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Sean C

@cove

629 Following
1700 Followers
Sean C pfp
Sean C
@cove
If it was easy for everyone to understand breakthrough ideas, they wouldn’t be innovative.
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Sean C pfp
Sean C
@cove
1/15 I want to take a moment to explain why crypto will crash again. It's inevitable. Even though I believe crypto represents a new asset class - the foundation of the internet economy! - it will still crash. Here's why 🧵
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Sean C
@cove
Most people underestimate how complex simple systems need to be to remain simple at scale.
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Sean C
@cove
Mechanism design often fails because it assumes rational actors. Real systems need to be robust against both strategic and irrational behavior.
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Sean C
@cove
Game theory only works until participants start optimizing for different outcomes than you expected.
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Sean C pfp
Sean C
@cove
Integrations when building crypto apps simplify the experience for the user, but complicate the risk profile. Mindful building.
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Sean C
@cove
Strength in times of stress.
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Sean C
@cove
Market efficiency looks different in global permissionless systems. The absence of gatekeepers changes fundamental assumptions about how far price discovery can go.
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Sean C
@cove
The best financial infrastructure disappears into the background, but the best performing tokens attract the most memetic attention. Not so easy to align the incentives...
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Sean C
@cove
Traditional finance uses complexity to extract value from people who don't know any better. In DeFi, complexity unintentionally creates attack surfaces. Simple systems survive.
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Sean C pfp
Sean C
@cove
Most teams optimize their token economics for bull markets but bear markets reveal which systems were actually well-designed. A lot of battle tested systems have come out of the last few years, but the shiny new toys always get the attention...
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Sean C
@cove
Institutional flows can be pretty predictable.. Retail is noisy.
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Sean C pfp
Sean C
@cove
Users tell you their problems through behavior, not feedback forms. Struggling to get users is the feedback.
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Sean C
@cove
Moving slow early can let you move faster later.
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Sean C
@cove
Quick money attracts mercenaries...
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Sean C pfp
Sean C
@cove
Every layer of trustlessness adds friction - not always comfortable to confront.
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Sean C pfp
Sean C
@cove
Incentive alignment doesn't have to rocket science. Most protocols just overcomplicate what should be simple behavioral economics. That's usually where the exploits begin.
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Sean C
@cove
In systems building, sometimes the more precisely you optimize for one parameter, the more uncertainty you create elsewhere in the system.
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Sean C
@cove
Competitors can copy your features but won't know the countless iterations that led to them. You should still have an advantage from the journey.
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Sean C
@cove
Market volatility helps to reveal system dependencies and structural weakness. Pullbacks are healthy for the builders as much as for market structure.
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