Crypto-evangelists retain faith when prices fall
In June, San Francisco hosted the largest web3 event the city had ever seen. “Join the world’s smartest dreamers and doers for a full day focused on web3, dapps, protocols and the future of the internet,” the website said. “Change is in the air.”
For more than six months, the idea of a third iteration of the Internet has kept the US technology sector in check. Although still theoretical, web3 has been hailed as proof that cryptocurrencies can be used in the real world. Even in the crypto winter, believers stay strong.
Web3 evangelists still believe that the future of the internet will be controlled by users. Instead of companies deciding how we interact, online life will be decentralized, which means users can connect freely with each other. Blockchain technology and cryptocurrencies will allow us to use and send our money safely online without going through banks and other financial institutions.
The Web3 conference in San Francisco, called Graph Day, was a chance to see how that dream developed. Held in the Palace of Fine Arts, a large Roman-looking rotunda in the elegant Marina district, it housed impressive supporters. Over $ 400,000 was at stake in a hackathon. Sponsors included the digital asset platform Coinbase.
The problem is that Graph Day was dreamed up before the worst of the cryptocurrency crash. Towards the end of last year, the price of bitcoin, the world’s largest cryptocurrency, reached a new high of $ 69,000. Hollywood actor Matt Damon was one of the celebrities who advertised tokens and crypto exchanges. His TV commercial, which was shown during the Super Bowl, encouraged investors to consider crypto because “wealth favors the brave”. Gwyneth Paltrow teamed up with the Cash App to give away $ 500,000 in bitcoin, telling Elle magazine she wanted to help bring more women into the world of crypto-investment.
In June, however, the combination of rising interest rates, fears of recession and constant fraud had burst the crypto bubble. Bitcoin had almost halved in price and still fell. Dogecoin, a cryptocurrency created as a joke and made popular by Tesla CEO Elon Musk, had fallen from $ 0.52 in early 2021 to $ 0.07.
But do not imagine that a spectacular crash can weaken the confidence of the technology sector. Do not worry that prices plummeted, the mood on Graph Day was still upbeat. At the party that was held afterwards, the drinks flowed and the talk was about non-fungible tokens. Instead of exchanging business cards, a party participant offered his phone with a QR code associated with his Twitter account, complete with an NFT profile picture.
Cautious voices were few and far between. “Perhaps,” thought one party-goer, “this will be the last event of its kind. But I strongly doubt it. ”
It is easier to brush off a price avalanche when you insist that the goal is not personal wealth. Web3 and crypto conferences like to promote the idea that crypto is a force for good. Some participants had recently been to Crypto Bahamas and Crypto Miami – grouped in tropical locations with the likes of Tony Blair and Bill Clinton to congratulate themselves on improving the future.
Any mention of the volatile price of digital tokens is considered a faux pas. Crypto may have created wealth for some and left many others with huge losses. But the San Francisco web3 conference focused on how blockchain technology can make the world a better place. Freaking out over fluctuating prices is too stiff on Wall Street who are only interested in a quick buck and have no knowledge of the technology behind it.
Comparing profits or proposing crypto can be pure speculation is taboo. There is also some mention of criminal activity using crypto or the hacks that have left some investors in the red. Right now, this never-say-die attitude is exemplified in Sam Bankman-Fried, the 30-year-old billionaire who founded the crypto exchange FTX. Known for riding in crypto’s defense, and for wearing shorts and t-shirts to smart events with his curly hair crooked, he has stepped in to give credit or buy up crypto companies that are struggling, like BlockFi. It is now reported that he is looking at the trading app Robinhood.
For believers, there will be more opportunities to make money in the coming weeks. Since Graph Day, the cryptocurrency has continued. Ethereum, the second largest cryptocurrency, is down 73 percent from the top. The share price of Coinbase, which first entered public markets last year, is down 77 percent this year. When I asked an event attendee how he felt about the dramatic drop in cryptocurrencies, and whether it could put a damper on future conferences like this, he said he was just looking forward to buying a few more.
This article has been corrected to reflect the fact that the price of bitcoin peaked last year at $ 69,000, not $ 50,000.
