Consumer Crypto
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I think people are overestimating the bullish narrative around social trading after Robinhood’s announcement. In reality, the decision to build this was probably made back when a few Solana social trading apps were booming. But we should look at what’s happening with the existing apps now, where social trading is the core feature – and it hasn’t gone anywhere. They haven’t onboarded new users and aren’t growing at all. Companies that are shipping social trading apps/features nowadays – despite the market only going down – likely do so either because they’re too big to stop midway (and have enough money to run such experiments) or because something is off with their management. On the picture below: the number of daily traders from one of the most popular social trading apps half a year ago Vector(.)fun https://x.com/RobinhoodApp/status/1965589746937446623
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In crypto, there's been a persistent overemphasis on financial capital (tokens, yields, and direct monetization) often at the expense of social capital: influence, community trust, and cultural relevance. But history shows that social capital is the true catalyst for sustainable value. Platforms like YouTube, SoundCloud, and TikTok didn’t scale by paying creators upfront, they built tools for reach, recognition, and status. Once those networks were in place, monetization followed. Crypto often tries to invert that sequence: lead with money, and hope community and distribution show up after. But distribution is not a given, it’s earned through cultural resonance, consistency, and network effects that social capital greatly accelerates. This tension is especially visible in crypto creative circles. There’s a thin line between empowering creators through revenue-sharing, and assuming creators are owed payment regardless of market demand. The popular social refrainā€”ā€œI make nothing on Spotify, we deserve betterā€ā€”often reflects a moral claim that ignores the market signal. Spotify, while flawed, reflects real listener behavior. If no one’s paying attention, the issue may not be payouts, it may be product-market fit, or just the brutal mechanics of attention economies. Crypto tooling can’t override that. As Stripe’s Patrick McKenzie put it: ā€œThe market doesn’t care how hard you worked.ā€ The most durable consumer platforms tend to start with distribution and cultural affinity, not direct monetization. Farcaster is growing not by out-paying competitors, but by building social value through community support, exclusivity, and creator identity. Bitcoin and Ethereum didn’t gain traction because of token incentives alone, they became movements before they became markets. Financial capital is a lagging indicator of belief. Social capital often comes first, and when invested wisely, it converts.
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