It gets darker just before dawn. Where is it?
In the wake of the crypto crash, caution is in order on cryptocurrencies, NFTs and other “web3” products. But on Tuesday, a major company in the “web3” space released its first report on the state of crypto, a document that tries to put the industry in a good light despite the severe crash that lost $1 billion. dollars in cryptocurrency in just six months.
But, while the report predicts better days for crypto in the future, the industry is still experiencing “dark days”.
Are crypto, NFTs and web3 in their “beginnings”?
The company, a16z, begins by drawing an analogy between markets and seasons. “Markets are seasonal; crypto is no exception. Summers give way to the cold of winter and winter thaws into the heat of summer,” according to the report. “The progress made by builders during the dark days ends up reigniting optimism when the dust settles. With the recent market downturn, we may be entering such a period now.
Cryptocurrency industries often use this reasoning to project better days into the future. Coinbase expressed similar sentiments of a need for long-term investments in a letter to shareholders, according to a VICE report. “We tend to be able to pick up great talent during those times and other pivots, they get distracted, they get discouraged. And so we tend to do our best during a low period,” Coinbase CEO Brian Armstrong said in a shareholder call.
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The a16z report points out that crypto is still in its “early stages,” which explains why crypto offers few practical applications, services, and products for the public. “Drawing an analogy to the early commercial Internet, this puts us somewhere around 1995 in terms of development,” a16z explains in the report.
“The Internet reached 1 billion users in 2005 – incidentally, just as web2 began to take shape amid the founding of future giants such as Facebook and YouTube,” the report continues, alluding to a possible future for cryptocurrency, web3 and maybe even NFT.
Crypto platforms with “collateral” could be on the table
This comparison has been brought up several times, but it has also aroused significant skepticism. A web3 reviewer named Molly White argued that crypto exchanges have been around since 2010, casting doubt on the crypto investor’s position that web3 and related technologies are still in their “early days”. After all, NFTs and stablecoins have been around since 2014, followed by Ethereum smart contracts in 2015 and DAOs in 2016. Those years don’t seem to be that far off culturally, but in terms of innovative technologies taking off, they’ve unheard of some goals. keys. where the salad days of the internet grew rapidly and sustainably (remember the internet bubble?).
“How many people have to be ripped off for all they’re worth while technologists are talking about just beginning to think about inserting shields into their rigs?” White writes in his personal blog. based on projects that promise to make them millionaires, be reprimanded as if it’s their fault when they turn out to be ripped off as if they have to be able to audit smart contracts themselves? »
It is true that many of those looking to earn quick riches might be the least likely to make a name for themselves before and after a period of rapid crypto growth. Most public high schools don’t teach investment strategies, and in a massively indebted society, an atmosphere of rapid growth compounded by the air of inevitability that has surrounded crypto and other Web3 commodities could prove too tempting a lure for many who, it turns out, can’t afford to lose.
But that doesn’t mean it’s over for those who can.
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What Happens After The Crypto Crash? Web3 Company Expects “Dark Days”
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