Most crypto projects face significant challenges in building long-term sustainable products because they are compelled to continuously pursue new narratives to attract investors, according to Rosie Sargsian, head of growth at Ten Protocol.
In an X post on Saturday, titled “Why Crypto Can’t Build Anything Long-Term,” Sargsian suggested that many crypto founders exhibit a "paper hands" mentality, rapidly shifting focus at the first sign of difficulty.
“Traditional business advice: don’t fall for sunk cost fallacy. If something isn’t working, pivot. Crypto took that and did sunk-cost-maxxing,” she wrote. Sargsian elaborated,
“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.”
Crypto's Accelerated Product Cycle
Sargsian highlighted a prevalent "18-Month Product Cycle" in the crypto space. This cycle begins with the emergence of a new narrative, attracting funding and capital, leading to widespread pivots amidst the ensuing hype.
This build-up phase typically lasts six to nine months. Subsequently, interest wanes, prompting founders to seek the next trending narrative for another pivot.
“This cycle used to be 3-4 years (during ICO era). Then 2 years. Now it’s 18 months if you’re lucky. Crypto venture funding dropped nearly 60% in just one quarter (Q2 2025), squeezing the time and money founders have to build before the next trend forces another pivot,” she stated.
Sargsian clarified that she doesn't necessarily blame crypto project founders, acknowledging they are often playing the game effectively. However, she argued that the "game itself" makes it exceedingly difficult for projects to realize their long-term visions.
“The problem is, you can’t build anything meaningful in 18 months. Real infrastructure takes at least 3-5 years. Real product-market fit requires iteration over years, not quarters,” she explained. She added,
“But if you are still working on last year’s narrative, you’re dead money. Investors ghost you. Users leave. Some investors even force you to catch the current narrative. And your team starts interviewing at whatever project just raised on this quarter’s hot narrative.”
Obstacles to Long-Term Growth
A significant challenge lies in how projects incentivize user adoption and long-term engagement once the initial hype subsides.
Hype surrounding sectors like NFTs, for instance, has historically followed pronounced boom-and-bust cycles.
Mechanisms such as token launches and airdropped rewards for early adopters have been crucial for generating interest. However, without meticulous structuring and planning, these can lead to early investors liquidating their holdings immediately after token distribution and abandoning the platform.
Sean Lippel, general partner at venture capital firm FinTech Collective, echoed similar sentiments in response to Sargsian’s post. He contended that certain founders and investors actively discourage long-term strategic thinking.
“A group of investors + operators + DC influencers looked at me like I was crazy at a recent industry dinner when I said I supported A16z's 5+ year vesting on tokens as part of new market structure legislation,” Lippel stated. He further commented on the prevalence of founders who have achieved financial success without building anything with lasting value in the crypto industry.