Ki Young Ju, founder and CEO of CryptoQuant, recently shared his concerns about the state of the crypto industry, claiming that it is facing a serious crisis.
In a detailed post on X (Twitter), he explained the reasons behind the downturn and expressed concern over the lack of innovation and excitement within the space.Â
He believes the crypto world is no longer providing the dopamine-driven thrill that once drew traders and builders to it, leading to a prolonged period of stagnation.
Why is the Crypto Industry in Crisis?
Ki likened the cryptocurrency market to a game, where players were initially captivated by unforeseen possibilities and innovative technological advancements.
He clarified that early on in the sector, builders were motivated by the thrill of developing new technology, while traders profited from speculative wagers and erratic market fluctuations. The essence of the cryptocurrency sector came from the collaboration between merchants and builders.
However, he further explained that the scenery has altered dramatically over time. Ki claims that there has been a change in the kind of market players. Traders who were initially motivated by the cryptocurrency movement, have made way for more cautious alternatives.
Those with expertise in finance, gaming, and content creation have replaced builders who were inspired by the spirit of creativity and originally came from backgrounds in cypherpunk encryption.
He pointed out that these newcomers don’t have the same focus on the game that previous traders did. He said that he wanted to ask Ethereum Co-Founder Vitalik Buterin about why these people decided to leave.
Ki stressed that there is now a gulf between dealers and builders as a result of this change. The thrill and excitement that merchants originally sought is no longer provided by the things that builders are making. Rather than being centred on innovation, most of the attention is now on riskier endeavours like meme coins or typical banking-type financial instruments.
Are Initial Traders Leaving the Market?
Ki makes a crucial point when he claims that many of the original builders, the ones who formerly created market excitement, have either vanished as a result of financial rules, been imprisoned, or have lost motivation after realising large profits.
Since these trailblazers have left the business, products that don’t appeal to traders have taken the lead. Consequently, the crypto market is starting to lose its previously positive nature and is starting to resemble a gambling site rather than a centre for technological innovation.
To address the issue of numerous investors in the market arguing over the status of Bitcoin, Ki Young Ju earlier published a tweet. The founder of CryptoQuant wrote that there are now two distinct factions inside the Bitcoin investing community. There are two groups of people about Bitcoin: those who view it as a tech stock and those who think of it as digital gold.
While both types of investors purchase and hold Bitcoin, those who view it as a technology stock sell it in a panic when the market is volatile and purchase real gold instead. We do not need them, Ki Young Ju stated.
Ki emphasised in his closing remarks the significance of developing a fresh “game” that can elicit dopamine reactions in both builders and merchants. He thinks the industry is headed for long-term stagnation in the absence of such a change.
The fact that altcoins are performing poorly in 2024 is only one sign of this bigger problem. Ki worries that the industry will keep losing ground unless it finds its spark again and creates new inventions.