Cargo Cult Behavior within the Crypto Sphere: How Mimicry Succeeds Not in Web3
Everyone wants to build the next Ethereum, but all they do is replicate things that they don’t really understand.
While the crypto world is filled with innovation, it’s also filled with imitation. Projects copy protocols, duplicate tokenomics, and slap new branding on them hoping to go viral. Beneath this veneer is a cyclical process that resonates with the cargo cult mind—a phenomenon in WWII Pacific Island culture that still persists in crypto today.
Table of Contents
- What Is Cargo Cult Thinking?
- How It Shows Up in Crypto
- Examples of Copycat Projects
- Why This Behavior Fails
- How to Spot and Avoid It
- FAQ: Cargo Cult Behavior in Web3
- Final Thoughts
What Is Cargo Cult Thinking?
The “cargo cult” terminology derives from post-WWII Pacific Islanders, who saw soldiers constructing airstrips and being treated to bizarre cargo drops from aircraft. After the soldiers left, individuals built fake runways, control towers, and coconut headsets in an effort to conjure planes—and hence cargo—back. They imitated the surface manifestations without being aware of their actual purpose or mechanics.
How It Shows Up in Crypto
Within the crypto world, cargo cult behavior is manifested as superficial copying. The moment a new token becomes popular, there are dozens of clones and forks overnight. Successful NFT collections lead to OpenSea deluges of pixel-art copies.
DeFi solutions and Layer-2 platforms also copy mechanisms they do not understand—scalability “just like Arbitrum” or some other feature—without understanding the mechanisms behind. Such projects either burst or fail the moment hype subsides or tokenomics turn unsustainable.
Examples of Copycat Projects
- SafeMoon imitations: There were hundreds of tokens that replicated SafeMoon’s deflationary tokenomics without working models—most of which vanished within weeks.
- Terra stablecoin clones: After the UST collapse, various teams attempted to replicate similar algorithmic stablecoins but failed.
- BAYC fakes: Ever since 2021, many animal-themed NFT collections tried to replicate Bored Ape Yacht Club’s success but lacked the branding, community, or cultural timing which made BAYC a phenomenon.
In each case, superficial imitation replaced understanding of deeper factors—community engagement, incentive structures, protocol resilience.
Why This Behavior Fails
Crypto rewards originality, not imitation. Clones might get momentary fame, but they collapse when market demand shifts elsewhere. Copying yield farms or protocols without understanding of liquidity incentives—like building a bamboo control tower—will not attract capital or sustain users.
Over time, users ask: What’s the moat? Why is it different? Lacking true differentiation, such initiatives are bound for failure.
How to Spot and Avoid It
- Senseless tokenomics: Steer clear of staking mechanisms or supply models that have been copy-pasted without a goal.
- No added code or functionality: Forking open-source protocols is fine, but if no value is added, it’s ballast.
- Empty buzzwords: Terms like “decentralized,” “governance,” or “modular” are meaningless without real infrastructure to back them up.
Projects claiming “We’re like X but on Y chain”: These are often just marketing narratives lacking unique value.
FAQ: Cargo Cult Behavior in Web3
What’s an example of cargo cult behavior in DeFi?
Many projects copied OlympusDAO’s bonding and staking mechanics without understanding their game theory or community aspects. These forks failed because they lacked the social layer that made the original successful—at least temporarily.
Why do copycat projects attract attention?
Momentum-chasing investors buy during bull markets. Copycats replicate branding and mechanics hoping to get quick liquidity before the hype fades and the substance of the project is revealed.
How do investors avoid cargo cult projects?
Peer through hype. Read the whitepaper, tokenomics, dev credentials, and real issue being solved. If it’s just a clone on another chain, chances are it’s hollow.
Is copying always bad?
Not necessarily. Iteration is innovation. Blind copying—copying without understanding—adds vulnerability. The best builders build, they don’t just copy aimlessly.
Final Thoughts
Crypto cargo cult behavior isn’t lazy—it’s risky. It generates noise, is wasteful with resources, and misleads retail investors. The silent risk is that it overwhelms the system with projects which appear to be alive but don’t have meat.
Web3 is new, and there is a lot of room for genuine innovation, inspiration, and decent copying—provided it is driven by understanding, rather than mindless copying. Creators who shun the cargo cult mentality are the ones truly propelling the space forward.
➔ Post created by Robert AI Team
