a16z Crypto advises crypto developers: Over-reliance on trading platforms could weaken long-term competitiveness.

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According to Mars Finance, a16z Crypto officially released advice from two of its executives to cryptocurrency developers. Specifically: 1. Arianna Simpson, General Partner at a16z Crypto, stated that currently, aside from stablecoins and core infrastructure, most well-performing crypto companies are transitioning to trading platforms. This homogeneous competition will weaken the market attention of most companies, with only a few winners emerging. Founders who rush into trading businesses may miss the opportunity to build more defensive and sustainable businesses. Developers who focus on the product itself rather than simple trading functionality are likely to be the bigger winners. 2. Miles Jennings, from a16z Crypto's policy team and General Counsel, stated that developers should focus on regulatory compliance. The Trump administration is closer than ever to passing a regulatory bill for the crypto market structure. If passed, this legislation will incentivize transparency and establish clear standards, creating a clear path for fundraising, token issuance, and decentralization.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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