Crypto Projects Struggle to Build Long-Term Amid Constant Pivots

Crypto projects struggle with short product cycles and investor pressure, hindering long-term development and platform sustainability.

  • Many crypto projects struggle to sustain long-term development due to frequent shifts in focus to follow new trends.
  • The typical product cycle in crypto has shortened to about 18 months, pressured by declining venture capital.
  • Real infrastructure development and product-market fit require several years, beyond current crypto timelines.
  • Incentives like token launches and airdrops often lead to early investor sell-offs and reduced user retention.
  • Some investors resist longer-term planning tools, such as extended token vesting periods, preferring short-term gains.

The head of growth at Ten Protocol stated that many cryptocurrency projects face challenges in building lasting platforms because they constantly change strategies to fit the latest market trends. This cycle of frequent pivots prevents them from pursuing long-term goals.

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The crypto industry now sees a product cycle lasting roughly 18 months, during which new narratives attract funding and interest. However, funding for crypto ventures dropped by nearly 60% in the second quarter of 2025. This reduction squeezes the time and resources available for developers before the hype moves on to the next trend.

She explained that investors and users quickly lose interest if a project focuses on outdated themes. “Now nobody stays with anything long enough to know if it works. First sign of resistance: pivot. Slow user growth: pivot. Fundraising getting hard: pivot,” she said. Developing meaningful infrastructure usually takes three to five years, and finding product-market fit requires multiple years of iteration.

One challenge is encouraging users to remain engaged after initial hype fades. Tools like token launches and airdropped rewards attract early adopters but can prompt them to sell tokens quickly, undermining platform stability.

A venture capital general partner agreed with these points, noting resistance among some market participants toward solutions that encourage long-term commitment. He highlighted support for extended token vesting, a practice that restricts early token selling for five years, even though some founders and investors oppose such measures.

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He commented that many founders become wealthy without creating projects with lasting value.

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