Dom Kwok to XRP Army: Why Are Prices Down Despite So Much Bullish News

Crypto prices can fall even when the industry announces new partnerships and makes progress in blockchain development. EasyA co-founder Dom Kwok explains that this comes down to the gap between what investors expect crypto to achieve in the future and what the technology can actually deliver in the present.

In a post on X, Kwok said the market is not pricing cryptocurrencies based solely on their present utility. Instead, investors are speculating on what blockchain technology could accomplish in the future. He believes this explains why crypto prices can continue to fall even when the industry makes positive progress.

To explain his point, Kwok compared today’s crypto market to the dot-com boom of the late 1990s. At the time, investors rushed to put money into internet-based businesses, even though many had yet to prove that their business models could generate consistent profits.

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Kwok Explains the Dot-Com Bubble

Kwok pointed to the dot-com crash as an example of how speculation can drive asset prices ahead of a technology’s actual adoption. During the late 1990s, many companies received high valuations simply because they planned to build their businesses around the internet. However, several had not yet shown that they could generate enough revenue to support those valuations.

When market sentiment changed, several major stocks suffered steep losses. Kwok pointed to Amazon, which fell more than 90%, and Nvidia, which declined approximately 85% during the subsequent downturn.

However, the internet continued to develop despite the collapse in stock prices. At present, the internet is used for almost everything, from shopping and banking to communication and entertainment.

He further explained that the dot-com crash did not mean the internet had failed. Rather, the market eventually moved past the hype, and companies that offered useful products and services found ways to build successful businesses.

He pointed to Amazon’s eventual rise to a trillion-dollar valuation as an example. The company turned internet technology into services that millions of people now rely on in their daily lives.

He also connected this development to EasyA’s work helping developers build applications on blockchain networks.

Crypto Still Depends on Future Expectations

Kwok believes crypto is going through a phase similar to the dot-com boom. Investors see the potential of decentralized networks, but blockchain technology has yet to reach the level of everyday use he expects.

This could explain why good news does not always lead to higher crypto prices. Investors may have already factored future developments into their expectations, while changes in market sentiment and speculation can still cause prices to swing sharply.

Kwok believes things will change when people start using blockchain technology in their daily lives without even thinking about the technology behind it.

He also referred to the S-curve concept from an earlier post, which explains how adoption can grow as a technology moves beyond early users and reaches more people. Kwok believes crypto’s long-term success will depend on reaching this stage.

What This Means for XRP Holders

Kwok’s comments give XRP holders another way to look at crypto prices and industry developments. Positive news can show that the technology is making progress, but that does not always mean more people will buy or use a cryptocurrency.

He also made it clear that not every crypto project will achieve widespread adoption. To succeed in the long run, projects need to attract users and offer real-world benefits.

Kwok believes blockchain could eventually play a major role in the global financial system. For the XRP Army, his message is that crypto’s long-term value will depend on more than speculation. It will also depend on whether people and businesses start using blockchain technology in their everyday financial activities.

Until that happens, crypto prices could remain volatile as investors continue to weigh the technology’s potential against its current level of adoption.