Emotion Commits, Logic Covers

Shaan Puri explains how emotional reactions drive criticism of crypto projects, with logical arguments serving as post-hoc justifications.

The Emotional Core of Crypto Criticism

• People's primary objection is emotional, not logical
• Main trigger: People getting rich without "earning it" traditionally
• Particularly sensitive when wealth is instantly liquid (vs locked up)
• Enhanced reaction when combined with early/insider advantages

Common "Logical" Cover-up Arguments

• Technical complaints:
  • Code not being open source
  • Inability to cash out
  • Privacy concerns about data scraping
  • Pre-buy advantages for insiders
  • Anonymous founders
  • Limited daily active users

The Tech World Wealth Context

• Traditional tech already faces backlash
  • High valuations for pre-revenue companies
  • $100M+ valuations for "little apps with no business model"
• But traditional tech has one saving grace:
  • Wealth is usually illiquid
  • Founders can't immediately show obvious displays of wealth

Crypto's Amplifying Factors

• Instant liquidity makes wealth visible immediately
• Early buyers can get rich quickly
• Ability to cash out immediately vs traditional startup equity
• Creates more visible wealth disparity
• Allows for immediate displays of wealth (mentioned "lambo and mansion")

Project Sustainability Pattern

• Projects follow a common cycle:
  • Initial big splash and hype
  • Period of decline or plateau
  • Potential comeback if concept is strong
• Crypto projects are "hard to kill" due to decentralized nature
• Good concepts can lay dormant and return stronger later