Crypto's Rideshare Dream Dies Again: Teleport Shuts Down

Crypto's rideshare dreams have once again been dashed, with the shutdown of Teleport, a decentralized rideshare startup that promised lower prices for riders, higher earnings for drivers, and bountiful rewards for early adopters. The project, which aimed to challenge the stranglehold of Uber and Lyft, failed to gain social purchase and was unable to make the business work.

This is not the first time that a crypto-based rideshare project has attempted to disrupt the traditional rideshare market. Arcade City, La’Zooz, Chasyr, Ridecoin, and others have all tried to use blockchain-based incentives to break the dominance of established players. However, each of these projects has failed to gain traction and has ultimately fallen by the wayside.

The failure of these projects can be attributed to a number of factors. Firstly, the crypto rideshare concept depends on collective belief and a functional labor market. However, participants often struggle to trust one another, and the stability of incentives and the longevity of the system itself can be uncertain. Additionally, engaging in an actual ecosystem requires real work and participation, which can be a barrier for some.

The slow death of usefulness in the crypto space can also be seen in the shift away from substance and towards speculation. Bitcoin offered scarce digital money with transparent ownership, but subsequent projects have often prioritized hype over tangible value. ICOs and NFTs have further contributed to this trend, with mere ideas and hype replacing the need to deliver working products.

Memecoins have emerged as a response to this trend, embracing chaos as a form of economic rebellion. These assets do not pretend to have real-world use cases and are fully self-aware vehicles operating in a no-holds-barred race to the exit. However, attempts to sneak utility into memecoins have often flopped, as seen with McAfee's AI memecoin and the Venmo founder's JellyJelly.

The lack of sustainable methods of accountability in the crypto space has contributed to the failure of these projects. Real builders have become indistinguishable from grifters looking for a quick cash grab, and the optimism of belief has been replaced by an endless cycle of speculation. Anonymity without accountability breeds chaos, and until that balance is restored, utility will always be a losing bet.