about the current "crypto projects building"?

"Why so many infrastructure projects?"

"Why no consumer apps?"

"Why so much ZK random stuff?"

"Where are the users?"

"Who are we building for?"

"When does the trend reverse?"...

IT'S ALL VERY SIMPLE 🥸

1️⃣ Main rule: consumer apps are not valued at 100x, just accept that as a fact. Everyone wants big stories, big air castles, big fat-layer-thesis-shit... and that hasn't changed since 2017 and even before that. As a result, nobody builds consumer-facing apps. Why? You get less valuation premium -> less fundraising and have to do real work -> EW 🤮

💡 "Nobody likes companies with revenues: it's never enough." Well, apart from some Asian countries like Korea that love building consumer facing apps. I am not versed in their market dynamics much, but it probably does contribute to crypto usage growth for some actual use cases. Or LATAM adoption of USDT transfers. That's not air castles!

Back to the topic...

2️⃣ Over-infra focus becomes an echochamber, no new users or buyers come in, and devs just sell shovels to each other. It's an easier and more pleasant business. No hard KPIs, very vague stories, big multiples... lovely, ha?

We did this before 2016, then in 2018-19, and doing for the past year again. There is 0 new DeFi, 0 new #NFTs . It's all shovels! And it's clear why: "show me the incentives and I show you the outcome". The markets then reprice all these multiples and even infra gets hit. And that's when everyone really starts to cry. We are not there yet.

So... what do?!

3️⃣ Some realize the problem, bite the lip, and actually build usable stuff. A killer use case gets found, the narratives form, and we are off to new highs. Hopefully.

Thanks ♥️

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