Coindesk: Crypto’s Theater Is Becoming More Surreal

Following 2022’s ride lower, the crypto market has seen some signs of life so far in 2023. Bitcoin prices jumped when the banking sector went into a tailspin in March. And prices have held up well since.

Talk of a bitcoin ETF, which would lead to other cryptocurrencies getting an ETF, have likewise given the space a bullish feel. However, other parts of the crypto space have had a more mixed result.

For instance, the past few years saw an explosion of interest in defi cryptos. Short for decentralized finance, these cryptos were designed to be immutable.

Only pre-written rules could be followed. Yet many projects in the space have shown that they can be changed, blockchain or not.

That also means that many crypto projects aren’t as decentralized as they sound on paper.

But it’s not just defi tokens. Governance tokens, also designed to be immutable, are also heavily concentrated. And they could also face big changes at any time.

Ultimately, in a world with thousands of crypto projects, some won’t fare well. In fact, most likely won’t.

That’s why today’s investors should focus on crypto projects that can potentially succeed. And ones that are honest about how decentralized or programmable they are.

Big projects like bitcoin and Ethereum are here to stay. Investors should start there before getting into smaller tokens, no matter how much upside potential they have.

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