The Path of Evolution

Monopolies based on force will ultimately find their answers in technology, leading the way toward a more civilized progression.Finance is not an exception...

The Path of Evolution

In the decade-long history of cryptocurrency development, though the timeframe is relatively short, if we rewind to ten years ago—to 2013, when Bitcoin was just beginning to emerge and the era of crypto-native ideology was in full swing—that year could arguably be considered the beginning of traditional capital’s official entry into the crypto space. Some of the most notable investments at that time were made in Coinbase, BTC China, Circle (the issuer of USDC), and the San Francisco startup OpenCoin (later renamed Ripple Labs), which focused on digital currency payments. Key participants included a16z, which later became a legendary Silicon Valley investment firm. The entry of traditional capital quickly brought a new landscape to the industry's development.

Meanwhile, decentralized fundraising activities, such as community crowdfunding models, began to appear on the historical stage of blockchain. Even within many cryptocurrency mining projects, Initial Coin Offerings (ICOs) became a significant fundraising method, allowing ordinary investors to participate in fair distribution based on consensus. In 2016, with the gradual maturation of smart contracts and particularly during the bull market of 2017-2018, a frenzied ICO distribution era began, which gradually evolved into various forms such as Initial DEX Offerings (IDOs), Initial Exchange Offerings (IEOs), Security Token Offerings (STOs), and Coinlist's lottery-based follow-on investments. However, it was evident that the frenzy of this free market quickly became capitalized.

Today, with the influx of traditional capital, the cryptocurrency space is witnessing an unprecedented surge of multi-billion-dollar investments, with the number, amount, investment scale, and number of institutions continually reaching new highs. In this decentralized domain, traditional capital has successfully gained the majority of the influence, while consensus participants have become mere gatherers in the crypto investment market.

We understand that the profit-driven nature of centralized capital naturally conflicts with the consensus-based values of blockchain projects. For these projects, it's akin to a thorny rose—enjoying the fragrance while inevitably enduring the pain of the thorns. The arrogance and monopoly of capital can create a social welfare effect, obscuring the demand for fairness in society. From certain perspectives, capital has once again managed to surpass the rules of the decentralized domain. It has facilitated the development of an insular "VC coin" market, forcing consensus to become meme-driven. One might question how much of blockchain’s core value remains intact today.

In the capital-led historical process, capital has played a significant role in advancing social progress and economic growth. However, its barbarity and fairness still have considerable room for evolution. From the perspective of technological improvement in economic activities, since 2009, blockchain-based consensus distribution and social collaboration have been challenging the traditional capital-dominated monopolies, injecting new fairness and freedom into society. Ultimately, monopolies based on force will find their answers in technology, leading to a more civilized progression—financial systems are no exception.