Crypto Investments Breaking Traditional Business Principles?

[Crypto_Timothy]

One of the basic principles of investing in a business is track record. Normally we look for revenue history, you know, the market position and the product stability basically we look for proof that the model works over time and if it is a new or unstable business, we would demand stronger fundamentals or probably like a clear competitive edge to justify the risk we are about to take by investing in it. So it is pretty much clear that the principles guiding traditional finance, like the audited performance and operational transparency reduces uncertainty and that very much anchors the investor's confidence.

But yet in crypto, especially with altcoins the standard for it is very different, we have seen how alot of projects have launched with very limited operating history or even no evolving roadmap and in some cases, very questionable transparency but then despite that, money still flows in aggressively...Now I'm not attacking or defending this behavior but I’m just noticing the contrast, like is this driven by an asymmetric upside or is it just a technological belief something or is it just powered by the community momentum.

I was just thinking about it, like is the reason a redefinition of what “fundamentals” mean in a decentralized context?

What do you guys think?

[Alpen]

One of the basic principles of investing in a business is track record. Normally we look for revenue history, you know, the market position and the product stability basically we look for proof that the model works over time and if it is a new or unstable business, we would demand stronger fundamentals or probably like a clear competitive edge to justify the risk we are about to take by investing in it. So it is pretty much clear that the principles guiding traditional finance, like the audited performance and operational transparency reduces uncertainty and that very much anchors the investor's confidence.

But yet in crypto, especially with altcoins the standard for it is very different, we have seen how alot of projects have launched with very limited operating history or even no evolving roadmap and in some cases, very questionable transparency but then despite that, money still flows in aggressively...Now I'm not attacking or defending this behavior but I’m just noticing the contrast, like is this driven by an asymmetric upside or is it just a technological belief something or is it just powered by the community momentum.

I was just thinking about it, like is the reason a redefinition of what “fundamentals” mean in a decentralized context?

What do you guys think?

You are describing a 20th-century stock market model. In the 21st century, major indices are driven by frontier technologies that almost always operate at a loss initially. Look at social media, search engines, Tesla, or Amazon—their profitability wasn't obvious at the start. Today, we see the same with AI.

The crypto market follows this exact logic: it's a bet on the future. Unfortunately, many altcoins failed to deliver, leaving 90% of the market trading below 2021 levels. Even most "Class of 2025" tokens are currently underwater.

However, my personal strategy remains profitable. I save 8% on overhead by accepting crypto payments through the Cryptomus gateway, and I’m earning 20% APY on stablecoins via the Tron network, plus steady gains from arbitrage. I’m not worried about altcoin drama as long as Top 30 projects stay active. Keep an eye on the Canton network—I believe RWA (Real World Assets) is the next narrative that will truly explode as the world migrates to the blockchain.

[sleepfirefly]

But yet in crypto, especially with altcoins the standard for it is very different, we have seen how alot of projects have launched with very limited operating history or even no evolving roadmap and in some cases, very questionable transparency but then despite that, money still flows in aggressively...Now I'm not attacking or defending this behavior but I’m just noticing the contrast, like is this driven by an asymmetric upside or is it just a technological belief something or is it just powered by the community momentum.

i think crypto traders or investors have just more appetite for risks. it is true that the higher the risk, the higher the returns as well. i do think bitcoin has something to do with it. people are trying to look for the next bitcoin and so if they have to trust a system that hasn’t been well proven before then they’ll take that chance if it means it could grow as much as bitcoin in the future.

[Mhizlove]

Okay I think crypto do follow different patterns or logic, for crypto people do price possibility way more than proof which means that some do go after crowd while some tech vision and some people go after big wins or massive returns that could change there lives. It still has it's fundamentals rather the things that changed is the meaning, so the token design community strength and speed of adoption has already been replaced by long track record and we all know that with this the risk is very high but this risk is one of thee things that keeps people coming. Or let me say attract more people

[abhiseshakana]

I think your altcoin described phenomena is an intersection or symptom of new technology meet with gen Z or young generation's desire for instant rich mobility. Altcoin investment surge due to acceleration of wealth / status expectation on society, everyday people consume and crammed of instant wealth, multiple return, billion profit in one night, financial freedom narative in young age and last hack or early adopter tobe billioner. All this naratives creates expectation that wealth is not an accumulation of long work and can be achieved in one bull cycle. New generation face situation with slow economic condition such as wage stagnation, continuous inflation, living paycheck to paycheck, it makes traditional way of work hard, live minimum, do saving too slow and beyond hope, in their mind alt coin offering golden ticket, low barrier, and extrem potential surge of wealth. So altcoin / crypto can be solution and shortcut to jack up social mobility. Asymnetric upside combined with instact expectation is a collateral damage, young investor forget about overconfidence bias, survivorship bias, and success bias and easily think that if its multiple, my life will change if lost than letas try again, like lottery think with technology coverage. I see altcoin as community based narative building movement not only asset and its create social pressure, when its play everything about fundamental of investing screwed, Investor forget about analysis, data and revenue because prioritize belief, vision and hope.

[retaur]

You are describing a 20th-century stock market model. In the 21st century, major indices are driven by frontier technologies that almost always operate at a loss initially. Look at social media, search engines, Tesla, or Amazon—their profitability wasn't obvious at the start. Today, we see the same with AI.

This might be part of the reason the current economy is not doing so well. Private investors giving loans to prop up companies that are new and innovative and those companies uskngbthat money to print shares and keep the share price stable or steady so they can pay back the loans and not default.

Meanwhile all the new money entering the company is either via a loan or via a stock selloff.

A lot of IPOs do well and the price of the stock collapsed afterwards or at some point because the IPO don't have that much historical information to go off and they're normally overhyped and marketed well.

There are a lot of safer places in crypto where 3-7% interest on fiat is fairly guaranteed though. I've not seen a reliable higher percentage be offered except from dexes where some impermentnst loss or similar can occur.

[Stepstowealth]

But yet in crypto, especially with altcoins the standard for it is very different, we have seen how alot of projects have launched with very limited operating history or even no evolving roadmap and in some cases, very questionable transparency but then despite that, money still flows in aggressively...

Crypto is a modern development, it is normal to see that it does not function under the same rules as other traditional business or investments. If you must approach investment in crypto, it must be done with caution and the mindset to not expect some traditional characteristics. This mindset should not make you to take unnecessary risk and ignore the advice to always do your research before investing in any cryptocurrency that is new and even the old ones. Research will help make sure you are not investing wrongly.