a16z Crypto Advises Crypto Developers: Over-Shifting to Trading Platforms May Weaken Long-Term Competitiveness

Odaily News a16z Crypto officially released advice from two of its executives to cryptocurrency developers, including:

1. Arianna Simpson, General Partner at a16z Crypto, stated that currently, apart from stablecoins and core infrastructure, most well-performing crypto companies are shifting towards trading platforms. This homogenized competition will dilute market attention for most businesses, with only a few winners emerging. Founders who pivot to trading businesses too quickly might miss the opportunity to build more defensible and enduring ventures. Developers who focus on the product itself rather than mere trading functionality may ultimately become bigger winners.

2. Miles Jennings, Head of Policy and General Counsel at a16z Crypto, said developers should pay attention to regulatory compliance. The Trump administration is now closer than ever to passing a crypto market structure regulatory bill. If enacted, this legislation would incentivize transparency, establish clear standards, and create a clear path for fundraising, token issuance, and decentralization.