easy money very quick.

That’s why we’re seeing the space struggle so hard. And it’s also why the fat app thesis is looking stronger every day. Apps, tools people actually use, have a better shot long term even if they’re hurting now too. Because when this shakeout is over, only the projects with real users and real revenue will survive.

Every cycle there is a shake off to be honest, that's why there are project that literally went dead by the next cycle. But then a new project is born, and repeat and then we have same old pattern. So I guess we can't really get out of his cycle and pattern as we all know that there is really one in every 4 year because of Bitcoin.

[MArsland]

That’s why we’re seeing the space struggle so hard. And it’s also why the fat app thesis is looking stronger every day. Apps, tools people actually use, have a better shot long term even if they’re hurting now too. Because when this shakeout is over, only the projects with real users and real revenue will survive.

That is why there are currently several projects that produce real products that can be utilized. By collaborating, combining real-world visions and much more. Projects based on the creation of AI Agents have been widely seen and the technology system, provides design assistance, simplifies a task and provides other faster assistance options. RWA by including physical evidence, there are game-based projects that produce efficient data. If you focus on the real product of a project, it is the same as stocks that clearly have a physical form and can be used.

[uneng]

It has been an issue since this industry was firstly created. Crypto investments work based on speculation and hype, without adding real value to people's lives, with the exception of Bitcoin and probably few other altcoins. For something to have a value, it has to be useful for someone's necessities, and that should be the guidance of every developers who are aiming to create a crypto project. If there is no logical and reasonable answer for that initial question, no more cryptocurrencies should be created, under the certainity of being useless and potentially dangerous for investors (due to potential losses).

[coin-investor]

If there is no logical and reasonable answer for that initial question, no more cryptocurrencies should be created, under the certainity of being useless and potentially dangerous for investors (due to potential losses).

Cryptocurrency is open-source, and every developer wants to have their own cash cow. The market and the industry are saturated with so many useless coins and tokens; there are thousands of dead coins and many more will be counted.
Developers are looking to milk the market and investors want to get rich overnight so we have huge demands, and since it's hard to come up with an innovative idea, they prefer to launch tokens based on narratives so we have the memes, and this fuels the developers to create and investors to invest, so it becomes a game of Ponzi scheme.

[cabron]

If there is no logical and reasonable answer for that initial question, no more cryptocurrencies should be created, under the certainity of being useless and potentially dangerous for investors (due to potential losses).

Cryptocurrency is open-source, and every developer wants to have their own cash cow. The market and the industry are saturated with so many useless coins and tokens; there are thousands of dead coins and many more will be counted.
Developers are looking to milk the market and investors want to get rich overnight so we have huge demands, and since it's hard to come up with an innovative idea, they prefer to launch tokens based on narratives so we have the memes, and this fuels the developers to create and investors to invest, so it becomes a game of Ponzi scheme.

There is no regulation when it comes to that aspect but ye if there would be, the ICOs would be done through the exchanges like it was before which is making the creation of the token more legit.

There are developers creating tokens with products and use cases, its just that crypto isn't yet adopted widely. Its not profitable for real companies with real products using and accepting crypto when the profit is uncertain.

[OgNasty]

The problem with “crypto” in my opinion is that it is full of people who are there to make money. They’ll buy whatever nonsense is hot and sell it in a heartbeat. Nobody cares about the tech or wants to make markets or the world a better place. That was Bitcoin’s secret sauce. People cared about replacing fiat. Crypto covets fiat.