The post Has Crypto Lost Its Original Purpose? Wintermute CEO Raises Alarm appeared first on Coinpedia Fintech News As crypto markets face renewed volatility, mostThe post Has Crypto Lost Its Original Purpose? Wintermute CEO Raises Alarm appeared first on Coinpedia Fintech News As crypto markets face renewed volatility, most

Has Crypto Lost Its Original Purpose? Wintermute CEO Raises Alarm

2026/02/21 14:26
3 min read
Wintermute CEO warns crypto losing cypherpunk vision

The post Has Crypto Lost Its Original Purpose? Wintermute CEO Raises Alarm appeared first on Coinpedia Fintech News

As crypto markets face renewed volatility, most industry leaders are emphasizing long-term optimism. Evgeny Gaevoy, founder and CEO of Wintermute, has taken a different approach. In a recent podcast appearance and social media thread, he argued that the crypto industry has drifted away from its original cypherpunk ideals and become overly focused on price appreciation.

Gaevoy believes the space is now dominated by a “number go up” mentality, where speculation and short-term gains overshadow the foundational vision that inspired Bitcoin and early blockchain developers.

From Cypherpunk Vision to Dollar Reinforcement

According to Gaevoy, Bitcoin was designed as a decentralized alternative to government-controlled money, rooted in libertarian principles and financial independence. However, he argues that today’s industry celebrates developments that contradict that mission.

He pointed to stablecoins as an example. While acknowledging their strong adoption and practical use cases, he described it as ironic that their success reinforces U.S. dollar dominance rather than offering a parallel financial system. Instead of challenging traditional monetary structures, parts of crypto are now strengthening them.

For Gaevoy, this represents a philosophical shift away from building an independent financial infrastructure toward integrating more closely with existing systems.

  • Also Read :
  •   SEC Now Allows Broker-Dealers to Count Stablecoins Toward Regulatory Capital
  •   ,

Limited Real-World Adoption

Gaevoy also questioned claims of meaningful blockchain adoption. Debates over whether networks like Ethereum or Solana are superior, he said, miss the broader issue that decentralized applications have not achieved significant real-world penetration.

Although Ethereum holds over $120 billion in total value locked, Gaevoy argued much of that capital is effectively “stuck,” circulating within crypto rather than driving economic activity in the broader financial system. Corporate pilot programs involving tokenized bonds or blockchain-based cash markets, he added, still represent only a tiny fraction of global traditional finance activity.

In his view, the gap between crypto’s ambitions and its tangible economic footprint remains wide.

Balancing Ideals and Reality

Despite his critique, Gaevoy leads one of the largest crypto trading firms, deeply embedded in market infrastructure. He said Wintermute is preparing for multiple scenarios, working across centralized and decentralized platforms rather than committing to one model.

Still, he warned that a full merger between crypto and traditional finance could dilute the industry’s original purpose. While many celebrate increasing Wall Street participation, Gaevoy believes this convergence risks erasing the independent ethos that defined early blockchain development.

He suggested that sentiment may eventually swing back toward more principled innovation once the market moves beyond speculative cycles and meme-driven trends.

Never Miss a Beat in the Crypto World!

Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.

bell icon Subscribe to News
Market Opportunity
Belong Logo
Belong Price(LONG)
$0.002699
$0.002699$0.002699
+7.31%
USD
Belong (LONG) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact [email protected] for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Strategy CEO to discuss Bitcoin with Morgan Stanley’s digital asset head next week

Strategy CEO to discuss Bitcoin with Morgan Stanley’s digital asset head next week

The post Strategy CEO to discuss Bitcoin with Morgan Stanley’s digital asset head next week appeared on BitcoinEthereumNews.com. Strategy CEO Phong Le will join
Share
BitcoinEthereumNews2026/02/21 14:48
Stablecoin Yield ‘Effectively Off The Table’: White House Narrows Rewards Debate In Latest Meeting

Stablecoin Yield ‘Effectively Off The Table’: White House Narrows Rewards Debate In Latest Meeting

The White House reportedly took the lead during the latest Crypto Council meeting, narrowing the stablecoin rewards dispute that has delayed progress in the long
Share
Bitcoinist2026/02/21 15:30
Aave DAO to Shut Down 50% of L2s While Doubling Down on GHO

Aave DAO to Shut Down 50% of L2s While Doubling Down on GHO

The post Aave DAO to Shut Down 50% of L2s While Doubling Down on GHO appeared on BitcoinEthereumNews.com. Aave DAO is gearing up for a significant overhaul by shutting down over 50% of underperforming L2 instances. It is also restructuring its governance framework and deploying over $100 million to boost GHO. This could be a pivotal moment that propels Aave back to the forefront of on-chain lending or sparks unprecedented controversy within the DeFi community. Sponsored Sponsored ACI Proposes Shutting Down 50% of L2s The “State of the Union” report by the Aave Chan Initiative (ACI) paints a candid picture. After a turbulent period in the DeFi market and internal challenges, Aave (AAVE) now leads in key metrics: TVL, revenue, market share, and borrowing volume. Aave’s annual revenue of $130 million surpasses the combined cash reserves of its competitors. Tokenomics improvements and the AAVE token buyback program have also contributed to the ecosystem’s growth. Aave global metrics. Source: Aave However, the ACI’s report also highlights several pain points. First, regarding the Layer-2 (L2) strategy. While Aave’s L2 strategy was once a key driver of success, it is no longer fit for purpose. Over half of Aave’s instances on L2s and alt-L1s are not economically viable. Based on year-to-date data, over 86.6% of Aave’s revenue comes from the mainnet, indicating that everything else is a side quest. On this basis, ACI proposes closing underperforming networks. The DAO should invest in key networks with significant differentiators. Second, ACI is pushing for a complete overhaul of the “friendly fork” framework, as most have been unimpressive regarding TVL and revenue. In some cases, attackers have exploited them to Aave’s detriment, as seen with Spark. Sponsored Sponsored “The friendly fork model had a good intention but bad execution where the DAO was too friendly towards these forks, allowing the DAO only little upside,” the report states. Third, the instance model, once a smart…
Share
BitcoinEthereumNews2025/09/18 02:28