Jess Walden, managing partner at Variant Fund, warned about the potential disappearance of cypherpunk values in the next 10 years, linking this trend to the institutionalization of the cryptocurrency market. According to Walden, the entry of large institutional players forces developers to adapt blockchain protocols to meet regulatory requirements, increase transaction speeds, and improve profitability. This process gradually pushes out the original ideals, such as resistance to censorship, open-source software, and permissionless systems.

Walden noted that values, which were once at the core of blockchain pioneers and cypherpunks’ ideology, are starting to give way to other incentives—performance, economic efficiency, and profitability. This shift is driven by the need to adapt to the requirements of regulators and the expectations of large corporate players who are becoming more active in the cryptocurrency market.

Institutionalization: Threat or New Opportunity?

Walden emphasized that despite the potential threat to cypherpunk values, this doesn’t necessarily mean the end of the entire cryptocurrency philosophy. On the contrary, he sees it as “the beginning of real opportunities.” Institutional investments and blockchain technology scaling could lead to the creation of a mature and efficient crypto industry integrated into the global economy. This could help blockchain technologies move beyond experiments and utopian ideals, offering solutions capable of radically transforming traditional financial systems.

The Future of the Crypto Industry

The shift towards institutionalization and commercialization of the market doesn’t have to mean a complete abandonment of decentralization and freedom ideals. Walden suggests that the preservation of these values will depend on developers’ and the community’s ability to strike a balance between regulatory requirements and decentralization principles. Integrating blockchain into traditional finance could open new opportunities for widespread adoption of the technology, creating conditions for sustainable growth and innovation.