While that may seem obvious, it’s the distilled version of the advice Coinbase co-founder and board director Fred Ehrsam gave during his fireside chat at Token Summit II, a conference taking place today in San Francisco.
According to Ehrsam, demand in the crypto space is driven by people who are actually using the technology – largely entrepreneurs and developers working at crypto startups and early investors interested in building the basic architecture of the decentralized economy.
Demand isn’t coming from consumers interested in the prospective benefits of a blockchain-based Uber or Airbnb, he continued.
And in turn, Ehrsam – who since leaving Coinbase has continued to invest in and advise crypto projects – said that evaluating new tokens is about “matching the token and the project to the maturity of the ecosystem.”
Sure, the quality of the team and the progress they have made on building on their product are also good indicators of successful projects, but still, there are projects the world isn’t ready for yet.
Turning back to valuable projects for the ecosystem today, Ehrsam, specifically pointing to TrueBit and Basecoin, said:
“It seems clear to me that developers in this space would want a scalability solution or a stable coin.”
For example, blockchain developers, including those for the two most widely used networks – bitcoin and ethereum – have been under pressure recently for the technology’s inability to scale for new adoption. Bitcoin’s scaling debates created enough contention this year that several groups split off the main chain, creating competing cryptocurrencies…