Jason Choi, co-founder of Tangent, notes that the Web3 sector is stagnating despite Bitcoin and Ethereum being increasingly accepted in the United States.
The current market prioritizes engaging stories over real products, leading to a lack of innovation and weakening the cryptocurrency ecosystem as a whole.
MAIN CONTENT
Web3 is currently stagnant and lacking creativity compared to the previous ICO and DeFi phases.
The evaluation of AI-related cryptocurrencies relies more on the story than on actual technology.
A comprehensive adjustment is needed for the cryptocurrency market to recover and avoid the phenomenon of 'nihilism.'
Why does Web3 lag behind even though it is widely accepted in the United States?
According to Jason Choi, although the public acceptance of Bitcoin and Ethereum in the United States has improved markedly along with a favorable legal environment, the Web3 sector is experiencing serious stagnation. He emphasizes that many who actively invested during the 2018 to 2020 period now feel disappointed with the absence of significant breakthroughs.
Unlike the strong experimental spirit of the ICO era and DeFi summer, the current market prioritizes engaging stories over specific products. This leads to a lack of innovation and shallow projects that weaken the entire ecosystem.
What characteristics does the current cryptocurrency market have in terms of capitalization and innovation?
Choi points out that cryptocurrencies related to artificial intelligence (AI) are valued more based on the 'story' that attracts investors than on actual technological development. The market rewards this behavior, causing projects without core value to increase and empty the ecosystem.
Chasing the story rather than focusing on the product leads to an imbalance in market capitalization and weakens the trust of investors as well as industry builders.
What are the consequences and future forecasts for the Web3 and cryptocurrency industry?
Jason Choi describes the current state of sharing in the cryptocurrency industry as a form of 'nihilism' where many investors view 'income' as a story rather than a real business need. He predicts that the market experiencing many failures and restructuring is inevitable for Web3 to regain its growth momentum.
A broad adjustment across the entire market is necessary to eliminate low-quality projects, restore trust, and facilitate real innovations.
"The cryptocurrency industry is undergoing a strong restructuring phase, requiring screening and a focus on core value to recover."
Jason Choi, Co-founder of Tangent, August 2023
How do Bitcoin and external factors affect the market?
Theo Tangent Lianchuang, the current Bitcoin price is significantly influenced by external factors such as ETFs and macroeconomic developments rather than intrinsic market sentiment. Therefore, investors should not rely solely on feelings or trends but need to carefully analyze objective factors.
The influence of these external factors makes the cryptocurrency market complex and requires careful investment strategies focused on fundamental analysis and the legal environment.
Frequently Asked Questions
What is Web3 and why is it currently stagnant?
Web3 is a new generation of decentralized technology developed based on blockchain, but it is currently stagnant due to a lack of innovation and many projects chasing stories instead of developing real products.
Why are AI cryptocurrencies highly valued but lack sustainable value?
Most AI coins are valued based on more engaging stories than on actual technology, leading to risks when there is no sustainable development foundation.
What factors are significantly affecting Bitcoin's price?
Bitcoin's price is influenced by ETFs, macroeconomic fluctuations, and global market sentiment, not just natural demand.
What does the cryptocurrency industry need to do to recover?
A deep adjustment is needed to eliminate low-quality projects and focus on developing real technology to rebuild investor and community trust.
What is the phenomenon of 'nihilism' in cryptocurrency?
It is the state where investors only see income as a media story, not a genuine business need, undermining the industry's development motivation.
Source: https://tintucbitcoin.com/tangent-lianchuang-web3-can-tai-cau-truc/
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