Why does cryptocurrency exist? Wintermute: If only institutions and regulations remain, then we've already lost.

Wintermute CEO Presents “Golden Path,” Advocating that the core of crypto is about building parallel sovereignty systems, not catering to mainstream or price worship.

Market maker Wintermute CEO Evgeny Gaevoy recently published a lengthy article titled “Golden Path,” reflecting on the industry’s positioning and future from philosophical and developmental perspectives. He points out that while the current crypto market sees institutional adoption and technological implementation, the industry is facing a loss of its soul. The true key isn’t price, but a fundamental question: Why do we exist? Gaevoy believes that the core value of crypto isn’t about improving financial efficiency but about creating a sovereignty system that runs parallel to, or even outside of, the existing system.

The Golden Path: The Human Survival Logic Against Centralization

Gaevoy uses the metaphor of the “Golden Path” from the science fiction novel Dune: humanity’s long-term survival depends on decentralization and diversity, not concentration and stability. Throughout history, civilizations have gone through cycles of chaos, self-organization, empire-building, and collapse. Whether nations or corporations, the larger and more centralized they are, the more devastating their collapse. Therefore, he argues that when systems enter phases of integration and centralization, the real response should be to embrace diversity and resist imperial centralization, even if stability and prosperity seem tempting.

In his view, the world is currently developing into three “Leviathan” systems:

• Corporate-dominated anarcho-capitalism
• Fully controlled nationalist states
• Fascist alliances between government and corporations

The only true force opposing this trend of centralization is cryptocurrency. Gaevoy summarizes three possible future scenarios for the industry:

Traditional Finance absorbs crypto (most likely)

Mass adoption of stablecoins, KYC chains and enterprise chains, regulated “decentralized” exchanges, Bitcoin becoming ETF or government assets, CBDCs providing comprehensive financial surveillance. He bluntly states: the technology has succeeded, but the ideology has lost.

Governments relinquish control (least likely)

Fully permissionless chains become mainstream, free from KYC/AML restrictions, with token market caps reaching trillions of dollars. Gaevoy considers this merely an idealistic fantasy; governments and regulators are unlikely to voluntarily relinquish sovereignty.

Parallel systems coexist (the only worthwhile pursuit)

A world running alongside the existing financial system, where users can freely choose to enter or exit either system. Crypto systems are designed to be isolated from governments, forming a “Network State” or digital tribes. He believes this is the only truly victorious scenario.

Don’t chase after people who don’t need crypto

Gaevoy points out that the crypto industry has learned the wrong lessons over the past few years. Facing regulatory pressure, the industry has tried to cooperate with the system—improving user experience, targeting mass markets, over-relying on centralized infrastructure. But the real goal should be to build a system that cannot be controlled.

This includes avoiding dependence on fiat on-ramps, avoiding App Stores, DNS, centralized order books, reducing reliance on centralized stablecoins (which can be frozen), prioritizing permissionless protocols and true DAOs, building replaceable infrastructure (cloud, LLM, social), strengthening privacy tools, re-exploring algorithmic stablecoins, and fostering real economic activity within the crypto ecosystem.

He also presents a counterintuitive view: inconvenience may be the true cost of sovereignty. Crypto should not cater to the 50% of the world that doesn’t need it but should serve the 50% of sovereign individuals who truly do.

From Mainstream Adoption to an Escape Route

Gaevoy believes that in the coming years, global governments and regulators will continue to expand their power, making Leviathans even stronger. Therefore, the true mission of crypto isn’t to pursue mainstream adoption and replace the existing system, but to build an exit route.

These exit products should have:

• The ability to operate even if crypto falls out of favor
• Independence from external systems
• The capacity for individuals to survive and transact without permission

The only worthwhile goal is to create a way out of the predicament. Even if crypto no longer remains popular, it can withstand external tests. More importantly, it will give meaning to everything. Most people will choose to coexist with the system, but a few will be responsible for building the exit. This may be the only way to rediscover the true meaning of crypto.

• This article is reprinted with permission from: Chain News
• Original title: Wintermute CEO Talks About the Future of Crypto Industry: If Only Institutions and Regulations Remain, We Have Already Lost
• Original author: Neo