The global cryptocurrency market cap currently stands at $2.61 trillion, which many experts think is just a taste of what’s to come. Executives and entrepreneurs closely follow emerging technologies to ensure their businesses remain current with the latest developments.
At the helm of the wild frontier that is the crypto industry are startups boldly venturing where no one has gone before. These startups are rewriting the playbook entirely. Whether it’s through DeFi, DEXs, or a buzzword of the future, claiming they’re pushing the envelope of traditional finance is quite an understatement.
Some investors choose to support multiple crypto startups, hoping that some will grow and generate returns. Bolder ones invest in high-risk startups, envisioning a watershed in the history of their profitability. Finally, conservative investors might consider cryptocurrency indexes or mutual funds.
The crypto startup has become the new American Dream because it captures the aspirational qualities that have defined this idea for generations. These include financial freedom, innovation, and self-made success. On that note, self-made billionaire and newly elected US President Donald Trump pledged support for the cryptocurrency industry while his presidential campaign was still in progress. The classic American Dream – going from zero to a successful business – is one of the salient features of America’s (former) greatness. Trump’s victory forges a connection between the classic notion of the American Dream and the increasing relevance of cryptocurrency as a lucrative field.
Disrupting entrenched systems
As embodied by crypto startups, modern entrepreneurism comes to the fore through an analogy with The Social Network, a 2010 biographical drama film based on the 2009 book The Accidental Billionaires, portraying the founding of Facebook. In The Social Network, Facebook’s disruptive power resonated because it sought to redefine social interaction online, upending the hierarchy similarly to how crypto is challenging traditional finance. It has demonstrated remarkable staying power with more than 14 billion monthly website visits and 937 million Facebook Messenger users.
Crypto startups often have a similar mission of disrupting entrenched systems. The support of early investor Peter Thiel played a crucial role in Facebook’s success. Likewise, the crypto world has many influential early investors, like Daniel Wang, who helped launch Dolomite, a decentralized money market protocol and exchange with a liquidity system offering token support and capital efficiency.
Its founders, Corey Caplan and Adam Knuckey, got involved in the exploding crypto market back in 2017. They soon began to see the shortcomings of centralized exchanges, including fraud, hacks, and the less-than-satisfying user experience. As they began exploring alternatives, they took an interest in the latest decentralized exchange tech. They got involved with Loopring, a new DEX protocol, in early 2018. They built a mobile DEX, which was not only the first one on their protocol but also among the flagship DEXs in the industry. Wang, Loopring’s founder and CEO, invested $350,000 in their startup Dolomite in April 2018. Caplan and Knuckey hired several interns and developed Dolomite’s initial version over a summer spent in a house in the Pocono Mountains in Northeastern Pennsylvania, which was very similar to the Palo Alto house in The Social Network. Former team members have used the experience to jumpstart successful careers at Google, X, Coinbase, and Amazon. One of the initial interns is still with the team.
Low entry barriers, growth, and self-made success
Younger people find traditional paths to wealth, like the stock market, out of reach as they struggle with debt or rising costs of living. The crypto industry comes with a relatively low entry barrier, so many budding entrepreneurs have a chance to invest in it and potentially build wealth.
Another reason why crypto startups have become the new American Dream involves cryptocurrency’s resilience and unprecedented growth. On November 7, Bitcoin hit an all-time high of just under $77,000 on Coinbase after Trump was reelected. For many entrepreneurs, the potential for high returns creates a sense of hope and a way to escape economic constraints.
The self-made individual has always been at the heart of the American Dream narrative. Crypto offers an accessible, largely decentralized opportunity to succeed without the limitations imposed by banks, VC firms, and other traditional gatekeepers. The industry grew on the principle of democratizing access to financial and technological innovation, with a broader segment of entrepreneurs now able to launch startups.
Crypto also aligns with the American philosophy of challenging the status quo. It is rooted in ideals that resist centralized control. People disillusioned with traditional banking or corporate bureaucracy may see this industry as a path to self-direction and even self-actualization, the fulfillment of their potential and talent, which is an innate human need.
Financial and economic security through direct asset ownership
Crypto and blockchain allow individuals to own digital assets directly. Just as home ownership was the epitome of stability and success for previous generations, many now view digital asset ownership as a flexible and accessible equity.
Freedom and autonomy are among the core ideals of the American Dream. Young investors and businesspersons who value these ideals find crypto highly appealing. Blockchain’s decentralized model empowers ecosystem participants to transact and build without dealing with traditional institutions and the restrictions and control they impose.
The crypto startup ecosystem offers the means to create, build, and find financial freedom, embodying the new American Dream. This is possible without extensive resources and even a physical location. Crypto’s promise of personal autonomy and community-driven success mirrors the American Dream in the modern digital age.
This article was originally Posted on Coinpaper.com
