Cryptocurrencies like Solana, Sui, and Aptos (along with countless other brand new blockchains/tokens) have been gaining in speculative-popularity, each touted as revolutionary technologies capable of transforming the internet, finance, gaming, and beyond. Their creators promise a decentralized, efficient, and user-friendly future. But behind the slick marketing campaigns and lofty promises lies a harsher reality: these projects are largely speculative ventures, designed to enrich their founders and early investors, with little tangible value for everyday users.
Let’s delve into the reasons why these so-called “next-generation blockchains” fall short of their hype and why their ecosystems remain little more than hollow shells of overinflated promises.
1. Crypto’s Real Problem: Speculation Over Utility
The foundation of the cryptocurrency industry is rooted in speculation rather than practical use cases. While the underlying technology offers potential, most projects focus on hype rather than solving real-world problems. Solana, Sui, and Aptos exemplify this trend, positioning themselves as “Ethereum killers” or “Web3 enablers” without addressing one critical question: What problem are they actually solving for everyday people?
Empty Use Cases
- Cross-Border Payments: Crypto evangelists frequently cite cross-border payments as a use case. Yet services like Wise, PayPal, and even traditional banks are rapidly improving the speed and cost of international transfers, eliminating the need for crypto in most scenarios. Even when crypto is used, stablecoins like USDC dominate, and they can operate on any blockchain, not just Solana or its competitors.
- NFTs and Gaming: NFTs and blockchain-based games are touted as transformative, yet they primarily cater to speculative traders and crypto enthusiasts. Mainstream gamers and collectors have shown little interest, preferring platforms that are simpler, more affordable, and more fun.
- Decentralized Finance (DeFi): DeFi is largely a playground for traders, hedge funds, and insiders. It lacks the accessibility and utility to replace traditional financial systems for average users. Most DeFi applications involve trading one token for another, often with no connection to the real economy.
The reality is stark: there is no demand from regular people for these blockchain-based solutions. Their user bases are dominated by speculators chasing quick profits, not individuals seeking genuine utility.
2. Tokenomics: The Great Insider Wealth Machine
Brand new cryptocurrencies like often launch with skewed token distributions that disproportionately benefit their founders, teams, and venture capitalists at the expense of retail investors. These projects present themselves as decentralized and community-focused, but their financial structures tell a different story.
Unfair Token Distributions
- Solana’s initial token allocation heavily favored insiders, with over 48% of the supply reserved for founders, developers, and venture capitalists. This leaves retail investors holding only a fraction of the total supply, making them vulnerable to price manipulation as insiders offload their holdings.
- Newer projects like Sui and Aptos follow the same playbook. They launch with massive hype, promising cutting-edge technology and explosive growth, only for insiders to quietly sell their tokens as prices peak during initial public interest.
Ponzi-Like Dynamics
The success of these projects depends on constant inflows of new money. Insiders sell their tokens into the hype they help create, while retail investors buy into the dream of “getting in early” on the next big thing. Once the hype fades, token prices collapse, and the cycle repeats with the next flashy project.
3. The Hype Machine: Selling Fantasies, Not Solutions
A defining feature of these blockchains is their reliance on narratives that rarely materialize. Buzzwords like “Web3,” “decentralized internet,” and “metaverse” are deployed liberally, but the reality is far less glamorous.
The “Ethereum Killer” Myth
Every new blockchain project positions itself as faster, cheaper, and more scalable than Ethereum. While these claims may be technically true in isolated metrics, they ignore the broader picture:
- Ethereum’s success (although success at doing what exactly? –Is it used by anyone in the real world for anything actually useful being trading other equally pointless tokens?) lies in its robust developer ecosystem, security, and network effects—not just its technical specifications.
- Competing blockchains like Solana and Aptos may be faster or cheaper, but these advantages are meaningless without compelling use cases and widespread adoption.
Unrealistic Promises
Projects like Solana and Sui frequently promise transformative applications: decentralized social media, global payment networks, universal digital identities, and more. Yet years after their launches, these applications remain either vaporware or irrelevant niche products. Most users continue to rely on traditional systems that are more efficient, accessible, and user-friendly.
4. The Misalignment of Incentives
The incentives in the cryptocurrency industry are fundamentally misaligned with long-term value creation. Projects are structured to enrich their creators and early backers, not to build sustainable ecosystems.
Founders and VCs Benefit Most
- Token Locks and Unlocks: Early investors receive tokens at heavily discounted prices and sell them at significant profits once the token is publicly traded.
- Hype-Driven Valuations: Venture capitalists pump millions into projects during their early stages, driving media attention and speculative interest. By the time retail investors join, the insiders are already preparing their exits.
Retail Investors Pay the Price
Retail investors are left holding tokens that:
- Have little intrinsic value.
- Are constantly diluted by high staking rewards or unlocked tokens flooding the market.
- Depend on speculative demand to maintain their price, creating unsustainable market dynamics.
5. The Broader Problem: Crypto’s Identity Crisis
The challenges with Solana, Sui, and Aptos clearly reflect a broader existential crisis for the cryptocurrency industry. For blockchain to succeed as a transformative technology, it must offer real-world benefits that surpass traditional systems. So far, it has failed to do so.
Barriers to Adoption
- Complexity: Crypto wallets, private keys, and decentralized platforms are too complicated for the average user.
- Trust Issues: High-profile scams, hacks, and collapses (e.g., FTX) have eroded public confidence in the industry.
- Lack of Clear Value: Blockchain technology often feels like a solution in search of a problem, with few applications that genuinely improve upon existing systems.
The Path Forward
For blockchain to deliver on its promises, it must:
- Focus on real-world problems that cannot be solved by traditional technologies.
- Abandon the speculative, Ponzi-like tokenomics that dominate the space.
- Prioritize user experience and accessibility over technical complexity.
Conclusion: A Reckoning Is Overdue
The rise of new cryptocurrencies is not a testament to innovation but to the power of hype and financial engineering. Their ecosystems are built on speculative promises, insider enrichment, and a lack of meaningful utility for regular people. Until these projects address their fundamental shortcomings, they will remain tools for wealth extraction rather than engines of progress.
It’s time to demand more from the blockchain industry. The focus must shift from speculative profits to delivering real value—because until then, brand new crypto alt coins seem little more than empty promises wrapped in buzzwords.