In an interview with TheStreet Roundtable, the CEO and Founder of Blockdaemon shared advice for crypto founders: embrace governance. The value of professional oversight is often overlooked in an industry that, at its core, is anti-establishment.
His perspective is driven by interactions with major financial institutions like J.P. Morgan and Goldman Sachs, who have been hesitant to enter the space due to reasons including the lack of traditional structures in projects.
Building trust in a scandal-ridden industry
The crypto space is rife with scams, rugpulls, and other types of fraud. Earlier this year, a meme coin named $HAWK based on a viral clip collapsed within hours, resulting in significant financial loss. Besides the numerous memecoins that emerge daily, several high-profile failures of crypto businesses have tarnished the industry’s reputation. One example is FTX, which collapsed in 2022 and lacked a board, highlighting a persistent issue in the industry.
In April, Mantra’s OM token, an established and well-known token, saw a dramatic drop of over 90% in a single day. Mantra does not have a traditional board, relying instead on a governance token granting holders voting rights. "Young founders and people developing open-source systems often have an inherent suspicion of oversight—I totally understand that," he explained. "But you’re missing out on real entrepreneurial benefits without a professional board to hold you accountable and guide your thinking. It exposes you to dangerous behaviors."
Challenges to governance
Implementing proper governance in crypto poses challenges. The most evident risk is alienating crypto purists who view oversight as central control. Smaller projects might also struggle to afford professional boards, potentially widening the gap between well-funded ventures and community projects. The call to founders is clear: for mass acceptance, the industry needs to mature. Trust in crypto businesses can spur growth and innovation rather than impede it.
