When will the crypto industry grow up

Author

Daniel
27 Jul

I firmly believe that crypto and blockchain as a technology have the potential to disrupt almost every industry whilst simultaneously improving the lives of millions. The trust less nature, alongside security, and transparency of blockchain should be reforming our archaic structures (a conversation for another newsletter).

However, it would be extremely naive of me to suggest blockchain or crypto have even scratched the surface of the potential impact they can achieve. In fact, in the grand scheme of things crypto has failed to impact the world meaningfully, with crypto being synonymous with memes, degenerates, and scammers (largely due to influencers) to the public.

Despite this, many crypto ecosystem participants still firmly stand by the current state of crypto in what can only be described as an immature outlook. This immaturity can be highlighted in the many takes that oppose any form of regulation, investor protection, or centralised entities entering the space. These takes make me realise just how much the space must grow, but this week I was told something that grinded my gears:

“You should only hire people who have experience working in the crypto space.”

There are many reasons why this statement bothered me, as a result I am writing this article to hopefully change the perspective of some participants in the space.

As Simplicity grows, we have been thinking about growing the team, this has led us to think about potential employees and who’s the right fit for our company. One thing is clear to me.

Crypto is not meant to be a private members club, exclusive to a select few. It should be a technology that is accessible and open to all. Inviting new perspectives and talent to contribute to its development is crucial for the industry to grow and achieve mainstream adoption and I am personally excited about bringing talent from the traditional world into crypto.

There are three fundamental flaws in the belief that only those with crypto experience should be hired which I shall present to you now.

Firstly, it hinders the entry of new talent and innovation into the market. Students and individuals who are passionate about crypto and have the potential to bring fresh ideas may not have direct experience in the field yet, so by excluding them we miss out on their potential contributions and stifle the growth of the industry.

Secondly, this mindset prevents us from attracting new talented individuals. By limiting our hiring pool to those already entrenched in crypto, we miss the opportunity to bring in professionals with diverse skill sets and expertise from other industries. Embracing professionals from various backgrounds would bring new insights and accelerate the industry's development.

Let's take two examples to exemplify this:

1. Let’s look at due diligence standards in the space. Here’s a meme that perfectly represents how the majority of the space conducts due diligence.

I’m not going to deny that analysts in crypto venture funds need to know the space, however, I will pose the question of the quality of due diligence in the space. Instead of hiring analysts who have poor analysis standards but know crypto I posit it would be more fruitful to hire skilled analysts and teach them about crypto. This way the industry standards would improve, and crypto would grow.

2. Let’s look at web 3 gaming. It's no secret that web 3 games have been heavily criticized for their quality. Despite this, Web 3 gaming presents crypto with one of the best opportunities to onboard users and act as a proof of concept to retail. To elevate the standards of web 3 gaming, the crypto industry needs assistance from professionals experienced in traditional game development. Whilst individuals with crypto expertise are necessary, collaborating with experts from the traditional gaming industry will propel game quality, enhance user experiences, and drive crypto adoption forward.

The final flaw is that exclusively hiring individuals with prior crypto experience soft-locks the industry in a standstill. Without the influx of fresh perspectives and diverse expertise, we risk becoming stagnant and unable to address the challenges and opportunities that lie ahead. To unlock the full potential of crypto, we need a constant influx of talent and ideas.

It's crucial to acknowledge that the crypto industry currently lacks many of the necessary skills and tools for mainstream growth. Business development, marketing, accounting, consultancy, and traditional practices such as risk management and proper due diligence are areas that require attention and expertise. Fostering a more professional approach to the industry will enable its maturation and integration into the broader business landscape.

While crypto can be seen as anti-establishment, it should not be equated with being anti-professional.

Embracing professionalism and adopting best practices from traditional industries will ensure the responsible growth and wider acceptance of crypto as a transformative technology.

We must embrace some form of regulation, promote investor protection, and understand that centralised entities must enter the space for the technology to be widely used. This doesn’t mean we need to completely lose sight of our principles, and standing up against dystopian nightmares such as World Coin is still essential, but we must grow up and move the industry forward.