Challenges in Long-Term Development for Crypto Projects

According to Cointelegraph, many cryptocurrency projects face significant challenges in establishing long-term sustainability due to the constant need to adapt to new market narratives. Rosie Sargsian, head of growth at Ten Protocol, highlighted this issue in a recent article, emphasizing that many crypto founders tend to pivot at the first sign of trouble. She noted that traditional business advice encourages avoiding the sunk cost fallacy, but in the crypto world, this has led to a culture of frequent pivots. Sargsian explained that the current product cycle in the crypto industry lasts about 18 months. During this period, a new narrative emerges, attracting funding and capital, but interest eventually wanes, prompting founders to seek the next trend. This cycle has shortened significantly from the initial 3-4 years during the ICO era to the current 18 months. The rapid decline in crypto venture funding, which dropped nearly 60% in the second quarter of 2025, has further compressed the time and resources available for founders to develop their projects before needing to pivot again. Despite acknowledging that crypto project founders are playing the game correctly, Sargsian argued that the industry's structure makes it nearly impossible for projects to achieve long-term success. She pointed out that meaningful infrastructure development requires at least 3-5 years, and achieving a real product-market fit necessitates years of iteration. However, sticking to outdated narratives can lead to investors losing interest, users leaving, and even investors pressuring founders to align with current trends. One of the main hurdles for crypto projects is incentivizing users to remain engaged with platforms after the initial hype subsides. Sectors like NFTs often experience boom-and-bust cycles, and while tools such as token launches and airdropped rewards can attract early adopters, they can also lead to early investors abandoning the platform once they cash out. Sean Lippel, a general partner at venture capital firm FinTech Collective, echoed Sargsian's sentiments, noting that some founders and investors resist solutions that encourage long-term thinking. He recounted an industry dinner where his support for A16z's 5+ year vesting on tokens was met with skepticism, highlighting the challenge of fostering longevity in the crypto space.