Cryptocurrency Opinion

Why do crypto projects fail?

There is a common narrative I’ve heard working in crypto – that we should decentralise everything!

I used to be a huge believer in it. Make no mistake, I still love the philosophy of people working together, helping each other, and getting rewarded in a fair, win-win way. And I do believe there are lots of cost savings and efficiencies to be gained in the process of decentralisation.

But over time I’ve balanced out this opinion because I’ve watched firsthand a bunch of crypto projects shoot for an idealistic vision of being totally decentralised… and fail.

I’ve often wondered “Why?”

Because there are crypto ‘projects’ that succeed…

Yet, more often than not, they’re crypto-integrated companies (exchanges, payment gateways, and market data aggregators) rather than crypto-native projects (dApps, DAOs, and wallets)

The book I’ve recently been reading shines a potential light – it’s the inherent lack of focus in a decentralised organisation.

Despite being almost 3 decades old, there are a lot of parallels to today’s crypto industry… just replace “company” with “crypto project” and see:

“Some founders actually like running a crypto-project by the [data, numbers, community votes]. It removes them from the responsibility of making decisions…”
“If nothing ever changed, a dApp would be more efficient and effective than a centralised app.”

So what’s the solution to be made here? How do we achieve the vision of decentralisation, while still being effective?

I say it’s by learning from the best. Learn from the most successful crypto companies. Support decentralised projects and ideals but use centralisation to move fast.

If you’re in the crypto space, get into or create a focused, centralised team – who can react and adapt quickly. Specialise in a single direction and branch out only with extreme caution, rather than going “all directions at once.”

There are so many applications for cryptocurrencies, crypto-networks and blockchain technology. But as an individual you can only do one thing at once.

So if you want to avoid failure, focus on one crypto at once, one blockchain at once, one application at once. Get good at it and it’s super easy to find opportunities in the industry – whether you want to get users for your app, get jobs from crypto companies, or customers for your business.

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