The worrying signs in crypto today
I’ve been around this space for over a decade now, and honestly, I can’t recall a time that felt quite this concerning. Even during the worst bear markets, there was usually some underlying momentum, some sense that builders were quietly working on the next thing. But right now, something feels different.
One of the clearest indicators I’ve noticed is the drop in smart contract audits. I’ve spoken with several auditing companies recently, and they’re all saying the same thing: fewer projects are coming to them. This isn’t because teams suddenly think audits are unnecessary. It’s because there simply aren’t as many new decentralized applications being built. The developers and founders who should be creating useful things are either waiting for better conditions or leaving the industry altogether.
The funding problem for real utility
What makes this situation particularly frustrating is the funding landscape. If you’re trying to build something genuinely useful on blockchain—something that might take time to develop and might not promise immediate 1000x returns—good luck finding support. Investors seem mostly interested in quick profits these days.
Memecoins, opaque DeFi schemes, trading leverage plays—that’s where the money flows. And where money goes, attention follows. We’re hearing less about actual blockchain use cases and more about ETF flows, trading strategies, and market speculation. It creates this weird environment where retail investors get drawn into things they don’t fully understand, while the real potential of the technology gets sidelined.
The return of the middleman
Perhaps the most disappointing aspect is how we’ve managed to reinvent the very thing crypto was supposed to eliminate: the manipulative middleman. Blockchain technology promised transparency and direct peer-to-peer interaction. But what we have now are complex financial products that introduce new layers of opacity.
I think about that recent liquidation event in October. We still don’t have full clarity on what happened, but regular investors are feeling the pain while those with power negotiate their own recoveries. It’s a pattern that feels all too familiar from traditional finance.
What crypto was supposed to be
Blockchain technology represents something genuinely important. It’s not just another financial tool—it’s a new way for different parties to interact without barriers. Combined with AI, it could reshape how we organize society and conduct business. But we’re not seeing that potential realized right now.
Instead, we’re watching a small group profit from the losses of many others. The focus has shifted from building the next generation of the internet to chasing short-term gains. It reminds me of that line from The Big Short about how fraud and short-sighted thinking have never worked in the long run.
Every dollar made through squeezing the ecosystem drives builders further away. It undermines the very value people are trying to speculate on. And eventually, everyone pays the price—even those who genuinely believe in the technology’s potential.
For those of us who care about what crypto could become, I think we need to start speaking up more clearly about what’s happening. We need to support projects that focus on real utility, even if they don’t promise overnight riches. The industry needs to recenter on building things that matter, things that could actually improve how people interact and transact.
There’s still time to shift direction, but it requires recognizing the current path for what it is: short-term thinking that ultimately harms everyone involved. The fight for utility might be harder than chasing memecoins, but it’s the only fight worth having if we want this technology to fulfill its promise.
