Ten Protocol's growth director, Rosie Sargsian, stated that most crypto projects struggle to achieve long-term development because they are forced to constantly chase new narratives to attract investors.

In an article titled "Why Crypto Can’t Build Anything Long-Term" published on the X platform on Saturday, Sargsian pointed out that many impatient founders immediately pivot when faced with challenges.

Sargsian wrote, "Traditional business advice: don't fall into the sunk cost fallacy. If something isn't working, pivot. The crypto industry has evolved this into 'sunk cost maximization.'" She added:

Sargsian believes there is currently an 18-month product cycle in the crypto space: new narratives emerge, funding and capital start to flow in, and during the hype, everyone begins to pivot.

This process generally lasts 6 to 9 months, and once the hype fades, founders seek new directions.

Sargsian noted that in just one quarter (Q2 2025), crypto venture capital dropped by nearly 60%, significantly compressing the time and funds available for founders to build before the next trend forces another pivot.

Sargsian does not fully blame project founders; she acknowledges they are "playing the game correctly," but the "game itself" makes it nearly impossible for projects to achieve long-term visions.

Sargsian added, "The problem is that you can't build anything meaningful in 18 months. Real infrastructure takes at least 3-5 years. True product-market fit requires years of iteration, not just a few quarters."

One key issue is how projects incentivize user adoption of the platform and long-term retention once the hype fades.

For example, sectors like NFTs often experience boom-and-bust cycles. During this process, tools like token issuance and airdrop rewards become important ways to attract attention.

However, without sufficient structural design and planning, these initiatives often lead to early investors quickly selling off and exiting after the token launch.

According to Sean Lippel, a general partner at venture capital firm FinTech Collective, he expressed views similar to Sargsian's and further pointed out that some founders or investors do not want solutions that promote broader long-term thinking to emerge.

Sean Lippel stated, "A group of investors + operators + DC opinion leaders thought I was crazy when I spoke at a recent industry dinner about supporting A16z's proposed new market structure legislation regarding a 5-year vesting period for tokens." He added, "I've seen too many crypto founders who have become wealthy without leaving anything behind; this phenomenon is simply insane."

Related: Bank Negara Malaysia develops a three-year roadmap to pilot asset tokenization

Original article: “Sunk Cost Maximization” is Killing Long-Term Development in the Crypto Industry

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