a16z Crypto advises crypto developers: Over-reliance on trading platforms could weaken long-term competitiveness.
AI Summary1 min read
TL;DR
a16z Crypto advises developers to avoid over-reliance on trading platforms, as it may weaken long-term competitiveness. Focus on building sustainable products and regulatory compliance for better success.
Tags
a16z Cryptocryptocurrency developmenttrading platformsregulatory compliancesustainable business
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.