Founders,
In the first 2 months of 2021, crypto prices have already doubled and continue to hit new all-time highs.
Bitcoin has crossed $1 trillion in market capitalization. Pixelated crypto art regularly sells for millions.
Senators even have lasers for eyes! Euphoria abounds.
As co-founder of Coinbase through 3 prior market cycles (2011, 2013, and 2017), I’ve experienced these
euphoric highs before. I’ve also experienced the communal despair and disillusionment that have followed.
Below are some observations and learnings I’ve taken from living through these past crypto cycles. I share
them with the hope they help you, your team, and your community prepare for whatever is ahead, so that
you can avoid potential pitfalls and maximize your chances of success.
While it’s impossible to predict the future, past cycles give us some sense of what to be ready for. They can
help us imagine the potential aftermath of this latest wave of euphoria. And they serve as a reminder that
bouts of uncertainty and volatility are to be expected given the scale of the opportunity for crypto: a
technology that could transform not just money, but the financial system and the internet broadly.