The crypto space has been rife with speculation around mergers and acquisition activity. VC money has dried up and suddenly everyone’s playing Monopoly with blockchain companies. The old guard is too preoccupied toasting to “strategic consolidation.” In the meantime, I can’t help but feel that Gen Z is about to be had. Again.

VC Retreat Equals Gen Z Retreat?

We were promised a decentralized revolution, an open-sourced revolution. This new financial infrastructure would be constructed by us, and for us, the digital natives. Rather, are we just seeing the same old tale play out once again? 10,000-50,000 big ideas Consolidation Big money swooping in, buying up the innovation, and consolidating power in the hands of a few? Remember Occupy Wall Street? It’s like the analog cross town bus protest — only this time, the banks are purchasing/countering the protest.

The 70% drop in VC funding? It's not just a statistic. It's our future on the line. All those moonshot-y, ambitious projects— the ones that were going to change the game for everything from finance to art —are now on the bubble. They’re forced to liquidate their holdings, usually at fire-sale prices. Only just one year ago, those same companies were likely guffawing at their audacity.

Build vs. Buy? More Like Buyout

The whole “build vs buy” discussion is a laugh. This is not what’s best for the technology or the community. It’s no longer about what’s best for the people served, or even what is cheapest and fastest. Constructing a different reality requires patience, persistence, and an honest long-term vision. Acquiring something that’s already been built? That’s permission for instant gratification for the investors already circling the exit.

And who suffers? And of course the Gen Z developers, designers and dreamers who submitted their hearts and souls into these impactful projects. They had faith in the promise of crypto. Rather, they viewed it as a means of building a more just and equitable society. Now, they’re experiencing widespread layoffs, an abyss of career uncertainty, and the demoralizing gut punch of figuring out that their idealism may have been taken advantage of.

Think about it like this: Imagine a local organic farm, built from the ground up by passionate young farmers, gets bought out by a giant agribusiness corporation. Yes, the large corporation can maintain the “organic” label, but as Wendell notes, the spirit of the organic farm is lost. The story quickly turns to one that exonerates the sustainable practices agenda as profit-maximizing becomes priority and the young farmers are supplanted by easily exploitable labor. That's what's happening in crypto right now.

Regulation Now, Not Later

The Wild West days of crypto are over we’ve been told. Without appropriate oversight, the unprecedented M&A boom will serve to fortify a handful of companies. If we’re not careful, these titans will monopolize the whole field. Whatever happened to the decentralization we all – conservatives and liberals alike – wanted and needed? Where is the fair competition? Where’s the protection for those investors? This is particularly important for users who are still learning the ropes and thus the most susceptible to scams and misinformation.

We need transparency. We need accountability. We need stronger policies that stop monopolies from controlling markets and bullying good businesses out of the industry. This will take regulators sophisticated enough to grasp the potential of this technology and courageous enough to go toe-to-toe with the legacy players.

Just ask the investors left reeling from the recent collapses of FTX and other crypto platforms. These events evaporated billions of dollars and left thousands of investors shattered. Most of these investors were retail investors, many of them young Americans attracted to crypto in hopes of getting rich fast. They completely dropped the ball in terms of their readiness for the risks of public-facing research. We cannot let this happen again.

We know it is easy to become discouraged and believe these decisions are all being done behind closed doors. There is still time to act and be heard! We have a voice. It’s time for us as crypto investors to begin expecting more from the crypto firms we back. Ask the hard questions. Demand transparency. Fund the ones that are serious about doing things the right way.

Policymakers, the clock is ticking, so get moving! Establish a regulatory framework that protects investors and crypto industry workers alike. This new framework should protect fair competition, guard against monopolies and monopolistic practices, and allow for innovation from all players.

Don’t let the M&A mania become a sequel to how Boomer and Millennial ABLE got schooled. So join us and take action. Let’s create a better future, one where innovation is truly rewarded and people of all backgrounds have a fair shot. It’s time to restore crypto to its original promise.

  • Educate Ourselves: Understand the risks and opportunities in the crypto market. Don't just follow the hype. Do your research.
  • Support Ethical Projects: Invest in projects that are committed to transparency, fairness, and sustainability.
  • Demand Accountability: Hold crypto companies accountable for their actions. Use social media to call out bad behavior.
  • Advocate for Regulation: Contact your elected officials and urge them to support policies that protect Gen Z investors and workers in the crypto space.

Don't let the M&A frenzy turn into another chapter of Gen Z getting burned. Let's build a better future, one where innovation is rewarded and everyone has a fair shot. It's time to reclaim the promise of crypto.