Written by: Ignas, DeFi Research

Translated by: Nicky, Foresight News

Surprisingly, cryptocurrencies have had a minimal impact on the daily lives of ordinary people.

Unless one actively engages with the cryptocurrency space, people can easily live a life with almost "zero contact" with the crypto world.

However, the problem arises when the "zero contact" baseline is breached, and the related exposure is almost always negative.

You're watching Netflix's "Squid Game," and suddenly a scene appears with an influencer frequently checking the crypto markets, even demanding that others return their phones to not miss any price fluctuations. Seeing this, I can't help but recall some real-life cases.

When browsing the news, you can always see the following (mostly negative) headlines:

• North Korea steals $1.5 billion in cryptocurrencies in the largest financial heist in history

• "A farce": Trump's new meme coin sparks outrage in the crypto community

• British woman defrauded of £154,000 worth of Bitcoin, accused man charged

• Crypto trader's live suicide shocks the entire network

Fraud, scammers, wild price swings - the negative news about cryptocurrencies is endless, and the public image is dismal. Objectively speaking, even we, the crypto professionals, are well aware of the various issues plaguing this industry.

But we also know why we persist: to achieve financial freedom while disrupting the old financial system. Yes, the label of "get-rich-quick" is the reason we are often criticized, but it is an undeniable fact. After all, the pursuit of profit is a human instinct.

However, cryptocurrencies are still one of the few industries that allow people to accumulate wealth from scratch. In the current economic environment, slowly building wealth through a medium income has become exceptionally difficult. The Gen Z generation is quietly withdrawing from the job market, aware of this fact.

If they knew the possibilities that cryptocurrencies could bring to their lives...

But I believe the crypto industry has done a poor job of emphasizing its own mission, such as why cryptocurrencies are needed and why getting rich through them is not evil. The following is a pinned comment from the Financial Times that perfectly summarizes the skeptics' perspective:

If you've been on Reddit, you'll know how much the general public dislikes cryptocurrencies. But I sincerely hope to see more positive coverage of cryptocurrencies in the mainstream media.

Objectively, the Financial Times has always been skeptical of cryptocurrencies, but the quality of Bloomberg's reporting has improved significantly in recent years, often providing insightful perspectives.

Interestingly, in a seemingly innocuous Bloomberg article titled "The 7 Most Influential Personal Finance Voices in America," a prominent figure from the cryptocurrency space was recommended.

This person mainly focuses on meme coins, constantly promoting related content in Telegram groups. I'm glad to see Bloomberg covering cryptocurrencies, but I was surprised to see them recommending him!

The person in the image: @cryptomasun

Yes, people really hate us

Since this is still a "research" blog post, here are some authoritative research data on the sentiment towards cryptocurrencies:

Multiple surveys show that non-investors generally view cryptocurrencies as high-risk speculative tools, rather than legitimate financial products.

In the UK, 64% of respondents who are aware of cryptocurrencies believe that "investing in cryptocurrencies is essentially gambling".

"Attitudes Towards Cryptocurrency Investment" study

A 2024 Pew Research Center survey shows that 75% of Americans do not trust their reliability or security, mainly due to the proliferation of fraud and the volatile market environment.

The 2023 Edelman Global Trust Report reveals an even harsher reality: cryptocurrencies are distrusted across all demographic groups, with their trust levels even lower than the traditional banking system - the very thing that cryptocurrencies are trying to disrupt.

Admittedly, the 2023 collapse of FTX severely damaged the reputation of cryptocurrencies, and the 2024 meme coin frenzy did not help improve the situation.

The annual industry research report by ConsenSys revealed a harsh reality: the narrative of cryptocurrencies as the "currency of the future" is declining. When the hype around speculation, fraud, phishing attacks, and money laundering is no less than the core value proposition of "an alternative to traditional finance," the industry's foundation has been shaken.

The message is clear: outside the crypto community, people generally doubt whether digital assets can be seen as a secure financial tool.

While writing this article, I came across a tweet that perfectly summarizes the public sentiment towards cryptocurrencies:

Why Crypto Culture Matters

Our public image may seem irrelevant, as ordinary people "simply don't understand" it. They are both afraid of escaping the rat race of the 9-to-5 job market and influenced by the mainstream media's demonization of cryptocurrencies.

However, it's worth noting that public perception is quietly changing, and more people are willing to try cryptocurrencies than before. I believe this shift will attract millions of new members to our community.

I believe we can and should do better. We need to make the world believe in the vision and mission of cryptocurrencies.

Cryptocurrencies envision a decentralized financial system where individuals have complete control over their assets, without the need for intermediaries like banks or governments. The goal is to create a borderless, censorship-resistant, and minimally trusted ecosystem where anyone can transact, store value, and build economic systems without relying on centralized institutions.

Our vision is being drowned out by the clamor of meme coins and speculative behavior.

Worse, the public no longer sees cryptocurrencies as a revolutionary way to improve the financial system. As the comment below points out: "The Bitcoin ecosystem has become the very thing you all despise." Wealth and power are concentrated in the hands of a few, extracting wealth from the financially distressed masses.

More importantly, due to the open support from the Trump administration, cryptocurrencies are now forcibly associated with the MAGA (Make America Great Again) movement, which is not popular outside of its supporters. Unsurprisingly, the EU views Trump's support for cryptocurrencies as a potential threat to the monetary sovereignty of the Eurozone.

Don't get me wrong, the previous US government's relaxed regulations did inject optimism into the market. But now the cryptocurrency industry is playing a dangerous tightrope game with the Trump administration.

How to change the public's perception of cryptocurrencies? Making them more open and fair

The reputation of cryptocurrencies will not repair itself. If we want to achieve mainstream adoption, we need to reshape the narrative around cryptocurrencies.

Easier said than done, but change must start from within: even the "natives" of the cryptocurrency space have lost faith in cryptocurrencies.

I believe we need to focus on three key points:

1. Restoring the glory of cryptocurrencies

In past cycles, newcomers to the cryptocurrency space were able to make money. However, the malicious use of meme coins, combined with low-liquidity, high-FDV (fully diluted valuation) token issuances backed by VC investment firms, have left new entrants with no chance of profiting.

This cycle, we've managed to resist low-liquidity, high-FDV token issuances, only to fall into the trap of meme coin conspiracies.

Projects like "Legion" and "Echo" have made progress by adopting fairer financing models, but their exclusivity is still too strong. We need to create and promote projects that create value rather than destroy it, allowing early participants to benefit collectively.

Kyle has proposed a more comprehensive plan based on "first principles" to emerge stronger from this market chaos.

But due to extreme short-termism, a maximally predatory culture, and a lack of integrity, we've fallen into a vicious cycle, a collective self-harm, where everyone thinks it's a good idea to throw money at randomly appearing scam projects, thinking "I'll get out before they run away" - a perpetual state of financial nihilism.

We need to self-regulate bad actors. The industry must take more steps to expose fraudulent behavior and hold influencers accountable for misleading promotions. ZachXBT has done this before, but with the severity of criminal activity now out of control, even he has ultimately dumped the meme coins sent to him by others.

I need to do better in this regard myself and distance myself from value-extracting activities. People need to actually make money while driving the development of the cryptocurrency industry.

Nowadays, many newcomers end up in financial ruin, or even worse.

2. Shifting the narrative from speculation to utility

Cryptocurrencies are not just for gambling; they can bring real-world benefits.

We need to focus on use cases like remittances, financial inclusion, and transparent governance, rather than just meme coin culture.

DeFi is growing, and new social networks with innovative monetization models, like Lens, Abstract, and Farcaster, are emerging. Additionally, the expansion of stablecoins and real-world asset (RWA) applications helps to protect and grow wealth, rather than destroy it.

The top KOLs on X platform may not care about this, but that platform only makes up a small part of the cryptocurrency ecosystem.

I'm glad that Bitcoin is holding up as "digital gold," but Ethereum and Solana are seen as speculative chains, rather than the foundational platforms of an open digital economy.

If we promote meme coins as the culture of cryptocurrencies, I bet Pudgy Penguins will be a bigger representative of Web3 exporting to Web2 (compared to meme coin inputs from DOGE, PEPE, etc.).

3. Reshaping the narratives of Bitcoin and Ethereum

Cryptocurrencies are not a single, unified culture, but contain multiple subcultures. The most prominent are the Bitcoin culture and the Ethereum culture.

The notion that "Bitcoin has become what it was meant to destroy" frustrates me. Only those who cold-store Bitcoin can truly experience the peace of mind that comes with self-custody and being outside the existing financial system.

ETFs (exchange-traded funds) benefit our asset size, but they are a double-edged sword, as those who buy ETFs cannot experience the freedom that self-custody brings.

I also hope Bitcoin can distance itself from the MAGA movement. Bitcoin is global and should remain neutral.

This is why I like Ethereum. Many criticize the Ethereum Foundation for not cozying up to the Trump team, but in the long run, this will prove to be a winning strategy.

As privacy and democracy erode, as AI blurs the line between reality and illusion, and as digital ownership is no longer guaranteed, Ethereum provides the last digital sanctuary.

The core characteristics of Ethereum are clear as day:

• A trustworthy, neutral technical architecture

• A politically agnostic governance model

• A decentralized value network

• A globally inclusive ecosystem

This operating system, ignored by the outside world, needs to convey this vision and create products that truly embody the values of Ethereum.

An optimistic future

Although the total cryptocurrency market capitalization has surpassed $2.7 trillion today, have we truly "made" money?

Since Vitalik published this article in 2017, the cryptocurrency industry has evolved, and not all activities are speculative and negative.

As I mentioned in a previous tweet, 1.4 billion people globally are unbanked. Even in the US, this ratio reaches 4.5%. The Federal Reserve's own research finds that high-income groups view cryptocurrencies as an investment tool, while low-income groups use them more for transactions. Among those using cryptocurrencies for transactions, 60% have an annual income below $50,000, and 13% are even unbanked.

In the 2023 Chainalysis Crypto Adoption Index, Venezuela ranks 40th. Stablecoins have become a lifeline against hyperinflation. Similar to Argentina, as the local currency plummets, stablecoin purchase volumes have skyrocketed, a sign of widespread cryptocurrency adoption.

Cryptocurrencies are not only used to hedge against inflation, but also to resist oppressive regimes. During the COVID-19 pandemic, cryptocurrencies were used to provide aid to doctors and nurses in Venezuela, without interference from the corrupt government. Ukraine raised $225 million in cryptocurrency donations when the war broke out.

The total value locked (TVL) in DeFi has reached $88 billion. DEXes are now challenging CEXes, and projects like Maker are onboarding real-world assets (RWAs) onto the blockchain.

And non-speculative, decentralized social applications are also gradually gaining more users. Farcaster and Polymarket have thousands of daily active users, and the numbers are growing. We now have truly usable decentralized applications (dApps).

But all this progress seems to be overlooked on the X timeline, and we've done a terrible job at spreading this mission.

Nevertheless, I believe the market selloff happening as I write this will help the cryptocurrency industry self-correct, and the progress will continue. We first need to clean up the mess we've created and focus on spreading the positive side of cryptocurrencies.