Long-standing crypto project vs. scam: Ava Labs CEO shares key difference

Emin Gün Sirer, creator of the Avalanche Consensus protocol and CEO of Ava Labs, believes there is one very easy way to discover a long-standing cryptocurrency project.

On Feb. 7, Sirer discussed blockchain venture capital and cryptocurrency regulation in a fireside chat with MarketAcross COO Itai Elizur at the Building Blocks 23 Web3 developer event.

During the discussion, the Avalanche founder pointed to the critical role of “aging” in the crypto industry, denouncing players who jump from one project to another or jump “every new coin offering” in the hope that they will grow. The desire to make quick profits from crypto will only turn the cosmos into a terrible thing, Sirer said, and venture capitalists are not to blame.

“I’ll tell you who’s to blame — it’s us,” Sirer said, urging the community to support solid crypto initiatives and avoid short-lived scam projects. He then shared his “very simple test” on how to identify long-term projects in crypto and stay away from those who make grand promises and then disappear.

Ava Labs founder and CEO Emin Gun Sirer (right) with MarketAcross COO Itay Elizur (left). Source: Cryptooshala

“So look at the team behind any project; look at their endurance,” Ava Labs CEO said, adding that the cryptocurrency firm’s regulatory jurisdiction provides one of the most important clues to its long-term options. He decreed:

“If the project is headquartered outside of the United States, you know it’s some kind of Cayman, Bahamas, etc., some kind of tax haven, or Austin, Texas, etc. They’re there to sell glasses and disappear. They don’t have stamina.”

Cryptocurrency firms headquartered in Silicon Valley are likely to be in a “pure tech game,” Sirer argues. “They will make a pony with one technical trick and then disappear,” he noted.

The CEO of Ava Labs went on to say that long-term crypto projects are likely to be headquartered in New York “where the assets are” and integrated with financial institutions. “This is where we need to go,” Sirer said, emphasizing that there are people who dedicate their lives and careers to making cryptocurrencies work. “Of course, venture capitalists love projects with a short life cycle,” he added.

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In addition, Sirer stressed the importance of constantly expanding space, even during a bear market. “Actually, I like bear markets more. It is much more fun to build when everyone is more rational,” said the head.

Sirer’s latest comments add some new insights into management’s views on the crypto market. Sirer claimed in 2020 that over 95% of cryptocurrencies were nothing more than a scam. He also criticized the use cases for new crypto initiatives, stating that Bitcoin (BTC) was the first cryptocurrency to offer a peer-to-peer online payment method.

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