Crypto disaster: Why founders get rich too early and fail!

Crypto disaster: Why founders get rich too early and fail!

The American entrepreneur Naval Ravicant, one of the best-known fishing investors in Silicon Valley, recently made a daring claim: Most cryptocurrency projects fail because their founders are "too early". Ravicant, which stands behind various crypto projects, including the self-negotiation platform Casa, attracts the attention of the investment community.

In a heated discussion about Ravics' statements, Aaron Jacobson, head of the X-platform, noted that many crypto projects do not survive because they create their own token with questionable decentralization instead of building up on existing cryptocurrencies such as Bitcoin. "Most crypto projects die because they have tried to finance the project with a token that is controlled by the founding team (unless it is BTC) instead of building on an existing currency," said Jacobson.

Criticism of Tokenomics and added value

Mike van Rossum, a quantitative trader, also pointed out that the tokenomics of certain projects are designed in such a way that risk capital providers and other participants benefit maximally during the token generation events. Adam Draper, a prominent risk capital and son of the Bitcoin millionaire Tim Draper, added that the crypto sector historically was a place of "value adding" that is preceded by the creation of value. This means that assets are created before the actual search for value is completed. However, Draper noticed that this dynamic apparently changes.

Zaki Manian von Sommelier Protocol found that the situation has improved since the market has ceased to incorrectly evaluated cryptocurrency projects before revenue. While the landscape continues to change, the question of how many projects will actually survive remains in the room.