In a recent post on social media platform X, Ki Young Ju, the founder of CryptoQuant, voiced serious concerns about the state of the Web3 and the broader crypto industry—excluding Bitcoin. Ju emphasized that while Bitcoin remains unaffected, the rest of the crypto space is in crisis due to its failure to generate the same dopamine-fueled excitement that once drove the industry. He likened the early crypto environment to a game that triggered human happiness through challenges, competition, and social connections. Previously, the crypto space offered two main dopamine triggers, according to Ju: the thrill of making unpredictable financial gains and the excitement of creating new, groundbreaking technologies.

Ju noted that these two activities appealed to different groups within the crypto world—traders and builders. He pointed out that traders, especially those seeking quick profits, experienced excitement through the volatile nature of the markets. Builders, on the other hand, found pleasure in pioneering new technologies and exploring uncharted territories within the blockchain space. However, as time has passed, Ju pointed out, both traders and builders have evolved. He said that in the early days, many investors were drawn by the philosophy behind Bitcoin, while six years ago, futures traders became dominant. Ju claimed that more conservative investors are taking the lead in the industry today.

As for the builders, Ju described the early crypto pioneers as cypherpunk cryptographers, who exchange founders and coin issuers later succeeded during the trading boom six years ago. He pointed out that individuals from various industries, including finance and gaming, are joining the space. Yet, they do not blend well with the “game-oriented” mindset of traditional crypto traders. According to Ju, what these new builders create no longer provides the same dopamine rush to traders, leading to a disconnect between the two groups.

This disconnect, Ju warned, has caused the synergy between traders and builders to disappear. In his view, the creations of the early builders once fueled traders’ enthusiasm, but over time, most of these builders have left the industry, suppressed by financial regulations, imprisonment, or the comforts of wealth. As a result, Ju said, the crypto industry is gradually becoming a mere gambling den. He observed that the remaining builders are now creating either “gambling products” like meme coins or traditional financial products that no longer excite traders.

Ju went on to say that the industry’s failure to provide dopamine to both traders and builders is why it finds itself in crisis. He emphasized that without a new game to stimulate traders, the industry will continue to face stagnation. Ju argued that the dismal performance of altcoins in 2024 was proof of this. He concluded by expressing his genuine concern for the future of the industry, suggesting that unless fresh opportunities emerge to engage traders, the crypto market is headed for prolonged stagnation.

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