American entrepreneur Naval Ravikant, who is known as one of the most prominent angel investors in Silicon Valley, has opined that most cryptocurrency projects end up dying because their founders get rich "too early."
The AngelList founder has backed various cryptocurrency projects, including self-custody platform Casa.
Ravikant's most recent take has attracted a lot of attention from the investment community.
In response to Ravikant's post, Aaron Jacobson, marketing lead at the X social media platform, has commented that a lot of cryptocurrency projects fail to survive due to the fact that they come up with their own tokens with questionable decentralization instead of building on top of existing cryptocurrencies (such as Bitcoin). "Most crypto projects die because they tried to fund the project with a token controlled by the founding team (it is always controlled unless BTC), rather than build on a currency that already exists," he said.
Prominent venture capitalist Adam Draper, the son of Bitcoin whale Tim Draper, claims that the crypto space has historically been a world of "value capture" that precedes the creation of value. Hence, this leads to the creation of wealth before the quest is finished. However, Draper has noted that this is seemingly changing now.
Zaki Manian of Sommelier Protocol has noted that things have gotten better now that the market has stopped mispricing pre-revenue cryptocurrency projects.
Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.