The Fraud of Crypto Community is Relevant
From Ethereum ICOs to ConsenSys the fallacy that community has value is a hack
In the real world clients and users are important, in crypto fairyland they try to build ‘communities’. However, such communities are more prone to pump and dump and aren’t actually loyal followers. That is, crypto’s failure might be tied to the failure of crypto tribalism, false hype, and ridiculous valuations of that actual value of such communities.
How is crypto hype of this kind not misinformation? How many failed ICOs, exit scams and shitcoins do we need to have endured to understand the Telegram-Bitcointalk-Reddit hoax — communities alone are not valuable. You actually need real-world products and real clients.
Airdrops Don’t Build Real Communities or Loyal Users
Doing an airdrop does not increase your customer-base, it only gives you false traffic and a false sense of confidence that your altcoin has some relevance. Expansion has come at the cost of cohesiveness, and crypto’s rapid rise meant a lot of people joined these blockchain startup ‘communities’ for a quick-stealth profit. Many Millennials know they will die in debt, and will never be able to pay it off.
Crypto however is not an alternative stock market. Crypto’s communities on Telegram or wherever are not your friends. There is a certain insanity in crypto tribalism and the demise of crypto communities.
The Lack of Real Products Hurts Public Blockchain Attempts
As a tech critic, I take offense when someone like Joseph Lubin is telling his employees and the world that the next killer app is a killer ecosystem. He is implying that Ethereum has created a community with a real product, with real clients and with a legitimate business model. ConsenSys is doing some innovative things, but it’s on extremely shaky ground.
A legion of young people desperate enough to invest in crypto are not going to save the world. These are debt ridden young consumers who face incredible economic uncertainty. The spectacular fall of ICOs in the second half of 2018 points to a systemic problem and unsustainability of crypto communities.
So there’s a lot of ideological warfare and manipulation clearly involved here. The champions of these communities are uniformly the ones who would profit the most from their proliferation. Lubin is said to be the largest holder of Ether and is estimated to be worth more than a billion dollars.
Crypto Communities are Vanity Metrics
Ethereum has an incredible number of daily active developers, that has value. But the followers of all of these altcoin communities are often just young investors who are crypto hobbyists. Crypto saying that its community is its best resource, is like Facebook saying it’s valuable because it has over 2 Billion users.
These are vanity metrics businesses use to deceive shareholders and investors. Silicon Valley’s most centralized companies are based on this fraud. Now crypto is replicating the narrative pretending to be ‘decentralized’. Lubin controlling ConsenSys does not sound very decentralized.
Crypto is not impacting the debt-economy we live in now in the real world. Few young Americans will ever invest in cryptocurrencies. Only a few people invested in Bitcoin years ago that gained the most economically from it. Blockchain adoption is still a sputtering thing of decades, not years. The crypto surge of December, 2017 created unrealistic expectations of how quickly cryptoeconomics would impact the real world.
The crypto winter is teaching us the actual value of crypto communities. Without decentralized governance, communities like ConsenSys, EOS and Tron are doomed, doomed to be frauds and failures. If you pretend to be something you are not, sooner or later the market will level the playing field.
From Ethereum 2.0 (Serenity) to the shape-shifting of crypto pivots, the ethereum-centric venture studio headed by ethereum co-founder Joseph Lubin needs to prove it’s viable in 2019. How many of the spokes of ConsenSys since inception in early 2015 will even still be around in 2021? Community is not enough, crypto needs to stop betting and start building sustainable and viable products.
Vitalik needs a course in fiat, Coinbase needs to be acquired, and cryptoeconomics and blockchain startups need to mature — since the world isn’t waiting on any crypto community to take a stand. Those days of early hoard idealism and unrealistic enthusiasm are over.