CryptoQuant CEO Warns of Industry Crisis, Says Crypto Has Lost Its Dopamine Rush

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As a seasoned investor with over a decade of experience in the dynamic world of cryptocurrencies, I find myself deeply resonating with Ki Young Ju’s recent insights about the current state of Web3 and the broader crypto industry. My journey started way back when Bitcoin was still a fledgling concept, and I can attest to the thrill and excitement that characterized those early days. The unpredictability of the markets and the promise of groundbreaking technologies were indeed dopamine triggers that kept me hooked.

On a recent post on platform X, Ki Young Ju, founder of CryptoQuant, expressed grave worries about the current status of Web3 and the broader crypto sector, excluding Bitcoin. Ju highlighted that Bitcoin remains untouched, but the rest of the crypto market is experiencing turmoil due to its inability to replicate the enthusiasm fueled by dopamine that once characterized the industry. He analogized the early days of crypto to a game that stimulated human happiness through challenges, competition, and social interaction. Earlier, the crypto sector had two primary triggers for releasing dopamine, according to Ju: the allure of unforeseeable financial profits and the excitement of pioneering innovative technologies.

In essence, Ju observed that these two areas – trading and building – attracted distinct communities within the crypto universe. Traders, particularly those chasing immediate gains, derived thrill from the market’s volatility. Conversely, builders found satisfaction in innovating fresh technologies and delving into unexplored territories of blockchain technology. However, Ju noted that both groups have undergone significant transformation over time. He stated that initially, many investors were captivated by Bitcoin’s ideology, whereas six years ago saw the rise of futures traders. Today, Ju suggested, conservative investors are spearheading the industry.

Regarding the original creators of cryptocurrencies, Ju referred to them as early pioneers in cypherpunk cryptography. These individuals, who were initially founders and coin issuers, gained success during the trading boom six years ago. Ju noted that professionals from diverse fields such as finance and gaming are now entering this space. However, these newcomers seem to have a different mindset compared to traditional crypto traders, which can lead to a disconnect between the two groups. According to Ju, the innovations created by these modern builders no longer provide the same level of excitement for traders, thus widening the gap between them.

Ju cautioned that a disconnect has led to the erosion of collaboration between traders and creators in the crypto industry. Over time, he noted, many original creators have departed due to financial regulations, imprisonment, or the allure of wealth. This departure, in turn, has left the industry predominantly as a venue for gambling rather than innovation. Nowadays, according to Ju, the remaining builders are either developing gambling-oriented products like meme coins or traditional financial goods that no longer ignite the same level of excitement among traders.

Ju pointed out that the industry’s issue is rooted in its failure to offer dopamine-inducing experiences to both traders and builders. He emphasized that without introducing new games or stimuli for traders, the industry will persistently struggle with growth. Ju used the poor performance of altcoins in 2024 as an example of this problem. In conclusion, he expressed his worry about the future of the industry, suggesting that if no fresh opportunities to engage traders materialize, the crypto market may experience prolonged stagnation.

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2024-09-18 18:26