By Peter Curk, CEO of ICONOMI
Not so long ago, competition in crypto was mostly an internal affair; Bitcoin versus Ethereum, Ethereum versus Solana. The narrative revolved around which would secure the greatest investor base, which was faster, cheaper, more scalable, or more secure. Not to mention the most “revolutionary.” While some of that one-upmanship still goes on, it no longer defines the market, because now, cryptocurrency platforms aren’t just competing with one another; they’re competing with stocks, bonds, ISAs, ETFs, robo-advisors, and wealth apps for long-term capital. And that is changing almost everything the crypto space has been known for.
From speculation to established portfolio
Crypto’s gradual move into the financial establishment has unlocked enormous opportunity. Institutional money, regulated products, and mainstream acceptance are bringing both credibility and scale. For the first time, crypto is no longer viewed solely as a speculative and risky, but as a legitimate component of a diversified portfolio. The problem for the industry, however, is that once crypto fully enters the authenticated investment ecosystem, it’s going to have to live up to the same standards – not just in terms of regulation, but security, accessibility, and service.
Investors are beginning to want more from crypto assets and providers. They want to know how a crypto investment can fit alongside equities, bonds, and cash. They’re comparing user experience, risk management, tax efficiency, transparency, and trust. And it’s in these areas that the crypto space is failing. So focused on being different to traditional finance, crypto companies have failed to implement the basic elements necessary to for them to be taken seriously by serious investors.
What has to change
Accessibility has always been what differentiated crypto. The fact that your had to know a little bit about the space, to understand the language and the technology is what gave crypto the air of otherness that made investors something of an elite. But it’s that lack of accessibility that is now at least partly responsible for preventing cryptocurrency from gaining the credibility and status that the industry seems to be seeking. While users were once happy to have a “crypto app” and a separate “investment app,” they now want them to be manageable in the same space – or, at the very least, to behave similarly. They want crypto to be clearer, more concise, less complex. They want to be able to track performance simply and to be able to understand their risk exposure at not much more than a glance. The failure of crypto platforms to deliver that is what is stopping wider adoption.
Crypto has historically celebrated complexity. It began as an alternative to the mainstream banking that had fallen into so much disrepute, and anything that could make crypto appear more sophisticated, more advanced, more “serious,” was celebrated. But now, that jargon-rich complexity is less impressive and more liability.
Simplicity has become the real differentiator
Innovation till matters; of course it does. But what crypto platforms are failing to grasp is that innovation that doesn’t translate into clarity, trust, or ease of use. And that’s what the new wave of crypto investors is crying out for. They don’t want to feel like they’re gambling; that’s why it’s taken them so long to even consider moving into crypto assets. They want to feel like they’re investing. And that’s what crypto platforms have to deliver.
This change is particularly important as the crypto investor demographic widens. Early crypto users were typically young, tech-native, and comfortable with risk. But we’re now seeing a new wave of older investors, professionals, and individuals who aren’t willing to lose their money through a lack of understanding. They’re keen to make use of the potential that crypto assets have to offer, but they don’t want to learn a new financial language or a new way of doing things. And it’s the companies that present crypto in a way that feels safe, comprehensible, and in line with how new investors already manage money that will succeed.
How crypto companies can appeal to new investors
Stability, governance, custody, reliability, and accessibility. These are the things that the new generation of crypto investors are looking for. Crypto companies can do this. The industry already has many of the tools needed to compete with traditional investing – it actually has more, with global access, and a market that genuinely never sleeps. But by continuing to focus on the hype, the novelty, and all of the things that the mature investor simply doesn’t care about, companies are failing to maximise the potential of the new, waiting market.
Usability is now so much more important than originality. A simple interface that helps users understand their exposure, track progress over time, and make informed decisions will outperform the most inventive DeFi features if those feature adds friction or confusion.
Crypto is on the verge of becoming respectable. And we all know that that wasn’t the original intention, but it’s what needs to happen for the industry to truly thrive. The problem is that many incumbents have yet to grasp the simple truth that crypto isn’t just competing with itself anymore. And if it’s going to secure a permanent place in investors’ portfolios, they’re going to have to deliver on a very different set of expectations.
