Angel Investor : Most Crypto Projects Are Garbage

99% of Crypto Projects Are “Trash,” Says Entrepreneur Jason Calacanis

Introduction
The explosive growth of cryptocurrency has led to the emergence of over 5,000 digital assets listed on CoinMarketCap. However, the survival rate of these projects has been dismal, with countless ventures failing to deliver value. In a blunt critique, entrepreneur Jason Calacanis, renowned for early investments in Uber, Robinhood, and Trello, expressed skepticism about the crypto market’s current state.

According to Calacanis, while a majority of crypto projects lack merit, the 1% that succeed hold the potential to revolutionize industries.

The State of Crypto: Too Many Projects, Too Few Winners

1. Oversaturation of the Market:

• With thousands of cryptocurrencies in circulation, investors face challenges in discerning quality projects.
• Many ventures fail due to unqualified leadership, poor planning, or outright scams.

2. Investor Skepticism:

• Jason Calacanis’ statement highlights widespread skepticism, even among seasoned investors, about the credibility of most crypto projects.
• His tweet, published on June 27, reads:
  

  “Historically, 99% of crypto jobs are trash run by unqualified morons, delusional but second-rate creators, or grifters… the 1% that are not, may change the world.”

Jason Calacanis’ Changing Views on Bitcoin

While critical of altcoins, Calacanis has softened his stance on Bitcoin (BTC):

• Previous Skepticism: In 2019, Calacanis predicted Bitcoin could drop to $500, reflecting concerns about its volatility and long-term value.
• Recent Shift: Speaking with Morgan Creek’s Anthony Pompliano, Calacanis admitted he’s warming up to Bitcoin, seeing its potential as a digital asset.

The “1%”: Projects That Could Change the World

Calacanis emphasized the 1% of crypto projects that demonstrate genuine value and innovation. He expressed interest in engaging with these projects, stating:

“I’m waiting for that 1% to deliver their product so I can talk to their customers.”

His remarks suggest a focus on:

• Customer-Centric Solutions: Projects with a real user base and proven utility.
• Long-Term Viability: Innovations that address meaningful problems rather than chasing trends.

Support from Kevin Rose

Kevin Rose, co-founder of Digg and general partner at True Ventures, echoed Calacanis’ sentiments. Rose has previously expressed similar concerns about the overwhelming number of low-quality crypto projects, emphasizing the need for due diligence.

Challenges in Identifying Quality Crypto Projects

1. Lack of Transparency:

• Many projects fail to provide detailed roadmaps, clear leadership, or measurable milestones.

2. Scams and Fraud:

• The crypto space has been marred by rug pulls, Ponzi schemes, and other fraudulent activities, leading to investor losses.

3. Overhyped Marketing:

• Inflated promises and aggressive marketing campaigns often overshadow genuine innovation.

What Makes the 1% Stand Out?

A Broader Perspective: Lessons for Investors

1. Conduct Thorough Research:

• Scrutinize whitepapers, team credentials, and project roadmaps.

2. Look for Utility:

• Focus on projects with tangible applications rather than speculative hype.

3. Avoid FOMO (Fear of Missing Out):

• Make informed decisions instead of chasing trends or pump-and-dump schemes.

Conclusion

Jason Calacanis has raised a critical point about the crypto industry’s oversaturation and lack of quality projects. While 99% of projects may fail to deliver value, the 1% that succeed have the potential to reshape industries and drive innovation.

For investors, the message is clear: prioritize due diligence, focus on utility, and engage with projects that demonstrate transparency and real-world impact.

To explore successful crypto projects and their long-term potential, check out our guide on top blockchain innovations to watch