Blockchain
|5 min ReadThe Crypto Industry's Big Problem: It's Time to Change
Maya Chen
Senior Analyst
Published
Jan 16, 2026
The Need for Long-Term Thinking in Crypto
Crypto has become a playground for short-term speculators, but the real issue isn’t the lack of talent or capital. The biggest problem is the culture—a culture that rewards quick flips over long-term growth. It’s time for that to change. We need first-principles thinking to get the industry back on track.
Over the years, we've seen cycles of hype-driven tokens and vaporware projects that provide zero long-term value. The cycle repeats: the market goes wild, investors pour in, only to be left with nothing after a few months. Why? Because nobody is building anything that lasts. The industry needs to build "compounders"—assets that grow sustainably over the long term, like Amazon, Google, and Coca-Cola. Crypto hasn’t seen enough of these. Instead, we’ve built products with no lasting value, designed to capture quick capital and then disappear when the money runs dry.
The key issue is leadership. The industry needs founders who are in it for the long haul, not those who cash out when the going is good. To succeed, crypto needs high-integrity, high-agency leaders who are committed to long-term growth and the development of sustainable projects.
Layer 1 Blockchains: The Struggle to Stay Relevant
Layer 1s (L1s) are supposed to be the backbone of the crypto ecosystem, but the reality is much different. Ethereum’s price has stagnated despite massive adoption, and Solana, once hailed as the "Ethereum killer," is struggling to maintain its momentum. The reason for this? L1s are too general-purpose, trying to do everything at once and failing to excel in any one area.
L1s need to specialize. Instead of trying to be the go-to solution for everything, they should focus on excelling in a single area. Think about cities—Silicon Valley is the tech hub because it specializes in tech. New York is known for finance because that’s where the money is. L1s need to pick their niche and own it.
The problem is that most L1s, like Ethereum and Solana, try to be everything to everyone, and that’s where they fail. They’re competing for the same limited pool of developers, grants, and attention. And even when one L1 breaks through, as Solana did, the question remains: does it have staying power?
The Missing Investment Relations in Crypto
In traditional finance, companies communicate with their investors through investment relations (IR). In crypto, however, this is almost nonexistent. Investors want transparency, they want to know what the project is doing, and they want regular updates. Yet, most crypto projects don’t even have dedicated IR teams. Without proper IR, the industry is missing out on the chance to build investor confidence and credibility.
To fix this, crypto projects need to be more transparent. That means quarterly reports, regular updates on protocol upgrades, and clear communication about the direction the project is headed. It’s not enough to rely on business development teams to pitch the project to potential investors. Projects need to actively promote themselves and show that they have a real plan for the future.
Buybacks and Burns: A Misguided Use of Capital
Buybacks and burns are often seen as a way to create value in the crypto market, but this is a short-term fix, not a long-term solution. Instead of using funds for buybacks, projects should focus on expanding their product, upgrading technologies, and entering new markets. This is how you build sustainable growth and long-term value.
Take Jupiter’s acquisition spree as an example. By using its cash to acquire products and talent, Jupiter is positioning itself for long-term success. In contrast, relying on buybacks and burns to inflate token prices is just a temporary solution that doesn’t address the real issues.
The Future of Crypto: Focus on Revenue and Long-Term Value
The crypto industry is at a crossroads. It has spent too long chasing speculative bubbles, but now it’s time to focus on building real value. The market is waking up to the fact that long-term growth comes from products that generate revenue. Hype and speculation won’t sustain the industry forever. To succeed, crypto projects need to focus on long-term thinking and building products that people actually want to use.
We need to shift away from the "pump and dump" mentality and start thinking about how to build real, lasting value in the space. This means focusing on leadership, long-term vision, and building products that generate real revenue. Only then will crypto be able to escape its cycles of nihilism and build something sustainable.
Disclaimer: This document is intended for informational and entertainment purposes only. The views expressed in this document are not, and should not be taken as, investment advice or recommendations. Recipients should do their own due diligence, taking into account their specific financial circumstances, investment objectives and risk tolerance, which are not considered here, before investing. This document is not an offer, or the solicitation of an offer, to buy or sell any of the assets mentioned.