a16z Crypto advises crypto developers: Excessive reliance on exchanges may weaken long-term competitiveness

According to Odaily, a16z Crypto has officially released advice from two of its 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 shifting towards becoming trading platforms. This kind of homogeneous competition will dilute market attention for most enterprises, with only a few winners emerging. Founders who pivot to trading businesses too quickly may miss the opportunity to build more defensible and sustainable businesses. Developers who focus on the product itself rather than simply on trading features may ultimately become bigger winners.

2. Miles Jennings, Head of Policy 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 the crypto market structure regulatory bill. If enacted, this legislation will incentivize transparency and establish clear standards, providing a clear path for fundraising, token issuance, and decentralization.