The crypto community has come under fire from anonymous blogger Polynya, who slammed the industry for its “broken moral compass,” highlighting the rise of predatory practices and scams.
What Happened: In a recent blog post, the blogger acknowledges that there is some good in crypto, as evidenced by their previous writings on the topic, but argues that the industry has swung too far towards the “bad side.”
Crypto evolved from the inception of Bitcoin (CRYPTO: BTC) in 2010, which was speculative and fueled by proponents “shilling” their holdings with “populist falsehoods” to “altcoin mania” in 2013 and the rise of Initial Coin Offerings (ICOs) in 2017.
This “scam-filled frenzy” paved the way for increasingly predatory and unethical practices, such as the rise of DeFi ponzis, meme coins, and non-fungible tokens in the form of “ugly JPEGs.” The preliminary peak (or bottom) of this development is the emergence of racist, sexist, and offensive meme coins in 2024, which are seen as vehicles for transferring wealth to the most obnoxious individuals.
Polynya dismisses the common defense that “everything’s a ponzi,” arguing that there are many productive assets and organizations that have contributed to increased productivity and quality of life. However, the cryptocurrency market has become a pure casino, driven by grandiose narratives rather than substance.
The blogger concludes with an indefinite hiatus from writing about cryptocurrency, expressing disappointment in the community’s current state.
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Why It Matters: The criticism from Polynya comes against the backdrop of a surge in popularity of meme coins. These digital assets are almost always driven by social media hype rather than intrinsic value.
This “meme coin supercycle” has been criticized for its volatility and potential for scams.
In February 2024, investment expert Travis Kling described the rise of “financial nihilism” as a driving force behind the cryptocurrency rally. This trend, coupled with the rise of meme coins, may be contributing to the issues highlighted by Polynya. Indeed, many recent meme coins seem to have strayed from the happy-go-lucky nature of the earliest examples like Dogecoin (CRYPTO: DOGE).
Whether the blogger’s hiatus and critique of the community’s morality serves as a wake-up call for the crypto community to address these issues remains in doubt.
What’s Next: These topics are expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
Read Next: Why Goldman Sachs Stays Out Of The Crypto Craze: ‘We Do Not Think It Is An Investment Asset Class’
Image created using artificial intelligence with Midjourney.
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