It gets dark just before dawn. Where?
In the wake of the crypto crash, caution is needed with cryptocurrencies, NFTs and other “web3” products. But on Tuesday, a major company in the “web3” space released its first report on the state of crypto, a document that tries to illuminate the industry well despite the severe crash that has lost $1 billion in just six years. months.
But while the report predicts better days for crypto in the future, the industry is still experiencing “dark days.”
Crypto, NFTs and web3 “in the beginnings”?
The a16z company starts off by making an analogy between markets and seasons. “Markets seasonal; crypto is no exception. According to the report, summers are replaced by the cold of winter, and the winter by the heat of summer. “The builders’ progress in the dark days is rekindling optimism as things settle down. With the decline in the recent markets, we may be entering such a period now.
Cryptocurrency industries often use this reasoning to design better days into the future. Coinbase expressed similar sentiments about the need for long-term investments in a letter to shareholders. ASSISTANT report. “We tend to recruit great talent during that time and other pivots, they get distracted, they get discouraged. “So we tend to do our best during a low period,” said Brian Armstrong, CEO of Coinbase, in a shareholder call.
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The A16z report points out that crypto is still in its “early stages,” which explains why crypto offers few practical applications, services, and products for the public. “By analogy to the first commercial internet, this puts us somewhere around 1995 in terms of development,” a16z explains in the report.
The report continues, referring to a possible future for cryptocurrency, web3, and even NFT, “The internet reached 1 billion users in 2005 – coincidentally, just as web2 started to take shape with the establishment of future giants like Facebook and YouTube.”
“Assured” crypto platforms may be on the table
This comparison has been brought up several times, but it also raises considerable doubt. A web3 commentator named Molly White argued that crypto exchanges have been around since 2010, casting doubt on the crypto investor that web3 and related technologies are still in their “early days.” After all, NFTs and stablecoins have been around since 2014, followed by Ethereum smart contracts in 2015 and DAOs in 2016. Those years don’t seem that far off culturally, but they’re unheard of in terms of emerging innovative technologies. keys to some destinations. where internet salad days are growing fast and sustainably (remember the internet bubble?).
“How many people need to be defrauded for their worth while technologists are just starting to think about putting shields on their rigs?” White writes on his personal blog. Will they be scolded as if it’s their fault when they get scammed as if they have to audit smart contracts themselves, based on projects that promise to make them millionaires? »
It’s true that many of those looking to make a quick fortune may be the least likely to make a name for themselves before and after a period of rapid crypto growth. Most public high schools don’t teach investment strategies, and in a largely indebted society, the atmosphere of rapid growth combined with the air of inevitability surrounding crypto and other Web3 commodities can be very appealing to many. cannot afford to lose.
But that doesn’t mean it’s over for those who can.