Disappointment isn't ever a bad thing. It can exist a spur, motivating one to work harder to see expectations and goals. It is in this spirit that Cointelegraph informally surveyed members of the crypto community about this past year's unfulfilled industry promises. Here are some of 2022'southward biggest disappointments:

Adoption missing?

Where are the giant blockchain or crypto projects — enterprises that seize the imagination, rivet the public's attention, and quiet the crypto skeptics? As Nouriel Roubini noted last year, "[Blockchain] still has only one application: cryptocurrencies." Many in the industry are even so waiting. Equally Lanre Sarumi, CEO of crypto derivative exchange Level Trading Field, told Cointelegraph:

"The lack of a groundbreaking project that would have opened the optics of skeptics is most disappointing. Libra came the closest with a lot of promise, but zero else [in 2022] really popped."

Non much comfort tin exist fatigued, either, from Forbes' list of the peak 50 financial engineering firms. Only five crypto and blockchain firms made the 2022 "Fintech fifty" list: Coinbase, Ripple, Bitfury, Gemini and Circumvolve — compared to 11 in 2022.

The industry is still looking for a flagship application. "People need a simple use example that makes the benefits of blockchain applied science clear and straightforward, like email," said Chris Hart of Civic Technologies in a recent report published by the Zage marketing platform.

Institutions are still scarce

Killer DApps, scalability and institutional adoption are oftentimes cited every bit three missing ingredients required for blockchain to reach the tipping point in public acceptance. With regard to institutions, some progress was made in 2022 with the entry of Fidelity and ICE's Bakkt, among others. But is it plenty?

"Failure to attract institutional investors was certainly a disappointment," Sarumi told Cointelegraph. "The Bakkt futures contract was specifically designed to attract both institutional and retail and information technology got a lukewarm response. Ditto for the recently launched Eris [credit and involvement charge per unit] futures."

Consumer adoption lags

Many experts concord that usability must improve earlier the wider public adopts crypto and blockchain networks. In Zage's survey of 102 blockchain technology project leaders, 41% of respondents agreed that a seamless user experience was central to mass adoption. The blockchain DApp experience needs to be more like the web and mobile phone user experience. "Correct now to use most blockchain and cryptocurrency products, yous have to essentially be an expert," said Kory Hoang, co-founder and CEO of the stablecoin platform, Stably.

Stephen Pair, CEO of Bitpay, would have liked to see more rapid progress in the consumer adoption of cryptocurrencies in 2022, "and more adoption considering information technology got easier to utilise," he told Cointelegraph, standing:

"Similar not having to deal with Bitcoin addresses directly. If we could but solve some uncomplicated problems similar that, ideally in an industry standard way, that could make a departure."

Pair was also disappointed in the mix of products being purchased with crypto at present: "I would like to see a healthier mix of everyday consumer items and services being sold, such as consumers paying their prison cell phone bill, or DirecTV bills [with cryptocurrency]."

Pair as well believes that people tend to spend BTC when prices are high, he added, often purchasing expensive items, similar Lamborghinis. Cipher wrong with that — but he'd like to see more everyday items too.

Compliance shortfalls

Regulatory compliance remains an reconsideration in parts of the crypto/blockchain earth.

In late November, security firm CipherTrace reported that roughly 65% of the meridian 120 crypto exchanges lacked strong Know Your Client policies.

Moreover, compliance at 24% of the exchanges was "weak," meaning those exchanges allowed CipherTrace researchers to withdraw at least 0.25 BTC daily with virtually no questions asked — the researchers didn't even have to show ID verification.

KYC policy strength of crypto exchanges

PwC Global Crypto Leader Hong Kong Henri Arslanian told Cointelegraph that, "Anyone who is launching a crypto exchange in 2022 with no regards to KYC or AML probably does not have the future of the crypto ecosystem at heart." Regulatory noncompliance, especially around Anti-Coin Laundering, remains a barrier on the route to mass acceptance of cryptocurrencies, continued Arslanian:

"A large AML or sanctions violation scandal today could erase years of hard piece of work from the community which tried to bear witness that crypto is much more than than just the Silk Road or the dark web."

The industry should non only comply with regulations, it should welcome them — at least if it wants to grow, as Solitary Fønss Schrøder, CEO of the Concordium blockchain solution, told Cointelegraph: "I am certain that big companies volition non go across the proof of concept stage on a chain that doesn't enable the regime to regulate." Firms are going to demand the validation that regulation grants.

Education for all

Misperceptions most cryptocurrencies and blockchain technology persist. When Nordea Bank banned its 31,500 employees from trading in Bitcoin or other cryptocurrencies — even in their own time — it said information technology was worried that its employees might "unwillingly get involved in activities that are unethical or outright illegal," every bit the banking company told Cointelegraph in December.

Related: No More than Bitcoin for Nordea Bank Employees, Experts Question the Motive

"Most people withal associate blockchain with volatile cryptocurrencies and IPO scams," Schrøder noted, adding that, "In the blockchain space we accept a shared responsibility to brainwash business leaders, not only about what blockchain is, only more importantly what information technology tin can do for businesses and institutions."

Forth these lines, in belatedly Dec 2022, Concordium appear the formation of the Blockchain Academy Network, a collaboration between Concordium and academia to foster the apply of blockchain within businesses.

The manufacture needs to do a better job reaching out to the non-crypto public, including through the conferences, added Nick Saponaro, co-founder and main data officeholder of The Divi Projection, in an email to Cointelegraph:

"I'm disappointed educators and conferences are failing to attract newcomers, instead opting for the creation of an echo chamber. High prices and luxurious venues are keeping out the people who will do good most from this technology."

Crypto crime persists

CipherTrace reported a significant reduction in cryptocurrency crime in the third quarter of 2022, good news "later ii years of large, high-profile exchange hacks and exit scams." That said, "2019 even so experienced a massive spate of crypto crimes — more than $4.4 billion to engagement," and a big spring from 2022.

Thefts, hacks and scams by year

The security business firm detailed several large exit scams and misappropriation of funds in 2022: Plus Token at $2.9 billion, QuadrigaCX at $192 one thousand thousand, and the Bitfinex misappropriation of $851 million. PlusToken, a Chinese Ponzi scheme, particularly had the potential to rile crypto markets, Chainalysis reported on Dec. sixteen, which stated:

"We believe that the criminals behind the PlusToken Ponzi scheme could be driving down the price of Bitcoin when they liquidate their stolen funds via OTC brokers."

In fact, presently subsequently the Chainalysis study, Ether dropped 10% inside minutes — which some attributed to a PlusToken dump. The ETH toll then went on to face even more selling pressure on Dec. 19 as several large transactions that were associated with PlusToken disturbed traders, every bit reported past Cointelegraph. The industry manifestly needs more self-policing. "Every bit a community, we need to practice a better job in calling out the bad apples," commented Arslanian.

Integrity matters

Co-ordinate to Saponaro, the virtually disappointing affair for him in 2022 was the lack of integrity, "Get out scams, Ponzi schemes, pump and dumps, and extortionist tactics are nevertheless abundant throughout the infinite."

The continued lack of integrity — or the perception of such — sullies the reputation of the crypto/blockchain community, said PwC's Arslanian. "We are e'er every bit potent as the weakest member of our community."

Cutting corners is a bad business strategy, also, according to Felix Hartmann, managing partner at Hartmann Capital, who said: "Whoever is willing to play the long game, both in terms of creating a customs-first, integrity-driven business/network model, as well every bit putting technology and usability beginning, will see success."

A lost year?

Instead of citing a unmarried disappointment in 2022, or fifty-fifty a serial of unfulfilled promises, Vinny Lingham, co-founder and CEO of Civic Inc., has opted to look at the year equally a whole. As he told Cointelegraph:

"When the crypto community looks back at 2022, it volition be remembered as the lost year. This is not unexpected because 2022 was such a milestone yr. I similar to say that the bigger the political party, the bigger the hangover. Nosotros're nonetheless dealing with the hangover."

Sarumi also saw a twelvemonth marked by unfulfilled potential:

"After the crypto wintertime, the full general thinking was that the departure of the hire seekers and easy coin worshippers would allow the true believers to roll upwards their sleeves and fulfill the true potential of blockchain/crypto. Well, the truthful believers probably have long artillery and/or long sleeves because they are still rolling up."

Information technology's possible, still, that ane could exist underestimating the amount of progress made this year. Information technology'due south like an iceberg, as one industry executive told Cointelegraph; the greatest book is below the waterline, unseen. But once these blockchain network projects achieve a certain scale, those watching will brainstorm to see the ability that has been created — "in the next three to v years it will be huge."

"Maybe information technology needs more time, but the audio of crickets in the realm of groundbreaking projects to me was the most disappointing," concluded Sarumi. "Hopefully a few emerge in 2022."