Why do Most Crypto Projects Fail?
04.11.2024 13:30 1 min. read Kostadin Dimitrov
American entrepreneur and Silicon Valley investor has expressed his thoughts on why many cryptocurrency projects fail to succeed.
As the founder of AngelList, he has supported various initiatives in the crypto space, including the self-custody platform Casa. Recently, he has drawn attention within the investment community by suggesting that a significant number of crypto projects collapse because their founders achieve financial success “too early.”
In reaction to these comments, Aaron Jacobson, marketing lead at Platform X, highlighted that many projects struggle because they issue their own tokens that lack true decentralization, rather than leveraging established cryptocurrencies like Bitcoin.
He stated that many initiatives falter because they attempt to fund themselves with tokens controlled by the founding team, advocating for a focus on existing projects.
Trader Mike van Rossum further noted that the tokenomics of certain projects often prioritize the interests of venture capitalists and other investors during token generation events.
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