Successful product managers understand the importance of focus in building great products. They stick with one idea for an unreasonable period of time, allowing them to fully develop and refine it. This principle applies not only to product managers but also to founders and venture capitalists who seek conviction and focus in their investments.

Successful product managers understand the importance of focus in building great products. They stick with one idea for an unreasonable period of time, allowing them to fully develop and refine it. This principle applies not only to product managers but also to founders and venture capitalists who seek conviction and focus in their investments.

In the fast-paced world of technology and startups, it's easy to fall into the trap of constantly chasing new ideas and trends. The crypto industry, in particular, has seen a constant shift in narratives and buzzwords, from DeFi to NFTs to DAOs to L2 and beyond. Each new trend promises enormous returns, attracting capital and investor appetite. However, this constant search for the next big thing often leads to a cycle of greed and unsustainable growth.

To truly move forward as an industry, we need to learn from our experiences, both the good and the bad. We must go beyond theorizing and drawing boxes and arrows, and instead, viscerally experience what works and what doesn't. This collective memory will shape our future and prevent outsiders from easily extracting value from our industry.

Capital allocation has always lagged behind the advent of new innovations. In a bull market, as more capital flows into the space, the quality of projects tends to decline. People become obsessed with flipping assets for quick profits, and valuations become detached from common sense. Nuanced takes and careful considerations are often dismissed during times of mania, only to gain recognition once the narrative weakens.

In categorizing various cryptos, two dimensions that can be considered are grift and utopianism. Grift refers to projects that are poorly executed money grabs, while utopianism represents grand designs that require technological breakthroughs. Quadrant 1 projects are honest efforts at tractable problems, Quadrant 2 projects are earnest efforts at building a better future, Quadrant 3 projects are pure money grabs, and Quadrant 4 projects are complex and often nonsensical.

Quadrant 4 projects, despite their complexity and potential for grift, have often been the best short-term investments in the crypto space. The ability to achieve liquidity quickly through token projects allows for short-term gains, even if the product itself may not have true market fit. VCs benefit from access arbitrage in this quadrant, but it's important to recognize that true value and long-term success may lie elsewhere.

NFTs have been a hot topic in the crypto space, particularly in the realm of art and profile picture NFTs. While some argue that these assets hold long-term value, it's important to consider their role as status symbols and the limited reach they have in displaying to others. Additionally, there is potential for vampire attacks, where projects targeting specific demographics gain market share. Finally, the design space for non-art NFTs is largely unexplored, and while most may be nonsense, there is optimism that valuable and useful applications will emerge.

The intersection of crypto and gaming, often referred to as Play-to-Earn (P2E), has garnered attention but faces challenges. The current state of P2E games relies heavily on workers and speculators rather than a balance of workers and players. The lack of truly fun games within the P2E sector hinders its potential. However, the concept of on-chain bearer assets for virtual game assets offers opportunities for active secondary markets and taxation by game developers.

Looking beyond gaming, the concept of Web3 and the metaverse presents exciting possibilities. Users could take ownership of virtual worlds through Web3-like approaches, allowing them to participate in the commerce within these worlds without reliance on centralized payment rails. The idea of turning virtual land title into bearer instruments creates scarcity and establishes unseizable ownership, distinguishing projects like Decentraland from predecessors like Second Life.

In conclusion, the crypto space is constantly evolving, and it's essential to maintain focus and conviction when building products. Successful product managers, founders, and venture capitalists stick with one idea for an unreasonable period of time, allowing for the development and refinement of truly great products. While the industry may experience shifts in narratives and trends, it's important to learn from past experiences and avoid the pitfalls of greed and unsustainable growth. By understanding the dimensions of grift and utopianism, categorizing projects, and exploring the potential of NFTs, P2E, and Web3, we can navigate the ever-changing landscape of the crypto market and build a sustainable future.

Actionable Advice:

1. Focus on one idea for an unreasonable period of time. Avoid the temptation of constantly chasing new trends and narratives. Develop and refine your product until it reaches its full potential.
2. Learn from past experiences and avoid the pitfalls of greed and unsustainable growth. Take the time to understand the dynamics of the market and the motivations behind different projects. Make informed decisions based on long-term value rather than short-term gains.
3. Embrace the potential of new technologies and paradigms, but remain critical and discerning. Explore the unexplored spaces, such as non-art NFTs and the intersection of crypto and gaming. Look for valuable and useful applications that can drive real-world impact.