Overview of Challenges Facing Crypto Projects

Rosie Sargsian, head of growth at Ten Protocol, believes many crypto projects are struggling to achieve sustainable growth due to an overemphasis on short-term trends. She argues that this constant pursuit of attracting investors through new narratives is hindering their ability to build robust and long-lasting projects.

The 18-Month Product Cycle

Sargsian points to the existence of an 18-month product cycle within the crypto space. This cycle begins with the emergence of a new narrative, followed by inflows of funding and investment, and then projects begin to pivot amidst the hype. However, interest quickly fades, forcing founders to seek out new opportunities. "This cycle is now 18 months if you're lucky," she states.

Impact of Funding Downturn

Sargsian highlights that a decline in project funding within the crypto space exacerbates the issue. With reduced time and capital available to founders, there is increased pressure to shift to the next prevailing trend.

Long-Term Growth Constraints

Sargsian emphasizes that projects cannot build anything meaningful in just 18 months. Genuine infrastructure requires at least 3 to 5 years, and achieving true product-market fit requires iteration over years, not quarters. She indicates that continuing to work on last year's narrative will lead to a loss of investment and users.

Incentive Challenges

One key issue is how to incentivize users to adopt platforms and stay with them long-term when the hype fades. While token launches and airdropped rewards for early adopters can attract interest, without sufficient planning, this can lead to early investors abandoning the platform after the token is launched.

Divergent Perspectives

Sean Lippel, general partner at venture capital firm FinTech Collective, agrees with Sargsian's opinion, but adds that some founders and investors do not want solutions that promote broader long-term thinking. He points out that when he expressed support for A16z's vesting period of more than 5 years on tokens, he was surprised by the reactions from some figures in the industry.


Risk Warning: This article is provided for informational purposes only and does not constitute investment advice, investment research, or a recommendation to trade. The views expressed are those of the author and do not necessarily reflect the position of Markets.com. When considering shares, indices, forex (foreign exchange), and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and may not be suitable for all investors. Leveraged products can result in capital loss. Past performance is not indicative of future results. Before trading, ensure you fully understand the risks involved and consider your investment objectives and level of experience. Cryptocurrency CFD trading restrictions may apply depending on jurisdiction.

Latest news

gold

Thursday, 23 July 2026

Indices

Gold Price Today, July 24: Gold Slips to $4,043 as Dollar and Yields Rise

Thursday, 23 July 2026

Indices

Nikkei 225 Falls 2.73% as Alphabet AI Costs Shake Japan Tech Stocks

oil

Thursday, 23 July 2026

Indices

Brent Crude Holds Near $100 as Red Sea Supply Risks Escalate

South Korea Tightens Rules on Single-Stock Leveraged

Thursday, 23 July 2026

Indices

South Korea Tightens Rules on Single-Stock Leveraged ETFs, Raises Cash Requirement to KRW 30 Million from July 31

intel earnings 2026 q2

Thursday, 23 July 2026

Indices

Intel Q2 Revenue Jumps 25% on AI Demand, Beats Estimates as Strong Q3 Outlook Lifts Shares

USD to JPY exchange rate today

Thursday, 23 July 2026

Indices

US Treasury Says Yen Is Deeply Undervalued, Urges Bank of Japan to Continue Rate Hikes

gold

Wednesday, 22 July 2026

Indices

Gold Price Today, July 23: Gold Holds Above $4,100 as Oil Rally Limits Gains

tesla earnings q2 2026

Wednesday, 22 July 2026

Indices

Tesla 2026 Q2 Earnings: Revenue Surges 26% as AI Investments Weigh on Profits and Cash Flow

google earnings 2026 q2

Wednesday, 22 July 2026

Indices

Google 2026 Q2 Earnings: Cloud Revenue Soars 82% as AI Investments Drive Growth Despite Rising Capital Spending

Fed Rate Decision

Wednesday, 22 July 2026

Indices

Fed Rate Decision Preview: Will the Fed Raise Rates at the July 29, 2026 Meeting?