Web3 Markets in Infancy, Viewed as ‘Lottery’ by Investors, Says Finance Veteran

CN
11 hours ago

However, Guliński notes a growing number of Web3 traders are shifting from short-term to long-term strategies, indicating a maturing market. On the topic of scams and scam-checking tools, Guliński warns against overreliance on such software. While valuable for newcomers, Guliński emphasizes that these tools “should complement, not replace, healthy skepticism and research.”

In the rest of his responses shared with Bitcoin.com News, Guliński shared his thoughts on the U.S. Securities and Exchange Commission’s withdrawal of its request to classify the Solana token as a security, as well as Solana’s journey and adoption thus far.

Below are the Orbitt co-founder’s answers to all the questions sent.

Artur Guliński (AG): In my view, Solana’s rapid adoption stems from its focus on performance, cost-effectiveness, and developer-friendliness. Its Proof of History consensus mechanism has revolutionized scalability, allowing Solana to handle high-throughput applications across DeFi, Web3 gaming, and other sectors. This level of scalability is particularly important when dealing with high transaction volumes and ensuring a seamless user experience.

Another key factor is the robust ecosystem Solana has nurtured. By supporting a wide range of tools and resources, the platform has made it easier for projects to build and scale quickly. This flexibility has been essential in driving the growth of DeFi, NFTs, and other applications, contributing to the overall adoption and success of the network.

Web3 Markets in Infancy, Viewed as 'Lottery' by Investors, Says Finance Veteran

AG: The early security challenges Solana faced were a byproduct of its rapid innovation. The drive to push scalability to new limits naturally came with its risks, but the network has matured significantly since then. Over time, Solana has introduced better validation processes and strengthened its infrastructure’s robustness, contributing to the reduction in security exploits.

While no system is completely foolproof, the improvements Solana has made since its early days are clear. The platform’s enhanced security measures and resilience have helped foster trust within the community, and these advancements have also encouraged broader adoption by reducing concerns over potential vulnerabilities.

AG: The SEC’s decision to withdraw its request regarding Solana may reflect the evolving regulatory landscape for cryptocurrencies. It suggests that regulatory agencies are still grappling with how to classify and understand different blockchain networks and tokens. The complexities of decentralized networks, their functionalities, and the various use cases they support make it challenging to apply traditional regulatory frameworks.

For investors, this move can be seen as a confidence boost. It signals that there is a growing recognition of the complexity of blockchain ecosystems, which may encourage a more nuanced approach to regulation. In the long run, a clear regulatory framework will provide more confidence for both developers and users, as it offers more predictability and stability for those involved in the space.

AG: Education is crucial for new investors in any blockchain ecosystem, including Solana. Research is also important before investing in any project. At Orbitt, we are developing tools to provide traders better insights into market behaviors and project fundamentals. These tools can help users assess projects more effectively and avoid common pitfalls.

For beginners, being cautious about “meme season” hype on Solana and other networks is important. These coins often have very short lifespans, sometimes lasting just hours or days, and investing in them is highly speculative. New investors should be especially careful during these periods to avoid getting caught up in the FOMO.

Another key factor is ensuring that the projects you invest in have a solid business model, monetization possibilities, and a clear development roadmap. A project without these elements is unlikely to succeed in the long term. As an investor, it’s essential to define your strategy—whether you’re willing to take high risks and bear full responsibility, or if you prefer to invest more wisely, with lower risk and a long-term perspective.

Lastly, surrounding yourself with credible sources and experienced individuals in the blockchain space is invaluable. Be wary of projects offering unrealistic returns or guarantees, as scams often target the inexperienced. Having the right guidance and knowledge can significantly enhance your ability to navigate the complexities of the market.

AG: Yes, the ‘Permanent Delegate’ exploit is one of the more sophisticated scams we’ve seen on the network. It highlights the importance of understanding the features of any blockchain you interact with. Essentially, scammers took advantage of users who did not fully understand the delegation mechanism, tricking them into giving away control of their funds.

The best way to avoid such scams is only interacting with trusted platforms and tools.

AG: Tools like Solsniffer are a valuable addition to the ecosystem, especially for newcomers who may not have the experience to spot red flags in projects. However, no tool is 100% foolproof. While they can offer guidance, users should always cross-reference the information and perform their own research. Scam checkers are a useful first step. I use them regularly, but they should complement, not replace, a healthy level of skepticism and research

AG: Orbitt’s focus on the Solana ecosystem is a strategic choice due to its unmatched scalability, low transaction fees, and thriving developer community. These features enable us to build high-throughput tools that serve traders and developers effectively. Through Orbitt MM, we offer services that elevate token visibility, crucial for successful launches. Our upcoming Orbitt PAD will provide a launchpad for high-potential projects, ensuring rigorous vetting and support.

Meanwhile, the Orbitt PRO Chrome extension offers traders AI-driven insights, market analytics, and actionable data, helping them make informed real-time decisions. Our holistic approach empowers traders and developers to thrive in Solana’s fast-evolving ecosystem.

AG: Orbitt is well-positioned to shape the future of the Solana ecosystem by supporting projects that bring tangible value and long-term growth. Through Orbitt PAD, we aim to launch high-potential projects built on solid business models and clear monetization plans. This approach minimizes investor risk while maximizing the likelihood of project success. Orbitt PAD will also provide essential funding, and we will guide these projects in effectively spending on marketing and PR, allowing creators to focus on development.

Moreover, we are actively developing new tools and expanding our ecosystem. That includes launching a web version of Orbitt MM and additional developer tools such as token deployers and solutions to secure token distribution. With our long-term strategy, we are confident that we will play a key role in fostering innovation and ensuring that projects launched on Solana have the tools and support they need for sustained growth and success.

AG: We are in the early stages, where many participants view the market as a “lottery,” pursuing short-term gains and quick profits. This trend is particularly noticeable in ecosystems like Solana, where meme tokens have a significant influence, leading to volatile market conditions.

Nevertheless, increasing traders are shifting their focus to long-term gains, understanding that sustainable profits come from patience and strong fundamentals rather than chasing the next big meme coin. This shift is positive and indicates that the market is maturing.

One distinctive aspect of Web3 markets is the role of community, which can be compared to crowdfunding. In traditional markets, participants are generally more passive, but in Web3, communities often directly impact project governance, development, and promotion. This community-driven approach can determine a project’s success or failure, setting Web3 apart.

As traders and technology mature, I anticipate more informed decision-making and fewer speculative trades. The market will likely progress towards a more stable and sustainable ecosystem, where solid projects with real utility prevail over short-term hype. It’s an exciting time to be in this space, but we all have much growing to do.

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