a16z Crypto advises crypto developers: Overly shifting towards trading platforms may weaken long-term competitiveness

Odaily Planet Daily reports that a16z Crypto has officially released advice from two of its senior executives to cryptocurrency developers, including:

1. Arianna Simpson, General Partner at a16z Crypto, stated that currently, aside from stablecoins and core infrastructure, most well-performing crypto companies are transitioning into trading platforms. This homogeneous competition may weaken the market attention of most enterprises, with only a few winners emerging. Founders who shift too quickly into trading businesses might miss opportunities to build more defensive and sustainable businesses. Developers who focus on the product itself rather than solely on trading functions may ultimately become bigger winners.

2. Miles Jennings, Policy Team Lead and General Counsel at a16z Crypto, said that developers should pay attention to regulatory compliance. Currently, the Trump administration is closer than ever to passing legislation regulating the crypto market structure. If enacted, this legislation will promote transparency and establish clear standards, creating a clear path for fundraising, token issuance, and decentralization.