Crypto evangelists keep faith when prices fall

In June, San Francisco organized the largest web3 event that the city had ever seen. "Follow the smartest dreamers and creators of the world for a whole day who concentrate on Web3, Dapps, protocols and the future of the Internet," says the website. "Change is in the air."

For over six months, the idea of a third iteration of the Internet has been keeping the US technology sector under control. Although it is still theoretical, web3 was celebrated as proof that cryptocurrencies can be used in the real world. Even in the cold of a crypto winter, the believers keep strong.

Web3 evangelists still believe that the future of the Internet is determined by users. Instead of deciding on how we interact, online life is decentralized, which means that users can connect freely. Blockchain technology and cryptocurrencies will enable us to safely spend and send our money online without going through banks and other financial institutions.

The web3 conference called Graph Day in San Francisco was an opportunity to see how this dream progressed. It took place in the Palace of Fine Arts, a huge, Roman-looking rotunda in the noble Marina district, and gathered impressive supporters. Over $ 400,000 could be won in a hackathon. The sponsors included the digital-asset platform Coinbase.

The problem is that Graph Day was invented before the worst crypt of cryptocurrency. Towards the end of last year, Bitcoin's price, the world's largest cryptocurrency, reached a new high of almost $ 50,000. Hollywood actor Matt Damon was one of the celebrities who promoted tokens and crypto exchanges. His television advertising, which was shown during the Super Bowl, encouraged investors to think about crypto because "happiness favors brave". Gwyneth Paltrow has teamed up with Cash App to give away Bitcoin worth $ 500,000, and told the magazine Elle that she wanted to help bring more women into the world of crypto investments.

However,

until June had the combination of rising interest rates, fear of recession and constant frauds burst the crypto bubble. Bitcoin's price had almost halved and still fell. Dogecoin, a cryptocurrency that was created as a joke and made popular by Tesla boss Elon Musk, had fallen from $ 0.07 from $ 0.521 in early 2021.

But do not believe that a spectacular crash could shake confidence in the technology industry. Regardless of the fact that the prices collapsed, the mood at the Graph Day was still optimistic. At the subsequent party, the drinks flowed and there was talk about non -funny tokens. Instead of exchanging business cards, a party-owner offered his phone with a QR code that was linked to his Twitter account, completely with an NFT profile picture.

cautious voices were rare. "Maybe", a party -owner pondered, "this will be the last event of this kind. But I seriously doubt it."

It is easier to dismiss a price fall if you insist that the goal is not personal wealth. Web3 and crypto conferences are happy to promote the idea that crypto is a power of good. Some participants were recently at Crypto Bahamas and Crypto Miami - they gathered in tropical places with personalities such as Tony Blair and Bill Clinton to congratulate themselves to improve the future.

Every mention of the volatile price of digital brands is considered faux pas. Crypto may have created for some wealth and left many others with severe losses. But the web3 conference in San Francisco focused on how blockchain technology could make the world a better place. To get upset about fluctuating prices is something for the weak heads on Wall Street, which are only interested in fast money and have no idea about the technology behind it.

The comparison of profits or the assumption that crypto could be pure speculation is taboo. This also applies to every mention of criminal activities in which crypto is used, or the hacks that some investors have brought into the red figures. At the moment this "Never Say Die" posture is illustrated by Sam Bankman-Fried, the 30-year-old billionaire who founded the FTX crypto exchange. Known to defend crypto and to carry shorts and T-shirts with crooked hair to elegant events, he has stepped in to provide loans or buy struck crypto companies such as Blockfi. It is reported that he now has the Trading app Robinhood in mind.

For believers, there will be other ways in the coming weeks to benefit from it. The crypto crash has stopped since the graph day. Ethereum, the second largest cryptocurrency, has dropped by 73 percent compared to its maximum. Coinbase's share price, which only went to the stock exchange last year, fell by 77 percent this year. When I asked an event visitor how he thought about the dramatic decline in crypto prices and whether this could dampen future conferences like this, he said that he was only looking forward to buying more.

elaine.more@ft.com