According to BlockBeats, on September 16, CryptoQuant founder and CEO Ki Young Ju expressed concerns on social media about the current state of the cryptocurrency industry, describing it as being in crisis.
Ju compared the past state of the crypto industry to a game that provided experiences similar to real-life happiness by triggering dopamine release. This included the joy of overcoming adversity, the thrill of winning competitions, and the satisfaction of connecting with others. In the crypto industry, these dopamine triggers were once represented by profiting from unpredictable gambling and creating new technologies in uncharted territories. The former experience was typical for traders, while the latter was for builders.
Over time, the nature of traders and builders has evolved. Initially, many investors were drawn by philosophical ideals, such as Bitcoin enthusiasts, while six years ago, futures traders dominated the market. Today, more conservative investors are leading the industry. Early builders were cryptographers inspired by the cypherpunk movement, but six years ago, the growth of the trading industry brought a wave of exchange founders and token issuers. Now, talents from various sectors, including finance, gaming, and content, are involved in building. However, they do not integrate well with those who enjoy game-oriented trading thinking, as they are playing a completely different game. Their creations no longer provide dopamine stimulation for traders.
The synergy between traders and builders was once the essence of what we called the ‘crypto’ industry. Builders’ engaging creations fueled traders’ enthusiasm. However, over time, most builders who created things traders loved have disappeared. They have been suppressed by financial regulations, imprisoned, or lost their drive after making substantial money, indulging in parties. In their absence, the crypto industry has gradually turned into a gambling arena. The remaining builders are either creating gambling products similar to meme coins or producing tedious, time-consuming products for traditional financial institutions. Their works no longer offer fresh excitement for traders. Some are even establishing ecosystems entirely different from the crypto industry, to the extent that they are classified as other industries. Where have the builders who once inspired us and explored new technologies gone? Why did they leave? I don’t know. I want to ask Vitalik Buterin.
People tend to repeat activities that stimulate dopamine. Life goals, work, and hobbies are filled with things that bring dopamine. An industry that cannot promote dopamine is destined to decline. The crypto industry we once knew can no longer provide any dopamine for builders and traders, which is why it is in crisis. New games must emerge to stimulate traders’ dopamine. Only then can funds flow into the market, and the industry can grow. The performance of altcoins in 2024 has been dismal. Funds have not flowed into this industry. If we do not create a new game to stimulate traders’ dopamine, the crypto industry as we know it will face a prolonged stagnation. I am genuinely worried.
Courtesy Binance
