So many crypto companies are building 100% commodity open source technology with no clear business model. Funded by a glut of VC $$ chasing hot narratives funded by LPs with nowhere else to invest thanks to the money printer going brrrr. What happens when the money dries up? Does it all come crashing down?
Comes crashing down and poisons public perception of people actually building https://warpcast.com/pdr/0xd18c9e
Yes. Open source does have a known business model, see Red Hat. But, it’s time for crypto to go back to its roots. Open source, open state, tokens to distribute value and gain traction. Provide utility by network. There will be closed-source convenience layers. And I think that’s ok.
Idk but if some glutful VC wants to chase my hot narrative my DMs are open 😩🥵🫡
Nice thing about open source is that it continues to be useful regardless. It's as important to recognize that some things are unsustainable as it is to recognize that not everything has to be perpetual or profitable.
is it truly because of nowhere else to invest? id argue its more of the outperforming upside of crypto relative to other long-tail assets in their portfolio money printer brr or not, wealthy people will still be wealthy; with enough discretionary to invest in high risk, high return asset classes
The companies “with no clear business model” will die The ones with good fundamentals (and economics) will go on
This stood out to me while taking a look at all the projects at EthDenver too. A lot of money being thrown at the space but not seeing many profitable businesses.
The first sentence: It's likely because the "just build stuff" mantra without thinking through how an enduring business can be built around the created value.
open nature of web3 ethos definitely makes this more tricky. building businesses on open source solutions is hard. think lots of companies are still trying to figure out where value will be accrued but agree, need more companies building sustainable businesses
Not sure I like your premise. Ethereum and Bitcoin are also 100% commodity open source technology, and still somehow these „businesses“ manage to innovate. Similarly, social media isn‘t sitting on a proprietary technology stack either. Anybody can build a Twitter clone, the technology isn‘t the hard part.
Sort through the ruble, repackage them with new gtm and create an economy for em