“Our banking system is sound … Americans can feel confident”.
These were the words of Janet Yellen, United States Secretary of the Treasury, less than a week after the second and third-largest bank collapse in American history.
In addition, banks worldwide are in serious trouble, with Credit Suisse looking for a buyer (even after a $54 billion loan) and 186 banks facing similar issues to SVB, as per WSJ.
While the entire banking system crumbles and macro conditions are worrisome, the crypto ecosystem is well and alive.
Many of the most influential investors on the planet ranged from describing it as “rat poison” to a “decentralized Ponzi scheme”. Even so, the confidence embedded in Web3 culture is equal to no other.
With the technology still in its infancy and often looking for a problem rather than solving an existing one, crypto, and blockchain have become somewhat of a meme. Some think the ecosystem is full of scams, dog coins, and jpegs (and they have every right to do so). Others believe that it is the future and everything will be on the blockchain.
While the truth probably lies somewhere in the middle, what seems clear is that people building in Web3 genuinely believe in the technology and what it represents.
What makes people so devoted to building in this industry?
Everything Is a Cult
I recently bought this book. I am still more or less at the beginning, but the title caught me immediately. Why can some people inspire and others cannot? How can some products be “worst” while still having a vast following, a larger market share, or just the cultural belief that they are “better” than the competition?
In a way, it’s simple. Some brands become cults.
They can inspire beyond what their product is about. They can bring people together who share the same vision and ideal world. They can show their point of view without describing it.
People don’t know what they want until you show it to them - Steve Jobs
In recent years, in a time where our data is everywhere, Apple has become a synonym for privacy, like Tesla became the brand for visionaries.
The way crypto came about could be the plot of a sci-fi movie. An anonymous person (or a group) under the name of Satoshi Nakamoto published a whitepaper, creating an alternative system that relies on math rather than trust and people's judgment. It then Inspired others to join a network based on ideals rather than people or government trust. Ideals in a time when faith in the system was at an all-time low.
Every single person believes in a set of ideals. Companies tend to struggle to find their values outside their sales pitch. Interestingly enough, the whole Web3 industry has been built from the ground up (with few exceptions) with the “why” built in from day one seamlessly, as if it is normal.
Web3 companies realized that the community (or cult) is much more valuable than simple customers. This approach is often driven by the shared values and beliefs of the Web3 space, allowing companies to create a real sense of purpose and identity that resonates with their audience, creating an authentic connection with their followers.
Given their strong following, Web3 companies managed to leverage their community in an unprecedented way, creating multiple platforms where individuals can find like-minded people.
This approach has allowed Web3 companies to create an ecosystem of trust and transparency that is unparalleled in the business world. Not only have Web3 companies been able to attract more followers, but they have also been able to retain them through a greater level of engagement and loyalty.
Steady lads, deploying more capital
Trust and confidence are hard to build but easy to lose. Over the last weeks, we have seen this with the banking system, where years of mismanagement and fraud culminated in eroding public trust in these institutions. It is not unlike a cult that slowly loses followers as the leader insists that everything is fine.
With the banking crisis only at its beginning, more people will start considering a solution outside the system.
Are you ready to see how deep the rabbit hole goes?
