Cryptocurrency was supposed to be a revolution, but it has now become synonymous with scams. Can we turn this situation around?
Written by: Ignas, DeFi Research
Translated by: Nicky, Foresight News
Surprisingly, the impact of cryptocurrency on the daily lives of ordinary people is minimal.
Unless actively engaging with the cryptocurrency space, people can easily live a life with almost "zero contact" with the crypto world.
But the problem is that when the "zero contact" baseline is breached, the related exposure is almost always negative.
You're watching Netflix's "Squid Game," and suddenly a social media influencer appears on screen, frequently checking cryptocurrency prices, even asking others to return their phones just to not miss any price fluctuations. At this point, I can't help but think of certain real-life cases.
When you browse the news, you can always see the following (almost all negative) headlines:
North Korea steals $1.5 billion in cryptocurrency, creating the largest financial heist in history
"A farce": Trump's newly launched meme coin ignites outrage in the crypto community
British woman scammed out of £154,000 in Bitcoin, with the involved man being prosecuted
Cryptocurrency trader's live-streamed suicide shocks the entire internet
Scams, fraudsters, wild price swings—negative news about cryptocurrency is rampant, and the public image is in tatters. Objectively speaking, even we in the crypto industry are aware that this sector is indeed rife with various problems.
But we also know why we persevere: to achieve financial freedom while disrupting the outdated financial system. Yes, the label of quick wealth is precisely why we are often criticized, but it is also an undeniable fact. After all, the pursuit of profit is a human instinct.
However, cryptocurrency remains one of the few industries that can allow individuals to accumulate wealth from scratch. In the current economic environment, slowly building wealth on a moderate salary has become exceptionally difficult. Generation Z is quietly realizing this and is collectively withdrawing from the job market.
If they knew the possibilities that cryptocurrency could bring to their lives…
But I believe that cryptocurrency has done a poor job of emphasizing its mission, such as why cryptocurrency is needed and why becoming wealthy through cryptocurrency is not evil. Here is a top comment from the Financial Times that perfectly summarizes the skeptics' viewpoint:
If you've browsed Reddit, you know how much ordinary people resent cryptocurrency. But I sincerely hope to see more positive coverage of cryptocurrency in mainstream media.
Objectively, the Financial Times has consistently held a skeptical view of cryptocurrency, but the quality of Bloomberg's reporting has significantly improved in recent years, often providing profound insights.
Interestingly, a seemingly inconspicuous article from Bloomberg titled "The Seven Most Influential Personal Finance Figures in America" prominently recommended a major figure in the cryptocurrency space.
This person mainly focuses on meme coins, promoting related content all day in Telegram groups. I am pleased that Bloomberg is willing to cover cryptocurrency, but I was somewhat surprised to see them recommend him!
The person in the image: @cryptomasun
Yes, people really hate us
Since this is still a "research" blog, here are some authoritative survey data regarding cryptocurrency market sentiment:
Multiple surveys show that non-investors generally view cryptocurrency as a high-risk speculative tool rather than a legitimate financial product.
In the UK, 64% of respondents who are aware of cryptocurrency believe that "investing in cryptocurrency is essentially gambling."
“Cryptocurrency Investment Attitude Study”
A 2024 survey by the Pew Research Center shows that 75% of Americans do not trust its reliability or security, mainly due to the endless scams and the volatile market environment.
Edelman's 2023 global survey report reveals a harsher reality: cryptocurrency is distrusted across all demographics, with its trust level even lower than that of the banking system. And banks are precisely the traditional financial symbols that cryptocurrency seeks to disrupt.
Indeed, the collapse of FTX in 2023 severely damaged the credibility of cryptocurrency, but the frenzied speculation around meme coins in 2024 has not improved the situation.
The annual industry research report released by Consensys reveals a harsh reality: the narrative of cryptocurrency as the "currency of the future" is declining. When the heat of negative public sentiment regarding speculation, scams, phishing attacks, and criminal money laundering is on par with the original core value proposition of "alternative to traditional finance," the foundation of the industry is already shaken.
The message is clear: outside the crypto community, people generally question whether digital assets can be considered safe financial instruments.
While writing this article, I came across this tweet that perfectly summarizes public sentiment towards cryptocurrency:
Why cryptocurrency culture is crucial
Our public image may seem irrelevant because ordinary people "simply don't understand." They are both afraid of escaping the 9-to-5 job competition and influenced by mainstream media's demonization of cryptocurrency.
However, it is worth noting that public perception has quietly changed, and more people are willing to try cryptocurrency than in the past. I believe this shift will attract millions of new members to our community.
I believe we can and should do better. We need to convince the world of the vision and mission of cryptocurrency.
Cryptocurrency envisions a decentralized financial system where individuals can fully control their assets without the involvement of intermediaries like banks or governments. Its goal is to create a borderless, censorship-resistant ecosystem that minimizes trust dependency, allowing anyone to transact, store value, and build economic systems without relying on centralized institutions.
Our vision is being drowned out by the noise of meme coins and speculative behavior.
Worse still, the public no longer sees cryptocurrency as a revolutionary means to improve the financial system. As pointed out in the comment below: "The Bitcoin ecosystem has become exactly what you all despise." Wealth and power are concentrated in the hands of a few, extracting wealth from financially troubled groups.
More importantly, due to the Trump administration's open support, cryptocurrency is now forcibly associated with the MAGA (Make America Great Again) movement, which is unpopular outside its supporters. Unsurprisingly, the EU views Trump's support for cryptocurrency as a potential threat to the monetary sovereignty of the Eurozone.
Don't get me wrong; the previous U.S. government's deregulation did inject optimism into the market. But now the cryptocurrency industry is playing a dangerous tightrope game with the Trump administration.
How to change public perception of cryptocurrency? Make it more open and fair
The reputation of cryptocurrency will not repair itself. If we want to achieve mainstream adoption, we need to reshape the narrative around cryptocurrency.
Easier said than done, but change must start from within: even the "natives" of the cryptocurrency space have lost faith in cryptocurrency.
I believe we need to focus on three key points:
1. Revitalize the glory of cryptocurrency
In past cycles, newcomers to the cryptocurrency space were able to make money. However, some small groups maliciously exploited meme coins, coupled with low liquidity and high FDV (Fully Diluted Valuation) token issuances supported by VC investment firms, leaving new entrants with no profit opportunities.
This cycle, we have managed to resist low liquidity and high FDV token issuances, but we have fallen into the trap of meme coin conspiracies.
Projects like "Legion" and "Echo" have made progress by adopting fairer financing models, but their exclusivity remains too strong. We need to create and promote projects that can create value rather than destroy it, allowing early participants to benefit together.
Kyle has proposed a more detailed plan based on "first principles" on how to recover more strongly from this market chaos.
But due to extreme short-termism, a culture of maximum predation, and a lack of integrity among people, we have fallen into a vicious cycle of collective self-harm, where everyone thinks investing money in randomly appearing scam projects is a good idea, thinking "I'll get out before they run away," leading to a perpetual state of financial nihilism.
We need to self-regulate against bad actors. The industry must take more steps to expose scams and hold influencers who engage in misleading promotions accountable. ZachXBT has done this before, but due to the severity of criminal behavior spiraling out of control, even he ultimately sold off the meme coins sent to him.
I also need to do better in this regard and keep my distance from activities that extract value. People need to genuinely make money while promoting the development of the cryptocurrency industry.
Nowadays, many newcomers end up facing financial ruin, or even worse.
2. Shift the Narrative from Speculation to Practicality
Cryptocurrency is not just for gambling; it can bring benefits to the real world.
We need to focus on application scenarios such as remittances, financial inclusion, and transparent governance, rather than just meme coin culture.
Decentralized finance (DeFi) is growing, and new social networks are emerging, with projects like Lens, Abstract, and Farcaster featuring innovative profit models. Additionally, the expansion of stablecoins and real-world asset (RWA) applications helps to protect and grow wealth rather than destroy it.
Top KOLs on platform X may not care about this, but it only represents a small part of the cryptocurrency ecosystem.
I am glad that Bitcoin is performing decently as "digital gold," but Ethereum and Solana are viewed as speculative chains rather than foundational platforms for an open digital economy.
If we promote meme coins as part of cryptocurrency culture, I bet that Pudgy Penguins will become a major representative of Web3 outputting to Web2 compared to meme coins like DOGE and PEPE.
3. Reshape the Narrative of Bitcoin and Ethereum
Cryptocurrency is not a single unified culture but encompasses various subcultures, the most notable being Bitcoin culture and Ethereum culture.
The viewpoint that "Bitcoin has become everything it originally sought to destroy" frustrates me. Only those who store Bitcoin cold can truly appreciate the peace of mind that comes from self-custody and being outside the existing financial system.
ETFs (Exchange-Traded Funds) benefit our asset scale, but they are a double-edged sword because those who buy ETFs cannot experience the freedom that self-custody provides.
I also hope Bitcoin can manage to distance itself from the MAGA movement. Bitcoin is global and should remain neutral.
This is why I like Ethereum. Many criticize the Ethereum Foundation for not getting close to the Trump team, but in the long run, this will prove to be a winning strategy.
As privacy and democracy gradually crumble, as AI blurs the lines between reality and illusion, and as digital ownership is no longer guaranteed, Ethereum offers the last digital refuge.
The essential characteristics of Ethereum are crystal clear:
Trustworthy and neutral technological architecture
Politically agnostic governance model
Decentralized value network
Global participation ecosystem
This operating system, overlooked by those outside the crypto world, conveys this idea to the outside world and builds products that truly embody Ethereum's values.
An Optimistic Future
Despite the total market capitalization of cryptocurrency surpassing $2.7 trillion today, have we really "made" money?
Since Vitalik published this article in 2017, the cryptocurrency industry has evolved, and not all activities are speculative and negative.
As I mentioned in a previous tweet, there are 1.4 billion people globally without bank accounts. Even in the U.S., this figure reaches 4.5%. The Federal Reserve's own research found that high-income individuals view cryptocurrency as an investment tool, while low-income individuals use it more for transactions. Among those who use cryptocurrency for transactions, 60% have an annual income below $50,000, and 13% do not even have a bank account.
In the 2023 Chainalysis cryptocurrency adoption index, Venezuela ranked 40th. Stablecoins have become a lifeline against hyperinflation. Similar to Argentina, as the local currency plummeted, the purchase of stablecoins surged, marking a sign of widespread cryptocurrency adoption.
Cryptocurrency is not only used to hedge against inflation but also to resist oppressive regimes. During the COVID-19 pandemic, cryptocurrency was used to provide aid to doctors and nurses in Venezuela without interference from the corrupt regime. Ukraine raised $225 million in donations through cryptocurrency at the outbreak of war.
The total value locked (TVL) in DeFi has reached $88 billion. DEXs are now challenging CEXs, and projects like Maker are bringing real-world assets (RWAs) on-chain.
Moreover, non-speculative decentralized social applications are gradually being used by more people. Farcaster and Polymarket have thousands of daily users, and the number is still growing. We now have truly usable decentralized applications (dApps).
However, all this progress seems to be overlooked on platform X, and we are doing a terrible job of spreading this mission.
Nevertheless, I believe that the market sell-off happening as I write this will help the cryptocurrency industry self-repair, and development will continue. We first need to clean up the mess we created and focus on spreading the positive aspects of cryptocurrency.
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