Everydays #1280
Dream on your feet
for when you lay down
there’s only sleep
Is it finally we get explanation for swap robbing?
It has been insane for too long time.
Trust is developed on 2 big pillars in finance, and probably im many aspect of life. The first is clean and strong background, the second is transparency. Reliability, innovation etc. come afterwards. @nader cleared himself for the first one, but apparently lacking the transparency part. Treasury sells without explanations and hidden fees are not looking good for a platform trying to get viral and grow.
Have a happy spring weekend!🌷
Morning light, spring is back.
Yesterday I told myself to sleep long.
5 am I woke up for war.
6 am battle was won.
War still rages on.
Have a great day.
Think I am
gonna just
wash the
winsows.
Thank you for sharing your observations @mossified! I share them 100%.
It's pure logic if you think about it. There is too much redundancy in the space on L1 and L2 levels. And not just since yesterday but since 2018/ 2019 when many of the L1s were created. And since they all offer more or less the same functionality and target the same applications, no L1 altcoin can shine. As a matter of fact, we aren't just playing a zero-sum game, but the cake for L1s and subsequently for L2s even is becoming smaller because a limited amount of available capital is increasingly distributed into the hands of capable investors. And those don't
blindly pump a coin.
DeFi, Stablecoins, and RWAs require regulation before they can take off. This will hopefully change with the current administration. Then it will become interesting to see which L1 chains will make the jump to mass adoption. Sadly, I think the race won't be decided by innovation but rather by connections into the existing financial elite (bankers, VCs, politicians).
I just love how DeSo stands out from the crowd by targeting an industry that doesn't require regulation to take off. Also, it's immediately useful and easy to comprehend. I demoed it to so many people. I can with confidence that DeSo is overdue as an invention. I am pretty sure DeSo will take over the crypto world in no time and then quickly expand beyond that.
People way over estimate the threat of one or a small number having a huge influence vs a large bureaucracy wielding hard power. The latter disguises itself as peaceful broad consensus
Welcome to your weekend Focus Fam ❤️
Global free trade as been a huge benefit to China and the US, it kept the economy afloat despite central bankers slowly destroying everything. But China benefited more because of unfair policies, American tech kept out and IP stolen. Those things should be targeted not blanket trade deficits. But also sales taxes are better than income taxes, so small 10% tariffs are fine
Participated in a call yesterday with over 20+ crypto founders and ecosystem leaders, many familiar names. Here's some takeaways:
The general mood and sentiment was awful. Somehow it's worse than 2022 (when FTX crashed) and the bank runs that followed the year after.
Everyone is struggling on adoption and acquisition right now. Many feel the exhaustion of the "pumpfun" cycle which sucked away a lot of attention from the market and liquidity which mostly exchanged hands between existing crypto mercenaries (not much new retail onboarded). There seems to be growing consensus that this problem will only continue to get worse as the friction to launching new tokens and chains (Memecoins, L2s, L3s) will grow and exchanges will continue to feast on them and ignore actual useful projects.
Here's a great article from Andrew Chen recently about marketing channels (not specific to crypto but inherited by any tech company or project):https://andrewchen.substack.com/p/every-marketing-channel-sucks-right
ETH/BTC price action seems to be a core driver of sentiment, as it causes people to reflect on whether they should've just held BTC this entire time or try to play the game of guessing the bottom.
Ethereum is still seen as the leading indicator of where projects go to thrive, and Solana seems to be where the mercenary projects go to live and die given how fast liquidity circulates to the next quick pump. Pretty much every other chain hasn't made real noise other than the L1 premium of being "new" like BeraChain and HyperLiquid.
What I found interesting is that pretty much nobody makes revenue in this industry unless you're middleware like running validator nodes for foundations. So the only way to sustain is by launching a token and selling it which is unsustainable, especially because Exchanges & Market Makers dictate token flow and can also take a huge chunk of runway.
It's unclear how many projects will survive another 4 years, overall funding and developer adoption is trending downwards, not upwards.The thing most people are bullish on is regulatory clarity of non-speculative things like ETFs and Stablecoins. But this only attracts sophisticated capital, whereas for "marketing", most crypto projects need to attract degen liquidity which is highly unreliable.
Overall, it's interesting hearing from everyone else who are behind the scenes. I think this is a tough moment for crypto in terms of where to go, but hopefully a phoenix will rise from the ashes.
My biggest bearish takeaway is that I don't think the market is still close to valuing utility over speculation sadly, as so many people seem to be hurting from 2021-2024 losses, such that betting on speculation seems even more attractive in order to regain the losses (lose 9 hands, catch one 100x hand).
My biggest bullish takeaway is that I think people will still find ways to be resilient and survive this trend, and I still believe the ultimate crypto market cap will be the lagging indicator of how much value capture there will be — my bet is still in the double-digit trillions.