Crypto Industry Faces Crisis, Lacks ‘Dopamine’ for Developers and Traders

The crypto industry, once a source of excitement for developers and traders, is now in crisis, unable to provide the ‘dopamine’ it once did. This is the conclusion of Ki Young Ju, CEO of CryptoQuant.

Crypto Industry is in Crisis.

In the past, the crypto industry itself was like a game. A game abstracts the human pleasure pathways, providing an experience similar to real-life happiness by triggering dopamine release. This includes the joy of overcoming adversity, the thrill…

— Ki Young Ju (@ki_young_ju) September 16, 2024

According to the expert, the industry could once be compared to a game. Participants’ experiences were akin to real-life happiness, triggering dopamine release. This hormone is also released by the joy of overcoming challenges, the thrill of competition, and the satisfaction of connecting with others, he explained.

In the crypto industry, such catalysts include:

1. Earnings from unpredictable gambling.
2. Creating new technologies in “uncharted territories.”

Ki Young Ju notes that over time, the nature of traders and developers has changed. Initially, many investors were drawn to the philosophy, but now the majority are more conservative participants.

The original developers were cryptographers. The main trading activity arose from the efforts of exchange founders and coin issuers.

Now, talents from various sectors, including finance, gaming projects, and content, have joined. However, this new wave of specialists does not align well with those who enjoy the trader mindset. What they create no longer brings dopamine.

The synergy between market participants and developers once reflected the industry’s essence. Intriguing creations by teams fueled investor enthusiasm. Over time, however, most creators of “exciting” projects have “disappeared.” They were “suppressed” by financial regulations, legal prosecution, or simply lost interest after making too much money and indulging in social scenes.

In the absence of such developers, the crypto industry is gradually turning into a “gambling den.” Remaining teams create either gambling products like meme tokens or tedious, time-consuming tools typical of TradFi.

Such projects do not provide traders with fresh incentives. Some even create ecosystems so different that they are classified outside of cryptocurrencies.

“Where have all those developers gone who inspired us and explored new technologies? Why did they leave? I don’t know. I want to ask [Ethereum co-founder] Vitalik Buterin,” wrote the CEO of CryptoQuant.

Ki Young Ju believes that people tend to repeat actions that stimulate dopamine production. Life goals, work, and hobbies are all filled with this hormone.

“An industry that does not stimulate dopamine is doomed to decline. The crypto industry, as we once knew it, can no longer provide it for developers or traders. That’s why it’s in crisis. A new game must emerge. Only then will money flow into the market, and the industry can develop. Altcoin performance in 2024 is dismal. Money is not entering the industry. […]. I am truly concerned,” concluded the expert.  

In August, the number of unique wallets interacting daily with blockchain gaming applications reached a record 4.2 million.

Earlier, the Notcoin team announced the launch of a new clicker game on Telegram called Lost Dogs.