Crypto Founders Question the Diminishing ‘Magic’ Amid Mainstream Adoption

Founders in the crypto industry are concerned that mainstream adoption may have diluted the “magic” of cryptocurrency. Key voices suggest that this shift is driven by the blend of crypto concepts with broader technological trends, alongside challenges such as rising scams and financial scepticism. As a result, many believe that for crypto to survive, it must align more closely with traditional finance principles.

Founders in the cryptocurrency industry are expressing concerns that the allure of crypto may be diminishing as mainstream adoption continues. Although concepts like Bitcoin’s ‘digital gold’ narrative maintain significance, many emerging proposals are faltering, reflecting the maturation of the space.

Bitcoin emerged as a groundbreaking financial asset that facilitated peer-to-peer transactions, paving the way for numerous alternative currencies. However, with digital assets now entering mainstream discourse, some industry pioneers argue that the revolutionary essence, or “magic of crypto,” is being compromised.

Rune Christensen, founder of Sky, articulated this sentiment, suggesting that as crypto’s potential becomes common knowledge, it risks morphing into just another aspect of evolving technology. He remarked that the unique nature of the crypto community is becoming intertwined with broader technological optimism and scepticism.

David Bailey, CEO of BTC Inc., highlighted the issues stemming from prevalent scams and fraud, which have undermined the integrity of crypto projects. He believes that sustainability may require crypto ventures to adopt traditional financial principles, stating that many may need to pivot towards functioning as securities, thereby generating profits and distributing dividends.

Yu Hu, founder of Kaito, discussed the challenges hindering the appeal of crypto projects today. He identified issues such as dwindling funding, stringent listing agreements, and the pressure around airdrops, warning that if unresolved, the sector may be left with fewer developers and users, ultimately becoming populated by intermediaries alone.