The growth of crypto projects, offerings, marketplaces, exchanges, nfts and the upcoming metaverse is releasing a tsunami of activity and applications into the market. All have a similar key objective not to capture adoption but driving the underlying valuations of their tokens higher.
Financing of such projects has been driven by the rapid adoption of the token by early adopters — counting on the ever higher price of the token for ongoing funding, but creating very little long tail of support and sustainable growth.
Adoption is starting to slow down, currently it seems that everyone is focusing on capturing users away from another protocol, instead of focusing on capturing new users away from other markets or other competitors, like Web2 applications and users.
Such focus on token valuation instead of business fundamentals may ultimately shake the confidence of investors as they realize that many of the projects are not sustainable and do not have a go to market strategy nor clear path to revenue.
So what happens now and how to address it ?
Lets understand the current scenario: there are many projects, but not many customers .. currently crypto projects are targeting 81M wallets (FYI- one individual may have multiple wallet addresses), which belong to early adopters — this provides a problem to the more than 18K coins(https://coinmarketcap.com/) in the marketplace — which on average, it…
