“Snake oil” refers to misleading marketing tactics or scams. According to Williams, a significant number of developers and companies in the industry make grand promises that have no practical or useful foundation. This prevalence of the “snake oil” syndrome poses a major challenge for the crypto market.
“It’s become increasingly common for people to invest heavily in snake oil and believe in attractive marketing narratives. This is the greatest hurdle the crypto market faces today,” Williams remarked.
Williams believes that a majority of existing blockchains are junk that hinders the growth and development of the Web3 ecosystem. He emphasizes that companies often sell products that are nowhere near the final stage of readiness. However, he also acknowledges the advantages of established networks like Bitcoin, Ethereum, and Solana, but points out that they too face challenges related to the blockchain trilemma.
The blockchain trilemma is a theorem that highlights the fundamental issue of scaling any distributed network. According to this theorem, a blockchain can possess only two out of the three primary characteristics: security, decentralization, and performance.
Williams argues that while some popular blockchains excel at processing transactions, they are unlikely to serve as the foundation for an entirely new and decentralized Internet.
Prior to Williams’ comments, an anonymous analyst known as ZachXBT discovered 12 memcoin projects on the Solana blockchain that were abandoned by their founders shortly after the initial asset sale.