Since my first cryptocurrency buy in 2021, I have been observing the dark clouds of "Ponzi scheme" characteristics overshadowing the cryptocurrency space, where early investors profit at the expense of later entrants. While this generalization may not reflect the true benign intentions of many projects, it's undeniable that some aspects of the crypto market exhibit characteristics that fuel this perception.
The success of many cryptocurrencies hinges on attracting new investors who will buy at higher prices, driving up the token value. This creates a dynamic where early investors profit significantly, while latecomers risk significant losses if the influx of new investors slows down.
Besides, the cryptocurrencies typically lack a clear, tangible utility or intrinsic value. Their value is primarily derived from speculation and the expectation of future price appreciation.
Consequently, the primary driver for the crypto projects seems to be attracting investors and increasing token prices, rather than developing truly innovative and useful applications.
Polkadot, with its focus on interoperability, scalability, and a diverse ecosystem of projects, has the potential to move beyond this speculative model.
I believe a solution to arise from the Polkadot ecosystem may encourage and support the development of dapps with real-world use cases. This can shift the focus from speculative price appreciation to the actual value delivered by blockchain technology.
I insist we, the committed Polkadot community members, occasionally take our time out of our daily hassles to seriously meditate on how we can accomplish this feat.