In March 2022, there were 18,465 different types of cryptocurrencies, with more every day flooding the marketing. About ten coins dominate the crypto sector, but as more projects enter the market, there can be fluctuations among even the most stable coins.
The issue is that most of these new tokens have little to no real-world applications and will never even come close to being functional. The main reason for creating these crypto projects is to get a piece of crypto's short-term frenzy.
Some Similarities to the 1990s Dot Com Mania
This idea has been introduced previously. In the 1990s, when the world was all about the dot com mania, many "projects" flooded the market, looking to cash in on some short-term wins. But just like these crypto projects, many dot com ventures needed a solid business plan or practical use and eventually went bust.
Making Token Utility a Top Priority
For the projects that did survive the dot com bubble, it came down to two key factors that made a world of difference: long-term vision and real-world use. The crypto space is no different. Currently, there's consistent volatility for most token prices, but the ones that will survive will have some real-world applications.
As much as I hate to say it, Amazon is an excellent example. Amazon's business plan was developed around building a recognizable brand and real-world use while focusing much less on income in those early days. While other projects only looked for short-term gains, Amazon took a much long-term view. The company only saw profits come in by 2001, several years later.
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