In the wake of the cryptocurrency crash, caution is growing about NFT tokens and Web3 products, the new generation of the web based on cryptography.
But last Tuesday, a major Web 3 company released its first state of crypto report, a document that attempts to summarize the industry despite a serious crash that has caused a trillion dollars in cryptocurrency to lose in just 6 months.
Although the report predicts better days for cryptocurrencies in the future, it states that the industry still has some "dark days".
Are cryptocurrencies and tokens redeemable in their 'early days'?
The company "A16Z" (A16Z) compared the state of the digital currency and cryptocurrency markets to the seasonal markets, which must witness a decline in some periods of the year and then quickly regain its activity.
Cryptocurrency industries often use this language to predict better days ahead.
Coinbase, a cryptocurrency company, expressed a similar view, saying - in a letter to the company's shareholders - that the industry needs long-term investments.
According to a report by VICE, Coinbase CEO Brian Armstrong said, “We tend to acquire great talent during those periods, especially when others are lost and distracted and discouraged, so we tend to do our best work in the fall. ".
The A16Z report asserts that the crypto-enabled technology business is still in its "early days", which ostensibly explains why so few crypto apps, services, and products have been released to the public.
"If we were to compare the current period of business based on crypto technology such as digital currencies and non-redeemable tokens, we could compare it to the period of the beginning of e-commerce in 1995 in terms of development," the report adds.
A16Z report confirms encryption-based technology business is still in its 'early days' (Getty Images)
the other opinion
This comparison between the beginnings of e-commerce and cryptocurrency has been discussed time and time again, but has also been skeptical by some. A critic named Molly White has argued that cryptocurrency exchanges have existed since 2010, casting doubt on the proposition that cryptocurrencies were in their “days.” first".
Cryptocurrencies with smart contracts such as Ethereum appeared in 2015, and at this age it is no longer in its early days as was the case with the days of the rapidly growing Internet authority.
"How many people should be scammed for everything they're worth, while techies are talking about just beginning to think about building safeguards into their platforms?" White wrote on his blog.
"How much time must pass before ordinary people who are misled into projects based on blockchains that promise to make them millionaires wake up?" he added.
It is true that many of those who seek to get rich quickly may not have achieved their dreams after the period of rapid growth of cryptocurrencies, as most public high schools do not teach investment strategies in a debt-burdened society, but the rapid growth is disappearing with the air of uncertainty surrounding crypto and “Web 3” products. other.