The CEO of analytics firm CryptoQuant has expressed concerns about the direction of the digital asset industry.
In a post on social media platform X, Kiyoung Joo said that the builders who used to make the things that merchants loved have disappeared, mainly because of excessive regulation, incarceration, or because they made too much money and were out of the field.
Ju says that without these builders, cryptocurrencies essentially become “gambling dens.”
“The rest of the builders are now creating gambling products like meme coins or boring, time-consuming products that can be found in traditional financial institutions. Their work no longer provides new excitement to traders.
Some are building ecosystems that are so different that they could even be categorized as belonging to a different industry than crypto. Where have all these builders gone that inspired us and explored new technologies? Why have they left? I don’t know.”
The CEO says the crypto industry needs to figure out how to “spark dopamine” for builders and traders, otherwise Ju says the “dismal” performance of most altcoins is likely to continue.
“An industry that doesn’t trigger dopamine is doomed to decline. The crypto industry as we know it is no longer providing dopamine to both builders and traders. That’s why it’s in trouble. New games for traders need to emerge. Only then will money flow into the market and the industry grow. Altcoins are performing poorly in 2024. Money is not flowing into the industry. If we don’t create new games that trigger dopamine in traders, the crypto industry as we know it will face a long-term recession. I’m genuinely concerned.”
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