I think the moats around crypto businesses are actually much deeper than people think. After all these years, when people think of lending, they still think of Aave; for DEXs, it’s still Uni and Ray; in Asia, it’s USDT for stablecoins, while in the West and on-chain, it’s USDC; for CEXs outside the West, it’s Binance, while in the West, it’s Coinbase; for perp DEXs, it’s Hype. Even in launchpads—the business with the most challengers and the shallowest moat—people still use Pump to play memecoins.
All of these businesses have faced challenges from newcomers, many of them formidable competitors. Some were short-lived; others could only capture a tiny slice of the pie or carve out a niche on a new chain.
For most businesses in crypto: product strength defines user habits > user habits determine liquidity > liquidity, in turn, determines product competitiveness.
All of these businesses have faced challenges from newcomers, many of them formidable competitors. Some were short-lived; others could only capture a tiny slice of the pie or carve out a niche on a new chain.
For most businesses in crypto: product strength defines user habits > user habits determine liquidity > liquidity, in turn, determines product competitiveness.