On September 16, CryptoQuant founder and CEO Ki Young Ju posted on social media that “The crypto industry is in crisis.
In the past, the crypto industry itself was like a game. Games abstract human pleasure pathways to provide experiences similar to real-life happiness, achieved by triggering dopamine release. This includes the joy of overcoming adversity, the thrill of winning competition, and the satisfaction of spiritual connection with others.
In the crypto industry, the following factors have served as these dopamine triggers:
1. Profit from unpredictable gambles.
2. Create new technologies in unknown areas.
Those who pay attention will know that the first experience is that of a trader, while the second is that of a builder.
Over time, the nature of traders and builders has also changed. In the early days, many investors were attracted by philosophy, such as Bitcoin advocates, while six years ago, futures traders dominated the market. Today, more conservative investors are leading the industry.
If the original builders were the cypherpunks’ cryptographers, then six years ago, the growth of the trading industry brought a wave of exchange founders and token issuers. Now, talents from various industries including finance, games, and content are involved in the construction. However, they do not integrate well with those who enjoy game-oriented trading thinking because they are playing a completely different game. What they create no longer provides dopamine stimulation for traders.
The synergy between traders and builders was once the essence of the industry we call “crypto.” The builders’ fascinating creations fueled traders’ passion. However, over time, most of the builders who made the things traders loved have disappeared. They were suppressed by financial regulation, jailed, or lost their hunger after making a lot of money and indulged in partying. In their absence, the crypto industry gradually turned into a gambling playground. The remaining builders are now either creating gambling products similar to meme coins or making boring, time-consuming products in traditional financial institutions. Their works no longer provide fresh excitement for traders. Some are even building ecosystems that are so different from the crypto industry that they are classified as other industries. Where are the builders who once inspired us and explored new technologies? Why did they leave? I don’t know. I would like to ask Vitalik Buterin.
People repeat activities that stimulate dopamine. Life goals, jobs, and hobbies are full of things that bring dopamine. An industry that does not promote dopamine is doomed to decline. The crypto industry as we once knew it now cannot provide any dopamine for builders and traders, which is why it is in crisis. New games must appear to stimulate traders' dopamine. Only then can money flow into the market and the industry can grow. Altcoin in 2024 performed dismally. Money did not flow into the industry. If we do not create a new game to stimulate traders' dopamine, the crypto industry as we know it will face a long period of stagnation. I am really worried. "
