The Value of Staying Power in Crypto

Emin Gün Sirer, the brains behind the Avalanche Consensus protocol, recently had a fireside chat at the Web3 event, Building Blocks 23. In a conversation that felt like a mix between motivational speaking and a tech lecture, Sirer discussed the importance of ‘staying power’ in the ever-evolving world of cryptocurrency.

Quick Gains vs. Long-Term Vision

During the discussion, Sirer did not hold back his thoughts on those who flit between projects like a confused butterfly. He highlighted that chasing after quick profits from every new coin can doom the crypto landscape. According to him,

“I will tell you who’s to blame — it’s us.”

Sirer urged the crypto community to rally behind sustainable projects instead of falling for the next shiny object that promises the moon. After all, if it sounds too good to be true, it usually involves a rather enthusiastic pitch and a few sketchy white papers.

Assessing the Team: The Secret Recipe

Sirer’s simple test to gauge a project’s longevity revolves around a key element: the team. He stressed the importance of evaluating the personnel behind the crypto venture. Are they seasoned professionals, or is he just a guy named Dave who claims to once have touched a blockchain?

• Look at the team’s background and experience in the crypto ecosystem.
• Check if they’ve previously launched successful projects.
• Assess their engagement with the community and transparency.

Geographical Clues and Corporate Residency

In a world where corporate addresses can speak volumes, Sirer emphasized the jurisdiction a crypto firm chooses as a potential indicator of its staying power. For example, he noted:

“If a project is headquartered outside the United States, you know that it’s — some kind of a Cayman, Bahamas, etc. — some kind of a tax haven.”

In straightforward terms, if they’re hiding out in a tropical island economy, they might be less focused on your investment and more on sipping piña coladas.

The Importance of Building in a Bear Market

Turning the conversation towards market conditions, Sirer revealed his love for bear markets, claiming they foster a more rational approach to building. And let’s face it, there’s nothing more exhilarating than being the only one building a snowman while everyone else is just searching for warmth in the comfort of a cozy blanket.

For Sirer, these phases are opportunities to create real value. He expressed the need for growth, regardless of market trends, stating his belief that

“It’s much more fun to be building when everyone is more rational.”

Conclusion: The Road Ahead

In a crypto world where scams are aplenty and trends change faster than your Wi-Fi connection, Sirer’s insights serve as a lighthouse for weary investors. By evaluating projects based on their team, location, and approach to market conditions, the community can better navigate the choppy waters of investments and steer towards long-lasting and impactful initiatives.