5 Downfalls Of Web3 👀

The Quantum Chronicle - Quantum & Emerging Tech

Published in

Coinmonks

7 min readMay 15, 2022

When we first enter the web3 space, we might not even know we’re in the web3 space. (Here’s a blog on the ins&outs of Web3)

When you start hearing “BAYC this” or “Moonbird that”… you just might be in the right place.

In this short blog post, we’ll briefly discuss 5 of the downfalls, or hard truths, that embody the current state of web3.

If you agree with them, or if you disagree, please leave a comment below and we can share in the conversation.

1. Toxicity

Sadly, if you’re on Twitter, where most of (if not all of) the Crypto/NFT “degens” reside, you’ll quickly come across someone shitposting about some other project while rocking a PFP of their BAYC or something close to that…

The generally young, ego-centric, crowd that conquers the web3 ecosystem is not a good look for the mature majority of people.

Hiding behind the mask of the internet with their NFT profile pics (PFP’s) gives these humans the confidence to criticize and condemn other humans for their lack of belonging in the degen space.

We need to get rid of this. Instead of bringing people down, we need to always bring people up.

We were all noobs at one point…

We need to turn this into a safe space to get more adoption and cashflow from the newbies who are looking to join our “oh so sacred” metaverse.

2. Lack of Adoption

So many people are NOT involved in the web3 space yet and are NOT utilizing/collecting Crypto tokens or NFT’s.

This is mainly because there are more barriers to enter this space compared to traditional web2 services/utilities.

You need a web3 extension (MetaMask, or Phantom usually) that acts as a ‘wallet’ where you can easily store NFT’s and crypto tokens. They also allow you to pay for things using crypto online and in-person.

You DON’T need any NFT’s or crypto to get involved with web3 however. You can hop on web3 Twitter, start joining NFT projects’ discords and learn the lingo/jargon of these degens to get a better understanding of how this new space operates to better prepare yourself for the time when you ARE ready to get more into crypto and NFT’s.

Once we have more web3 user-friendly apps that are allowed to operate on smart phones, then I believe we’ll see a mass adoption.

When big brands and games start utilizing NFT’s, and possibly even their own crypto tokens, then we’ll see more adoption.

Imagine Call of Duty having every gun camo be a different NFT… You could purchase new guns (also NFT’s) by collecting their own native $COD token that you earn through playing the game and earn more for playing the game well… This is when mass adoption will occur.

We aren’t at this point in the web3 space yet, BUT billions of dollars are currently at work to making this become a reality.

3. Regulations

Whether you love regulations or hate them (like I do), they are imperative to the mainstream adoption of web3, crypto, NFT’s and all things blockchain…

Since the beginning of the “modern age”, all things have been regulated and taxed by the powers that be.

On one hand with regulations, you have to pay more, there are typically more legislative loop-holes you have to go through to get your desired outcome, and more compliance with rules… but on the other hand, these regulations can provide more safety for investors, buyers’ confidence, and overall trust in the system.

As of right now (May 2022), there are very few regulations when it comes to Crypto, NFT’s and the sorts. This may be because it’s extremely difficult to track the flow of sales of every transaction from wallet to wallet.

In the years to come, we will most likely see a greater increase in regulations regarding the transactions of Crypto and NFT’s, but for now, it’s still like the wild-west in the web3 space so the chance of high rewards is there as “first mover advantage”, but you also run the risk of getting your investments stolen through scams or a flash market crash occurs…

4. “Pay-To-Play”

As much as I hate to say it, web3 is a HARD game unless you invest a lot of money ($10k or more).

This space seems to be a “pay-to-play” or rather, “pay-for-power” game.

MOST people who join the web3 space do not have enough money to buy a picture of a monkey for $200k… yet the ones who own those BAYC JPEGS are seemingly the most powerful, insightful, and influential members in the web3 space.

These NFT’s sort of act as a gatekeeper to enter their clubs. If you own one of our NFT’s, you can be part of our club, and if you don’t own one of our NFT’s then they really don’t care about you all so much…

The hard truth is that if I was a millionaire with absolutely no experience with Crypto or NFT’s, within 1 day I could buy a BAYC NFT, start a brand new Twitter account, share my new BAYC to the #nft #apefollowape Twitter and seemingly overnight have 1k+ followers and develop an audience who is attentive to me simply because I now own this NFT.

This web3 space doesn’t take into account the guys (like myself) who simply don’t have the excessive “flex” money to buy any of these “blue-chip” NFT’s… Yet, we have been in the web3 space for a year or more, full-time, and have dedicated ourselves to it fully and have seen minuscule growth in our audience because we’re not part of these exclusive clubs…

It’s a daunting feeling always striving to have that ‘flex’ of a JPEG or to get lucky with one Crypto/NFT project… It takes a mental/emotional toll on the majority of web3 users.

Only the future can tell if it will stay this “pay-for-power” status quo as it is now, or if it will change to where the “everyman Joe” will have the same opportunity as the “playboy millionaire”…

In the end, we all do it for power, status, attention, affection, liking, and all things based on ego… Hopefully this will change too.

5. “Fakeness”

For lack of better words, the Crypto, NFT, web3 space can straight up be fake in all its meaning.

Imagine spending a month or so engaging and becoming part of a cool community for an NFT project where you end up minting 3 NFT’s for ~$800, only to find out that after the launch and sell-out of the project, the owners step away and all future vision of the project dies out along with the value of the project…

This same concept can go towards all things web3. They’re called “rug-pulls” and they happen to like 85% of projects in this space at the current moment.

It’s only a cash-grab…

There is a certain amount of people in it for the long run however, and they strive to bring their community with them. These are the good ones you want to support, for they need it the most.

It’s extremely hard to tell the good ones from the fake ones, and even the best of us get duped sometimes.

Most of us like the “newness” of the web3 space and have actually made some good connections along the journey, but in reality, most of us want to “strike it lucky” and end up owning the next BAYC or the next 1000x crypto token to change our lives financially. That’s what most web3 people are here for, the increase in status…

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Conclusion:
- Web3 is still very new
- We need more use-cases and technology
- Regulations are most likely coming (which in turn will bring more mainstream adoption)
- You have a better chance for success in the web3 space if you come in already rich…
- It’s extremely fast-paced and can be emotionally/mentally draining or stressful

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ALWAYS BE CAREFUL!!!

I can’t stress this enough! Be extremely vigilant and aware of every link you click on, every transaction you make, and every person you interact with, as scammers are plentiful in the space and rugs get pulled from the best looking of projects.

Triple check all links before you click them and make sure they’re the official link you’re looking for. Also triple check all wallet address’s before sending anything valuable to someone else.

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