Crypto’s Year of Capitulation Is a Joke

Thank God for the crypto visionaries, who heroically declared “We’re leaving banking and finance in the dust” and are now huddled in a panic room, clutching a single American flag. Listen closely and you’ll hear them whispering: “We simply cannot innovate without first being kissed on the forehead by the new president.” To put it another way, crypto’s capitulation to trad markets and politics over the past year is an absolute joke. When Bitcoin emerged in 2009, the concept was revolutionary. It promised a decentralized currency that operated without the oversight of banks or governments. In Satoshi Nakamoto’s groundbreaking whitepaper, Bitcoin was described as a “peer-to-peer electronic cash system.” This ambition was radical in its simplicity. Bitcoin offered a way to bypass intermediaries entirely. It would grant people the ability to control their financial interactions and assets. From day one, Bitcoin was all about decentralization, sticking it to the banks and tearing down the financial establishment. Cut out the middlemen, they said. Liberate the masses, they said. It was a vision of freedom with a side of chaos. Crypto’s Promise Versus Reality Then came the gold rush. Bitcoin’s value exploded, altcoins multiplied like weeds, and DeFi platforms popped up. Each one claimed it was about to overthrow Wall Street any day now. True believers swore that crypto could make banks obsolete, that it was building a utopian financial playground where everyone—especially the people the banks ignored—could finally get ahead. Since then, the same banks and corporations that once sneered at crypto as a scam are now jumping on the bandwagon, especially through shiny new Bitcoin exchange-traded funds. With the U.S. Securities and Exchange Commission’s blessing earlier this year, Wall Street can now offer “crypto exposure” without anyone having to get an actual coin. Such heavyweights as BlackRock and Fidelity wasted no time launching their own ETFs. Institutional money is flooding in. Crypto firms that once swore to disrupt the system are bending over backward to join it. In the U.K., where the Financial Conduct Authority barely approves a fraction of crypto applications, companies are eagerly adopting know-your-customer and anti-money-laundering protocols. Just to get a foot in the door. The “movement” that should have been finance’s punk rock is now happily cozying up to traditional finance, trading rebellion for respectability. From Crypto Visionaries to Sell-Outs In 2024 alone, crypto firms and influencers have shelled out millions in political contributions, with Coinbase and their crew leading the charge, all to butter up the right people and lock down favorable regulations. Lobbying, schmoozing, and campaign donations. It’s a long way from decentralization and “power to the people.” Companies are now openly aligning with politicians who wave the pro-crypto flag—such as former President Donald Trump, who’s been cheerleading for Bitcoin and the whole digital currency circus. The anti-establishment rebellion is another talking point for politicians who smell votes and dollar signs. By hitching themselves to politicians and pushing agendas, crypto leaders risk turning the whole industry into just another lobby group clawing for a slice of influence in the swamp of power games. The more idealistic crowd—myself included—see this as a total betrayal of what crypto was supposed to stand for. Crypto’s got itself a civil war, and it’s as messy as you’d expect. On one side, you’ve got the pragmatists, grumbling about how “mainstream adoption” might require a little soul-selling. Or a lot of soul-selling. Or a damned fire sale. As the debate rages across Twitter threads, Warpcast, and Discord servers, the real question looms: Can crypto stay true to its anti-establishment roots—or did it already sell out the minute someone printed a whitepaper in Helvetica? Maybe that’s just the natural life cycle of any “revolution.” Sooner or later, everything goes Hot Topic. First, you’re the scrappy underdog, shaking your fist at the establishment, shouting about freedom and autonomy. Then you get a taste of the good life—private jets, Davos invites, a little pat on the head from your friendly neighborhood investment banker. Suddenly, you’re not so different from the suits you swore to dethrone. At some point, the righteous battle cry of “decentralize everything” turns into “well, maybe just a little centralization… for regulatory purposes.” Too Late for a Revolution? Do I still think crypto matters? In some ways, yes. I know, I know. It’s a lonely hill to die on. But somewhere under all the jargon, lobbying dollars, and Wall Street handshakes, I still believe there’s a spark left, a shot at reclaiming crypto’s anarchic roots. A system that empowers the individual, shakes off the leeches, and actually challenges the entrenched power structures instead of just asking to sit with them. If you dig deep enough, there’s still a chance to resurrect that original spark—to build something that truly stands outside the walls of power, rather than bending a knee to get inside them. Because if crypto’s going to mean anything at all, it has to remember what it set out to destroy. Before it becomes just another face in the crowd. Otherwise, the “decentralized revolution” that spent a decade screaming about autonomy will keep showing up to the big leagues begging for a seat at the same rotten table it swore to flip. EXPERT OPINION BY JOAN WESTENBERG, FOUNDER AND CEO, STUDIO SELF @JOANWESTENBERG