Urgent Call for Awakening! The Cryptocurrency Industry Faces Crisis: Dopamine-Driven Growth Accelerating Decline

The once vibrant playground for traders and developers in the cryptocurrency industry is now facing a crisis. The allure of quick profits and groundbreaking technology has waned, leading investors and innovators to question the future of this once thriving market. These insights come from Ki Young Ju, the founder of CryptoQuant, who has conducted a deep analysis of the challenges and dilemmas in the current market.

The Rise of Dopamine-Powered Games

Ki Young Ju describes the early days of the crypto industry as an exciting game - one that triggers human pleasure pathways, releasing dopamine, and providing joy, excitement, and a sense of connection. Traders earn money through unpredictable market fluctuations, experiencing pleasure, while developers find satisfaction in creating new technologies in uncharted territories. These experiences are akin to the happiness derived from overcoming adversity, winning a competition, and connecting with like-minded individuals.

Changing Trader and Developer Dynamics

He believes that initially, the crypto market was primarily driven by two main groups: traders and developers. Traders were risk-takers, excited by unpredictable profits, while developers were visionaries building new technologies and ecosystems. Over time, the nature of these roles has evolved. In the early days, traders were often ideologically driven, aligned with the philosophy of cryptocurrencies like Bitcoin. About six years ago, futures traders became the dominant force in the market, adopting high-risk, high-return strategies. Today, there are more institutional investors and cautious market participants in the market.

Likewise, the role of developers has also shifted. Initially, they were focused on privacy and decentralization, like cypherpunk cryptographers. With the rise of trading, a new wave of developers emerged - exchange founders and token issuers - who were eager to profit from the booming market. Today, developers from various industries such as finance, gaming, and content creation have joined in. However, these newcomers often clash with the trader community because their product development does not align with the traditional mindset of seeking excitement and quick returns in the crypto market.

Weakening Synergy: Why Traders and Developers are No Longer Connected?

He points out that the unique allure of the crypto industry mainly stems from the synergy between traders and developers.

Developers create innovative products to excite traders, and this excitement drives market activity. However, this delicate balance has been disrupted. Many developers who initially attracted traders have disappeared due to stringent financial regulations, legal disputes, or losing interest after amassing huge wealth.

As a result, products with a gambling nature like meme coins or traditional financial instruments are gradually dominating the market, replacing the spirit of innovation with mediocrity or pure speculation, making it harder for traders to find exciting new ventures. Some projects that developers are currently involved in are even seen as outside the realm of the crypto industry, prompting the community to wonder where those pioneering developers have gone.

Lack of Dopamine Seeds Crisis Root

Ki Young Ju mentions that humans are inherently inclined to seek pleasure from activities that stimulate dopamine - whether in work, hobbies, or life goals. Industries that fail to provide these dopamine stimulations are destined to decline. The current crypto market's inability to inspire traders and developers has led to stagnation and a sense of crisis.

The performance of altcoins in 2024 reflects this issue. Funds are no longer flowing into the market as before, and traders have lost the adrenaline rush that initially drew them into the crypto world. Without new and exciting games to reignite traders' passions, the industry faces the risk of prolonged stagnation.

An Appeal to the Crypto Industry

Ki Young Ju urges that the crypto industry urgently needs to rekindle the once-thriving synergy between traders and developers.

The emergence of innovative products that cater to traders' appetite for risk and developers' desire to create is crucial for the industry's growth. The community wonders: Where have those pioneering developers gone? How can they be brought back?

Ki Young Ju, the founder of CryptoQuant, emphasizes that only by reigniting dopamine-driven experiences can the crypto industry overcome its current crisis. Looking ahead, creating new games - ones that can inspire traders and attract new capital to the market - is more critical than ever. If the industry fails to adapt to change, it risks gradually fading into oblivion, leaving behind memories of a space that was once filled with passion and revolution.