Author: @kenchangh
Compiled by: Hu Tao, ChainCatcher
initial motivation
However, as time went on, I felt I had lost my way in the cryptocurrency space. After investing full-time, the initial allure of cryptocurrency's transformative power faded. I became disappointed with my target customers and the group I was truly fighting for. I completely misunderstood the difference between cryptocurrency's real users and its propaganda targets. I completely believed its claims of contributing to the decentralization of the financial system, but in reality, it was nothing more than a speculative and gambling supersystem, merely a replica of the existing economy.
Reality slapped me hard in the face. I wasn't building a new financial system; I built a casino. A casino that doesn't call itself a casino, but it's the largest, 24/7 online multiplayer casino ever conceived of by our generation. On one hand, I'm proud of having spent at least my twenties building this casino. On the other hand, I feel like I've wasted my entire twenties on it. I've wasted my life on it, but at least I've made a lot of money from it.
Look at what they do, not what they say.
Cryptocurrencies are confusing. On one hand, some proponents claim they want to completely replace the existing financial system with a blockchain-based system. I can easily imagine a system where you only need USDC or Bitcoin in your bank account, and you can send billions of dollars to anyone in the world in seconds. This idea is powerful, and I still believe in it.
However, the incentive mechanism has completely distorted reality. In the real world, every market participant is eager to invest in the development of the next generation of Layer 1 (Aptos, Sui, Sei, ICP, etc.). The 2020 Layer 1 race resulted in only one winner—Solana. This led to a strong preference for the fourth position (Bitcoin, Ethereum, Solana, and other projects). This incentive mechanism has supported a market capitalization of hundreds of billions of dollars, but has it truly contributed to net growth towards an ideal new financial system? While venture capitalists would write 5,000-word articles to argue this point, the answer is no; it has not fostered the establishment of a new system. In fact, it has almost burned through everyone's money (whether retail investors or venture capitalists), so in the new financial system, everyone has less money.
I'm not just targeting L1 platforms. In the cryptocurrency space, I could cite many similar examples—spot decentralized exchanges (DEXs), real-time decentralized exchanges (DEXs), prediction markets, meme platforms, and so on. The frenzy and competition in these niche markets don't contribute positively to the ultimate goal of building a more robust financial system. Contrary to what venture capitalists say, we don't need to move casinos to Mars.
Economic gambling
It would be a lie to say I joined the cryptocurrency space without any financial motivation. As a reader, you might think it's hypocritical of me to decide to leave the cryptocurrency industry now that I've made enough money. Yes, maybe I am hypocritical. But perhaps I'm simply disgusted by the quagmire that fuels the financialization and gambling of the economy.
Profiting through zero-sum games is not a path to long-term wealth accumulation. It may seem that way on the surface, but it's not. Eight years in the cryptocurrency space have completely destroyed my ability to identify sustainable business models. In the cryptocurrency world, you don't need a successful business or product to make money. The industry is flooded with tokens with extremely high market capitalizations that are virtually ignored.
The real world doesn't work that way. If you want to truly create value for your customers, and not just gambling plus entertainment (which, by the way, is what casinos do), then this zero-sum business model simply won't work.
in conclusion
I used to think financial nihilism was a cute and harmless concept. And I figured it wouldn't hurt to keep pushing zero-sum games onto the next generation. I have no doubt that Bitcoin will one day reach $1 million. But that has nothing to do with the financial games this industry is currently playing.
This industry mentality is extremely harmful, and I believe it will lead to a long-term collapse of social mobility for the younger generation. You've witnessed all of this firsthand, and I think what's truly important is that we ourselves must have the courage to resist the temptations of those worthless games.
CMS Holdings once famously said, "Do you want to make money, or do you want to prove yourself right?" This time, I choose to prove myself right.
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Editor's Note: This blogger's article sparked considerable discussion among industry professionals on X. Here are some of the most popular responses:
Austin Federa, co-founder of DoubleZero :
I respect your awareness that your ethical standards are inconsistent with your current behavior. This requires courage and self-reflection, and it's not easy. But from a broader perspective, I think the natural state of cryptocurrency is almost the final state of the entire economy, and I don't know if this is something we should be worried about. The allure of cryptocurrency lies in its ability to strip us down to our most essential, most primal level, forcing us to build from fundamental principles. I often think of the opening scene of the TV series *Silicon Valley*, because it realistically portrays the self-deception that exists within the traditional economic order. What I like about cryptocurrency is that it confronts all hypocrisy and reveals the truth.
Haseeb Qureshi, Managing Partner of Dragonfly:
Crypto trader Crypto Painter:
Indeed, this is the reality. It's clear the author's resolve has crumbled, bluntly stating that the crypto market has degenerated into a gambling den...
Interestingly, I heard the same argument in 2018 and again in 2022. If you understand how the crypto market works, you'll find that a massive influx of external liquidity inevitably fuels a boom in gamblers and casinos...
A gambling-like market will naturally consume excess liquidity...
Thus, the entire crypto market has entered a cycle of "value investing" - "conviction investing" - "emotional speculation" - "utter disillusionment"...
Looking back to the beginning of 2023, the market was rife with talk of BTC and value investing, and now it's as desolate as it is now.
But the cryptocurrency market has come a long way through this cycle of "belief" - "questioning" - "denial". We don't need to believe that a certain public chain will eventually succeed, we just need to believe that the decentralized network narrative can last forever.
In the future, new liquidity will enter the market, followed by prosperity and chaos. But as long as the scope of this narrative continues to expand, the long-term direction of this market will ultimately be upward.
2025-2026 will be a period of skepticism, and there may be periods of disappointment in the future, but human nature remains unchanged. Whether it is investment or speculation, it has its enduring value.
Casinos and gamblers are merely small gaps in the bubble-reducing process. The market has its own regulatory mechanisms, so conversely, we should also thank those lousy casinos and lousy projects.
Their emergence indicates that there is a self-regulating part of the market; without bubbles, there will be no phenomenon of profiting from bubbles.
Only by learning to accept this disgusting market phenomenon can we accept the scale of the next bubble.
Quai Network co-founder alan:
You're absolutely right. Cryptocurrencies have gradually become a tool, no longer dedicated to promoting financial sovereignty or expanding the market, but rather to extracting profits. The line between building a financial system that benefits humanity and turning it into a gambling tool is blurred. Every project and founder must make a choice: do they genuinely want to make the world a better place, or are they simply playing the game? ...While it's easy to become desensitized, I suggest you delve deeper and find those genuine projects that are still driving the cypherpunk spirit. That's where the real excitement lies. That's where the real positive-sum game happens. Interestingly, I think the next direction for cryptocurrencies is actually more like Bitcoin. The narratives surrounding privacy (like Zcash and Monero), established cryptocurrencies (like Dash and Decred), and Proof-of-Work (PoW) projects will return.
