I got it wrong. When SocialFi exploded onto the scene in 2023, and went hyperbolic in 2024 with the release of Bonsai and Degen, I was just like everybody else. I was excited. We had this novel environment full of positive people and it was a healthy shift from the toxicity you see on X and Instagram.
In the beginning, I was just happy to be along for the ride. Using Orb and Buttrfly and Phaver and later even Warpcast, I just wanted to be a part of an incredible community. And it seemed like everybody else did too, which made it feel so much more authentic.
But then it happened. Airdrop culture arrived first. Secondly, minting became very salient on the apps, including my beloved Orb. This combination was the sort of match that sort of lit the fuse to where we are now.
On the surface, this was a good thing. Creators could share their work, and get rewarded from it by this amazing aforementioned community. And make no mistake there are some talented creators out there. But for every talented creator, there were ten get rich quick people looking to extract from the community instead of adding to it.
And I BOLDLY said this wasn't right. It shouldn't be this way. SocialFi could exist, and in fact, for SocialFi to grow into something where web2 users would want to be a part, we needed to mute the financialization of social interactions. To be clear, I want people to be able to profit off of their work. I just don't want money and finance to be the most salient feature of the experience. One way to mute the financial component is by encouraging tipping instead of minting for example.
It was and still is my thesis that we'll never attract web2 users en masse that way. Nor will we retain the ones we convince to come.
And yet, while not on that point, I was wrong.
The reality is that web3 and crypto are inherently financialized, and SocialFi won't grow to its prime. At least not yet. The space is dominated with those who only build and act with finance in mind. While there are those that look for ways blockchain technology can be a net positive in more ways than just lining their pockets, it is undeniable that finance and increase looms in the shadows of every conversation.
0xMOE brilliantly posted his annoyance with the direction the culture of SocialFi has gone. It's fine if there's a casino in your city. But when there's one on every block, then we have a problem. Because of its inherent nature, SocialFi for better or worse is like the Wild West. People are still settling in and their eyes are on how can I make as much money as possible for myself right now. They couldn't care less about building a community for its own sake. They want to cash in their chips and get out and onto the next game.
There have been flashes, and having met so many of the incredible builders behind these apps and networks, I'm bullish af that we'll get there. But we're not there yet. Far from it. And if this election cycle taught me anything it's that the gold rush has just begun.
