Was Cryptocurrency created solely to demoralize the adopters, builders with pump-n-dumps by whales,

It's why Etherium was made. As you can make as many shit coins as you want on the Etherium blockchain. It's also why they went proof of stake. As they see themself as above proof of work, and wish to be paid for simply having money.

Contracts on markets also inflate volume leading to the devaluation of coins such as Bitcoin. These are the tools they use to detract and devalue projects they can not control.