Long-standing crypto project vs. scam: Ava Labs CEO shares key difference
Emin Gün Sirer, creator of the Avalanche Consensus protocol and Ava Labs CEO, believes that there is one very straightforward method to spot a long-standing cryptocurrency project.
On Feb. 7 Sirer discussed blockchain venture capital and crypto regulation in a fireside chat with MarketAcross chief operations officer Itai Elizur at the Web3 builder-focused event, Building Blocks 23.
During the discussion, the Avalanche founder pointed out the crucial role of “staying power” in the crypto industry, condemning players that run from one project to another or jump into “every single new coin offering” in the hopes that they will go up. According to Sirer, the desire to reap quick profits from crypto will only turn the space into a terrible thing, and VCs are not to blame.
“I will tell you who’s to blame; it’s us,” Sirer declared, urging the community to support solid crypto initiatives and avoid scammy projects with a short life span. He then shared his “very simple test” of how to spot long-standing projects in crypto and stay away from those who make grand promises and then disappear.
“So look at the team behind any project, look at their staying power,” Ava Labs CEO said, adding that the regulating jurisdiction of a cryptocurrency firm provides one of the most important hints about its long-term capabilities. He stated:
Crypto firms headquartered in the Silicon Valley are likely to do “pure tech play,” Sirer argued. “They will do the one tech trick pony then they will disappear,” he noted.
Ava Labs CEO went on to say that long-lasting crypto projects are more likely to be headquartered in New York, “where the assets are” and that are integrated with financial institutions. “That's where we need to go,” Sirer stated,
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