25 posts tagged with "crypto"

The crypto card market has consolidated dramatically since 2022's crypto winter, leaving fewer but stronger players offering 1-4% sustainable rewards instead of the unsustainable 8%+ rates of the past. For US users, Gemini Credit Card delivers the strongest value with 4% on gas and no staking requirements, while Coinbase's new credit card (launching Fall 2025) promises competitive 2-4% Bitcoin rewards. European users enjoy the most options with MiCA-compliant providers like Bybit (up to 10%), Wirex (37 countries), and Plutus (merchant perks). The market's evolution reflects hard lessons from BlockFi and FTX collapses—sustainability now trumps promotional hype.

After the 2022-2023 crypto winter eliminated weak players like BlockFi, Upgrade, and Binance Card, today's survivors offer regulated, sustainable programs backed by major networks (Amex, Visa, Mastercard). The shift from debit to credit cards, subscription models replacing pure staking, and regulatory compliance (especially EU's MiCA framework) define 2025's landscape. New entrants like Coinbase One Card and Gemini's Solana Edition signal renewed confidence, while the market grows from $10.1 billion (2023) toward projected $27.7 billion (2031).

This guide compares all major providers across rewards, fees, supported cryptocurrencies, and use cases to help you choose the best card for spending your crypto in 2025.

The US market: Limited but competitive options​

Gemini Credit Card stands out as the clear US leader​

The Gemini Credit Card delivers the most generous rewards structure available to US crypto holders without requiring any staking or subscriptions. You earn 4% back on gas stations and EV charging (up to $300 monthly, then 1%), 3% on dining, 2% on groceries, and 1% on everything else—all paid instantly in your choice of 50+ cryptocurrencies including Bitcoin, Ethereum, XRP, Solana, and Dogecoin. The card charges zero annual fees, zero foreign transaction fees, and recently added XRP as a reward option following Ripple's legal victory.

Gemini enhanced the card in October 2025 with a Solana Edition offering up to 4% SOL rewards plus automatic staking at 6.77% APY, creating a compounding benefit unique in the market. New cardholders receive $200 in crypto after spending $3,000 in 90 days (promotion valid through June 30, 2025). The metal card design, five free authorized users, and Mastercard World Elite perks (Instacart credits, purchase protection, travel insurance) add substantial value beyond crypto rewards.

Geographic availability covers all 50 US states plus Puerto Rico and select European countries. Credit approval depends on standard creditworthiness—no staking requirements create a low barrier to entry compared to Crypto.com's model.

Crypto.com offers the highest potential US rewards but requires significant commitment​

Crypto.com operates both a prepaid debit card and a new Visa Signature Credit Card (US only) with dramatically different value propositions. The credit card delivers 1.5-6% back in CRO tokens based on your Level Up subscription tier or CRO staking commitment. The revamped September 2025 structure offers Basic (1.5%, free), Plus (3.5%, $4.99/month or $500 CRO stake), Pro (4.5%, $29.99/month or $5,000 stake), and Private (6%, $50,000+ stake).

The prepaid debit version reaches up to 8% for the Prime tier requiring $1 million in CRO staking—clearly targeting ultra-high-net-worth individuals rather than typical users. More realistically, Ruby Steel (2%, $500 stake) and Royal Indigo/Jade Green (3%, $5,000 stake) serve mid-tier users, though monthly reward caps limit Ruby to $25 and Jade/Indigo to $50.

Crypto.com's aggressive October-November 2025 benefit cuts removed Amazon Prime, Expedia, Airbnb, and X Premium rebates while eliminating non-staking rewards for legacy cardholders. However, higher tiers still receive Spotify and Netflix rebates (up to $13.99/month each), Priority Pass airport lounge access (unlimited for Jade+), and 10% travel cashback through Crypto.com Travel for top tiers.

The program works best for committed CRO holders willing to lock funds for 12 months. The Level Up ecosystem integration provides additional benefits: zero trading fees, up to 5% APY on cash balances, and enhanced Earn rates. But frequent program changes and customer service complaints (12-hour wait times reported) create uncertainty about future benefits.

Coinbase enters the credit card market with Bitcoin-only focus​

Coinbase One Card, launching Fall 2025, represents Coinbase's move into true credit cards after years offering only debit options. The American Express card delivers 2-4% Bitcoin rewards on all purchases with no category restrictions—a flat-rate structure simpler than Gemini's tiered approach. Your reward rate depends on your Assets on Coinbase (AOC): everyone starts at 2%, while holding more crypto (any type, including USDC or USD) unlocks 2.5%, 3%, or the maximum 4% tier.

The card requires Coinbase One membership ($49.99 annually or $4.99 monthly), positioning it against Crypto.com's subscription model. Coinbase One includes valuable ancillary benefits: 4.5% APY on first $10,000 USDC, zero trading fees on up to $500 monthly trades, $10/month Base network gas credits, and $1,000 unauthorized access protection. Higher subscription tiers ($29.99/month Preferred, $299.99/month Premium) expand these limits substantially.

The metal card features the Bitcoin Genesis Block inscription from January 3, 2009, adding collector appeal. American Express benefits include Amex Experiences, purchase protection, travel insurance, and extended warranty—more comprehensive than typical Visa/Mastercard offerings. Zero foreign transaction fees support international spending without penalties.

Bitcoin-only rewards create both simplicity and limitation depending on your crypto preferences. The card targets Coinbase ecosystem users who value BTC accumulation over reward currency diversity.

The original Coinbase Card debit option remains available with reduced value​

Coinbase's Visa debit card predates the credit card and continues serving users preferring direct crypto spending. The card supports 100+ cryptocurrencies for funding including BTC, ETH, USDC, and Dogecoin, though crypto converts to USD at point of sale. Current rewards offer rotating 0.5-4% cashback in various cryptocurrencies, with rates changing monthly and requiring active selection to maximize.

The critical fee consideration: Coinbase charges 2.49% crypto liquidation fees when spending non-stablecoin cryptocurrencies. Combined with international transaction fees, spending volatile crypto can cost 5.49% total—obliterating any cashback benefit. Smart strategy: Only load and spend USDC or USD to avoid conversion fees entirely.

The debit card charges zero annual fees, zero ATM withdrawal fees (operator fees may apply), and zero foreign transaction fees. No credit check or staking requirements make access simple. Daily spending limits reach $2,500 (US) or €10,000 (Europe), with the card available across Europe and UK in addition to all US states except Hawaii.

For Coinbase users wanting direct crypto spending without subscription costs, this works adequately when used strategically with USDC. But the reduced rewards (formerly higher) and significant conversion fees diminish value compared to the incoming credit card or Gemini's offering.

BitPay Card serves simple needs without rewards​

BitPay Card occupies the basic utility segment—a prepaid Mastercard debit card for spending crypto without any cashback rewards program. The card supports 15+ cryptocurrencies (Bitcoin, Ethereum, Litecoin, USDC, Dogecoin, etc.) with instant conversion to USD at point of sale. Zero annual fees and no monthly maintenance fees keep ongoing costs low, though BitPay charges a $10 one-time issuance fee and $5 monthly inactivity fee after 90 days without use.

Geographic availability limits to US only across all 50 states. Spending limits allow $10,000 daily with ATM withdrawals up to $6,000 daily (three $2,000 withdrawals), meeting most users' needs. ATM fees run $2.50 domestic and $3.00 international, while 3% foreign transaction fees make international spending expensive.

The card works best for straightforward crypto-to-fiat spending without expecting rewards. BitPay's long operational history (since 2011) and simple fee structure appeal to users prioritizing reliability over optimization. The lack of staking requirements, subscriptions, or complex tier systems makes this the most transparent US option—you know exactly what you're getting.

European market offers the most competitive landscape​

Bybit Card delivers exceptional rewards with MiCA compliance​

Bybit Card emerged in 2024 as Europe's most aggressive rewards program, offering 2-10% cashback based on monthly spending volume rather than staking requirements. The tier structure rewards active users: Tier 1 (2% base), Tier 2 (3%, €2K monthly), Tier 3 (4%, €10K monthly), Tier 4 (6%, €25K monthly), and Tier 5 (8%, €50K monthly). Supreme VIP status reaches 10% cashback for the highest spenders.

The card's 100% subscription rebates for Netflix, Spotify, Amazon Prime, TradingView, and ChatGPT provide €50-100+ monthly value independent of cashback. Rewards arrive automatically in BTC, USDT, USDC, or AVAX. The program charges zero annual fees (€10 for physical card, virtual free) and applies modest 0.5% foreign exchange fees on currency conversions.

MiCA compliance gives Bybit regulatory credibility in the EU's new crypto framework—a significant trust factor after Binance's European exit. The October 2025 Mantle partnership offers temporary 25% extra cashback plus 0% conversion fees, demonstrating continued program enhancement. The card supports 8 major cryptocurrencies (BTC, ETH, USDT, USDC, XRP, BNB, TON, MNT) with 0.9% crypto conversion plus standard Bybit Spot trading fees.

Geographic availability covers the European Economic Area excluding Croatia and Ireland—conspicuously absent from US and Australia. Free ATM withdrawals up to €100 monthly (2% after) and standard spending limits (€1K/transaction, €5K daily, €25K monthly, €150K yearly) accommodate most users. Integration with Bybit Earn (up to 8% APY on unspent balances) and Apple/Google Pay support round out the feature set.

For European users prioritizing maximum cashback and regulatory compliance, Bybit Card currently leads the market—though the spending-based tier system requires consistent volume to maintain top rates.

Plutus Card excels through merchant-specific perks​

Plutus Card takes a different approach from pure cashback models by offering 3-9% PLU rewards combined with "Plutus Perks"—£10 monthly rebates at 50+ merchants including Spotify, Netflix, Amazon, Tesco, Apple, Sainsbury's, and more. If you use 3-5 eligible services monthly, you're effectively earning £30-50+ monthly (~€35-60) beyond standard purchase rewards.

The August 2025 reward restructure introduced Compounding Rewards Yield (CRY%) that increases returns for long-term PLU holders—a unique feature encouraging ecosystem loyalty. Reward Levels progress from Noob (1 PLU staked) to Legend (10,000 PLU staked), with the subscription cost at £14.99 monthly or £149.99 annually (14-day free trial available). The May 2025 migration to Base network reduced transaction fees and improved performance.

New features launched in 2025 include PlutusSwap (PLU to fiat conversion), PlutusGifts (60% off £100 gift cards monthly), and regular promotional metal cards. The card charges 1.75% conversion fees for Starter tier but 0% for Premium/Pro subscribers, making it competitive with other European options for active users.

Geographic availability covers UK and EEA only—not available in the US. The card operates as a Visa debit product with standard spending limits that increase as you redeem PLU tokens. Limited cryptocurrency support (primarily ETH and PLU on Ethereum) narrows the use case to committed Plutus ecosystem participants rather than broad multi-crypto users.

For European residents regularly using supported merchants, Plutus Card's perk system delivers exceptional value that pure cashback cards can't match—essentially stacking merchant rebates on top of baseline rewards. The subscription cost pays for itself quickly if you maximize perks.

Wirex Card provides broadest geographic coverage​

Wirex Card serves 37+ countries across US, UK, Europe, Australia, Hong Kong, Taiwan, and New Zealand—the widest availability of any crypto card. This Visa/Mastercard debit card supports 37+ cryptocurrencies across multiple blockchains, giving users maximum flexibility in funding sources. Cryptoback™ rewards range 0.5-8% based on WXT token staking and subscription tier.

The three-tier structure combines subscriptions with optional staking: Standard (free) delivers 0.5-3%, Premium ($9.99/month) provides 2-6%, and Elite ($29.99/month) offers 4-8%. Boosting to maximum rates requires substantial WXT token lockups (up to 7.5 million WXT for 8%) over 180-day periods—a significant capital commitment that's impractical for most users.

Wirex pioneered crypto cards (operating since 2014) and maintains strong operational history through multiple market cycles. The platform charges zero foreign transaction fees and provides free ATM withdrawals up to $200-750 monthly (tier-dependent, 2% after). The X-Account savings feature offers up to 16% APY on WXT holdings, creating additional earning potential beyond card usage.

Conversion fees hover around 1% on crypto spending, competitive with alternatives. The multi-fiat support (26 currencies) accommodates international users better than single-currency competitors. Apple Pay and Google Pay integration, instant virtual card issuance, and complete mobile app management provide expected modern features.

Wirex works best for internationally mobile users needing reliable crypto spending across many jurisdictions. The modest base rewards (0.5-3% for most practical users) trail Bybit and Plutus, but geographic flexibility and crypto variety compensate depending on your situation.

Nexo Card offers unique dual-mode flexibility​

Nexo Card stands alone with dual Credit/Debit Mode switching via app toggle—use crypto as collateral for credit (avoiding taxable events) or spend directly from balances (debit mode). Available exclusively in EEA, UK, Switzerland, and Andorra, the card operates on Mastercard networks with comprehensive 86+ cryptocurrency support as collateral.

Credit Mode delivers 0.5-2% cashback in NEXO tokens or 0.1-0.5% in Bitcoin depending on your Loyalty tier (Base, Silver, Gold, Platinum). Loyalty progression requires holding 1-10%+ NEXO tokens relative to portfolio value plus $5,000 minimum balance—requirements increased in January 2025 from previous $500 minimum. Monthly cashback caps limit Base/Gold to $50 and Platinum to $200.

Debit Mode provides up to 14% APY on unspent card balances paid daily—an unusual feature turning your card into an interest-bearing account. This mode suits users leaving funds on the card between purchases rather than maintaining minimal balances.

Zero annual fees, zero monthly fees, and generous free foreign exchange up to €20,000 monthly (0.5% after) make international spending economical. Free ATM withdrawals scale by tier (€200-2,000 monthly, 0-10 withdrawals) with 2% fees beyond limits and €1.99 minimum charges. The card applies competitive ~0.75% crypto conversion spreads—among the industry's lowest.

Critical limitation: Physical card ordering suspended January 17, 2025 with no announced timeline for restoration. Virtual cards remain fully operational, but users wanting physical cards currently can't obtain them—a significant drawback impacting ATM access and situations requiring physical cards.

For European crypto holders already in the Nexo ecosystem, particularly those wanting to borrow against holdings without triggering taxes, this dual-mode approach delivers unique utility. But the physical card suspension and increased tier requirements diminish accessibility compared to 2024.

Cards to avoid or be aware of limitations​

Binance Card no longer operates in most markets​

Binance Card shut down completely in Europe (December 20, 2023) and GCC countries after regulatory pressures, Mastercard partnership terminations, and Binance's legal troubles. The card that once served 30+ European countries with competitive 1-8% BNB-based rewards ceased operations affecting under 1% of Binance users but eliminating a major competitor.

Binance relaunched in Brazil only (October 1, 2025) with a simplified 2% cashback structure supporting 14+ cryptocurrencies via Mastercard partnership through Dock issuer. The Brazil card charges zero annual fees, 0.9% crypto conversion fees, and zero fees on BRL payments. But geographic limitation to Brazil and uncertainty about program longevity given past shutdowns make this a risky choice even for eligible users.

The US, Canada, all of Europe, UK, and most of Asia cannot access Binance Card. Binance directs users in restricted markets to Binance Pay instead. The card's history exemplifies regulatory risk in crypto cards—what works today may disappear tomorrow as regulatory landscapes shift.

BlockFi Card remains permanently defunct​

BlockFi Rewards Visa Signature Credit Card shut down immediately following BlockFi's Chapter 11 bankruptcy filing (November 28, 2022) triggered by FTX collapse exposure. BlockFi had $355 million frozen on FTX and $680 million in defaulted loans to Alameda Research. The company emerged from bankruptcy in October 2023 solely to wind down operations and distribute remaining assets to creditors.

The card offered competitive 1.5-2% crypto cashback, zero annual fees, and $100 Bitcoin sign-up bonus when operational. But BlockFi's failure from poor risk management decisions (including depositing customer funds in Silicon Valley Bank, which itself failed) eliminated this option permanently. Distribution to creditors continued through 2024-2025 with May 15, 2025 deadline for unclaimed assets.

BlockFi's collapse serves as cautionary tale about counterparty risk in crypto cards—even established players can fail rapidly when exposure to other failing entities (FTX, Alameda) creates contagion. No BlockFi card operations exist today or are expected to return.

Upgrade Bitcoin Card, SoFi, and Brex eliminated crypto features​

Several formerly crypto-supporting cards removed their crypto functionality entirely: Upgrade Bitcoin Rewards Visa shut down (2023), SoFi Credit Card eliminated crypto redemption (early 2023), and Brex Card stopped crypto redemption (August 31, 2024). These eliminations reflect market consolidation and companies exiting crypto during regulatory uncertainty.

Best cards by specific use case​

Maximum rewards potential: Bybit Card for Europeans, Crypto.com for committed stakers​

Europeans seeking maximum cashback should choose Bybit Card for 8-10% rewards at high spending tiers plus 100% streaming subscription rebates. The spending-based tier system (rather than staking) makes rewards accessible through usage alone. VIP status achieves 10% cashback—the market's highest rate alongside Crypto.com's theoretical Prime tier.

For users willing to commit capital through staking, Crypto.com's prepaid card reaches 5-8% (Obsidian/Prime tiers) with substantial additional perks: unlimited airport lounge access, permanent streaming rebates, 10% travel cashback, and zero trading fees. But the $500,000-$1,000,000 CRO staking requirements (12-month lockups) restrict this to high-net-worth individuals only.

Realistic middle ground: Gemini Credit Card (US) or Plutus Card (Europe) deliver strong 3-4% rates plus merchant perks without extreme staking requirements, making them more practical for typical users than aspirational 8-10% rates requiring massive capital commitment or spending volume.

Lowest fees and simplest structure: Gemini and BitPay​

Gemini Credit Card combines zero annual fees, zero foreign transaction fees, zero staking requirements, and straightforward category-based rewards (4% gas, 3% dining, 2% groceries, 1% other). This transparency eliminates hidden conversion spreads, monthly caps, or complex tier calculations. Instant payouts in 50+ cryptocurrencies mean you control reward currency without forced token holdings.

BitPay Card offers maximum simplicity—no rewards program complexity, just straightforward crypto-to-fiat spending. While it charges $10 issuance fee and $5 monthly inactivity fee, the absence of annual fees, subscription requirements, or staking commitments creates the clearest cost structure. Best suited for occasional crypto spending rather than rewards optimization.

Cards to avoid for fees: Coinbase debit card (2.49% crypto liquidation fees negate rewards unless using USDC), Nexo (requires $5,000 minimum balance since January 2025 increase), and Crypto.com Ruby/Jade tiers (monthly reward caps severely limit value despite percentage rates).

International spending: Wirex, Nexo, and Gemini​

Wirex Card's 37-country availability surpasses all competitors for geographic flexibility, supporting 26 fiat currencies with zero foreign transaction fees. Travelers moving between supported countries benefit from consistent functionality—though US travelers should note Wirex availability in US is limited compared to European operations.

Nexo Card provides the most generous FX allowance—€20,000 free monthly foreign exchange before 0.5% fees apply, with interbank exchange rates for higher tiers. This makes high-volume international spending particularly economical for European travelers. Weekend FX surcharges (additional 0.5%) are a minor consideration for planned spending.

Gemini Credit Card charges zero foreign transaction fees with straightforward rewards maintaining the same rates regardless of merchant currency. US travelers benefit from Mastercard World Elite's travel protections (trip cancellation, lost luggage coverage) alongside crypto rewards—a combination most crypto cards lack.

Best for beginners: Gemini or Coinbase debit​

Gemini Credit Card requires the least crypto knowledge—simply use like any credit card, choose your preferred reward cryptocurrency from 50+ options, and receive automatic instant deposits to your Gemini account. No staking requirements, no CRO or WXT token purchases, no subscription management, no complex tiers. Standard credit approval process feels familiar to traditional finance users transitioning to crypto.

Coinbase debit card offers immediate access without credit checks for users with existing Coinbase accounts. Loading with USDC stablecoin avoids conversion fees and crypto volatility concerns while still earning modest rotating rewards. The familiar Coinbase interface and customer service infrastructure (despite issues) provide more support than newer competitors.

Cards to avoid as beginner: Crypto.com (complex Level Up tiers, CRO token exposure, frequent program changes), Plutus (requires understanding PLU tokens and ecosystem), Nexo (dual-mode confusion, NEXO token loyalty tiers), and Wirex (WXT staking complexity for optimized rewards).

Best for high-volume spenders: Bybit, Crypto.com, Gemini​

Bybit Card's tier structure specifically rewards spending volume—the more you spend monthly, the higher your cashback percentage climbs without additional staking requirements. Heavy spenders naturally ascend to Tier 4-5 (6-8%) or VIP (10%) through organic usage. The 100% subscription rebates add €50-100+ monthly value independent of spending level.

Crypto.com's unlimited tiers (Icy/Rose, Obsidian, Prime) remove monthly reward caps that throttle Ruby/Jade cardholders. Obsidian ($500,000 stake) and Prime ($1,000,000 stake) users earn 5-8% indefinitely with no artificial limits. The Level Up ecosystem provides zero trading fees on crypto/stocks purchases, multiplying value for active traders combining card spending with platform usage.

Gemini Credit Card's $300 monthly gas cap before rate reduction (4% → 1%) limits the highest earners in that category, but uncapped 3% dining, 2% grocery, and 1% general spending handle large total volumes well. The instant payout system means rewards immediately become available for redeployment—no waiting for monthly statement cycles.

Best overall value: Gemini for US, Bybit or Plutus for Europe​

US residents should prioritize Gemini Credit Card for the optimal balance of high rewards (3-4% effective rate for most spending patterns), zero fees, zero staking requirements, 50+ crypto options, instant payouts, and Mastercard World Elite benefits. The $200 sign-up bonus, metal card design, and Solana Edition with auto-staking (6.77% APY) enhance value beyond baseline features. Unless you're specifically committed to the Coinbase or Crypto.com ecosystems with capital to stake, Gemini delivers superior risk-adjusted returns.

European residents face a choice between Bybit Card and Plutus Card depending on usage profile. Bybit wins for maximum cashback through spending volume (2-10%) plus streaming rebates, while Plutus excels for users of its 50+ partner merchants (effective £30-50 monthly value from perks alone). Both significantly outperform Nexo (physical cards unavailable, lower cashback) and Wirex (modest 0.5-3% practical rates) for engaged users willing to manage subscriptions.

Coinbase One Card (launching Fall 2025) merits consideration for Bitcoin maximalists wanting simple flat-rate accumulation (2-4%) with American Express benefits—especially if already subscribing to Coinbase One for USDC yield and trading fee benefits. But Gemini's higher category rates and no-subscription structure provide more value for most spending patterns.

Current market conditions and the path forward​

The crypto card market reached an inflection point in 2024-2025, transitioning from post-collapse recovery to renewed growth phase. The $10.1 billion market (2023) projects to $27.7 billion by 2031 at 13.7% compound annual growth rate—but the composition shifted dramatically from the 2021-2022 landscape.

Regulatory frameworks finally emerged as catalyst for sustainable growth. Europe's MiCA implementation (full compliance December 30, 2024) created clear licensing pathways driving 80% user trust in regulated platforms and 47% increase in registered VASPs. The US passed landmark legislation including the GENIUS Act (stablecoin framework) and Digital Asset Market CLARITY Act in July 2025, while the SEC closed investigations into major exchanges (February 2025) and shifted from enforcement to guidance. The UK's comprehensive "Crypto Roadmap" (November 2024) promises final rules by 2026. This regulatory clarity—absent during the FTX collapse—now enables traditional financial institutions to partner confidently with crypto providers.

The American Express partnership with Coinbase represents this institutional legitimization—major payment networks now view crypto cards as viable growth segments rather than reputational risks. Gemini's Mastercard World Elite positioning, Crypto.com's Visa Signature credit card, and multiple Mastercard partnerships (Bybit, Wirex, Nexo, BitPay) demonstrate mainstream payment infrastructure embracing crypto integration.

Sustainability replaced speculation as the defining principle. Historical 8% cashback rates from Crypto.com's early program proved economically unviable, leading to June 2022 cuts that foreshadowed market consolidation. Today's 1-4% sustainable rates align with traditional credit card economics while crypto volatility and network fees provide margin for competitive offerings. Subscription models (Coinbase One, Crypto.com Level Up, Plutus, Wirex) generate recurring revenue reducing dependency on transaction fees alone. This business model evolution differentiates survivors from the BlockFi lending-based approach that collapsed with counterparty failures.

Product sophistication increased dramatically. Early crypto cards simply converted holdings to fiat at point of sale—primitive but functional. 2025's offerings integrate DeFi (ether.fi's non-custodial card), auto-staking (Gemini Solana Edition's 6.77% APY), dual credit/debit modes (Nexo), merchant-specific perks (Plutus's 50+ partners), and ecosystem features (Crypto.com's zero trading fees, Coinbase One's USDC yield, Bybit Earn's 8% APY). The shift from standalone products to integrated financial platforms creates switching costs and network effects benefiting established players.

Geographic fragmentation persists as regulatory environments diverge. US users face limited but quality options (Gemini, Crypto.com, Coinbase, BitPay) as providers navigate state-by-state money transmission laws and SEC uncertainty. European users enjoy the most competitive market (Bybit, Plutus, Wirex, Nexo, Crypto.com) thanks to MiCA harmonization. Asia remains fragmented with jurisdiction-specific offerings. Binance's European exit and Brazil-only relaunch exemplifies how quickly regulatory winds shift accessibility. This fragmentation prevents true global leaders from emerging—regional specialists dominate instead.

Consumer sentiment evolved from FOMO enthusiasm to cautious optimism. Post-FTX trauma created lasting trust deficits, with 40% of historical crypto complaints involving fraud and 16% related to frozen assets. Crypto.com's customer service problems (12-hour wait times, frozen cards) and retroactive benefit cuts breed cynicism about program stability. Yet 63% of crypto owners want increased exposure (2024 survey), demonstrating resilience. The market bifurcated between skeptical users demanding regulatory compliance and security versus crypto-native users prioritizing yields and flexibility. Successful cards address both segments—Bybit's MiCA compliance appeals to cautious users while 10% cashback attracts rate-chasers.

The competitive landscape consolidated around three tiers. Tier 1 providers (Crypto.com, Coinbase, Gemini) benefit from exchange integration, regulatory resources, and brand recognition. Tier 2 specialists (Bybit, Nexo, Wirex) differentiate through regional focus or unique features. Tier 3 emerging players (ether.fi, KAST, MetaMask) target DeFi natives and specific blockchain communities. The 2022-2023 shakeout eliminated undercapitalized competitors unable to sustain rewards during crypto winter—natural selection favoring well-funded, compliant operators.

Innovation continues at the edges with non-custodial and DeFi-integrated cards emerging. MetaMask Card (launching 2025) promises non-custodial control—your keys, your crypto, your card—addressing custody concerns that BlockFi's collapse highlighted. Ether.fi Cash Card's $10+ million daily transaction volume demonstrates DeFi integration viability. Gemini's auto-staking Solana Edition and category-based rewards evolution show traditional products adopting DeFi features. The convergence of CeFi convenience with DeFi's self-custody and yield-generation creates next-generation hybrid models.

Near-term outlook remains cautiously bullish despite lingering risks. Pro-crypto US administration, Bitcoin ETF success driving institutional adoption, stablecoin growth for everyday transactions, and regulatory clarity emerging globally create favorable tailwinds. But market downturn potential (crypto volatility), regulatory overreach possibilities, security incidents damaging trust, and traditional banks launching competing products pose meaningful threats. The 2026-2027 timeline likely determines whether crypto cards become mainstream payment methods or remain niche products.

The killer insight: Crypto cards succeeded not by replacing traditional cards but by offering superior rewards funded by crypto economics. Users don't primarily want to spend volatile cryptocurrencies—they want dollars/euros at merchants funded by crypto holdings that earn rewards impossible in traditional finance. Gemini's 4% gas, Bybit's 10% cashback, Plutus's merchant perks, and even basic 2% Bitcoin accumulation exceed typical 1-2% credit card rewards. As long as crypto networks generate value through staking yields, transaction volumes, and token appreciation, cards can sustainably offer differentiated rewards attracting practical users beyond crypto enthusiasts.

The market's maturation from speculative 2021-2022 excess through catastrophic 2022-2023 collapse to disciplined 2024-2025 rebuilding positions crypto cards for mainstream adoption—assuming continued regulatory progress and no systemic failures eroding fragile post-FTX trust. For crypto holders wanting to spend their assets today, strong options exist across multiple jurisdictions. The question is no longer whether crypto cards work but which best fits your specific needs, location, and risk tolerance.

Choose wisely, stake strategically, and monitor program changes—this market's only constant is evolution.

Echo.xyz achieved what seemed improbable: democratizing early-stage crypto investing while maintaining institutional-quality deal flow, resulting in Coinbase acquiring the platform for $375 million just 18 months after launch. Founded in March 2024 by Jordan "Cobie" Fish, the platform facilitated over $200 million across 300+ deals involving 9,000+ investors before its October 2025 acquisition. Echo's significance lies in solving the fundamental tension between exclusive VC access and community participation through group-based, on-chain investment infrastructure that aligns incentives between platforms, lead investors, and followers. The platform's dual products—private investment groups and Sonar public sale infrastructure—position it as comprehensive capital formation infrastructure for web3, now integrated into Coinbase's vision of becoming the "Nasdaq of crypto."

What Echo.xyz solves in the web3 fundraising landscape​

Echo addresses critical structural failures in crypto capital formation that have plagued the industry since the ICO boom collapsed in 2018. The core problem: access inequality—institutional VCs secure early allocations at favorable terms while retail investors face high valuations, low float tokens, and misaligned incentives. Traditional private fundraising excludes regular investors entirely, while public launchpads suffer from centralized control, opaque processes, and speculative behavior divorced from project fundamentals.

The platform operates through two complementary products. Echo Investment Services enables group-based private investing where experienced "Group Leads" (including top VCs like Paradigm, Coinbase Ventures, Hack VC, 1kx, and dao5) share deals with followers who co-invest on identical terms. All transactions execute fully on-chain using USDC on Base network, with investors organized into SPV (Special Purpose Vehicle) structures that simplify cap table management. Critically, group leads must invest on the same price, vesting, and terms as followers, earning compensation only when followers profit—creating genuine alignment versus traditional carry structures.

Sonar, launched May 2025, represents Echo's more revolutionary innovation: self-hosted public token sale infrastructure that founders can deploy independently without platform approval. Unlike traditional launchpads that centrally list and endorse projects, Sonar provides compliance-as-a-service—handling KYC/KYB verification, accreditation checks, sanctions screening, and wallet risk assessment—while allowing founders complete marketing autonomy. This architecture supports "1,000 different sales happening simultaneously" across multiple blockchains (EVM chains, Solana, Hyperliquid, Cardano) without Echo's knowledge, deliberately avoiding the launchpad model's conflicts of interest. The platform's philosophy, articulated by founder Cobie: "Get as close to ICO-era market dynamics as possible while providing compliant tools for founders who don't want to go to jail."

Echo's value proposition crystallizes around four pillars: democratized access (no minimum portfolio size; same terms as institutions), simplified operations (SPVs consolidate dozens of angels into single cap table entities), aligned economics (5% fee only on profitable investments), and blockchain-native execution (instant USDC settlement via smart contracts eliminating banking friction).

Technical architecture balances privacy, compliance, and decentralization​

Echo's technical infrastructure demonstrates sophisticated engineering prioritizing user custody, privacy-preserving compliance, and multi-chain flexibility. The platform operates primarily on Base (Ethereum Layer 2) for managing USDC deposits and settlements, leveraging low-cost transactions while maintaining Ethereum security guarantees. This choice reflects pragmatic infrastructure decisions rather than blockchain maximalism—Sonar supports most EVM-compatible networks plus Solana, Hyperliquid, and Cardano.

Wallet infrastructure via Privy implements enterprise-grade security through multi-layer protection. Private keys undergo Shamir Secret Sharing, splitting keys into multiple shards distributed across isolated services so neither Echo nor Privy can access complete keys. Keys only reconstruct within Trusted Execution Environments (TEEs)—hardware-secured enclaves that protect cryptographic operations even if surrounding systems are compromised. This architecture provides non-custodial control while maintaining seamless UX; users can export keys to any EVM-compatible wallet. Additional layers include SOC 2-certified infrastructure, hardware-level encryption, role-based access control, and two-factor authentication on all critical operations (login, investment, fund transfers).

The Sonar compliance architecture represents Echo's most technically innovative component. Rather than projects managing compliance directly, Sonar operates through an OAuth 2.0 PKCE authentication flow where investors complete KYC/KYB verification once via Sumsub (the same provider used by Binance and Bybit) to receive an "eID Attestation Passport." This credential works across all Sonar sales with one-click registration. When purchasing tokens, Sonar's API validates wallet-entity relationships and generates cryptographically signed permits containing: entity UUID, verification proof, allocation limits (reserved, minimum, maximum), and expiration timestamps. The project's smart contract validates ECDSA signatures against Sonar's authorized signer before executing purchases, recording all transactions on-chain for transparent, immutable audit trails.

Key technical differentiators include privacy-preserving attestations (Sonar attests eligibility without passing personal data to projects), configurable compliance engines (founders select exact requirements by jurisdiction), and anti-sybil protection (Echo detected and banned 19 accounts from a single user attempting to game allocations). The platform partners with Veda for pre-launch vault infrastructure, using the same contracts securing $2.6 billion TVL that have been audited by Spearbit. However, specific Echo.xyz smart contract audits remain undisclosed—the platform relies primarily on audited third-party infrastructure (Privy, Veda) plus established blockchain security rather than publishing independent security audits.

Security posture emphasizes defense-in-depth: distributed key management eliminates single points of failure, SOC 2-certified partners ensure operational security, comprehensive KYC prevents identity fraud, and on-chain transparency provides public accountability. The self-hosted Sonar model further decentralizes risk—if Echo infrastructure fails, individual sales continue operating since founders control their own contracts and compliance flows.

No native token: Echo operates on performance-based fees, not tokenomics​

Echo.xyz explicitly has no native token and has stated there will not be one, making it an outlier in web3 infrastructure. This decision reflects philosophical opposition to extractive tokenomics and aligns with founder Cobie's criticism of protocols that use tokens primarily for founder/VC enrichment rather than genuine utility. A scam token called "ECHO" (contract 0x7246d453327e3e84164fd8338c7b281a001637e8 on Base) circulates but has no affiliation with the official platform—users should verify domains carefully.

The platform operates on a pure fee-based revenue model charging 5% of user profits per deal—the only way Echo generates revenue. This performance-based structure creates powerful alignment: Echo profits exclusively when investors profit, incentivizing quality deal curation over volume. Additional operational costs (token warrant fees paid to founders, SPV regulatory filing costs) pass through to users with no markup. All investments transact in USDC stablecoin with fully on-chain execution.

Group lead compensation follows the same philosophy: leads earn a percentage of followers' profits only when investments succeed, must invest on identical terms as followers (same price, vesting, lock-ups), and never touch follower funds (smart contracts manage custody). This inverts traditional venture fund structures where GPs collect management fees regardless of returns. The legal structure operates through Gm Echo Manager Ltd maintaining smart contract-based ownership claims that prevent leads from accessing investor capital.

Platform statistics demonstrate strong product-market fit despite tokenless operations. By the October 2025 acquisition, Echo facilitated $200 million across 300+ deals involving 9,000+ investors through 80+ active investment groups. Notable transactions include MegaETH's $10 million raise (split into rounds of $4.2M in 56 seconds and $5.8M in 75 seconds), Initia's $2.5M community round (800+ investors in under 2 hours), and Usual Money's $1.5M raise. First-come-first-served allocation within groups creates urgency; high-quality deals sell out in minutes.

Sonar economics remain less disclosed. The product launched May 2025 with Plasma's XPL token sale as the first implementation (10% of supply at $500M FDV). While Sonar provides compliance infrastructure, API access, and signed permit generation, public documentation doesn't specify pricing—likely negotiated per-project or subscription-based. The $375M Coinbase acquisition validates that substantial value accrues without tokenization.

Governance structure is entirely centralized with no token-based voting. Gm Echo Manager Ltd (now owned by Coinbase) controls platform policies, group lead approvals, and terms of service. Individual group leads determine which deals to share, investment minimums/maximums, and membership criteria. Users choose deal-by-deal participation but have no protocol governance rights. Post-acquisition, Echo will remain standalone initially with Sonar integrating into Coinbase, suggesting eventual alignment with Coinbase's governance structures rather than DAO models.

Ecosystem growth driven by top-tier partnerships and 30+ successful raises​

Echo's rapid ecosystem expansion stems from strategic partnerships that provide both infrastructure reliability and deal flow quality. The Coinbase acquisition for approximately $375 million (October 2025) represents the ultimate partnership validation—Coinbase's 8th acquisition of 2025 positions Echo as core infrastructure for onchain capital formation. Prior to acquisition, Coinbase Ventures became a Group Lead (March 2025) launching the "Base Ecosystem Group" to fund Base blockchain builders, demonstrating strategic alignment months before the deal closed.

Technology partnerships provide critical infrastructure layers. Privy supplies embedded wallet services with Shamir Secret Sharing and TEE-based key management, enabling non-custodial user experience. Sumsub handles KYC/KYB verification (the same provider securing Binance and Bybit), processing identity verification and document validation. The platform integrates OAuth 2.0 for authentication and ECDSA signature validation for on-chain permit verification. Veda provides vault contracts for pre-launch deposits with yield generation through Aave and Maker, using battle-tested infrastructure securing $2.6B+ TVL.

Supported blockchain networks span major ecosystems: Base (primary chain for platform operations), Ethereum and most EVM-compatible networks, Solana, Hyperliquid, Cardano, and HyperEVM. Sonar documentation explicitly states support for "most EVM networks" with ongoing expansion—projects should contact support@echo.xyz for specific network availability. This blockchain-agnostic approach contrasts with single-chain launchpads and reflects Echo's infrastructure-layer positioning.

Developer ecosystem centers on Sonar's compliance APIs and integration libraries. Official documentation at docs.echo.xyz provides implementation guides, though no public GitHub repository was found (suggesting proprietary infrastructure). Sonar offers APIs for KYC/KYB verification, US accredited investor checks, sanctions screening, anti-sybil protection, wallet risk assessment, and entity-to-wallet relationship enforcement. The architecture supports flexible sale formats including auctions, options drops, points systems, variable valuations, and commitment request sales—giving founders extensive customization within compliance guardrails.

Community metrics indicate strong engagement despite the private, invite-based model. Echo's Twitter/X account (@echodotxyz) has 119,500+ followers with active announcement cadence. The May 2025 Sonar launch received 569 retweets and 3,700+ views. Platform statistics show 6,104 investment users completing 177 transactions over $5,000, with total capital raised reaching $140M-$200M+ depending on source (Dune Analytics reports $66.6M as of January 2025; Coinbase cites $200M+ by October 2025). The team remains lean at 13 employees, reflecting efficient operations focused on infrastructure over headcount scaling.

Ecosystem projects span leading crypto protocols. The 30+ projects that raised on Echo include: Ethena (synthetic dollar), Monad (high-performance L1), MegaETH (raised $10M in December 2024), Usual Money (stablecoin protocol), Morph (L2 solution), Hyperlane (interoperability), Initia (modular blockchain), Fuel, Solayer, Dawn, Derive, Sphere, OneBalance, Wildcat, and Hoptrail (first UK company to raise on Echo at $5.85M valuation). Plasma used Sonar for its June 2025 XPL public token sale targeting $50M at $500M FDV. These projects represent quality deal flow typically reserved for top-tier VCs, now accessible to community investors on same terms.

The group lead ecosystem includes approximately 80+ active groups led by prominent VCs and crypto investors: Paradigm (where Cobie serves as advisor), Coinbase Ventures, Hack VC, 1kx, dao5, plus individuals like Larry Cermak (CEO of The Block), Marc Zeller (Aave founder), and Path.eth. This concentration of institutional quality leads differentiates Echo from retail-focused launchpads and drives deal flow that sells out in seconds.

Team combines crypto-native credibility with technical execution capability​

Jordan "Cobie" Fish (real name: Jordan Fish) founded Echo in March 2024, bringing exceptional crypto-native credibility and entrepreneurial track record. A British cryptocurrency investor, trader, and influencer with 700,000+ Twitter followers, Cobie previously served as a Monzo Bank executive in product/growth roles, co-founded Lido Finance (a major DeFi liquid staking protocol), and co-hosted the UpOnly podcast with Brian Krogsgard. He graduated from University of Bristol with a Computer Science degree (2013) and began investing in Bitcoin around 2012-2013. His estimated net worth exceeds $100 million. In May 2025, Cobie joined Paradigm as an advisor to support their public market and liquid fund strategies while Paradigm simultaneously opened an Echo group—demonstrating his continued influence across crypto's institutional layer.

Cobie's industry recognition includes CoinDesk's "Most Influential 2022" and Forbes 30 Under 30 mentions. He earned reputation by publicly calling out scams and insider trading, notably exposing Coinbase insider trading in 2022 and documenting the FTX hack in real-time during that exchange's collapse. This track record provides trust capital critical for a platform handling early-stage investments—investors trust Cobie's judgment and operational integrity.

The engineering team draws from Monzo's technical leadership, reflecting Cobie's previous employer connections. Will Demaine (Software Engineer) worked previously at Alba, gm. studio, Monzo Bank, and Fat Llama, holding a BSc in Computer Science from University of Birmingham with skills in C#, Java, PHP, MySQL, and JavaScript. Will Sewell (Platform Engineer) spent 6 years at Pusher working on the Channels product before joining Monzo as a Platform Engineer, where he contributed to Monzo's microservices platform scaling to 2,800+ services. His expertise spans distributed systems, cloud infrastructure, and functional programming (Haskell). Rachael Demaine serves as Operations Manager. Additional team members include James Nicholson though his specific role remains undisclosed.

Team size: Just 13 employees at acquisition, demonstrating exceptional capital efficiency. The company generated $200M+ in deal flow with minimal headcount by focusing on infrastructure and group lead relationships rather than direct sales or marketing. This lean structure maximized value capture—$375M exit divided by 13 employees yields ~$28.8M per employee, among the highest in crypto infrastructure.

Funding history reveals no external venture capital raised prior to acquisition, suggesting Echo was bootstrapped or self-funded by Cobie's personal wealth. The platform's 5% success fee on profitable deals provided revenue from inception, enabling self-sustaining operations. No seed round, Series A, or institutional investors appear in public records. This independence likely provided strategic flexibility—no VC board members pushing for token launches or exit timelines—allowing Echo to execute on founder vision without external pressure.

The $375 million Coinbase acquisition (announced October 20-21, 2025) occurred just 18 months post-launch through a mix of cash and stock subject to customary purchase price adjustments. Coinbase separately spent $25 million to revive Cobie's UpOnly podcast, suggesting strong relationship development prior to acquisition. Post-acquisition, Echo will remain a standalone platform initially with Sonar integrating into Coinbase's ecosystem, likely positioning Cobie in a leadership role within Coinbase's capital formation strategy.

The team's strategic context positions them within crypto's institutional layer. Cobie's dual roles as Echo founder and Paradigm advisor, combined with group leads from Coinbase Ventures, Hack VC, and other top VCs, creates powerful network effects. This concentration of institutional relationships explains Echo's deal flow quality—projects backed by these VCs naturally flow to their Echo groups, creating self-reinforcing cycles where more quality leads attract better deals which attract more followers.

Core product features enable institutional-quality investing for community participants​

Echo's product architecture centers on group-based, on-chain investing that democratizes access while maintaining quality through experienced lead curation. Users join investment groups led by top VCs and crypto investors who share deal opportunities on a deal-by-deal basis. Followers choose which investments to make without mandatory participation, creating flexibility versus traditional fund commitments. All transactions execute fully on-chain using USDC on Base blockchain, eliminating banking friction and enabling instant settlement with transparent, immutable records.

The SPV (Special Purpose Vehicle) structure consolidates multiple investors into single legal entities per deal, solving founders' cap table management nightmares. Instead of managing 100+ individual angels each requiring separate agreements, signatures, and compliance documentation, founders interact with one SPV entity. Hoptrail (first UK company raising on Echo) cited this simplification as a key differentiator—closing their raise in days versus weeks and maintaining clean cap tables. Echo's smart contracts manage asset custody ensuring lead investors never access follower funds directly, preventing potential misappropriation.

Allocation operates on first-come-first-served basis within groups once leads share deals. High-quality opportunities sell out in seconds—MegaETH raised $4.2M in 56 seconds during its first round. This creates urgency and rewards investors who respond quickly, though critics note this favors those constantly monitoring platforms. Group leads set minimum and maximum investment amounts per participant, balancing broad access with deal size requirements.

The embedded wallet service via Privy enables seamless onboarding. Users create non-custodial wallets through email, social login (Twitter/X), or existing wallet connections without managing seed phrases initially. The platform implements two-factor authentication on login, every investment, and all fund transfers, adding security layers beyond standard wallet authentication. Users maintain full custody and can export private keys to any EVM-compatible wallet if choosing to leave Echo's interface.

Sonar's self-hosted sale infrastructure represents Echo's more revolutionary product innovation. Launched May 2025, Sonar enables founders to host public token sales independently without Echo's approval or endorsement. Founders configure compliance requirements based on their jurisdiction—choosing KYC/KYB verification levels, accreditation checks, geographic restrictions, and risk tolerances. The eID Attestation Passport allows investors to verify identity once and participate in unlimited Sonar sales with one-click registration, dramatically reducing friction versus repeated KYC for each project.

Sale format flexibility supports diverse mechanisms: fixed-price allocations, Dutch auctions, options drops, points-based systems, variable valuations, and commitment request sales (launched June 2025). Projects deploy smart contracts validating ECDSA-signed permits from Sonar's compliance API before executing purchases. This architecture enables "1,000 different sales happening simultaneously" across multiple blockchains without Echo serving as central gatekeeper.

Privacy-preserving compliance means Sonar attests investor eligibility without passing personal data to projects. Founders receive cryptographic proof that participants passed KYC, accreditation checks, and jurisdiction requirements but don't access underlying documentation—protecting investor privacy while maintaining compliance. Exceptions exist for court orders or regulatory investigations.

Target users span three constituencies. Investors include sophisticated/accredited individuals globally (subject to jurisdiction), crypto-native angels seeking early-stage exposure, and community members wanting to invest alongside top VCs on identical terms. No minimum portfolio size required, democratizing access beyond wealth-based gatekeeping. Lead investors include established VCs (Paradigm, Coinbase Ventures, Hack VC, 1kx, dao5), prominent crypto figures (Larry Cermak, Marc Zeller), and experienced angels building followings. Leads apply through invitation-based processes prioritizing well-known crypto participants. Founders seeking seed/angel funding who prioritize community alignment, prefer avoiding concentrated VC ownership, and want to construct wider token distributions among crypto-native investors.

Real-world use cases demonstrate product-market fit across project types. Infrastructure protocols like Monad, MegaETH, and Hyperlane raised core development funding. DeFi protocols including Ethena (synthetic dollar), Usual (stablecoin), and Wildcat (lending) secured liquidity and governance distribution. Layer 2 solutions like Morph funded scaling infrastructure. Hoptrail, a traditional crypto business, used Echo to simplify cap table management and close funding in days rather than weeks. The diversity of successful raises—from pure infrastructure to applications to traditional businesses—indicates broad platform utility.

Adoption metrics validate strong traction. As of October 2025: $140M-$200M total raised (sources vary), 340+ completed deals, 9,000+ investors, 6,104 active users, 177 transactions exceeding $5,000, average deal size ~$360K, average 130 participants per deal, average $3,130 investment per user per transaction. Deals with top VC backing fill in seconds while others take hours to days. The platform processed 131 deals in its first 8 months, accelerating to 300+ by month 18.

Competitive positioning: premium access layer between VC exclusivity and public launchpads​

Echo occupies a distinct market position between traditional venture capital and public token launchpads, creating a "premium community access" category that previously didn't exist. This positioning emerged from systematic failures in both incumbent models: VCs concentrating token ownership while retail faces high-FDV-low-float situations, and launchpads suffering from poor quality control, token-gated access requirements, and extractive platform tokenomics.

Primary competitors span multiple categories. Legion operates as a merit-based launchpad incubated by Delphi Labs with backing from cyber•Fund and Alliance DAO. Legion's differentiator lies in its "Legion Score" reputation system tracking on-chain/off-chain activity to determine allocation eligibility—merit-based versus wealth-based or token-gated access. The platform focuses on MiCA compliance (European regulation) and partnered with Kraken. Legion faces similar VC resistance as Echo, with some VCs reportedly blocking portfolio companies from public sales—validating that community fundraising threatens traditional VC gatekeeping power.

CoinList represents the oldest and largest centralized token sale platform, founded 2017 as an AngelList spinout. With 12M+ users globally, CoinList helped launch Solana, Flow, and Filecoin—establishing credibility through successful alumni. The platform implements a "Karma" reputation system rewarding early participation. In January 2025, CoinList partnered with AngelList to launch Crypto SPVs, directly competing with Echo's model. However, CoinList's scale creates quality control challenges; broader retail access reduces average investor sophistication compared to Echo's curated groups.

AngelList invented the syndicate model in 2013 and deployed $5B+ across startup investing, broader than Echo's crypto focus. AngelList serves comprehensive startup ecosystem needs (investing, job boards, fundraising tools) versus Echo's specialized crypto infrastructure. AngelList struggled to launch dedicated crypto products due to token management complexity—the CoinList partnership addresses this gap. However, AngelList's generalist positioning dilutes crypto-native credibility compared to Echo's specialized reputation.

Seedify operates as a decentralized launchpad focused on blockchain gaming, NFTs, Web3, and AI projects. Founded 2021, Seedify launched 60+ projects including Bloktopia (698x ROI) and CryptoMeda (185x ROI). The platform requires $SFUND token staking across 9 tiers to access IDO allocations—creating wealth-based gatekeeping that contradicts democratization rhetoric. Higher tiers demand substantial capital lockup, favoring wealthy participants. Seedify's gaming/NFT specialization differentiates from Echo's broader crypto infrastructure focus.

Republic provides equity crowdfunding for accredited and non-accredited investors across startups, Web3, fintech, and deep tech. Republic's $1B venture arm and $120M+ token platform demonstrate scale, with recent expansion into crypto-focused funds ($700M target). Republic's advantage lies in non-accredited investor access and comprehensive ecosystem beyond crypto. However, broader focus reduces crypto-native specialization versus Echo's pure-play positioning.

PolkaStarter operates as a multi-chain decentralized launchpad with POLS token required for accessing private pools. Originally Polkadot-focused, PolkaStarter expanded to support multiple chains with creative auction mechanisms and password-protected pools. Staking rewards provide additional incentives. Like Seedify, PolkaStarter's token-gated model contradicts democratization goals—participants must buy and stake POLS tokens to access deals.

Echo's competitive advantages cluster around ten core differentiators. On-chain native infrastructure using USDC eliminates banking friction; traditional platforms struggle with token management complexity. Aligned incentives through 5% success fees and mandatory lead co-investment on same terms contrasts with platforms charging regardless of outcomes. SPV structure creates single cap table entries versus managing dozens of individual investors, dramatically reducing founder operational burden. Privacy and confidentiality via private groups without public marketing protects founder information—CoinList/Seedify's public sales create speculation divorced from fundamentals.

Access to top-tier deal flow through 80+ groups led by Paradigm, Coinbase Ventures, and other premier VCs differentiates Echo from retail-focused platforms. Community investors access same terms as institutions—same price, vesting, lock-ups—eliminating traditional VC preferential treatment. Democratization without token requirements avoids wealth-based or token-gated barriers; Seedify/PolkaStarter require expensive staking while Legion uses reputation scores. Speed of execution via on-chain infrastructure enables instant settlement; MegaETH raised $4.2M in 56 seconds while traditional platforms take weeks.

Crypto-native focus provides specialization advantages over generalist platforms like AngelList/Republic adapting from equity models. Echo's infrastructure purpose-built for crypto enables better UX, USDC funding, and smart contract integration. Regulatory compliance at scale via Sumsub enterprise KYC handles jurisdiction-based eligibility globally while maintaining compliance. Community-first philosophy driven by Cobie's 700K+ Twitter following and respected crypto voice creates trust and engagement—transparent communication about challenges (e.g., January 2025 public criticism of VCs blocking community sales) builds credibility versus corporate launchpad messaging.

Market positioning evolution demonstrates platform maturation. Early 2025 saw reported VC "hostility" toward community sales; mid-2025 witnessed top VCs (Paradigm, Coinbase Ventures, Hack VC) joining as group leads; October 2025 culminated in Coinbase's $375M acquisition. This trajectory shows Echo moved from challenger to established infrastructure layer that VCs now embrace rather than resist.

Network effects create growing competitive moat: more quality leads attract better deals which attract more followers which incentivizes more quality leads. Cobie's reputation capital provides trust anchor—investors believe he'll maintain quality standards and operational integrity. Infrastructure lock-in emerges as VCs and founders adopt platform workflows; switching costs increase with integration depth. Transaction history provides unique insights into deal quality and investor behavior, creating data advantages competitors lack.

Recent developments culminated in Coinbase acquisition and Sonar product launch​

The period from May 2025 through October 2025 witnessed rapid product innovation and strategic developments culminating in Echo's acquisition. May 27, 2025 marked Sonar's launch—a revolutionary self-hosted public token sale infrastructure enabling founders to deploy compliant token sales independently across Hyperliquid, Base, Solana, Cardano, and other blockchains without Echo's approval. Sonar's configurable compliance engine allows founders to set regional restrictions, KYC requirements, and accreditation checks based on jurisdiction, supporting flexible sale formats including auctions, options drops, points systems, and variable valuations.

March 13, 2025 established strategic Coinbase alignment when Coinbase Ventures became a Group Lead launching the "Base Ecosystem Group" to fund startups building on Base blockchain. This partnership enabled Coinbase Ventures to deploy capital from its Base Ecosystem Fund (which invested in 40+ projects) while democratizing access for Base community members. The move signaled deep strategic relationship months before acquisition discussions likely began.

June 21, 2025 saw Echo introduce Commitment Request Sale functionality, expanding sale format options beyond fixed allocations. This feature allows projects to gauge community demand before finalizing sale terms—particularly valuable for determining optimal pricing and allocation structures. August 12, 2025 witnessed Echo's first UK deal with Hoptrail raising at $5.85M valuation with 40+ high-net-worth crypto investors led by Path.eth, demonstrating geographic expansion beyond US-centric crypto markets.

October 16, 2025 brought news of a Monad airdrop for Echo platform users, rewarding early investors who participated through the platform. This precedent suggests projects may increasingly use Echo participation history as eligibility criteria for future token distributions—creating additional investor incentives beyond direct returns.

The October 21, 2025 Coinbase acquisition represents the defining strategic milestone. Coinbase acquired Echo for approximately $375 million (mix of cash and stock subject to customary purchase price adjustments) in its 8th acquisition of 2025. Cobie reflected on the journey: "I started Echo 2 years ago with a 95% chance of failing, but it became a noble failure worth attempting" that ultimately succeeded. Post-acquisition, Echo will remain a standalone platform under current branding initially while Sonar integrates into Coinbase's ecosystem, likely in early 2026.

Product milestones demonstrate exceptional execution. Platform statistics show over $200 million facilitated across 300+ completed deals since March 2024 launch—achieving this scale in just 18 months. Assets under management exceeded $100M by April 2025. MegaETH's December 2024 fundraise set records with $10M total raised split into rounds of $4.2M in 56 seconds and $5.8M in 75 seconds, validating platform liquidity and investor demand. Plasma's June 2025 XPL token sale using Sonar infrastructure demonstrated public sale product-market fit, selling 10% of supply at $500M fully diluted valuation with support for multiple stablecoins (USDT/USDC/USDS/DAI).

Technical infrastructure achieved key milestones including embedded wallet service integration via Privy for seamless authentication, eID Attestation Passport enabling one-click registration across Sonar sales, and configurable compliance tools for jurisdiction-specific requirements. The platform onboarded 30+ major crypto projects including Ethena, Monad, Morph, Usual, Hyperlane, Dawn, Initia, Fuel, Solayer, and others—validating quality deal flow and founder satisfaction.

Roadmap and future plans focus on three expansion vectors. Near-term (early 2026): Integrate Sonar into Coinbase platform, providing retail users direct access to early-stage token drops through Coinbase's trusted infrastructure. This integration represents Coinbase's primary acquisition rationale—completing its capital formation stack from token creation (LiquiFi acquisition, July 2025) through fundraising (Echo) to secondary trading (Coinbase exchange). Medium-term: Expand support to tokenized securities beyond crypto tokens, pending regulatory approvals. This move positions Echo/Coinbase for regulated security token offerings as frameworks mature. Long-term: Support real-world asset (RWA) tokenization and fundraising, enabling traditional assets like bonds, equities, and real estate to leverage blockchain-native capital formation infrastructure.

Strategic vision aligns with Coinbase's ambition to build the "Nasdaq of crypto"—a comprehensive onchain capital formation hub where projects can launch tokens, raise capital, list for trading, build community, and scale. Coinbase CEO Brian Armstrong and other executives view Echo as completing their full-stack solution spanning all capital market stages. Echo will remain standalone initially with eventual integration of "new ways for founders to access investors, and for investors to access opportunities" directly through Coinbase, per founder Cobie's statements.

Upcoming features include enhanced founder tools for accessing Coinbase's investor pools, expanded compliance and configuration options for diverse regulatory jurisdictions, and potential extensions supporting tokenized securities and RWA fundraising as regulatory clarity improves. The integration timeline suggests Sonar-Coinbase connectivity by early 2026 with subsequent expansions rolling out through 2026 and beyond.

Critical risks span regulatory uncertainty, market dependency, and competition intensity​

Regulatory risks dominate Echo's threat landscape. Securities laws vary dramatically by jurisdiction with US regulations particularly complex—determining whether token sales constitute securities offerings depends on asset-specific analysis under Howey test criteria. Echo structures private sales using SPVs and Regulation D exemptions while Sonar enables public sales with configurable compliance, but regulatory interpretations evolve unpredictably. The SEC's aggressive enforcement posture toward crypto platforms creates existential risk; a determination that Echo facilitated unregistered securities offerings could trigger enforcement actions, fines, or operational restrictions. International regulatory fragmentation compounds complexity—MiCA in Europe, diverse Asian approaches, and varying national frameworks require jurisdiction-specific compliance infrastructure. Echo's jurisdiction-based eligibility system mitigates this partially, but regulatory shifts could abruptly close major markets.

The self-hosted Sonar model introduces particular regulatory exposure. By enabling founders to deploy public token sales independently, Echo risks being deemed responsible for sales it doesn't directly control—similar to how Bitcoin developers face questions about network use for illicit activities despite not controlling transactions. If regulators determine Echo bears responsibility for compliance failures in self-hosted sales, the entire Sonar model faces jeopardy. Conversely, overly restrictive compliance requirements could make Sonar uncompetitive versus less compliant alternatives, pushing projects to offshore or decentralized platforms.

Market dependency risks reflect crypto's notorious volatility. Bear markets drastically reduce fundraising activity as project valuations compress and investor appetite evaporates. Echo's 5% success fee model creates pronounced revenue sensitivity to market conditions—no successful exits means zero revenue. The 2022-2023 crypto winter demonstrated that capital formation can drop 80-90% during extended downturns. While Echo launched during a recovery phase, a severe bear market could slash deal flow to unsustainable levels. Platform economics amplify this risk: with just 13 employees at acquisition, Echo maintained operational efficiency, but even lean structures require minimum revenue to sustain. Extended zero-revenue periods could force restructuring or strategic pivots.

Token performance correlation creates additional market risk. If tokens acquired through Echo consistently underperform, reputation damage could erode user trust and participation. Unlike traditional VC funds with diversified portfolios and patient capital, retail investors may react emotionally to early losses, creating platform attribution even when broader market conditions caused declines. Lock-up expirations for seed-stage tokens often trigger price crashes when early investors sell, potentially damaging Echo's association with "successful" projects that subsequently collapse.

Competitive risks intensify as crypto capital formation attracts multiple players. CoinList's AngelList partnership directly targets Echo's SPV model with established platforms and massive user bases (CoinList: 12M+ users). Legion's merit-based approach appeals to fairness narratives, potentially attracting projects uncomfortable with wealth-based group lead models. Traditional finance entry poses existential threats—if major investment banks or brokerage platforms launch compliant crypto fundraising products, their regulatory relationships and established investor bases could overwhelm crypto-native startups. Coinbase ownership mitigates this risk but also reduces Echo's independence and agility.

VC conflicts emerged visibly in January 2025 when reports indicated some VCs pressured portfolio companies against conducting public community sales, viewing these as dilutive to VC returns or preferential terms. While top VCs subsequently joined Echo as group leads, structural tension remains: VCs profit from concentration and information asymmetry while community platforms profit from democratization and transparency. If major VCs systematically block portfolio companies from using Echo/Sonar, deal flow quality degrades. The Coinbase acquisition partially resolves this—Coinbase Ventures' participation signals institutional acceptance—but doesn't eliminate underlying conflicts.

Technical risks include smart contract vulnerabilities, wallet security breaches, and infrastructure failures. While Echo uses audited third-party components (Privy, Veda) and established blockchains (Base/Ethereum), the attack surface grows with scale. Custody model creates particular sensitivity: although non-custodial via Shamir Secret Sharing and TEEs, any successful attack compromising user funds would devastate trust regardless of technical sophistication of security measures. KYC data breaches pose separate risks—Sumsub manages sensitive identity documentation that could expose thousands of users if compromised, creating legal liability and reputation damage.

Operational risks center on group lead quality and behavior. Echo's model depends on lead investors maintaining integrity—sharing quality deals, accurately representing terms, and prioritizing follower returns. Conflicts of interest could emerge if leads share deals where they hold material positions benefiting from community liquidity, or if they prioritize deals offering them advantageous terms unavailable to followers. Echo's "same terms" requirement mitigates this partially, but verification challenges remain. Lead reputation damage—if prominent leads face controversies, scandals, or regulatory issues—could taint associated groups and platform credibility.

Scalability challenges accompany growth. With 80+ groups and 300+ deals, Echo maintained quality control through invite-based models and Cobie's direct involvement. Scaling to 1,000+ simultaneous Sonar sales strains compliance infrastructure, customer support, and quality assurance systems. As Echo transitions from startup to Coinbase division, cultural shifts and bureaucratic processes could slow innovation pace or dilute the crypto-native ethos that drove early success.

Acquisition integration risks are substantial. Coinbase's acquisition history shows mixed results—some products thrive under corporate infrastructure while others stagnate or shut down. Cultural mismatches between Echo's lean, crypto-native, founder-driven culture and Coinbase's publicly-traded, compliance-heavy, process-oriented structure could create friction. If key personnel depart post-acquisition (particularly Cobie) or if Coinbase prioritizes other strategic initiatives, Echo could lose momentum. Regulatory complexity increases under public company ownership—Coinbase faces SEC scrutiny, potentially constraining Echo's experimental approaches or forcing conservative compliance interpretations that reduce competitiveness.

Overall assessment: Echo validated community capital formation, now faces execution challenges​

Strengths concentrate in four core areas. Platform-market fit is exceptional: $200M+ raised across 300+ deals in 18 months with $375M acquisition validates demand for democratized early-stage crypto investing. Aligned incentive structures—5% success fees, mandatory lead co-investment, same-terms requirements—create genuine commitment to user returns versus extractive platform tokenomics. Technical infrastructure balancing non-custodial security (Shamir Secret Sharing, TEEs) with seamless UX demonstrates sophisticated engineering. Strategic positioning between exclusive VC access and public launchpads filled a genuine market gap; the Coinbase acquisition provides distribution, capital, and regulatory resources to scale. Founder credibility through Cobie's reputation, Lido co-founder status, and 700K+ following creates trust anchor essential for handling early-stage capital.

Weaknesses cluster around centralization and regulatory exposure. Despite blockchain infrastructure, Echo operates with centralized governance through Gm Echo Manager Ltd (now Coinbase-owned) without token-based voting or DAO structures. This contradicts crypto's decentralization ethos while creating single points of failure. Regulatory vulnerability is acute—securities law ambiguity could trigger enforcement actions jeopardizing platform operations. The invite-based group lead model creates gatekeeping that contradicts full democratization rhetoric; access still depends on connections to established VCs and crypto figures. Limited geographic expansion reflects regulatory complexity; Echo primarily served crypto-native jurisdictions rather than mainstream markets.

Opportunities emerge from Coinbase integration and market trends. Sonar-Coinbase integration provides access to millions of retail users and established compliance infrastructure, dramatically expanding addressable market beyond crypto-native early adopters. Tokenized securities and RWA support positions Echo for traditional asset onchain migration as regulatory frameworks mature—potentially 100x larger market than pure crypto fundraising. International expansion becomes feasible with Coinbase's regulatory relationships and global exchange presence. Network effects strengthen as more quality leads attract better deals attracting more followers, creating self-reinforcing growth. Bear market opportunities allow consolidation if competitors like Legion or CoinList struggle while Echo leverages Coinbase resources to maintain operations.

Threats primarily stem from regulatory and competitive dynamics. SEC enforcement against unregistered securities offerings represents existential risk requiring constant compliance vigilance. VC gatekeeping could resume if institutional investors systematically block portfolio companies from community raises, degrading deal flow quality. Competitive platforms (CoinList, AngelList, Legion, traditional finance entrants) target identical market with varied approaches—some may achieve superior product-market fit or regulatory positioning. Market crashes eliminate fundraising appetite and revenue generation. Integration failures with Coinbase could dilute Echo's culture, slow innovation, or create bureaucratic barriers reducing agility.

As a web3 project assessment, Echo represents atypical positioning—more infrastructure platform than DeFi protocol, with tokenless business model contradicting most web3 norms. This positions Echo as crypto-native infrastructure serving the ecosystem rather than extractive protocol seeking token speculation. The approach aligns with crypto's stated values (transparency, user sovereignty, democratized access) better than many tokenized protocols that prioritize founder/VC enrichment. However, centralized governance and Coinbase ownership raise questions about genuine decentralization commitment versus strategic positioning within crypto markets.

Investment perspective (hypothetical since acquisition completed) suggests Echo validated a genuine need—democratizing early-stage crypto investing—with excellent execution and strategic outcome. The $375M exit in 18 months represents exceptional return for any participants, validating founder vision and operational execution. Risk-reward was highly favorable pre-acquisition; post-acquisition value depends on successful Coinbase integration and market expansion execution.

Broader ecosystem impact: Echo demonstrated that community capital formation can coexist with institutional investing rather than replacing it, creating complementary models where VCs and retail investors co-invest on same terms. The platform proved blockchain-native infrastructure enables superior UX and economics versus adapted equity models. Sonar's self-hosted sale approach with compliance-as-a-service represents genuinely innovative architecture that could reshape how token sales operate industry-wide. If Coinbase successfully integrates and scales Echo, the model could become standard infrastructure for onchain capital formation—realizing the vision of transparent, accessible, efficient capital markets that drove blockchain adoption narratives.

Critical success factors ahead: maintaining quality deal flow as scale increases, executing Sonar-Coinbase integration without cultural dilution, expanding to tokenized securities and RWAs without regulatory mishaps, preserving founder involvement and crypto-native culture under corporate ownership, and navigating inevitable bear market pressure with Coinbase resources enabling survival where competitors fail. Echo's next 18 months determine whether the platform becomes foundational infrastructure for onchain capital markets or a successful but contained Coinbase division serving niche markets.

The evidence suggests Echo solved real problems with genuine innovation, achieved remarkable traction validating product-market fit, and secured strategic ownership enabling long-term scaling. Risks remain substantial—particularly regulatory and integration challenges—but the platform demonstrated that democratized, blockchain-native capital formation represents viable infrastructure for crypto's maturation from speculative trading to productive capital allocation.

Coinbase deployed an unprecedented $3.3+ billion across 34+ investments and acquisitions in 2025, revealing a clear strategic roadmap for where crypto's largest regulated exchange sees the future. This analysis decodes those bets into actionable opportunities for web3 builders.

The "everything exchange" thesis drives massive capital deployment​

Coinbase's 2025 investment strategy centers on becoming a one-stop financial platform where users can trade anything, earn yield, make payments, and access DeFi—all with regulatory compliance as a competitive moat. CEO Brian Armstrong's vision: "Everything you want to trade, in a one-stop shop, on-chain." The company executed 9 acquisitions worth $3.3B (versus just 3 in all of 2024), while Coinbase Ventures deployed capital across 25+ portfolio companies. The $2.9B Deribit acquisition—crypto's largest deal ever—made Coinbase the global derivatives leader overnight, while the $375M Echo purchase positions them as a Binance-style launchpad for token fundraising. This isn't incremental expansion; it's an aggressive land grab across the entire crypto value chain.

The pace accelerated dramatically post-regulatory clarity. With the SEC lawsuit dismissed in February 2025 and a pro-crypto administration in place, Coinbase executives explicitly stated "regulatory clarity allows us to take bigger swings." This confidence shows in their acquisition strategy: nearly one deal per month in 2025, with CEO Brian Armstrong confirming "we are always looking at M&A opportunities" and specifically eyeing "international opportunities" to compete with Binance's global dominance. The company ended Q1 2025 with $9.9B in USD resources, providing substantial dry powder for continued dealmaking.

Five fortune-making themes emerge from the investment data​

Theme 1: AI agents need crypto payment rails (highest conviction signal)​

The convergence of AI and crypto represents Coinbase's single strongest investment theme across both corporate M&A and Coinbase Ventures. This isn't speculative—it's infrastructure for an emerging reality. Coinbase Ventures invested in Catena Labs ($18M), building the first regulated AI-native financial institution with an "Agent Commerce Kit" for AI agent identity and payments, co-founded by Circle's Sean Neville (USDC creator). They backed OpenMind ($20M) to connect "all thinking machines" through decentralized coordination, and funded Billy Bets (AI sports betting agent), Remix (AI-native gaming platform with 570,000+ players), and Yupp ($33M, a16z-led with Coinbase participation).

Strategically, Coinbase partnered with Google on stablecoin payments for AI applications (September 2025), and deployed AgentKit—a toolkit enabling AI agents to handle crypto payments through natural language interfaces. Armstrong reports 40% of Coinbase's daily code is now AI-generated, with a target exceeding 50%, and the company fired engineers who refused to use AI coding assistants. This isn't just investment thesis talk; they're operationally committed to AI as foundational technology.

Builder opportunity: Create middleware for AI agent transactions—think Stripe for AI agents. The gap exists between AI agents that need to transact (OpenAI's o1 wants to order groceries, Claude wants to book travel) and payment rails that verify agent identity, handle micropayments, and provide compliance. Build infrastructure for agent-to-agent commerce, AI agent wallets with smart permissions, or agent payment orchestration systems. Catena's $18M seed validates this market, but there's room for specialized solutions (B2B AI payments, agent expense management, AI subscription billing).

Theme 2: Stablecoin payment infrastructure is the $5B+ opportunity​

Coinbase made stablecoin payments infrastructure their top strategic priority for 2025, evidenced by Paradigm's Tempo blockchain raising $500M at a $5B valuation (joint incubation with Stripe), signaling institutional validation for this thesis. Coinbase Ventures invested heavily: Ubyx ($10M) for stablecoin clearing systems, Mesh (additional Series B funding, powering PayPal's "Pay with Crypto"), Zar ($7M) for cash-to-stablecoin exchanges in emerging markets, and Rain ($24.5M) for stablecoin-powered credit cards.

Coinbase executed strategic partnerships with Shopify (USDC payments to millions of merchants globally on Base), PayPal (PYUSD 1:1 conversions with zero platform fees), and JPMorgan Chase (80M+ customers able to fund Coinbase accounts with Chase cards, redeem Ultimate Rewards points for crypto in 2026). They launched Coinbase Payments with gasless stablecoin checkout and an open-source Commerce Payments Protocol handling refunds, escrow, and delayed capture—solving e-commerce complexities that prevented merchant adoption.

The strategic rationale is clear: $289B in stablecoins circulate globally (up from $205B at year start), with a16z reporting $46T in transaction volume ($9T adjusted) and 87% year-over-year growth. Armstrong predicts stablecoins will become "the money rail of the internet," and Coinbase is positioning Base as that infrastructure layer. The PNC partnership allows 7th-largest US bank customers to buy/sell crypto through bank accounts, while the JPMorgan partnership is even more significant—it's the first major credit card rewards program with crypto redemption.

Builder opportunity: Build stablecoin payment widgets for niche verticals. While Coinbase handles broad infrastructure, opportunities exist in specialized use cases: creator subscription billing in USDC (challenge Patreon/Substack with 24/7 instant settlement, no 30% fees), B2B invoice payments with smart contract escrow for international transactions (challenge Payoneer/Wise), gig economy payroll systems for instant contractor payments (challenge Deel/Remote), or emerging market remittance corridors with cash-in/cash-out points like Zar but focused on specific corridors (Philippines, Mexico, Nigeria). The key is vertical-specific UX that abstracts crypto complexity while leveraging stablecoin speed and cost advantages.

Theme 3: Base ecosystem = the new platform play (200M users, $300M+ deployed)​

Coinbase is building Base into crypto's dominant application platform, mirroring Apple's iOS or Google's Android strategies. The network reached 200M users approaching, $5-8B TVL (grew 118% YTD), 600k-800k daily active addresses, and 38M monthly active addresses representing 60%+ of total L2 activity. This isn't just infrastructure—it's an ecosystem land grab for developer mindshare and application distribution.

Coinbase deployed substantial capital: $40+ teams funded through the Base Ecosystem Fund (moving to Echo.xyz for onchain investing), the Echo acquisition ($375M) to create a Binance-style launchpad for Base projects, and Liquifi acquisition for token cap table management completing the full token lifecycle (creation → fundraising → secondary trading on Coinbase). Coinbase Ventures specifically funded Base-native projects: Limitless ($17M total, prediction markets with $500M+ volume), Legion ($5M, Base Chain launchpad), Towns Protocol ($3.3M via Echo, first public Echo investment), o1.exchange ($4.2M), and integrated Remix (AI gaming platform) into Coinbase Wallet.

Strategic initiatives include the Spindl acquisition (on-chain advertising platform founded by Facebook's former ads architect) to solve the "onchain discovery problem" for Base builders, and exploring a Base network token for decentralization (confirmed by Armstrong at BaseCamp 2025). The rebranding of Coinbase Wallet to "Base App" signals this shift—it's now an all-in-one platform combining social networking, payments, trading, and DeFi access. Coinbase also launched Coinbase One Member Benefits with $1M+ distributed in onchain rewards through partnerships with Aerodrome, PancakeSwap, Zora, Morpho, OpenSea, and others.

Builder opportunity: Build consumer applications exclusively on Base with confidence in distribution and liquidity. The pattern is clear: Base-native projects receive preferential treatment (Echo investments, Ventures funding, platform promotion). Specific opportunities: social-fi applications leveraging Base's low fees and Coinbase's user base (Towns Protocol validates this with $3.3M), prediction markets (Limitless hit $500M volume quickly, showing product-market fit), onchain gaming with instant microtransactions (Remix's 17M+ plays proves engagement), creator monetization tools (tipping, subscriptions, NFT memberships), or DeFi protocols solving mainstream use cases (simplified yield, automated portfolio management). Use AgentKit for AI integration, tap Spindl for user acquisition once available, and apply to the Base Ecosystem Fund for early capital.

Theme 4: Token lifecycle infrastructure captures massive value​

Coinbase assembled a complete token lifecycle platform through strategic acquisitions, positioning to compete directly with Binance and OKX launchpads while maintaining regulatory compliance as differentiation. The Echo acquisition ($375M) provides early-stage token fundraising and capital formation, Liquifi handles cap table management, vesting schedules, and tax withholdings (customers include Uniswap Foundation, OP Labs, Ethena, Zora), and Coinbase's existing exchange provides secondary trading and liquidity. This vertical integration creates powerful network effects: projects use Liquifi for cap tables, raise on Echo, list on Coinbase.

The strategic timing is significant. Coinbase executives stated the Liquifi acquisition was "enabled by regulatory clarity under Trump administration." This suggests compliant token infrastructure is a major opportunity as the US regulatory environment becomes more favorable. Liquifi's existing customers—the who's who of crypto protocols—validate the compliance-first approach for token management. Meanwhile, Echo's founder Jordan "Cobie" Fish expressed surprise at the acquisition: "I definitely didn't expect Echo to be sold to Coinbase, but here we are"—suggesting Coinbase is actively acquiring strategic assets before competitors recognize their value.

Builder opportunity: Build specialized tooling for compliant token launches. While Coinbase owns the full stack, opportunities exist in: regulatory compliance automation (cap table + SEC reporting integration, Form D filings for Reg D offerings, accredited investor verification APIs), token vesting contract templates with legal frameworks (cliff/vesting schedules, secondary sale restrictions, tax optimization), token launch analytics (holder concentration tracking, vesting cliffs visualization, distribution dashboards), or secondary market infrastructure for venture-backed tokens (OTC desks for locked tokens, liquidity before TGE). The key insight: regulatory clarity creates opportunities for compliance as a feature, not a burden.

Theme 5: Derivatives and prediction markets = the trillion-dollar bet​

Coinbase made derivatives their largest single investment category, spending $2.9B to acquire Deribit—making them the global leader in crypto derivatives by open interest and options volume overnight. Deribit processes $1+ trillion annual volume, maintains $60B+ open interest, and delivers positive Adjusted EBITDA consistently. This wasn't just scale acquisition; it was revenue diversification. Options trading is "less cyclical" (used for risk management in all markets), provides institutional access globally, and generated $30M+ transaction revenue in July 2025 alone.

Supporting this thesis, Coinbase acquired Opyn's leadership team (first DeFi options protocol, invented Power Perpetuals and Squeeth) to accelerate Verified Pools development on Base, and invested in prediction markets heavily: Limitless ($17M total, $500M+ volume, 25x volume growth Aug-Sep on Base) and The Clearing Company ($15M, founded by former Polymarket and Kalshi staff, building "onchain, permissionless and regulated" prediction markets). The pattern reveals sophisticated financial instruments onchain are the next growth vertical as crypto matures beyond spot trading.

CEO Brian Armstrong specifically noted that derivatives make revenue "less cyclical" and the company has "large balance sheet that can be put to use" for continued M&A. With the Deribit deal complete, Coinbase now offers the complete derivatives suite: spot, futures, perpetuals, options—positioning to capture institutional flows and sophisticated trader revenue globally.

Builder opportunity: Build prediction market infrastructure and applications for specific verticals. Limitless and The Clearing Company validate the market, but opportunities exist in: sports betting with full on-chain transparency (Billy Bets got Coinbase Ventures backing), political prediction markets compliant with CFTC (now that regulatory clarity exists), enterprise forecasting tools (internal prediction markets for companies, supply chain forecasting), binary options for micro-timeframes (Limitless shows demand for minutes/hours predictions), or parametric insurance built on prediction market primitives (weather derivatives, crop insurance). The key is regulatory-compliant design—Opyn settled with CFTC for $250K in 2023, and that compliance experience was viewed as an asset by Coinbase when acquiring the team.

What Coinbase is NOT investing in (the revealing gaps)​

Analyzing what's absent from Coinbase's 2025 portfolio reveals strategic constraints and potential contrarian opportunities. No investments in: (1) New L1 blockchains (exception: Subzero Labs, Paradigm's Tempo)—consolidation is expected, with focus on Ethereum L2s and Solana; (2) DeFi speculation protocols (yield farming, algorithmic stablecoins)—they want "sustainable business models" per leadership; (3) Metaverse/Web3 social experiments (exception: practical applications like Remix gaming)—the 2021 narrative is dead; (4) Privacy coins (exception: privacy infrastructure like Iron Fish team, Inco)—they differentiate compliant privacy features from anonymous cryptocurrencies; (5) DAO tooling broadly (exception: prediction markets with DAO components)—governance infrastructure isn't a priority.

The speculative DeFi gap is most notable. While Coinbase acquired Sensible's founders (DeFi yield platform) to "bring DeFi directly into Coinbase experience," they avoided algorithmic stablecoin protocols, high-APY farms, or complex derivative instruments that might attract regulatory scrutiny. This suggests builders should focus on DeFi with clear utility (payments, savings, insurance) rather than DeFi for speculation (leveraged yield farming, exotic derivatives on memecoins). The Sensible acquisition specifically valued their "why rather than how" approach—background automation for mainstream users, not 200% APY promises.

The metaverse absence also signals market reality. Despite Meta's continued investment and crypto's historical connection to virtual worlds, Coinbase isn't funding metaverse infrastructure or experiences. The closest investment is Remix (AI-native gaming with 17M+ plays), which is casual mobile gaming, not immersive VR. This suggests gaming opportunities exist in accessible, viral formats (Telegram mini-games, browser-based multiplayer, AI-generated games) rather than expensive 3D metaverse platforms.

Contrarian opportunity: The gaps reveal potential for highly differentiated plays. If you're building privacy-first applications, you could tap growing demand (Coinbase added Iron Fish team for private transactions on Base) while major competitors avoid the space due to regulatory concerns. If you're building DAO infrastructure, the lack of competition means clearer path to dominance—a16z mentioned "DUNA legal framework for DAOs" as a 2025 big idea but limited capital is flowing there. If you're building sustainable DeFi (real yield from productive assets, not ponzinomics), you differentiate from 2021's failed experiments while addressing genuine financial needs.

Competitive positioning reveals strategic differentiation​

Analyzing Coinbase against a16z crypto, Paradigm, and Binance Labs reveals clear strategic moats and whitespace opportunities. All three competitors converge on the same themes—AI x crypto, stablecoin infrastructure, infrastructure maturation—but with different approaches and advantages.

a16z crypto ($7.6B AUM, 169 projects) leads in policy influence and content creation, publishing the authoritative "State of Crypto" report and "7 Big Ideas for 2025." Their major 2025 investments include Jito ($50M, Solana MEV and liquid staking), Catena Labs (co-invested with Coinbase), and Azra Games ($42.7M, GameFi). Their thesis emphasizes stablecoins as killer app ($46T transaction volume, 87% YoY growth), institutional adoption, and Solana momentum (builder interest up 78% in 2 years). Their competitive edge: long-term capital (10+ year holds), 607x retail ROI track record, and regulatory advocacy shaping policy.

Paradigm ($850M third fund) differentiates through building capability—they're not just investors but builders. The Tempo blockchain ($500M Series A at $5B valuation, joint incubation with Stripe) exemplifies this: Paradigm co-founder Matt Huang is leading a payments-focused L1 with design partners including OpenAI, Shopify, Visa, Deutsche Bank, Revolut, Anthropic. They also invested $50M in Nous Research (decentralized AI training on Solana) at $1B valuation. Their edge: elite research capability, founder-friendly reputation, and willingness to incubate (Tempo is rare exception to investor-only model).

Binance Labs (46 investments in 2024, continuing 2025 momentum) operates with high volume + exchange integration strategy. Their portfolio includes 10 DeFi projects, 7 AI projects, 7 Bitcoin ecosystem projects, and they're pioneering DeSci/biotech (BIO Protocol). They're rebranding to YZi Labs with former Binance CEO CZ (Changpeng Zhao) returning to advisory/leadership role post-prison release. Their edge: global reach (not U.S.-centric), exchange liquidity, and high volume of smaller checks (pre-seed to seed focus).

Coinbase's differentiation: (1) Regulatory compliance as moat—partnerships with JPMorgan, PNC impossible for offshore competitors; (2) Vertical integration—owning exchange + L2 + wallet + ventures creates powerful distribution; (3) Base ecosystem platform effects—200M users gives portfolio companies immediate market access; (4) Traditional finance bridges—Shopify, PayPal, JPMorgan partnerships position crypto as complement to fiat, not replacement.

Builder positioning: If you're building compliant-by-design products, Coinbase is your strategic partner (they value regulatory clarity and can't invest in offshore experiments). If you're building experimental/edge tech without clear regulatory path, target a16z or Binance Labs. If you need deep technical partnership and incubation, approach Paradigm (but expect high bar). If you need immediate liquidity and exchange listing, Binance Labs offers clearest path. If you need mainstream user distribution, Coinbase's Base ecosystem and wallet integration provides unmatched access.

Seven actionable strategies for web3 builders in 2025-2026​

Strategy 1: Build on Base with AI integration (highest probability path)​

Deploy consumer applications on Base that leverage AgentKit for AI capabilities and apply to the Base Ecosystem Fund via Echo.xyz for early capital. The formula that's working: prediction markets (Limitless: $17M raised, $500M volume), social-fi (Towns Protocol: $3.3M via Echo), AI-native gaming (Remix: 17M+ plays, Coinbase Wallet integration). Use Base's low fees (gasless transactions for users), Coinbase's distribution (promote through Base App), and ecosystem partnerships (Aerodrome for liquidity, Spindl for user acquisition once available).

Concrete action plan: (1) Build MVP on Base testnet leveraging Commerce Payments Protocol for payments or AgentKit for AI features; (2) Generate traction metrics (Limitless had $250M+ volume shortly after launch, Remix had 570K+ players)—Coinbase invests in proven product-market fit, not concepts; (3) Apply to Base Ecosystem Fund grants (1-5 ETH for early-stage); (4) Once traction is proven, apply for Coinbase Ventures investment via Echo (Towns Protocol got $3.3M as first public Echo investment); (5) Integrate with Coinbase One Member Benefits program for user acquisition.

Risk mitigation: Base is Coinbase-controlled (centralization risk), but the ecosystem is growing 118% YTD and approaching 200M users—the network effects are real. If Base fails, the broader crypto market likely fails, so building here is betting on crypto's success generally. The key is building portable smart contracts that could migrate to other EVM L2s if needed.

Strategy 2: Create AI agent payment middleware (frontier opportunity)​

Build infrastructure for AI agent commerce focusing on agent identity, payment verification, micropayment handling, and compliance. The gap: AI agents can reason but can't transact reliably at scale. Catena Labs ($18M) is building regulated financial institution for agents, but opportunities exist in: agent payment orchestration (routing between chains, gas abstraction, batching), agent identity verification (proof this agent represents a legitimate entity), agent expense management (budgets, approvals, audit trails), agent-to-agent invoicing (B2B commerce between autonomous agents).

Concrete action plan: (1) Identify a niche vertical where AI agents need transactional capability immediately—customer service agents booking refunds, research agents purchasing data, social media agents tipping content, or trading agents executing orders; (2) Build minimal SDK that solves one painful integration (e.g., "give your AI agent a wallet with permission controls in 3 lines of code"); (3) Partner with AI platforms (OpenAI plugins, Anthropic integrations, Hugging Face) for distribution; (4) Target $18M seed round following Catena Labs' precedent, pitching to Coinbase Ventures, a16z crypto, Paradigm (all invested in AI x crypto heavily).

Market timing: Google partnered with Coinbase on stablecoin payments for AI applications (September 2025), validating this trend is now, not future speculation. OpenAI's o1 model demonstrates reasoning capability that will soon extend to transactional actions. Coinbase reports 40% of code is AI-generated—agents are already economically productive and need payment rails.

Strategy 3: Launch vertical-specific stablecoin payment applications (proven demand)​

Build Stripe-like payment infrastructure for specific industries, leveraging USDC on Base with Coinbase's Commerce Payments Protocol as foundation. The pattern that works: Mesh powers PayPal's "Pay with Crypto" (raised $130M+ including Coinbase Ventures), Zar ($7M) targets emerging market bodegas with cash-to-stablecoin, Rain ($24.5M) built stablecoin credit cards. The key: vertical specialization with deep industry knowledge beats horizontal payment platforms.

High-opportunity verticals: (1) Creator economy (challenge Patreon/Substack)—subscriptions in USDC with instant settlement, no 30% fees, global access, micropayment support; (2) B2B international payments (challenge Wise/Payoneer)—invoice payments with smart contract escrow, same-day settlement globally, programmable payment terms; (3) Gig economy payroll (challenge Deel/Remote)—instant contractor payments, compliance automation, multi-currency support; (4) Cross-border remittances (challenge Western Union)—specific corridors like Philippines/Mexico with cash-in/cash-out partnerships following Zar's model.

Concrete action plan: (1) Choose vertical where you have domain expertise and existing relationships; (2) Build on Coinbase Payments infrastructure (gasless stablecoin checkout, ecommerce engine APIs) to avoid reinventing base layer; (3) Focus on 10x better experience in your vertical, not marginal improvement (Mesh succeeded because PayPal integration made crypto payments invisible to users); (4) Target $5-10M seed round using Ubyx ($10M), Zar ($7M), Rain ($24.5M) as precedents; (5) Partner with Coinbase for distribution through bank partnerships (JPMorgan's 80M customers, PNC's customer base).

Go-to-market: Lead with cost savings (2-3% credit card fees → 0.1% stablecoin fees) and speed (3-5 day ACH → instant settlement), hide crypto complexity completely. Mesh succeeded because users experience "Pay with Crypto" in PayPal—they don't see blockchain, gas fees, or wallets.

Strategy 4: Build compliant token launch infrastructure (regulatory moat)​

Create specialized tooling for SEC-compliant token launches as regulatory clarity in the US creates opportunity for builders who embrace compliance. The insight: Coinbase paid $375M for Echo and acquired Liquifi to own token lifecycle infrastructure, suggesting massive value accrues to compliant token tooling. Current portfolio companies using Liquifi include Uniswap Foundation, OP Labs, Ethena, Zora—demonstrating sophisticated protocols choose compliance-first vendors.

Specific product opportunities: (1) Cap table + SEC reporting integration (Liquifi handles vesting, but gap exists for Form D filings, Reg D offerings, accredited investor verification); (2) Token vesting contract libraries with legal frameworks (cliff/vesting schedules audited for tax optimization, secondary sale restrictions enforced programmatically); (3) Token launch analytics for compliance teams (holder concentration monitoring, vesting cliff visualization, whale wallet tracking, distribution compliance dashboards); (4) Secondary market infrastructure for locked tokens (OTC desks for venture-backed tokens, liquidity provision before TGE).

Concrete action plan: (1) Partner with law firms specializing in token offerings (Cooley, Latham & Watkins) to build compliant-by-design products; (2) Target protocols raising on Echo platform as customers (they need cap table management, compliance reporting, vesting schedules); (3) Offer white-glove service initially (high-touch, expensive) to establish track record, then productize; (4) Position as compliance insurance—using your tools reduces regulatory risk; (5) Target $3-5M seed from Coinbase Ventures, Haun Ventures (regulatory focus), Castle Island Ventures (institutional crypto focus).

Market timing: Coinbase executives stated Liquifi acquisition was "enabled by regulatory clarity under Trump administration." This suggests 2025-2026 is the window for compliant token infrastructure before market gets crowded. The first movers with regulatory pedigree (law firm partnerships, FINRA/SEC expertise) will capture market.

Strategy 5: Create prediction market applications for specific domains (proven PMF)​

Build vertical-specific prediction markets following Limitless's success ($17M raised, $500M+ volume, 25x growth Aug-Sep) and The Clearing Company's validation ($15M, founded by Polymarket/Kalshi alumni). The opportunity: Polymarket proved macro demand, but specialized markets for specific domains remain underserved.

High-opportunity domains: (1) Sports betting with full transparency (Billy Bets got Coinbase Ventures backing)—every bet on-chain, provably fair odds, no counterparty risk, instant settlement; (2) Enterprise forecasting tools (internal prediction markets for companies)—sales forecasting, product launch predictions, supply chain estimates; (3) Political prediction markets with CFTC compliance (regulatory clarity now exists); (4) Scientific research predictions (which experiments will replicate, which drugs will pass trials)—monetize expert opinion; (5) Parametric insurance on prediction market primitives (weather derivatives for agriculture, flight delay insurance).

Concrete action plan: (1) Build on Base following Limitless's path (launched on Base, raised from Coinbase Ventures + Base Ecosystem Fund); (2) Start with binary options on short timeframes (minutes, hours, days) like Limitless—generates high volume, immediate settlement, clear outcomes; (3) Focus on mobile-first UX (prediction markets succeed when frictionless); (4) Partner with Opyn team at Coinbase for derivatives expertise (they're building Verified Pools for on-chain liquidity); (5) Target $5-10M seed using Limitless ($7M initial, $17M total) and The Clearing Company ($15M) as precedents.

Regulatory strategy: The Clearing Company is building "onchain, permissionless and regulated" prediction markets, suggesting regulatory compliance is possible. Work with CFTC-registered law firms from day one. Opyn settled with CFTC for $250K in 2023, and Coinbase viewed that compliance experience as an asset when acquiring the team—proving regulators will engage with good-faith actors.

Strategy 6: Develop privacy-preserving infrastructure for Base (underfunded frontier)​

Build privacy features for Base leveraging zero-knowledge proofs and fully homomorphic encryption, addressing the gap between compliance requirements and user privacy needs. Coinbase acquired Iron Fish team (privacy-focused L1 using ZKPs) in March 2025 specifically to develop "privacy pod" for private stablecoin transactions on Base, and Brian Armstrong confirmed (October 22, 2025) they're building private transactions for Base. This signals strategic priority for privacy while maintaining regulatory compliance.

Specific opportunities: (1) Private payment channels for Base (shielded USDC transfers for B2B transactions where companies need privacy but not anonymity); (2) Confidential smart contracts using FHE (Inco raised $5M strategic with Coinbase Ventures participation)—contracts that compute on encrypted data; (3) Privacy-preserving identity (Google building ZK identity per a16z report, Worldcoin proving demand)—users prove attributes without revealing identity; (4) Selective disclosure frameworks for DeFi (prove you're not sanctioned entity without revealing full identity).

Concrete action plan: (1) Collaborate with Iron Fish team at Coinbase (they're building privacy features for Base, opportunities for external tooling); (2) Focus on compliance-compatible privacy (selective disclosure, auditable privacy, regulatory backdoors for valid warrants)—not Tornado Cash-style full anonymity; (3) Target enterprise/institutional use cases first (corporate payments need privacy more than retail); (4) Build Inco integration for Base (Inco has FHE/MPC solution, partners include Circle); (5) Target $5M strategic round from Coinbase Ventures (Inco precedent), a16z crypto (ZK focus), Haun Ventures (privacy + compliance).

Market positioning: Differentiate from privacy coins (Monero, Zcash) which face regulatory hostility by emphasizing privacy for compliance (corporate trade secrets, competitive sensitivity, personal financial privacy) not privacy for evasion. Work with TradFi partners (banks need private transactions for commercial clients) to establish legitimate use cases.

Strategy 7: Build consumer-grade crypto products with TradFi integration (distribution hack)​

Create crypto products that integrate with traditional banking following Coinbase's partnership strategy: JPMorgan (80M customers), PNC (7th-largest US bank), Shopify (millions of merchants). The pattern: crypto infrastructure with fiat onramps integrated into existing user experiences captures mainstream adoption faster than crypto-native apps.

Proven opportunities: (1) Credit cards with crypto rewards (Coinbase One Card offers 4% Bitcoin rewards)—issue cards with stablecoin settlement, crypto cashback, travel rewards in crypto; (2) Savings accounts with crypto yield (Nook raised $2.5M from Coinbase Ventures)—offer high-yield savings backed by USDC/DeFi protocols; (3) Loyalty programs with crypto redemption (JPMorgan letting Chase Ultimate Rewards redeem for crypto in 2026)—partner with airlines, hotels, retailers for crypto reward redemption; (4) Business checking with stablecoin settlement (Coinbase Business account)—SMB banking with crypto payment acceptance.

Concrete action plan: (1) Partner with banks/fintechs rather than competing—license banking-as-a-service platforms (Unit, Treasury Prime, Synapse) with crypto integration; (2) Get state money transmitter licenses or partner with licensed entities (regulatory requirement for fiat integration); (3) Focus on net-new revenue for partners (attract crypto-native customers banks can't reach, increase engagement with rewards); (4) Use USDC on Base for backend settlement (instant, low-cost) while showing dollar balances to users; (5) Target $10-25M Series A using Rain ($24.5M) and Nook ($2.5M) as references.

Distribution strategy: Don't build another crypto exchange/wallet (Coinbase has distribution locked). Build specialized financial products that leverage crypto rails but feel like traditional banking products. Nook (built by 3 former Coinbase engineers) raised from Coinbase Ventures by focusing on savings specifically, not general crypto banking.

The fortune-making synthesis: where to focus now​

Synthesizing 34+ investments and $3.3B+ in capital deployment, the highest-conviction opportunities for web3 builders are:

Tier 1 (build immediately, capital is flowing):

• AI agent payment infrastructure: Catena Labs ($18M), OpenMind ($20M), Google partnership prove market
• Stablecoin payment widgets for specific verticals: Ubyx ($10M), Zar ($7M), Rain ($24.5M), Mesh ($130M+)
• Base ecosystem consumer applications: Limitless ($17M), Towns Protocol ($3.3M), Legion ($5M) show path

Tier 2 (build for 2025-2026, emerging opportunities):

• Prediction market infrastructure: Limitless/The Clearing Company validate, but niche domains underserved
• Token launch compliance tooling: Echo ($375M), Liquifi acquisitions signal value
• Privacy-preserving Base infrastructure: Iron Fish team acquisition, Brian Armstrong's commitment

Tier 3 (contrarian/longer-term, less competition):

• DAO infrastructure (a16z interested, limited capital deployed)
• Sustainable DeFi (differentiate from failed 2021 experiments)
• Privacy-first applications (Coinbase adding features, competitors avoiding due to regulatory concerns)

The "fortune-making" insight: Coinbase isn't just placing bets—they're building a platform (Base) with 200M users, distribution channels (JPMorgan, Shopify, PayPal), and full-stack infrastructure (payments, derivatives, token lifecycle). Builders who align with this ecosystem (build on Base, leverage Coinbase's partnerships, solve problems Coinbase's investments signal) gain unfair advantages: funding via Base Ecosystem Fund, distribution through Coinbase Wallet/Base App, liquidity from Coinbase exchange listing, partnership opportunities as Coinbase scales.

The pattern across all successful investments: real traction before funding (Limitless had $250M volume, Remix had 570K players, Mesh powered PayPal), regulatory-compatible design (compliance is competitive advantage, not burden), and vertical specialization (best horizontal platforms, win specific use cases first). The builders who will capture disproportionate value in 2025-2026 are those who combine crypto's infrastructure advantages (instant settlement, global reach, programmability) with mainstream UX (hide blockchain complexity, integrate with existing workflows) and regulatory pedigree (compliance from day one, not as afterthought).

The crypto industry is transitioning from speculation to utility, from infrastructure to applications, from crypto-native to mainstream. Coinbase's $3.3B+ in strategic bets reveals exactly where that transition is happening fastest—and where builders should focus to capture the next wave of value creation.

The A16Z State of Crypto 2025 report declares this "the year the world came onchain," marking crypto's transition from adolescent speculation to institutional utility. Released October 21, 2025, the report reveals that the crypto market has crossed $4 trillion for the first time, with traditional finance giants like BlackRock, JPMorgan, and Visa now actively offering crypto products. Most critically for builders, the infrastructure is finally ready—transaction throughput has grown 100x in five years to 3,400 TPS while costs plummeted from $24 to less than one cent on Layer 2s. The convergence of regulatory clarity (the GENIUS Act passed in July 2025), institutional adoption, and infrastructure maturation creates what A16Z calls "the enterprise adoption era."

The report identifies a massive conversion opportunity: 716 million people own crypto but only 40-70 million actively use it onchain. This 90-95% gap between passive holders and active users represents the primary target for web3 builders. Stablecoins have achieved clear product-market fit with $46 trillion in annual transaction volume—five times PayPal's throughput—and are projected to grow tenfold to $3 trillion by 2030. Meanwhile, emerging sectors like decentralized physical infrastructure networks (DePIN) are forecasted to reach $3.5 trillion by 2028, while the AI agent economy could hit $30 trillion by 2030. For builders, the message is unambiguous: the speculation era is over, and the utility era has begun.

Infrastructure reaches prime time after years of false starts​

The technical foundation that frustrated developers for years has fundamentally transformed. Blockchains now process 3,400 transactions per second collectively—on par with Nasdaq's completed trades and Stripe's Black Friday throughput—compared to fewer than 25 TPS five years ago. Transaction costs on Ethereum Layer 2 networks dropped from approximately $24 in 2021 to under a penny today, making consumer applications economically viable for the first time. This isn't incremental progress; it represents the crossing of a critical threshold where infrastructure performance no longer constrains mainstream product development.

The ecosystem dynamics have shifted dramatically as well. Solana experienced 78% growth in builder interest over two years, becoming the fastest-growing ecosystem with native applications generating $3 billion in revenue during the past year. Ethereum combined with its Layer 2s remains the top destination for new developers, though most economic activity has migrated to L2s like Arbitrum, Base, and Optimism. Notably, Hyperliquid and Solana now account for 53% of revenue-generating economic activity—a stark departure from historical Bitcoin and Ethereum dominance. This represents a genuine shift from infrastructure speculation to application-layer value creation.

Privacy and security infrastructure has matured substantially. Google searches for crypto privacy surged in 2025, while Zcash's shielded pool grew to nearly 4 million ZEC and Railgun's transaction flows surpassed $200 million monthly. The Office of Foreign Assets Control lifted sanctions on Tornado Cash, signaling regulatory acceptance of privacy tools. Zero-knowledge proof systems are now integrated across rollups, compliance tools, and even mainstream web services—Google launched a new ZK identity system this year. However, urgency is building around post-quantum cryptography, as roughly $750 billion in Bitcoin sits in addresses vulnerable to future quantum attacks, with the U.S. government planning to transition federal systems to post-quantum algorithms by 2035.

Stablecoins emerge as crypto's first undeniable product-market fit​

The numbers tell a story of genuine mainstream adoption. Stablecoins processed $46 trillion in total transaction volume over the past year, up 106% year-over-year, with $9 trillion in adjusted volume after filtering out bot activity—an 87% increase that represents five times PayPal's throughput. Monthly adjusted volume approached $1.25 trillion in September 2025 alone, a new all-time high. The stablecoin supply reached a record $300+ billion, with Tether and USDC accounting for 87% of the total. Over 99% of stablecoins are USD-denominated, and more than 1% of all U.S. dollars now exist as tokenized stablecoins on public blockchains.

The macroeconomic implications extend beyond transaction volume. Stablecoins collectively hold over $150 billion in U.S. Treasuries, making them the 17th largest holder—up from 20th last year—surpassing many sovereign nations. Tether alone holds roughly $127 billion in Treasury bills. This positioning strengthens dollar dominance globally at a time when many foreign central banks are reducing their Treasury holdings. The infrastructure enables transferring dollars in less than one second for less than one cent, functioning almost anywhere in the world without gatekeepers, minimum balances, or proprietary SDKs.

The use case has fundamentally evolved. In years past, stablecoins primarily settled speculative crypto trades. Now they function as the fastest, cheapest, most global way to send dollars, with activity largely uncorrelated with broader crypto trading volume—indicating genuine non-speculative use. Stripe's acquisition of Bridge (a stablecoin infrastructure platform) just five days after A16Z's previous report declared stablecoins had found product-market fit signaled that major fintech companies recognized this shift. Circle's billion-dollar IPO in 2025, which saw shares increase 300%, marked the arrival of stablecoin issuers as legitimate mainstream financial institutions.

For builders, A16Z partner Sam Broner identifies specific near-term opportunities: small and medium businesses with painful payment costs will adopt first. Restaurants and coffee shops where 30 cents per transaction represents significant margin loss on captive audiences are prime targets. Enterprises can add the 2-3% credit card fee directly to their bottom line by switching to stablecoins. However, this creates new infrastructure needs—builders must develop solutions for fraud protection, identity verification, and other services credit card companies currently provide. The regulatory framework is now in place following the GENIUS Act's passage in July 2025, which established clear stablecoin oversight and reserve requirements.

Converting crypto's 617 million inactive users becomes the central challenge​

Perhaps the report's most striking finding is the massive gap between ownership and usage. While 716 million people globally own crypto (up 16% from last year), only 40-70 million actively use crypto onchain—meaning 90-95% are passive holders. Mobile wallet users reached an all-time high of 35 million, up 20% year-over-year, but this still represents only a fraction of owners. Monthly active addresses onchain actually decreased 18% to 181 million, suggesting some cooling despite overall ownership growth.

Geographic patterns reveal distinct opportunities. Mobile wallet usage grew fastest in emerging markets: Argentina saw a 16-fold increase over three years amid its currency crisis, while Colombia, India, and Nigeria showed similarly strong growth driven by currency hedging and remittance use cases. Developed markets like Australia and South Korea lead in token-related web traffic but skew heavily toward trading and speculation rather than utility applications. This bifurcation suggests builders should pursue fundamentally different strategies based on regional needs—payment and value storage solutions for emerging markets versus sophisticated trading infrastructure for developed economies.

The passive-to-active conversion represents a fundamentally easier problem than acquiring entirely new users. As A16Z partner Daren Matsuoka emphasizes, these 617 million people already overcame the initial hurdles of acquiring crypto, understanding wallets, and navigating exchanges. They represent a pre-qualified audience waiting for applications worth their attention. The infrastructure improvements—particularly the cost reductions making microtransactions viable—now enable the consumer experiences that can drive this conversion.

Critically, the user experience remains crypto's Achilles heel despite technical progress. Self-custodying secret keys, connecting wallets, navigating multiple network endpoints, and parsing industry jargon like "NFTs" and "zkRollups" still create massive barriers. As the report acknowledges, "it's still too complicated"—the fundamentals of crypto UX remain largely unchanged since 2016. Distribution channels also constrain growth, as Apple's App Store and Google Play block or limit crypto applications. Emerging alternatives like World App's marketplace and Solana's fee-free dApp Store have shown traction, with World App onboarding hundreds of thousands of users within days of launch, but porting web2's distribution advantages onchain remains difficult outside of Telegram's TON ecosystem.

Institutional adoption transforms competitive dynamics for builders​

The list of traditional finance and tech giants now offering crypto products reads like a who's who of global finance: BlackRock, Fidelity, JPMorgan Chase, Citigroup, Morgan Stanley, Mastercard, Visa, PayPal, Stripe, Robinhood, Shopify, and Circle. This isn't experimental dabbling—these are core product offerings generating substantial revenue. Robinhood's crypto revenue reached 2.5 times its equities trading business in Q2 2025. Bitcoin ETFs collectively manage $150.2 billion as of September 2025, with BlackRock's iShares Bitcoin Trust (IBIT) cited as the most traded Bitcoin ETP launch of all time. Exchange-traded products hold over $175 billion in onchain crypto holdings, up 169% from $65 billion a year ago.

Circle's IPO performance captures the shift in sentiment. As one of 2025's top-performing IPOs with a 300% share price increase, it demonstrated that public markets now embrace crypto-native companies building legitimate financial infrastructure. The 64% increase in stablecoin mentions in SEC filings since regulatory clarity arrived shows major corporations are actively integrating this technology into their operations. Digital Asset Treasury companies and ETPs combined now hold approximately 10% of both Bitcoin and Ethereum token supplies—a concentration of institutional ownership that fundamentally changes market dynamics.

This institutional wave creates both opportunities and challenges for crypto-native builders. The total addressable market has expanded by orders of magnitude—the Global 2000 represents vast enterprise software spend, cloud infrastructure spend, and assets under management now accessible to crypto startups. However, builders face a harsh reality: these institutional customers have fundamentally different buying criteria than crypto-native users. A16Z explicitly warns that "'the best products sell themselves' is a long-lived fallacy" when selling to enterprises. What worked with crypto-native customers—breakthrough technology and community alignment—gets you only 30% of the way with institutional buyers focused on ROI, risk mitigation, compliance, and integration with legacy systems.

The report dedicates substantial attention to enterprise sales as a critical competency crypto builders must develop. Enterprises make ROI-driven decisions, not technology-driven ones. They demand structured procurement processes, legal negotiations, solutions architecture for integration, and ongoing customer success support to prevent implementation failures. Career risk considerations matter for internal champions—they need cover to justify blockchain adoption to skeptical executives. Successful builders must translate technical features into measurable business outcomes, master pricing strategies and contract negotiations, and build sales development teams sooner rather than later. As A16Z emphasizes, best GTM strategies are built through iteration over time, making early investment in sales capabilities essential.

Building opportunities concentrate in proven use cases and emerging convergence​

The report identifies specific sectors already generating substantial revenue and showing clear product-market fit. Perpetual futures volumes increased nearly eight-fold in the past year, with Hyperliquid alone generating over $1 billion in annualized revenue—rivaling some centralized exchanges. Nearly one-fifth of all spot trading volume now happens on decentralized exchanges, demonstrating that DeFi has moved beyond a niche. Real-world assets reached a $30 billion market, growing nearly fourfold in two years as U.S. Treasuries, money-market funds, private credit, and real estate get tokenized. These aren't speculative bets; they're operational businesses generating measurable revenue today.

DePIN represents one of the highest-conviction forward-looking opportunities. The World Economic Forum projects the decentralized physical infrastructure networks category will grow to $3.5 trillion by 2028. Helium's network already serves 1.4 million daily active users across 111,000+ user-operated hotspots providing 5G cellular coverage. The model of using token incentives to bootstrap physical infrastructure networks has proven viable at scale. Wyoming's DUNA legal structure provides DAOs with legitimate incorporation, liability protection, and tax clarity—removing a major obstacle that previously made operating these networks legally precarious. Builders can now pursue opportunities in wireless networks, distributed energy grids, sensor networks, and transportation infrastructure with clear regulatory frameworks.

The AI-crypto convergence creates perhaps the most speculative but potentially transformative opportunities. With 88% of AI-native company revenue controlled by just OpenAI and Anthropic, and 63% of cloud infrastructure controlled by Amazon, Microsoft, and Google, crypto offers a counterbalance to AI's centralizing forces. Gartner estimates the machine customer economy could reach $30 trillion by 2030 as AI agents become autonomous economic participants. Protocol standards like x402 are emerging as financial backbones for autonomous AI agents to make payments, access APIs, and participate in markets. World has verified over 17 million people for proof-of-personhood, establishing a model for differentiating humans from AI-generated content and bots—increasingly critical as AI proliferates.

A16Z's Eddy Lazzarin highlights decentralized autonomous chatbots (DACs) as a frontier: chatbots running in Trusted Execution Environments that build social media followings, generate income from their audiences, manage crypto assets, and operate entirely autonomously. These could become the first truly autonomous billion-dollar entities. More pragmatically, AI agents need wallets to participate in DePIN networks, execute high-value gaming transactions, and operate their own blockchains. The infrastructure for AI-agent wallets, payment rails, and autonomous transaction capabilities represents greenfield territory for builders.

Strategic imperatives separate winners from the also-rans​

The report outlines clear strategic shifts required for success in crypto's maturation phase. The most fundamental is what A16Z calls "hiding the wires"—successful products don't explain their underlying technology, they solve problems. Email users don't think about SMTP protocols; they click send. Credit card users don't consider payment rails; they swipe. Spotify delivers playlists, not file formats. The era of expecting users to understand EIPs, wallet providers, and network architectures is over. Builders must abstract away technical complexity, design simply, and communicate clearly. Over-engineering breeds fragility; simplicity scales.

This connects to a paradigm shift from infrastructure-first to user-first design. Previously, crypto startups chose their infrastructure—specific chains, token standards, wallet providers—which then constrained their user experience. With maturing developer tooling and abundant programmable blockspace, the model inverts: define the desired end-user experience first, then select appropriate infrastructure to enable it. Chain abstraction and modular architecture democratize this approach, allowing designers without deep technical knowledge to enter crypto. Critically, startups no longer need to over-index on specific infrastructure decisions before finding product-market fit—they can focus on actually finding product-market fit and iterate on technical choices as they learn.

The "build with, not from scratch" principle represents another strategic shift. Too many teams have been reinventing the wheel—building bespoke validator sets, consensus protocols, programming languages, and execution environments. This wastes massive time and effort while often producing specialized solutions that lack baseline functionality like compiler optimizations, developer tooling, AI programming support, and learning materials that mature platforms provide. A16Z's Joachim Neu expects more teams to leverage off-the-shelf blockchain infrastructure components in 2025—from consensus protocols and existing staked capital to proof systems—focusing instead on differentiating product value where they can add unique contributions.

Regulatory clarity enables a fundamental shift in token economics. The GENIUS Act's passage establishing stablecoin frameworks and the CLARITY Act's progression through Congress create a clear path for tokens to generate revenue via fees and accrue value to tokenholders. This completes what the report calls the "economic loop"—tokens become viable as "new digital primitives" akin to what websites were for previous internet generations. Crypto projects brought in $18 billion last year, with $4 billion flowing to tokenholders. With regulatory frameworks established, builders can design sustainable token economies with real cash flows rather than speculation-dependent models. Structures like Wyoming's DUNA give DAOs legal legitimacy, enabling them to engage in economic activity while managing tax and compliance obligations that previously operated in gray areas.

The enterprise sales imperative nobody wants to hear​

Perhaps the report's most uncomfortable message for crypto-native builders is that enterprise sales capability has become non-negotiable. A16Z dedicates an entire companion piece to making this case, emphasizing that the customer base has fundamentally changed from crypto insiders to mainstream enterprises and traditional institutions. These customers don't care about breakthrough technology or community alignment—they care about return on investment, risk mitigation, integration with existing systems, and compliance frameworks. The procurement process involves lengthy negotiations over pricing models, contract duration, termination rights, support SLAs, indemnification, liability limits, and governing law considerations.

Successful crypto companies must build dedicated sales functions: sales development representatives to generate qualified leads from mainstream customers, account executives to interface with prospects and close deals, solutions architects who are deep technical experts for customer integration, and customer success teams for post-sale support. Most enterprise integration projects fail, and when they do, customers blame the product regardless of whether process issues caused the failure. Building these functions "sooner than later" is essential because best sales strategies are built through iteration over time—you can't suddenly develop enterprise sales capability when demand overwhelms you.

The mindset shift is profound. In crypto-native communities, products often found users through organic community growth, crypto Twitter virality, or Farcaster discussions. Enterprise customers don't hang out in these channels. Discovery and distribution require structured outbound strategies, partnerships with established institutions, and traditional marketing. Messaging must translate from crypto jargon into business language that CFOs and CTOs understand. Competitive positioning requires demonstrating specific, measurable advantages rather than relying on technical purity or philosophical alignment. Every step of the sales process requires deliberate strategy, not just charm or product benefits—it's "games of inches," as A16Z describes it.

This represents an existential challenge for many crypto builders who entered the space precisely because they preferred building technology to selling it. The meritocratic ideal that great products naturally find users through viral growth has proven insufficient at the enterprise level. The cognitive and resource demands of enterprise sales compete directly with engineering-focused cultures. However, the alternative is ceding the massive enterprise opportunity to traditional software companies and financial institutions that excel at sales but lack crypto-native expertise. Those who master both technical excellence and sales execution will capture disproportionate value as the world comes onchain.

Geographic and demographic patterns reveal distinct building strategies​

Regional dynamics suggest wildly different approaches for builders depending on their target markets. Emerging markets show the strongest growth in actual crypto usage rather than speculation. Argentina's 16-fold increase in mobile wallet users over three years directly correlates with its currency crisis—people use crypto for value storage and payments, not trading. Colombia, India, and Nigeria follow similar patterns, with growth driven by remittances, currency hedging, and accessing dollar-denominated stablecoins when local currencies prove unreliable. These markets demand simple, reliable payment solutions with local fiat on-ramps and off-ramps, mobile-first design, and resilience to intermittent connectivity.

Developed markets like Australia and South Korea exhibit opposite behavior—high token-related web traffic but focus on trading and speculation rather than utility. These users demand sophisticated trading infrastructure, derivatives products, analytics tools, and low-latency execution. They're more likely to engage with complex DeFi protocols and advanced financial products. The infrastructure requirements and user experiences for these markets differ fundamentally from emerging market needs, suggesting specialization rather than one-size-fits-all approaches.

The report notes that 70% of crypto developers were offshore due to previous regulatory uncertainty in the United States, but this is reversing with improved clarity. The GENIUS Act and CLARITY Act signal that building in the U.S. is viable again, though most developers remain distributed globally. For builders targeting Asian markets specifically, the report emphasizes that success requires physical local presence, alignment with local ecosystems, and partnerships for legitimacy—remote-first approaches that work in Western markets often fail in Asia where relationships and on-the-ground presence matter more than the underlying technology.

Navigating the memecoin phenomenon and speculation critique​

The report directly addresses the elephant in the room: 13 million memecoins launched in the past year. However, launches have cooled substantially—56% fewer in September compared to January—as regulatory improvements reduce the appeal of pure speculation plays. Notably, 94% of memecoin owners also own other crypto, suggesting memecoins function more as an onramp or gateway than a destination. Many users enter crypto through memecoins drawn by social dynamics and potential returns, then gradually explore other applications and use cases.

This data point matters because critics of crypto often point to memecoin proliferation as evidence the entire industry remains a speculative casino. Stephen Diehl, a prominent crypto skeptic, published "The Case Against Crypto in 2025" arguing that crypto is "intellectual three-card monte designed to exhaust and confuse critics" that "morphs into whatever its marks most desperately want to see." He highlights use in sanctions evasion, narcotics trade money laundering, and the fact that "the only consistent thread is the promise of getting rich through speculation rather than productive work."

The A16Z report implicitly rebuts this by emphasizing the shift from speculation to utility. Stablecoin transaction volume being largely uncorrelated with broader crypto trading volumes demonstrates genuine non-speculative use. The enterprise adoption wave by JPMorgan, BlackRock, and Visa suggests legitimate institutions have found real applications beyond speculation. The $3 billion in revenue generated by Solana native applications and Hyperliquid's $1 billion in annualized revenue represent actual value creation, not just speculative trading. The convergence toward proven use cases—payments, remittances, tokenized real-world assets, decentralized infrastructure—indicates market maturation even as speculative elements persist.

For builders, the strategic implication is clear: focus on use cases with genuine utility that solve real problems rather than speculative instruments. The regulatory environment is improving for legitimate applications while becoming more hostile to pure speculation. Enterprise customers demand compliance and legitimate business models. The passive-to-active user conversion depends on applications worth using beyond price speculation. Memecoins may serve as marketing or community-building tools, but sustainable businesses will be built on infrastructure, payments, DeFi, DePIN, and AI integration.

What mainstream really means and why 2025 is different​

The report's declaration that crypto has "left its adolescence and entered adulthood" isn't mere rhetoric—it reflects concrete shifts across multiple dimensions. Three years ago when A16Z started this report series, blockchains were "much slower, more expensive, and less reliable." Transaction costs that made consumer applications economically nonviable, throughput that limited scale to niche use cases, and reliability issues that prevented enterprise adoption have all been addressed through Layer 2s, improved consensus mechanisms, and infrastructure optimization. The 100x throughput improvement represents crossing from "interesting technology" to "production-ready infrastructure."

The regulatory transformation particularly stands out. The United States reversed its "formerly antagonistic stance toward crypto" through bipartisan legislation. The GENIUS Act providing stablecoin clarity and the CLARITY Act establishing market structure passed with support from both parties—a remarkable achievement for a previously polarizing issue. Executive Order 14178 reversed earlier anti-crypto directives and created a cross-agency task force. This isn't just permission; it's active support for the industry's development balanced with investor protection concerns. Other jurisdictions are following suit—the UK is exploring issuing government bonds onchain through the FCA sandbox, signaling that sovereign debt tokenization may become normalized.

The institutional participation represents genuine mainstreaming rather than exploratory pilots. When BlackRock's Bitcoin ETP becomes the most traded launch of all time, when Circle IPOs with a 300% pop, when Stripe acquires stablecoin infrastructure for over a billion dollars, when Robinhood generates 2.5x more revenue from crypto than equities—these aren't experiments. These are strategic bets by sophisticated institutions with massive resources and regulatory scrutiny. Their participation validates crypto's legitimacy and brings distribution advantages that crypto-native companies cannot match. If development continues along current trajectories, crypto becomes deeply integrated into everyday financial services rather than remaining a separate category.

The shift in use cases from speculation to utility represents perhaps the most important transformation. In years past, stablecoins primarily settled crypto trades between exchanges. Now they're the fastest, cheapest way to send dollars globally, with transaction patterns uncorrelated with crypto price movements. Real-world assets aren't a future promise; $30 billion in tokenized Treasuries, credit, and real estate operate today. DePIN isn't vaporware; Helium serves 1.4 million daily users. Perpetual futures DEXs don't just exist; they generate over $1 billion in annual revenue. The economic loop is closing—networks generate real value, fees accrue to tokenholders, and sustainable business models emerge beyond speculation and venture capital subsidy.

The path forward requires uncomfortable evolution​

The synthesis of A16Z's analysis points to an uncomfortable truth for many crypto-native builders: succeeding in crypto's mainstream era requires becoming less crypto-native in approach. The technical purity that built the infrastructure must give way to user experience pragmatism. The community-driven go-to-market that worked in crypto's early days must be supplemented—or replaced—by enterprise sales capabilities. The ideological alignment that motivated early adopters won't matter to enterprises evaluating ROI. The transparent, on-chain operations that defined crypto's ethos must sometimes be hidden behind simple interfaces that never mention blockchains.

This doesn't mean abandoning crypto's core value propositions—permissionless innovation, composability, global accessibility, and user ownership remain differentiating advantages. Rather, it means recognizing that mainstream adoption requires meeting users and enterprises where they are, not expecting them to climb the learning curve crypto natives already conquered. The 617 million passive holders and billions of potential new users won't learn to use complex wallets, understand gas optimization, or care about consensus mechanisms. They'll use crypto when it solves their problems better than alternatives while being equally or more convenient.

The opportunity is immense but time-limited. Infrastructure readiness, regulatory clarity, and institutional interest have aligned in a rare confluence. However, traditional financial institutions and tech giants now have clear paths to integrate crypto into their existing products. If crypto-native builders don't capture the mainstream opportunity through superior execution, well-resourced incumbents with established distribution will. The next phase of crypto's evolution won't be won by the most innovative technology or the purest decentralization—it will be won by the teams that combine technical excellence with enterprise sales execution, abstract complexity behind delightful user experiences, and focus relentlessly on use cases with genuine product-market fit.

The data supports cautious optimism. Market capitalization at $4 trillion, stablecoin volumes rivaling global payment networks, institutional adoption accelerating, and regulatory frameworks emerging suggest the foundation is solid. DePIN's projected growth to $3.5 trillion by 2028, the AI agent economy potentially reaching $30 trillion by 2030, and stablecoins scaling to $3 trillion all represent genuine opportunities if builders execute effectively. The shift from 40-70 million active users toward the 716 million who already own crypto—and eventually billions beyond—is achievable with the right products, distribution strategies, and user experiences. Whether crypto-native builders rise to meet this moment or cede the opportunity to traditional tech and finance will define the industry's next decade.

Conclusion: The infrastructure era ends, the application era begins​

A16Z's State of Crypto 2025 report marks an inflection point—the problems that constrained crypto for years have been substantially solved, revealing that infrastructure was never the primary barrier to mainstream adoption. With 100x throughput improvements, sub-penny transaction costs, regulatory clarity, and institutional support, the excuse that "we're still building the rails" no longer applies. The challenge has shifted entirely to the application layer: converting passive holders to active users, abstracting complexity behind intuitive experiences, mastering enterprise sales, and focusing on use cases with genuine utility rather than speculative appeal.

The most actionable insight is perhaps the most prosaic: crypto builders must become great product companies first and crypto companies second. The technical foundation exists. The regulatory frameworks are emerging. The institutions are entering. What's missing are applications that mainstream users and enterprises want to use not because they believe in decentralization but because they work better than alternatives. Stablecoins achieved this by being faster, cheaper, and more accessible than traditional dollar transfers. The next wave of successful crypto products will follow the same pattern—solving real problems with measurably superior solutions that happen to use blockchains rather than leading with blockchain technology seeking problems.

The 2025 report ultimately poses a challenge to the entire crypto ecosystem: the adolescent phase where experimentation, speculation, and infrastructure development dominated is over. Crypto has the tools, the attention, and the opportunity to remake global financial systems, upgrade payment infrastructure, enable autonomous AI economies, and create genuine user ownership of digital platforms. Whether the industry graduates to genuine mainstream utility or remains a niche speculative asset class depends on execution over the next few years. For builders entering or operating in web3, the message is clear—the infrastructure is ready, the market is open, and the time to build products that matter is now.

Four leading voices in crypto—a veteran VC, an exchange strategist, a billion-dollar founder, and an industry journalist—reveal the patterns, frameworks, and hard-won lessons that separate explosive growth from stagnation. This comprehensive research synthesizes insights from Haseeb Qureshi (Managing Partner at Dragonfly), Cecilia Hsueh (Chief Strategy Officer at MEXC), SY Lee (Co-Founder and CEO of Story Protocol), and Ciaran Lyons (Cointelegraph journalist), drawing from their recent interviews, presentations, and operational experiences between 2023-2025.

The consensus is striking: 10x growth doesn't come from marginal technical improvements but from solving real problems, building for genuine users, and creating systematic advantages through capital efficiency, distribution, and network effects. Whether through VC investment strategy, exchange partnerships, founder execution, or pattern recognition across hundreds of projects, these four perspectives converge on fundamental truths about scaling in crypto.

Funding and valuation: Strategic capital beats dumb money every time​

The power law reality of crypto investing​

Haseeb Qureshi's investment philosophy centers on an uncomfortable truth: returns in crypto follow power law distributions, making diversification across high-conviction bets the optimal strategy. "Diversification is powerful. If returns are power of law distributed the optimal strategy is to be maximally diversified," he explained on the UpOnly Podcast. But diversification doesn't mean spray-and-pray investing—Dragonfly makes 10 high-conviction thesis-driven investments and monitors them carefully to validate or invalidate hypotheses.

The math is compelling. Willy Woo told Ciaran Lyons that infrastructure startups offer 100-1,000x returns compared to Bitcoin's remaining 50x potential to reach a $100 trillion market cap. Woo's own seed investment in Exodus Wallet at a $4 million valuation in 2016 now trades at just under $1 billion on NYSE American—a 250x return. "You have to be strategic for the startup to bring you onto the investment cap table. The valuations are very low, typically between four and 20 million for the whole value, and hopefully it becomes a unicorn," Woo explained.

SY Lee demonstrated this power law in action with Story Protocol: founding in 2022 to a $2.25 billion valuation by August 2024, raising $140 million across three rounds (seed: $29.3M, Series A: $25M, Series B: $80M). All three rounds were led by a16z Crypto, with participation from Polychain Capital, Hashed, Samsung Next, and strategic entertainment investors including Bang Si-hyuk (HYBE/BTS founder) and Endeavor.

Strategic investors provide distribution, not just capital​

Cecilia Hsueh's experience across Phemex (sold for $440M), Morph (raised $20M seed), and now MEXC reveals a critical insight: exchanges have evolved from pure trading venues into ecosystem accelerators. At TOKEN2049 Singapore (October 2025), she outlined how exchanges provide three asymmetric advantages: immediate market access, liquidity depth, and user distribution to millions of active traders.

The numbers validate this thesis. MEXC's Story Protocol campaign generated 1.59 billion USDT in trading volume, while their Ethena investment of $66 million ($16M strategic investment + $20M USDe purchases + $30M additional) made MEXC the second-largest centralized exchange holder of USDe TVL. "Capital alone doesn't create ecosystems. Projects need immediate market access, liquidity depth, and user distribution. Exchanges are uniquely positioned to provide all three," Cecilia emphasized.

This capital-plus-distribution model compresses timelines dramatically. Traditional VC model requires: Capital → Development → Launch → Marketing → Users. Exchange partner model delivers: Capital + Immediate Distribution → Rapid Validation → Iteration. The Story Protocol campaign would have taken months or years to build organically; exchange partnership compressed the timeline to weeks.

Avoiding the over-raising trap and selecting smart money​

Haseeb warns founders emphatically: "Raising too much money usually spells doom for a company. We all know of huge ICO projects that over-raised capital and are now sitting on their hands, unsure how to iterate." The problem isn't just financial discipline—over-funded teams stagnate and devolve into politics and infighting rather than customer feedback and iteration.

The delta between smart and dumb money is particularly large in crypto. "There have been many horror stories about investors kicking out founders, suing the company, or blocking subsequent rounds," Haseeb noted. His advice: diligence your investors as thoroughly as they diligence you. Evaluate portfolio fit, value-add beyond capital, regulatory sophistication, and long-term commitment. Early valuation matters far less than picking the right partners—"You'll make most of the money later on, not on your early fundraises."

SY Lee exemplified strategic investor selection. By choosing a16z Crypto for all three rounds, he gained consistent support and avoided the common pitfall of investor conflicts. a16z's Chris Dixon praised Lee's "combination of big-picture vision and world-class tactical execution," noting that PIP Labs is "building the necessary infrastructure for a new covenant in the AI age." The strategic entertainment investors (Bang Si-hyuk, Endeavor) provided domain expertise in the $80 trillion IP market Story targets.

Capital efficiency lessons from crisis launches​

Cecilia's Phemex experience reveals how constraint breeds efficiency. Launching in March 2020 during the COVID crash forced rapid iteration and lean operations, yet the exchange reached $200 million in profit by year two. "I really felt the power of crypto. Because for us, it was really, really fast starting. We just launched our platform three months ago, and you will see super-fast growth after three months," she reflected.

The lesson extends to Morph's fundraising strategy: secure $20M seed round by March 2024 (six months from September 2023 founding), then launch mainnet October 2024 (13 months total). "Our proactive financial strategy is crafted to tackle an aggressive roadmap and product development timeline," the team announced. This discipline contrasts sharply with over-capitalized projects that lose urgency.

Haseeb reinforces this bear market advantage: "Crypto's most successful projects have historically been built during downcycles." When speculation subsides, teams focus on real users and product-market fit rather than token price. "DeFi is not a story about today—it's a story about the future. Most protocols today make no money," he emphasized at Consensus 2022, encouraging founders to build through market downturns.

User and community growth: Distribution strategy beats marketing spend​

The fundamental shift from marketing to infrastructure-driven growth​

SY Lee's $440 million exit from Radish Fiction taught him an expensive lesson about growth models. "I was drawing a lot of my venture capital money out for marketing. It's kind of a zero sum war for attention to get more users and subscribers," he told TechCrunch. Traditional content platforms—from Netflix to Disney—pour billions into content, but it's really billions into marketing in a zero-sum attention war.

Story Protocol was built on the opposite premise: create systematic infrastructure that generates compounding network effects rather than linear marketing spend. "We should first establish the ecosystem and then continuously upgrade the technology based on the needs of developers and users, rather than building technical infrastructure that no one uses," Lee explained. This ecosystem-first approach yielded 200+ teams building on Story, 20+ million IP assets registered, and 2.5 million users on flagship app Magma—all before mainnet launch.

Ciaran Lyons' coverage validates this shift. Projects succeeding in 2024-2025 are games-first with "invisible" blockchain, not blockchain-first projects. Pudgy Penguins' Pudgy Party game hit 500,000 downloads in two weeks (launched August 2025), with gamer feedback praising: "It has just the right amount of Web3 and doesn't force you to buy tokens or NFTs from the start... I've played 300+ Web3 games and it's safe to say @PlayPudgyParty is nothing short of a masterpiece."

Wired's review of Off The Grid didn't even mention crypto—it was simply a great battle royale game that happened to use blockchain. The game topped Epic Games' free-to-play PC games list ahead of Fortnite and Rocket League, generating over 1 million wallets per day in the first five days with 53 million transactions.

Geographic arbitrage and tailored growth strategies​

Cecilia Hsueh's international experience reveals a critical insight most Western founders miss: user motivations differ fundamentally between emerging and developed markets. At TOKEN2049 Dubai, she explained: "Given my experience, people in emerging countries care about revenue generation. Can this application help me to get money or make profit? Then they are happy to use it. But in developed countries, they care about innovation. They want to be the first to use the product. It's a very different mindset."

This geographic framework demands tailored product messaging and go-to-market strategies:

Emerging markets (Asia, Latin America, Africa): Lead with earnings potential, yield opportunities, and immediate utility. Airdrops, staking rewards, and play-to-earn mechanics resonate strongly. Axie Infinity's 2021 peak of 2.8 million daily active users came primarily from Philippines, Indonesia, and Vietnam where players earned more than local wages.

Developed markets (US, Europe, Australia): Lead with innovation, technical superiority, and first-mover advantage. Early access programs, exclusive features, and technological differentiation drive adoption. These users tolerate friction for cutting-edge products.

Haseeb emphasizes that crypto is global from day one, requiring presence in US, Europe, and Asia simultaneously. "Unlike the Internet, crypto is global from day one. That implies that no matter where your company is founded, you must eventually build a global team with boots on the ground around the world," he wrote. This isn't optional—different regions have distinct community dynamics, regulatory environments, and user preferences that demand local expertise.

Community building that cuts out farmers and rewards genuine users​

The 2024-2025 airdrop meta evolved dramatically toward anti-Sybil measures and genuine user rewards. SY Lee positioned Story Protocol firmly against farming: "Any attempts to game the system will be blocked, preserving the integrity of the ecosystem." Their four-week Badge Program on Odyssey Testnet deliberately excluded farmers, with no fees required to claim incentives to prioritize accessibility.

Story's three-tier OG (Original Gangster) community program—Seekers (junior), Adepts (intermediate), Ascendants (senior)—bases status purely on genuine contribution. "There is no 'fast track' for OG roles; everything is determined by community activity, and prolonged inactivity or misconduct may result in the cancellation of OG roles," the team announced.

Haseeb's analysis supports this shift: "Airdropping for vanity metrics is dead. Those aren't really going to users, they're going to industrialized farmers." His 2025 predictions identified a two-track token distribution world:

Track 1 - Clear north star metrics (exchanges, lending protocols): Distribute tokens purely off points-based systems. Don't worry about farmers—if they're generating your core KPI (trading volume, lending TVL), they're actual users. Token becomes rebate/discount on core activity.

Track 2 - No clear metrics (L1s, L2s, social protocols): Move toward crowdsales for majority distribution, with smaller airdrops for social contributions. This prevents industrialized farming of metrics that don't correlate with genuine usage.

The network effects flywheel​

Cecilia's Phemex case study shows the power of geographic network effects. Scaling from zero to 2 million active users across 200+ countries in approximately three years required simultaneous multi-region launch rather than sequential expansion. Crypto users expect global liquidity from day one—launching in just one geography creates arbitrage opportunities and fragmented liquidity.

MEXC's 40+ million users across 170+ countries provide ecosystem projects with instant global distribution. When MEXC lists a token through their Kickstarter program, projects gain access to 750,000+ social media followers, promotion in seven languages, and $60,000 worth of marketing support. The requirement: demonstrate on-chain liquidity and attract 300 Effective First-Time Traders (EFFTs) within 30 days.

Story Protocol's approach leverages IP network effects specifically. As SY Lee explained: "As the IP grows, there is more incentive for contributors to join the network." The "IP Legos" framework enables remixing where derivative creators automatically pay royalties to original creators, creating positive-sum collaboration rather than zero-sum competition. This contrasts with traditional IP systems where licensing requires one-to-one legal negotiations that don't scale.

Product strategy and market positioning: Solve real problems, not technical masturbation​

The idea maze and avoiding cached bad ideas​

Haseeb Qureshi's framework of the "Idea Maze" (borrowed from Balaji Srinivasan) demands founders study domain history exhaustively before building. "A good founder is thus capable of anticipating which turns lead to treasure and which lead to certain death... study the other players in the maze, both living and dead," he wrote. This requires understanding not just current competitors but also historical failures, technological constraints, and the forces that move walls in the maze.

He explicitly identifies cached bad ideas that repeatedly fail: new fiat-backed stablecoins (unless you're a major institution), generic "blockchain for X" solutions, and Ethereum-killers launching after the window closed. The common thread: these ideas ignore market evolution and power law concentration effects. "When it comes to project performance: Winners keep winning," Haseeb observed. Network effects and liquidity advantages compound for market leaders.

SY Lee attacks the problem from a founder's perspective with scathing criticism of directionless technical optimization: "It's all just infrastructure masturbation—another minor tweak, another DeFi chain, another DeFi app. Everyone's doing the same thing, chasing esoteric technical improvements." Story Protocol emerged from identifying a real, urgent problem: AI models are "stealing all your data without your consent, and benefiting from it without sharing the rewards with the original creators."

This AI-IP convergence crisis is existential for creators. "In the past, Google was kind enough to drive some traffic to your content, and that still killed many local newspapers. The current state of AI completely destroys the incentive to create original IP for all of us," Lee warned. Story's solution—programmable IP infrastructure—directly addresses this crisis rather than optimizing existing infrastructure.

The blockchains as cities mental model​

Haseeb's "Blockchains Are Cities" framework (published January 2022) provides powerful mental models for positioning and competitive strategy. Smart contract chains are physically constrained like cities—they cannot expand to infinite block space because they require many independent small validators. This constraint creates specialization and cultural differentiation.

Ethereum = New York City: "Everyone loves to complain about Ethereum. It's expensive, congested, slow... only the wealthy can afford to transact there. Ethereum is New York City," Haseeb wrote. But it has all the biggest DeFi protocols, most TVL, hottest DAOs and NFTs—it's the undisputed cultural and financial center. High costs signal status and filter for serious applications.

Solana = Los Angeles: Significantly cheaper and faster, built with new technology, unburdened by Ethereum's historical decisions. Attracts different applications (consumer-facing, high-throughput) and developer culture.

Avalanche = Chicago: Third-largest city, finance-focused, aggressive and fast-growing with institutional partnerships.

NEAR = San Francisco: Built by ex-Google engineers, embraces maximum decentralization ideals, developer-friendly.

This framework illuminates three scaling paths: (1) Interoperability protocols like Polkadot/Cosmos building highway systems connecting towns, (2) Rollups/L2s building skyscrapers for vertical scaling, (3) New L1s founding entirely new cities with different assumptions. Each path has distinct trade-offs and target users.

Product-market fit discovery through ecosystem-first thinking​

Cecilia Hsueh's Morph L2 experience revealed that most Layer 2 solutions are technology-oriented, focusing solely on optimizing technology. She told Cryptonomist: "However, we believe that technology should serve users and developers. We should first establish the ecosystem and then continuously upgrade the technology based on the needs of developers and users, rather than building technical infrastructure that no one uses."

The data supports this critique: a significant portion of Layer 2 projects see transactions per second (TPS) less than 1 despite technical sophistication. "Many blockchain projects, despite their technical sophistication, struggle to engage users due to a lack of practical and appealing applications," Cecilia observed. This led Morph to focus on consumer applications—gaming, social, entertainment, finance—rather than DeFi-only positioning.

Story Protocol made the analogous decision to build its own L1 rather than deploy on existing chains. Co-founder Jason Zhao explained: "There are a significant number of improvements we've made to optimize for IP, such as cheap graph traversal and the proof of creativity protocol as well as the programmable IP license." The team "wasn't keen on launching just another DeFi project," instead thinking through "how to build a blockchain that didn't focus on money."

Differentiation through UX and user-centric design​

Haseeb identifies UX as probably the most important frontier for crypto: "I suspect more and more businesses will differentiate on user experience rather than core technology." He references Taylor Monahan's philosophy of "Building Confidence Not Dapps" and Austin Griffith's crypto onboarding innovations as north stars.

Ciaran Lyons' coverage demonstrates this empirically. Successful 2024-2025 projects share "invisible blockchain" design philosophy. Pudgy Penguins' game director worked at major studios on Fortnite and God of War—bringing AAA gaming UX standards to Web3 rather than blockchain-first design. The result: mainstream gamers play without noticing crypto elements.

Failed projects exhibit the opposite pattern. Pirate Nation shut down after one year despite being "fully onchain." Developers admitted: "The game has not attracted enough of an audience to justify continued investment and operation... The demand for the fully onchain version of Pirate Nation simply isn't there to sustain operation indefinitely." Multiple projects shut down in 2025 (Tokyo Beast after one month, Age of Dino, Pirate Nation) following this pattern: technical purity without user demand equals failure.

Positioning strategy: Zigging when others are zagging​

Sei founder Jeff Feng told Ciaran Lyons about the opportunity in contrarian positioning: "The beauty of it is, that's why a lot of other chains and ecosystems, like Solana and Telegram, they're actually pulling away from it, they're spending less time, less investment, because there isn't a clear, sort of obvious token moving... And that's precisely where the opportunity lies, by taking advantage of zigging when others are zagging."

Axie Infinity co-founder Jiho expanded this thesis: "The proliferation of this logic ['Web3 gaming is dead'] is very good for the remaining hardcore builders in the space... You want attention and capital to concentrate around a few winners." During the previous cycle, "There was only one option for capital to go into for ~90% of the cycle"—now "This setup is emerging once again."

This contrarian mindset requires conviction about future states, not present conditions. Haseeb advises: "You need to think about what will become more valuable in the future when your product finally reaches maturity. This requires vision and some conviction about how the future of crypto will evolve." Build for two years from now, not for today's crowded opportunities.

Token economics and tokenomics design: Community distribution creates value, concentration destroys it​

The foundational principle: tokens are not equity​

Haseeb Qureshi's tokenomics philosophy begins with a principle that founders repeatedly miss: "Tokens are not equity. The point of your token distribution is to distribute your token as widely as possible. Tokens become valuable because they are distributed." This inverts traditional startup thinking. "Owning 80% of a company would make you a savvy owner, but owning 80% of a token would make that token worthless."

His distribution guidelines set clear boundaries:

• Team allocation: No more than 15-20% of token supply
• Investor allocation: No more than 30% of supply
• Reasoning: "If VCs own more than that, your coin risks being panned as a 'VC coin.' You want it to be more widely distributed."

SY Lee implemented this philosophy rigorously at Story Protocol. Total supply: 1 billion $IP tokens, distributed as:

• 58.4% to ecosystem/community (38.4% ecosystem and community + 10% foundation + 10% initial incentives)
• 21.6% to early backers/investors
• 20% to core contributors/team

Critically, early backers and core contributors face 12-month cliff plus 48-month unlock schedule while community allocations unlock from day one of mainnet. This inverted structure prioritizes community advantage over insider advantage.

Fair launch mechanics that eliminate insider advantage​

Story Protocol's "Big Bang" token launch introduced a novel fair launch principle: "No entity, including early backers or team members, can claim staking rewards before the community. Rewards are only accessible after the 'Big Bang' event, marking the end of the Singularity Period."

This contrasts sharply with typical token launches where insiders stake immediately, accumulating rewards before public access. Story's locked vs. unlocked token structure adds further nuance:

• Unlocked tokens: Full transfer rights, 1x staking rewards
• Locked tokens: Cannot be transferred/traded, 0.5x staking rewards (but equal voting power)
• Both types face slashing if validators misbehave

The mechanism design prevents insider dumping while maintaining governance participation. Lee's team committed: "Staking rewards will follow a fair launch principle, with no early staking rewards for the foundation or early contributors—the community earns rewards simultaneously with everyone else."

The two-track token distribution model​

Haseeb's 2025 predictions identified bifurcation in token distribution strategy based on whether projects have clear north star metrics:

Track 1 - Clear metrics (exchanges, lending protocols):

• Distribute tokens purely via points-based systems
• Don't worry if users are "farmers"—if they generate your core KPI, they're actual users
• Token serves as rebate/discount on core activity
• Example: Exchange volume, lending TVL, DEX swaps

Track 2 - No clear metrics (L1s, L2s, social protocols):

• Move toward crowdsales for majority token distribution
• Smaller airdrops for genuine social contributions
• Prevents industrialized farming of vanity metrics
• Quote: "Airdropping for vanity metrics is dead. Those aren't really going to users, they're going to industrialized farmers."

This framework resolves the core tension: how to reward genuine users without enabling Sybil attacks. Projects with quantifiable, valuable actions can use points systems. Projects measuring social engagement or "community strength" must use alternative distribution to avoid metric gaming.

Token utility evolution from speculation to sustainable value​

Immutable co-founder Robbie Ferguson told Ciaran Lyons that regulatory certainty is unlocking enterprise token launches: "I can tell you right now, we're in conversations with multibillion-dollar gaming companies about them launching a token, which we would have been laughed out of those rooms 12 months ago." The US Digital Asset Market Clarity Act created enough certainty for institutional players.

Ferguson emphasized the utility shift: Gaming giants now see tokens as "ways to have incentives, loyalty schemes and retention for their players and an increasingly competitive acquisition environment"—not primarily as speculative assets. This mirrors airlines' frequent flyer programs and credit card points systems, but with tradability and composability.

Axie Infinity's Jiho observed maturation in gaming tokens: "Gaming has become less of a speculative asset" since the previous cycle. In 2021, "Gaming was also known as almost the most speculative thing... why are you guys trying to hold gaming to a higher standard than the rest of the space?" By 2024, games need to be "fully fleshed out for investors to take the crypto token seriously."

Story Protocol's $IP token demonstrates multi-utility design:

1. Network security: Staking for validators (Proof-of-Stake consensus)
2. Gas token: Pay for transactions on Story L1
3. Governance: Token holders participate in protocol decisions
4. Deflationary mechanism: "With each transaction, $IP is burned, creating the potential for a deflationary token economy under specific conditions."

Tokenomics red flags and sustainability​

Lady of Crypto told Ciaran Lyons about the critical importance of deep tokenomics research: "A chart may look great in a specific period in time, but if you've not done your research into that project like tokenomics, they're responsible for the long-term health project." She emphasized vesting schedules specifically—"a chart may look good, but in two days, there could be a large percentage of the supply that's going to be released."

Haseeb warns against "hallucination yield" and "vapor valuations" where market maker games create fake liquidity for backdoor exits. OTC discounts, fake float, and circular trading fuel Ponzi-like systems that inevitably collapse. "Ponzi schemes don't have network effects (they are not networks). They don't even have economies of scale—the bigger they get, the harder they are to sustain," he explained to CoinDesk.

The low FDV (fully diluted valuation) strategy gained traction in 2024-2025. Immortal Rising 2's executive told Lyons: "We are opting with a low FDV strategy so that instead of providing empty hype, we can really scale and grow with the community." This avoids high valuations creating immediate sell pressure from early investors seeking exits.

MEXC's listing criteria reveal what exchanges evaluate for token sustainability:

1. Token distribution: Concentrated ownership (80%+ in few wallets) signals rug risk—automatic rejection
2. On-chain liquidity: Minimum $20K daily DEX volume preferred before CEX listing
3. Market making quality: Assessment of volatility, price stability, manipulation resistance
4. Community authenticity: Real engagement vs. fake Telegram followers (10K+ bots with no activity = rejection)

Operational excellence: Execution beats strategy, but you need both​

Team building starts with co-founder selection​

Haseeb's research shows that "The #1 cause of company failures is cofounder breakups." His remedy: "The best teams are comprised of friends, or otherwise, people who have worked together before." This isn't about technical skills alone—it's about stress-tested relationships that survive the inevitable conflicts, pivots, and market crashes.

SY Lee exemplified complementary co-founder selection by partnering with Jason Zhao (Stanford CS, Google DeepMind). Lee brought content, IP, and business expertise from scaling Radish Fiction to a $440 million exit. Zhao brought AI/ML depth from DeepMind, product management experience, and philosophy background (Oxford lectures). This combination perfectly matched Story's mission of building AI-era IP infrastructure.

Haseeb emphasizes that wrestling with crypto requires deep technology chops—"a solo non-technical founder rarely gets funded." But technical excellence isn't sufficient. a16z's Chris Dixon praised SY Lee's "combination of big-picture vision and world-class tactical execution," noting both dimensions are necessary for scaling.

Motivation matters more than money​

Haseeb observes a paradox: "Startups that are primarily motivated by making money seldom do. I don't know why—it just doesn't seem to bring out the best in people." Better motivation: "Startups that are motivated by an obsessive desire to change something in the world... tend to survive when the going gets tough."

SY Lee frames Story Protocol as addressing an existential crisis: "Big Tech is stealing IP without consent and capturing all the profit. First, they will gobble up your IP for their AI models without any compensation." This mission-driven framing sustained the team through 11 years of creator advocacy work (Lee founded creator platform Byline in 2014, then Radish in 2016, then Story in 2022).

Cecilia Hsueh's personal journey illustrates resilience through motivation. After co-founding Phemex to $200 million profit, "Conflicts within the founding team eventually led me to walk away in 2022. I still remember watching the World Cup that year. In a bar, I saw ads from exchanges that had started later than us covering the stadium screens. I broke down crying," she shared. Yet this setback led her to co-found Morph and eventually join MEXC as CSO—demonstrating that long-term commitment to the space matters more than any single venture's outcome.

Execution speed and the proactive financial strategy​

Story Protocol's timeline demonstrates execution velocity: Founded September 2023, secured $20M seed by March 2024 (six months), launched mainnet October 2024 (13 months from founding). This required what the team called "proactive financial strategy crafted to tackle an aggressive roadmap and product development timeline."

Cecilia's Phemex experience shows extreme execution speed: "We just launched our platform three months ago, and you will see super-fast growth after three months." Within three months of March 2020 launch, significant traction emerged. By year two, $200 million in profit. This wasn't luck—it was disciplined execution during a crisis that forced prioritization.

Haseeb warns against the opposite problem: over-raising leads teams to "stagnate and devolve into politics and infighting" rather than staying focused on customer feedback and rapid iteration. The optimal funding amount provides 18-24 months of runway to reach clear milestones, not enough to lose urgency but sufficient to execute without constant fundraising distraction.

Key metrics and north star focus​

Haseeb emphasizes measuring what matters: customer acquisition cost (CAC) and CAC-payback period, viral loop coefficients, and core north star metric depending on vertical (trading volume for exchanges, TVL for lending, DAUs for applications). Avoid vanity metrics that can be gamed by farmers unless farming actually drives your core business model.

MEXC evaluates projects on specific KPIs for listing success:

• Trading volume: Daily and weekly trends post-listing
• User acquisition: Must attract 300 Effective First-Time Traders (EFFTs) within 30 days for full support
• Liquidity depth: Order book depth and spread quality
• Community engagement: Real social media activity vs. bot-driven follower counts

Story Protocol's pre-mainnet traction demonstrated product-market fit through:

• 200+ teams building applications before public launch
• 20+ million IP assets registered in closed beta
• 2.5 million users on flagship app Magma (collaborative art platform)

These metrics validate genuine demand rather than speculative token interest. Applications building before token launch signal conviction in infrastructure value.

Communication and transparency as operational priorities​

Ciaran Lyons' coverage repeatedly identifies communication quality as differentiator between successful and failed projects. MapleStory Universe faced community backlash over poor communication about hacker issues. In contrast, Parallel TCG pledged: "We've heard your feedback loud and clear: consistent, transparent communication is just as important as the games themselves." They committed to "Regular updates, clear context, and open town halls to keep players in the loop."

Axie Infinity's Jiho told Lyons about his community leadership philosophy: "I think it is unfair to expect the community to help if you're not leading by example... I try to lead by example, by performing the behaviors that I would like to see." This approach built him 515,300 X followers and sustained Axie through multiple market cycles.

Haseeb recommends progressive decentralization with transparent milestones: "If you're building pure crypto, open source your code. Once you're post-launch, if you want any hope of being eventually decentralized, this is a prerequisite." Gradually extract the company from central operational roles while maintaining security and growth. Learn from MakerDAO, Cosmos, and Ethereum's phased approaches.

Global operations from day one​

Haseeb is unequivocal: "Unlike the Internet, crypto is global from day one. That implies that no matter where your company is founded, you must eventually build a global team with boots on the ground around the world." Crypto users expect global liquidity and 24/7 operations—launching in just one geography creates arbitrage opportunities and fragments liquidity.

Geographic requirements:

• United States: Regulatory engagement, institutional partnerships, Western developer community
• Europe: Regulatory innovation (Switzerland, Portugal), diverse markets
• Asia: Largest crypto adoption, trading volume, developer talent (Korea, Singapore, Hong Kong, Vietnam, Philippines)

Cecilia's Phemex reached 2 million active users across 200+ countries precisely by building global infrastructure from launch. MEXC's 40+ million users across 170+ countries provide similar distribution power—but this required boots-on-ground teams relaying regional needs and building local awareness.

SY Lee positioned Story Protocol with global footprint: headquarters in Palo Alto for Western tech ecosystem, but hosted inaugural Origin Summit in Seoul to tap into Korea's $13.6 billion cultural IP exports, 30% crypto trading penetration, and world-leading robot density. Brought together HYBE, SM Entertainment, Polygon, Animoca Brands—bridging entertainment, blockchain, and finance.

Operational pivots and knowing when to shut down​

Successful teams adapt when conditions change. Axie University (thousands of scholars at peak) saw user counts collapse after crypto crash. Co-founder Spraky told Lyons they pivoted from Axie-only to multi-game guild ecosystem: "We call ourselves AXU now because we are here as a guild not only for Axie but for all the games out there." This adaptation kept the community alive through difficult market conditions.

Conversely, knowing when to shut down prevents wasted resources. Pirate Nation developers made the difficult call: "The game has not attracted enough of an audience to justify continued investment and operation... The demand for the fully onchain version of Pirate Nation simply isn't there to sustain operation indefinitely." Pseudonymous commentator Paul Somi told Lyons: "Sad to see this go. Building is hard. Much respect for making the tough decision."

This operational discipline—pivoting when there's traction, shutting down when there isn't—separates experienced operators from those burning through runway without progress. As Haseeb notes: "Winners keep winning" because they recognize patterns early and make decisive changes.

Common patterns across successful 10x projects​

Pattern 1: Problem-first, not technology-first​

All four thought leaders converge on this insight: Projects achieving 10x growth solve urgent, real problems rather than optimizing technology for its own sake. SY Lee's critique resonates: "It's all just infrastructure masturbation—another minor tweak, another DeFi chain, another DeFi app." Story Protocol emerged from identifying the AI-IP crisis—creators losing attribution and value as AI models train on their content without compensation.

Haseeb's "Five Unsolved Problems of Crypto" framework (identity, scalability, privacy, interoperability, UX) suggests "Almost all crypto projects that are successful in the long term solved one of these problems." Projects that merely copy competitors with minor tweaks fail to generate sustainable traction.

Pattern 2: Real users, not influencers or vanity metrics​

Haseeb warns explicitly: "Building for crypto influencers. In most industries, if you build a product that influencers will love, millions of other customers will follow. But crypto is a weird space—the preferences of crypto influencers are very unrepresentative of crypto customers." Reality: Most crypto users hold coins on exchanges, care about making money and good UX more than maximum decentralization.

Ciaran Lyons documented the "invisible blockchain" pattern: successful 2024-2025 projects make crypto elements optional or hidden. Pudgy Penguins' 500,000 downloads came from gamers who praised: "It has just the right amount of Web3 and doesn't force you to buy tokens or NFTs from the start." Off The Grid topped Epic Games charts without reviewers mentioning blockchain.

Story Protocol's anti-Sybil stance operationalized this: "Any attempts to game the system will be blocked, preserving the integrity of the ecosystem." Measures to "cut out farmers, increasing rewards for true users" reflected commitment to genuine adoption over vanity metrics.

Pattern 3: Distribution and capital efficiency over marketing spend​

SY Lee's lesson from Radish—$440 million exit but "drawing a lot of my venture capital money out for marketing"—led to Story's infrastructure-first model. Build systematic advantages that create compounding network effects rather than linear marketing spend. 200+ teams building on Story, 20+ million IP assets registered before mainnet launch demonstrated product-market fit without massive marketing budgets.

Cecilia's exchange partnership model provides instant distribution that would take months or years to build organically. MEXC campaigns generating 1.59 billion USDT trading volume for Story Protocol, or making MEXC second-largest USDe holder through coordinated user campaigns, deliver immediate scale impossible through traditional growth marketing.

Haseeb's portfolio companies demonstrate this pattern: Compound, MakerDAO, 1inch, Dune Analytics all achieved dominance through technical excellence and network effects rather than marketing spend. They became default choices in their categories through systematic advantages.

Pattern 4: Community-first tokenomics with long-term alignment​

Story Protocol's fair launch (no insider staking advantage), 58.4% community allocation, and extended 4-year vesting for team/investors sets the standard. This contrasts sharply with "VC coins" where investors own 50%+ and dump on retail within months of unlock.

Haseeb's guidelines—maximum 15-20% team, 30% investors—reflect understanding that tokens derive value from distribution, not concentration. Wide distribution creates larger communities with stake in success. High insider ownership signals extraction rather than ecosystem building.

The low FDV strategy (Immortal Rising 2: "opting with a low FDV strategy so that instead of providing empty hype, we can really scale and grow with the community") prevents artificial valuations creating sell pressure and community disappointment.

Pattern 5: Geographic and cultural awareness​

Cecilia's insight about emerging vs. developed market motivations (revenue generation vs. innovation) reveals that one-size-fits-all strategies fail in global crypto markets. Axie Infinity's 2.8 million DAU peak came from Philippines, Indonesia, Vietnam where play-to-earn economics worked. Similar projects failed in US/Europe where gaming for income felt exploitative rather than empowering.

Sei founder Jeff Feng told Lyons that Asia shows most interest in crypto gaming, citing gender imbalance in Korea and fewer job opportunities pushing people toward gaming/escapism. Story Protocol's Seoul Origin Summit and Korean entertainment partnerships (HYBE, SM Entertainment) recognized Korea's cultural IP dominance.

Haseeb's requirement for boots on ground in US, Europe, and Asia simultaneously reflects that these regions have distinct regulatory environments, community dynamics, and user preferences. Sequential geographic expansion fails in crypto because users expect global liquidity from day one.

Pattern 6: Bear market building advantage​

Haseeb's observation—"Crypto's most successful projects have historically been built during downcycles"—explains why Compound, Uniswap, Aave, and other DeFi giants launched during 2018-2020 bear market. When speculation subsides, teams focus on real users and product-market fit rather than token price.

Cecilia's Phemex launched March 2020 during COVID crash. "The timing was brutal, but it forced us to grow fast." Constraint bred discipline—no luxury of over-capitalization, every feature had to drive revenue or user growth. Result: $200 million profit by year two.

The contrarian insight: When others say "crypto is dead," that's the signal for hardcore builders to gain ground without competition for attention and capital. As Axie Infinity's Jiho told Lyons: "The proliferation of this logic ['Web3 gaming is dead'] is very good for the remaining hardcore builders in the space."

Pitfalls and anti-patterns to avoid​

Anti-pattern 1: Over-raising and losing urgency​

Haseeb's warning bears repeating: "Raising too much money usually spells doom for a company." ICO-era projects that raised hundreds of millions sat on treasuries, unsure how to iterate, and eventually collapsed. Teams with 5+ years of runway lose the urgency driving rapid experimentation and customer feedback loops.

The correct amount: 18-24 months of runway to reach clear milestones. This forces prioritization and rapid iteration while providing sufficient stability to execute. Cecilia's Morph raised $20M seed—enough for aggressive 13-month roadmap to mainnet, not enough to lose discipline.

Anti-pattern 2: Technology-first without demand validation​

Failed projects in Ciaran Lyons' coverage share a pattern: technical sophistication without user demand. Pirate Nation ("fully onchain") shut down after admitting "The demand for the fully onchain version of Pirate Nation simply isn't there to sustain operation indefinitely." Tokyo Beast lasted one month. Age of Dino shut down despite technical achievements.

Most Layer 2 projects see TPS less than 1 despite technical sophistication, as Cecilia observed. "Many blockchain projects, despite their technical sophistication, struggle to engage users due to a lack of practical and appealing applications." Technology should serve identified user needs, not exist for its own sake.

Anti-pattern 3: Building for crypto influencers instead of real users​

Haseeb identifies this explicitly as a trap. Crypto influencers' preferences are unrepresentative of crypto customers. Most users hold coins on exchanges, care about making money and good UX, and don't prioritize maximum decentralization. Building for ideological purity rather than actual user needs creates products nobody uses at scale.

Story Protocol avoided this by focusing on real creator problems: AI models training on content without attribution or compensation. This resonates with mainstream creators (artists, writers, game developers) far more than abstract blockchain benefits.

Anti-pattern 4: High FDV launches with concentrated ownership​

MEXC's automatic rejection criteria reveal this anti-pattern: 80%+ tokens in few wallets signals rug risk. High fully diluted valuations create mathematical impossibility—even if project succeeds, early investors' targets require market caps exceeding rational bounds.

Lady of Crypto's warning to Ciaran Lyons: "A chart may look good, but in two days, there could be a large percentage of the supply that's going to be released." Vesting schedules matter enormously—projects with short vesting (6-12 months) face selling pressure exactly when they need price stability to sustain community morale.

The alternative: low FDV strategy allowing room to grow with community (Immortal Rising 2) and extended vesting (Story Protocol's 4-year unlock) aligning long-term incentives.

Anti-pattern 5: Sequential geographic expansion in crypto​

Traditional startup playbook—launch in one city, then one country, then expand internationally—fails catastrophically in crypto. Users expect global liquidity from day one. Launching in just US or just Asia creates arbitrage opportunities as users VPN around geographic restrictions, fragments liquidity across regions, and signals amateurism.

Haseeb's directive: "Crypto is global from day one" requires simultaneous multi-region launch with boots-on-ground teams. Cecilia's Phemex reached 200+ countries quickly. MEXC operates in 170+ countries. Story Protocol launched globally with Seoul and Palo Alto dual positioning.

Anti-pattern 6: Neglecting distribution strategy​

Haseeb criticizes founders who lack concrete go-to-market plans beyond "promoting through influencers" or "market making." "Go to market, distribution... It's the most neglected thing in crypto. How will you attract your initial users? What distribution channels can you use?"

Successful projects have specific CAC targets, CAC-payback models, viral loop/referral program mechanics, and partnership strategies. Cecilia's exchange partnership model provides instant distribution. Story Protocol's 200+ ecosystem teams building applications created distribution through composable use cases.

Anti-pattern 7: Ignoring tokenomics for speculative trading​

Haseeb's warning about "hallucination yield" and "vapor valuations" where market maker games create fake liquidity applies to many 2020-2021 projects. OTC discounts, fake float, circular trading fuel Ponzi-like systems inevitably collapsing.

Token utility must be genuine—Story's $IP for gas, staking, and governance; gaming tokens for in-game assets and rewards; exchange tokens for trading discounts. Speculative trading alone doesn't sustain value. As Jiho noted, "Gaming has become less of a speculative asset" since last cycle—projects need fully fleshed out products for investors to take tokens seriously.

Stage-specific advice for founders​

Seed stage: Validation and team building​

Before fundraising:

• Work at another crypto startup first (Haseeb: "fastest learning path")
• Study domain deeply through voracious reading, attending meetups, hackathons
• Find co-founders from previous collaborations (friends or colleagues with tested chemistry)
• Ask "Why am I building this?" repeatedly—motivation beyond money predicts survival

Validation phase:

• Workshop many ideas—first idea is almost certainly wrong
• Study your idea maze extensively (players, casualties, historical attempts, technology constraints)
• Build proof of concept and show at hackathons for feedback
• Talk to actual users constantly, not crypto influencers
• Don't safeguard your idea—share widely for brutal feedback

Fundraising:

• Get warm intros (cold emails rarely work in crypto)
• Set explicit fundraising deadline to create urgency
• Match stage to fund size (seed: $1-5M typical, not $50M+)
• Diligence investors as they diligence you (portfolio fit, value-add, reputation, regulatory sophistication)
• Optimize for alignment and value-add, not valuation

Optimal raise: $1-5M seed providing 18-24 months runway. Cecilia's Morph ($20M) was higher but for aggressive 13-month mainnet timeline. Story Protocol ($29.3M seed) targeted large scope requiring deeper capital.

Series A: Product-market fit and scaling foundations​

Traction milestones:

• Clear north star metric with improving trends (Story: 200+ teams building; Phemex: significant trading volume within 3 months)
• Proven user acquisition channels with quantified CAC and payback period
• Initial network effects or viral loops emerging
• Core team scaling (10-30 people typical)

Product focus:

• Iterate on UI/UX relentlessly (Haseeb: "probably the most important frontier for crypto")
• Make blockchain "invisible" for end users (Pudgy Penguins: 500K downloads with optional Web3 elements)
• Build for actual existing users, not imagined future cohorts
• Implement anti-Sybil measures if measuring community/social metrics

Tokenomics design:

• If launching token, start planning distribution 6-12 months ahead
• Community allocation: 50%+ total (ecosystem + community rewards + foundation)
• Team/investor allocation: 35-40% maximum combined with 4-year vesting minimum
• Consider two-track model: points for clear metrics, crowdsale for unclear metrics
• Build in deflationary or value accrual mechanisms (burning, staking, governance)

Operations:

• Build global team immediately with presence in US, Europe, Asia
• Open source progressively while maintaining competitive advantages temporarily
• Establish clear communication cadence with community (weekly updates, monthly town halls)
• Begin regulatory engagement proactively (Haseeb: "Don't be afraid of regulation!")

Growth stage: Scaling and ecosystem development​

When you've achieved strong product-market fit:

• Vertical integration or horizontal expansion decisions (Story: building ecosystem of 200+ teams)
• Geographic expansion with tailored strategies per region (Cecilia: different messaging for emerging vs developed markets)
• Token launch if not already done, using fair launch principles
• Strategic partnerships for distribution (exchange listings, ecosystem integrations)

Team scaling:

• Hire for global presence across regions (Phemex: 500+ team members serving 200+ countries)
• Maintain "leading by example" culture (Jiho: public-facing founder lets technical cofounders focus)
• Clear division of labor between public/community roles and product/engineering roles
• Implement operational excellence in security, compliance, customer support

Ecosystem development:

• Developer grants and incentive programs (Story: $20M Ecosystem Fund with Foresight Ventures)
• Partnership with strategic players (Story: HYBE, SM Entertainment for IP; Cecilia: Bitget for Morph distribution)
• Infrastructure improvements based on ecosystem feedback
• Progressive decentralization roadmap with transparency

Capital strategy:

• Growth rounds ($25-80M typical) for major expansion or new product lines
• Structure as equity with token rights rather than SAFTs (Haseeb's preference)
• Long lockups for investors (2-4 years) aligning incentives
• Consider strategic investors for domain expertise (Story: entertainment companies; Morph: exchange partners)

Metrics focus:

• Scale-appropriate KPIs (millions of users, billions in TVL/volume)
• Unit economics proving out (CAC payback under 12 months ideal)
• Token holder distribution widening over time
• Network effects strengthening (retention cohorts improving, viral coefficient >1)

Unique insights from each thought leader​

Haseeb Qureshi: The investor's strategic lens​

Distinctive contribution: Power law thinking and portfolio strategy combined with deep technical understanding from engineering background (Airbnb, Earn.com). His poker background influences decision-making under uncertainty and bankroll management principles.

Unique frameworks:

• Blockchains as cities mental model for L1 positioning and scaling strategies
• Two-track token distribution (clear metrics → points; unclear metrics → crowdsales)
• The idea maze requiring exhaustive domain study before building
• Cached bad ideas to avoid (new fiat stablecoins, generic "blockchain for X")

Key insight: "Winners keep winning" due to network effects and liquidity advantages. Power law concentration means backing market leaders early yields 100-1000x returns that compensate for many failed bets. Optimal strategy: maximum diversification across high-conviction thesis-driven investments.

Cecilia Hsueh: The exchange strategist and operator​

Distinctive contribution: Unique vantage point from building exchange (Phemex to $200M profit), Layer 2 (Morph raised $20M), and now CSO at major exchange (MEXC, 40M+ users). Bridges operational experience with strategic positioning.

Unique frameworks:

• Geographic market differentiation (emerging markets = revenue focus; developed markets = innovation focus)
• Exchange as strategic partner model (capital + distribution + liquidity vs. just capital)
• Ecosystem-first, technology-second approach to product development
• Consumer blockchain applications as mass adoption path

Key insight: "Capital alone doesn't create ecosystems. Projects need immediate market access, liquidity depth, and user distribution." Exchange partnerships compress timelines from months/years to weeks by providing instant global distribution. Crisis launches (March 2020 COVID crash) force capital efficiency driving faster product-market fit.

SY Lee: The billion-dollar founder's execution playbook​

Distinctive contribution: Serial founder who sold previous company (Radish) for $440M, then scaled Story Protocol to $2.25B valuation in ~2 years. Brings first-hand experience on what works and what wastes capital.

Unique frameworks:

• "IP Legos" converting intellectual property into modular, programmable assets
• Infrastructure vs. marketing growth model (learning from Radish's marketing-heavy approach)
• AI-IP convergence crisis as generational opportunity
• Fair launch tokenomics (no insider advantage in staking)

Key insight: "It's all just infrastructure masturbation—another minor tweak, another DeFi chain, another DeFi app. Everyone's doing the same thing, chasing esoteric technical improvements. We're focused on solving a real problem that impacts the creative industry." Build for systemic infrastructure creating compounding network effects, not marketing-dependent linear growth. Extended vesting (4 years) and community-first allocation (58.4%) demonstrate long-term commitment.

Ciaran Lyons: The journalist's pattern recognition​

Distinctive contribution: Coverage of hundreds of projects and direct interviews with top operators provides meta-level pattern recognition. Documents both successes and failures in real-time, identifying what actually drives adoption vs. what gets hype.

Unique frameworks:

• "Invisible blockchain" as winning strategy (make crypto optional/hidden for users)
• Product quality over blockchain-first design (Off The Grid reviewed without mentioning crypto)
• Infrastructure investment thesis (100-1000x returns vs. 50x in BTC itself)
• "Web3 gaming is dead" = bullish signal for remaining hardcore builders

Key insight: Successful 2024-2025 projects make blockchain invisible while providing genuine utility. Failed projects share pattern: "fully onchain" without user demand equals shutdown within 1-12 months (Pirate Nation, Tokyo Beast, Age of Dino). Most Layer 2s see TPS <1 despite technical sophistication. Communication and transparency matter as much as product—"Good communication is especially valued among Web3 gamers."

Synthesized frameworks for 10x growth​

The complete 10x growth framework​

Combining all four perspectives yields an integrated framework:

Foundation (Pre-launch):

1. Identify urgent, real problem (not technical optimization)
2. Study idea maze exhaustively (domain history, failed attempts, constraints)
3. Build for actual existing users (not influencers or imagined future cohorts)
4. Assemble complementary co-founder team with tested chemistry
5. Secure strategic investors providing domain expertise + capital + distribution

Product-Market Fit (0-18 months):

1. Ecosystem-first, technology-second approach
2. Make blockchain "invisible" or optional for end users
3. Focus on one clear north star metric
4. Iterate on UX relentlessly based on user feedback
5. Build global presence simultaneously (US, Europe, Asia)

Scaling Foundations (18-36 months):

1. Community-first tokenomics (50%+ allocation, extended insider vesting)
2. Fair launch mechanics eliminating insider advantages
3. Anti-Sybil measures rewarding genuine users
4. Geographic-specific messaging (revenue for emerging markets, innovation for developed)
5. Distribution partnerships compressing adoption timelines

Ecosystem Development (36+ months):

1. Progressive decentralization with transparency
2. Developer grants and ecosystem funds
3. Strategic partnerships for expanded distribution
4. Operational excellence (communication, security, compliance)
5. Network effects strengthening through composability

The mental models that matter​

Power law distribution: Crypto returns follow power law—optimal strategy is maximum diversification across high-conviction bets. Winners keep winning through network effects and liquidity concentration.

Infrastructure vs. marketing growth: Marketing spend creates linear growth in zero-sum attention war. Infrastructure investment creates compounding network effects enabling exponential growth.

Blockchains as cities: Physical constraints create specialization and cultural differentiation. Choose positioning based on target users—financial center (Ethereum), consumer focus (Solana), specialized vertical (Story Protocol for IP).

Two-track token distribution: Projects with clear north star metrics use points-based distribution (farmers are users). Projects with unclear metrics use crowdsales (prevent vanity metric gaming).

Geographic arbitrage: Emerging markets respond to revenue/yield messaging; developed markets respond to innovation/technology messaging. Global from day one, but tailored approaches per region.

Invisible blockchain: Hide complexity from end users. Successful consumer applications make crypto optional or invisible—Off The Grid, Pudgy Penguins reviewed without mentioning blockchain.

Actionable takeaways for founders and operators​

If you're pre-seed:

• Work at a crypto startup for 6-12 months before founding (fastest learning)
• Find co-founders from previous collaborations (tested chemistry essential)
• Study your domain exhaustively (history, failed attempts, current players, constraints)
• Build proof of concept and get user feedback before fundraising
• Identify the real problem you're solving (not technical optimization)

If you're raising seed:

• Target $1-5M for 18-24 months runway (not $50M+ killing urgency)
• Get warm intros to investors (cold emails rarely work)
• Diligence investors as they diligence you (value-add, reputation, alignment)
• Optimize for strategic value beyond capital (distribution, domain expertise)
• Set explicit fundraising deadline creating urgency

If you're building product:

• Focus on one clear north star metric (not vanity metrics)
• Build for actual existing users (not influencers or imagined cohorts)
• Make blockchain invisible or optional for end users
• Iterate on UX relentlessly (main differentiation frontier)
• Launch globally from day one (US, Europe, Asia simultaneously)

If you're designing tokenomics:

• Community allocation 50%+ (ecosystem + community + foundation)
• Team/investor allocation 35-40% maximum with 4-year vesting
• Fair launch mechanics (no insider staking advantage)
• Implement anti-Sybil measures from day one
• Build genuine utility (gas, governance, staking) not just speculation

If you're scaling operations:

• Communication transparency as core operational function
• Boots on ground in US, Europe, Asia (relay regional needs)
• Progressive decentralization roadmap with milestones
• Security and compliance as priority (not afterthought)
• Know when to pivot vs. shut down (preserve runway)

If you're seeking distribution:

• Partner with exchanges for instant global access (Cecilia's model)
• Build ecosystem of applications creating composable use cases
• Geographic-specific messaging (revenue vs. innovation focus)
• Developer grants and incentive programs
• Strategic partnerships with domain leaders (entertainment, gaming, finance)

Conclusion: The new playbook for 10x growth​

The convergence of insights from these four thought leaders reveals a fundamental shift in crypto's growth playbook. The era of "build it and they will come" is over. So is the era of token speculation driving adoption without underlying utility. What remains is harder but more sustainable: solving real problems for actual users, distributing value widely to create genuine network effects, and executing with operational excellence that compounds advantages over time.

Haseeb Qureshi's investment thesis, Cecilia Hsueh's exchange strategy, SY Lee's founder execution, and Ciaran Lyons' pattern recognition all point to the same conclusion: 10x growth comes from systematic advantages—capital efficiency, distribution networks, community ownership, and ecosystem effects—not from marketing spend or technical optimization alone.

The projects achieving 10x growth in 2024-2025 share common DNA: they're problem-first not technology-first, they reward real users not vanity metrics, they distribute tokens widely to create ownership, they make blockchain invisible to end users, and they build global infrastructure from day one. They launch in bear markets when others flee, they maintain communication transparency when others go dark, and they know when to pivot or shut down rather than burn capital indefinitely.

Most importantly, they understand that tokens derive value from distribution, not concentration. Story Protocol's fair launch eliminating insider advantages, extended four-year vesting, and 58.4% community allocation represents the new standard. Projects where VCs own 50%+ and dump within months will increasingly fail to attract genuine communities.

The path from seed to scale requires different strategies at each stage—validation and team building at seed, product-market fit and scaling foundations at Series A, ecosystem development at growth stage—but the underlying principles remain constant. Build for real users solving urgent problems. Distribute value widely to create ownership. Execute with speed and discipline. Scale globally from day one. Make hard decisions quickly.

As Cecilia Hsueh reflected after walking away from her $200 million success at Phemex: "Because we could have done so much better." That's the mindset separating 10x outcomes from merely successful ones. Not satisfaction with good results, but relentless focus on maximizing impact through systematic advantages that compound over time. The thought leaders profiled here don't just understand these principles theoretically—they've proven them through billions in value created and deployed.

The transformation of crypto exchanges into comprehensive super apps represents the industry's most significant business model evolution since Bitcoin's inception. This shift is driven by revenue diversification imperatives, regulatory maturation, and lessons from Asian super apps like WeChat and Grab. Major platforms are racing to bundle trading, payments, DeFi, social features, and traditional finance into unified ecosystems, with the market expected to reach 1 billion users by 2027 and 4 billion by 2030. The panel featuring Cecilia Hsueh (MEXC CSO), Ciara Sun (C² Ventures), Vivien Lin (BingX CPO), and Henri Arslanian (Nine Blocks Capital) represents thought leaders navigating this transformation firsthand—though the specific panel discussion could not be verified, each brings distinct expertise in exchange evolution, investment strategy, product development, and regulatory navigation.

This convergence of centralized efficiency and decentralized innovation is creating platforms that replace traditional banks while maintaining regulatory compliance. The winners will be those who make crypto as indispensable as WeChat for messaging or Grab for transportation—invisible blockchain infrastructure serving everyday financial needs. Trading revenue now represents less than 60% of leading platforms' income, down from 95% just three years ago, signaling a fundamental restructuring of crypto business models.

Panel participants driving the super app conversation​

While the exact panel "From Exchanges to Ecosystems: Building the Next Crypto Super Apps" could not be located in Token 2049 or other major 2024-2025 conferences, the four panelists have each made substantial contributions to this conversation through their respective roles and public statements.

Cecilia Hsueh joined MEXC as Chief Strategy Officer in September 2025 after co-founding Phemex (scaled to $200M profit by year two) and Morph, a consumer-focused Layer 2 blockchain. Her philosophy centers on ecosystem-first approaches: "We should first establish the ecosystem and then continuously upgrade the technology based on the needs of developers and users." At MEXC, she's driving the evolution "from an exchange into a comprehensive platform... into a Web3 ecosystem that empowers users, partners, and institutions worldwide." Her experience building both exchanges and blockchain infrastructure provides unique insight into bridging retail users with developers.

Ciara Sun founded C² Ventures, a $150M chain-agnostic blockchain investment fund, after serving as VP at Huobi Global where she led listings and institutional business. Her firm takes an "active role in investments to ensure long-term success, from token design and community building to marketing and business development." With intimate understanding of exchange listings and collaboration with "the world's top centralized and decentralized exchanges," she brings critical perspective on how exchanges scale into multi-service platforms through strategic liquidity partnerships and operational expertise.

Vivien Lin celebrated her one-year anniversary as BingX's Chief Product Officer in December 2024, bringing nearly a decade of experience from Morgan Stanley, BNP Paribas, and Deutsche Bank. She emphasizes blockchain's potential "far beyond what we've seen so far" and leads BingX's transformation through copy trading innovation (8,000+ elite traders, 4 million copy relationships), AI integration ($300M investment), and the Chelsea FC partnership bringing crypto to mainstream audiences. Her focus remains unwaveringly user-centric: "ensuring that every development is user-centric and driven by the needs of our global community."

Henri Arslanian co-founded Nine Blocks Capital Management, the first crypto hedge fund licensed by Dubai's VARA (Virtual Assets Regulatory Authority). As former Global Crypto Leader at PwC, he advised "the world's leading crypto exchanges, investors, financial institutions" and numerous governments and regulators. He describes VARA licensing as "by far the most difficult" of 60-70 applications he's completed, with "the most stringent" ongoing supervision—insight that illuminates the operational complexity of building compliant super apps. His emphasis on institutional-grade standards and regulatory clarity positions him as a bridge between traditional finance discipline and crypto innovation.

From trading platforms to financial operating systems​

Crypto exchanges are executing strategic pivots that mirror the evolution of Asian super apps, though with distinct approaches shaped by regulatory environments and market maturity. Mercado Bitcoin in Brazil exemplifies the "invisible blockchain" philosophy, deliberately avoiding crypto-native terminology while positioning as a financial hub. Trading revenue peaked at 95% but now represents approximately 60%, with aggressive targets to reduce it below 30% by end of 2025. The platform integrates PIX payments, digital fixed income products, stablecoin remittances, and tokenized private credit, targeting over $560 million in tokenized credit issuance. CEO Daniel Cunha articulates the strategy: "The revolution happens when the protocol disappears. The customer doesn't want to hear about blockchains and tokens."

Coinbase pursues a parallel bank replacement strategy in the US, leveraging regulatory advantages from the recently signed GENIUS Act and the "Project Crypto" initiative under new SEC leadership. CEO Brian Armstrong states plainly: "We want to be a bank replacement for people, their primary financial account." The platform has rebranded Coinbase Wallet to "Base app," integrating social networking features comparable to X (formerly Twitter), Apple Pay funding for USDC stablecoin purchases, and upcoming tokenized real-world assets, stocks, and derivatives. The strategic rebranding resolves previous confusion while positioning Base as an all-in-one financial services platform. Notably, Coinbase provides custody for 80% of newly launched Bitcoin ETFs, cementing its institutional positioning.

Binance maintains dominance through ecosystem lock-in via the BNB token and BNB Chain, which supports over 17,000 dApps. The 2022 partnership with Splyt transformed Binance into a "super app enabler," integrating ride-hailing, food delivery, bikesharing, scooters, and public transport through crypto payments across 150+ countries serving 90+ million users. The Most Valuable Builder (MVB) program provides a 4-week accelerator for ecosystem development, while Binance Labs has made 200+ investments across 25 countries. Despite regulatory challenges in multiple jurisdictions, Binance maintains 49.7% global market share with $93 billion in daily trading volume.

The transformation follows a four-stage maturity model. Stage one represents pure trading exchanges vulnerable to market volatility with single revenue streams. Stage two introduces multi-product platforms adding staking, lending, and margin trading while revenue diversification begins (70-80% still from trading). Stage three evolves into financial services hubs where trading represents less than 60% of revenue as payments, cards, custody, and asset management expand—the current position of Mercado Bitcoin and Coinbase's trajectory. Stage four achieves true super app status with trading revenue below 30%, integration of social features, commerce, third-party services, and mini-programs transforming the platform into a daily-use application. This final stage reflects the TON/Telegram vision and the WeChat Pay model.

Revenue streams beyond trading fees create sustainable models​

The imperative for revenue diversification stems from trading fee compression and market volatility. Top 10 centralized exchanges processed $6.5 trillion in quarterly spot volume in Q4 2024 (highest ever recorded), yet volumes declined 16.3% in Q1 2025 and another 27.7% in Q2 2025 despite price increases—signaling structural shifts toward decentralized exchanges and demonstrating the unsustainability of trading-dependent business models.

Staking services have emerged as cornerstone revenue generators, with platforms taking 10-20% of rewards earned by users. Binance Earn alone holds $38 billion locked across 137 staking assets. The evolution includes liquid staking tokens (LSTs) enabling users to maintain liquidity while earning rewards, and "invisible" staking through tokenized products that hide technical complexity from mainstream users. Lending and interest revenue provides recession-resistant income through margin trading loans, DeFi protocol integration, custodial interest-bearing accounts, and stablecoin yield products that survive bear markets when trading volumes collapse.

Token listing fees range from $50,000 to several million dollars based on exchange reputation. Binance maintained a selective 2024 strategy of just 1-10 new token listings monthly, including spot listings, Launchpad, and Launchpool programs. These curated launches provide both direct fee revenue and ecosystem development value. Premium subscription models offer advanced analytics, exclusive trading pairs, reduced fees, priority support, and AI-powered trading bots, with consumer tiers starting at $8.99 monthly and enterprise tiers commanding custom institutional pricing.

API access monetization has become substantial for data-dependent businesses. CoinGecko's model illustrates the opportunity: free tier provides 30 calls per minute, paid tiers deliver 500-1,000 calls per minute at $250 per 500,000 calls, and enterprise plans offer custom pricing with USD bank transfer or crypto payment options. Target markets include traders, developers building wallets and portfolio trackers, financial firms requiring institutional analysis, and researchers needing historical data. The Coinbase Exchange API provides direct access to deep liquidity pools with dynamic fee structures for institutional clients, while Crypto.com's unified REST and WebSocket APIs serve both retail and professional segments.

NFT marketplace integration adds trading fee revenue from platforms like Binance NFT (1% trading fee), with multi-chain support across Ethereum, Solana, Polygon, and BNB Chain. OKX and Crypto.com operate similar marketplaces featuring PFP collections, gamified drops, and exclusive artist collaborations. Educational services generate revenue through certification programs on crypto trading, ranging from basic to advanced strategies, with professional certificates for platform use commanding course fees and enterprise training packages. The 2,293 airdrop events distributing over $136 million in rewards (MEXC example) drive user engagement while creating ecosystem loyalty.

Developer ecosystems and technical infrastructure enable third-party innovation​

The mini-app and plugin architecture represents the most direct application of Web2 super app lessons to crypto. WeChat's model of 1 million+ mini programs serving 1 billion monthly users provides the blueprint, with host apps in native technologies controlling mini-apps built with web technologies enabling over-the-air updates without app store approval. Telegram Mini Apps have achieved extraordinary traction with 500+ million users across 75,000+ live apps, demonstrating 5x higher retention than traditional mobile apps. Notable implementations include Notcoin's viral tap-to-earn with $NOT token launch on TON, and Catizen's GameFi mechanics with $CATI token integration.

Coinbase's MiniKit SDK for Base represents the Western approach, providing seamless OnchainKit component integration, Coinbase Wallet-specific hooks, built-in authentication and error handling, and metadata fields for discoverability. The architecture enables developers to build lightweight applications running within the super app interface while inheriting the platform's security framework. X (Twitter) Mini Apps through AGNT Hub platform target 361 million crypto users with native Web3 execution, low-code deployment tools, and in-feed applications. Components include AGNT Connect for analytics and wallet integration, AGNT Mobile, and X App Studio for rapid development.

Technical architecture choices fundamentally shape super app capabilities. Revolut's frameworks-based approach employs approximately 60 developers per platform team (iOS and Android), with each feature as a separate framework following clean architecture and MVVM patterns. This enables independent development and testing within a mono-repo structure. The alternative Android dynamic features approach allows on-demand module delivery via Google Play, with users able to download or uninstall specific features—though Google recommends a maximum of 10 dynamic features due to coupling with the core app.

Cross-chain and multi-chain capabilities require sophisticated infrastructure. The cross-chain approach deploys a single unified application with smart contracts across multiple blockchains using bridges and protocols like Chainlink CCIP (Cross-Chain Interoperability Protocol) connecting 60+ blockchains. This enables single-signature, protocol-agnostic transactions with faster execution, unified liquidity, and lower fees. The multi-chain alternative deploys separate instances on different blockchains with independent smart contracts per chain, providing enhanced security through isolation and chain-specific optimizations at the cost of higher infrastructure requirements.

DEX aggregation has become essential for optimal liquidity. Leading super apps integrate 1inch's PathFinder algorithm optimizing swap routes across numerous DEXs, ParaSwap's MultiPath routing with proprietary ParaSwapPool liquidity, LI.FI connecting all major DEX aggregators and bridges, Symbiosis cross-chain AMM pooling liquidity from Layer 1s and Layer 2s across EVM and non-EVM networks, and OpenOcean aggregating liquidity across 30+ chains from 1,000+ providers. These integrations reduce slippage through liquidity aggregation, achieve best execution prices via smart routing algorithms, provide MEV protection, optimize gas through transaction bundling, and enable real-time price comparison.

User experience evolution makes crypto accessible to mainstream audiences​

The principles of intuitive onboarding with progressive education have become industry standard, featuring "learn-as-you-go" approaches with step-by-step tutorials, visual aids enhancing retention, and gradual introduction of complex concepts—exemplified by MetaMask's guided setup process. Visual security cues provide transparent risk communication through clear security status indicators, real-time feedback on transaction safety, visual warnings for suspicious addresses, transaction simulation showing balance changes before commitment, and contract ABI decoding revealing exactly what users are signing.

Apple Pay integration in the Base app represents a watershed moment for reducing onboarding friction, enabling users to add funds using Apple Pay without traditional crypto wallet setup. Single-tap access to USDC stablecoin purchases, trading, and payments dramatically lowers barriers to entry. The portable blockchain-based identity approach creates a single ID usable across services—similar to Facebook or Google sign-in but decentralized—carrying credentials, contacts, and data without requiring multiple logins across platforms. This has potential for government-issued credential integration as digital identity infrastructure matures.

Gamification and engagement mechanisms drive the 5x retention advantage super apps demonstrate over traditional crypto platforms. Coinbase Earn pioneered the learn-to-earn model with interactive lessons rewarding actual cryptocurrency for completion, covering diverse cryptocurrencies beyond Bitcoin with a mobile-friendly interface. Binance Academy evolved the concept with engaging quizzes after each module, interactive learning requiring clicking, dragging, and answering, reward systems for completion, and community-driven content. The tokenized rewards approach now features tiered systems (Bronze, Silver, Gold, Platinum), native platform tokens for activities, cashback programs like Base Pay's 1% USDC cashback, staking rewards with APY tracking, and referral bonuses.

Achievement systems with badges, levels for milestones, experience points for engagement, progression unlocking features, NFT-based achievements (unique and tradable), and leaderboards create powerful psychological hooks. Crypto.com's implementation of personalized challenges based on user interests, tiered rewards from digital assets to exclusive perks, community competitions, and points and badges systems has increased transaction volumes through emotional investment and higher retention through sense of achievement. Axie Infinity demonstrated the potential with the largest play-to-earn platform reaching a $3 billion+ market cap, daily trade volumes exceeding $150 million, and players earning $100-$4,000 monthly through NFT creature breeding, battling, land ownership, and development.

MEXC and BingX exemplify divergent super app strategies​

MEXC has experienced explosive growth from 2.4% market share in 2023 to 11.6% in 2024 to 13.06% in Q1 2025, ranking third in futures trading volume with 36-40 million users across 170+ countries. The platform's 2,000 employees (nearly doubled in 2024) support the "Your Easiest Way to Crypto" positioning. The revolutionary DEX+ platform launched March 2025 represents the industry's first innovative CEX-DEX hybrid product, providing seamless one-stop experience for on-chain and off-chain trading with access to 10,000+ on-chain assets initially on Solana, expanded to BSC chain covering 5,000+ tokens by March 26, with future expansion to Ethereum, Arbitrum, Polygon, Avalanche, and zkSync.

The platform integrates Raydium, pump.fun, PancakeSwap, and PumpSwap with one-click wallet connection for MetaMask, Phantom, Trust Wallet, and TronLink—eliminating the need to manage private keys or install browser extensions. The Automatic Slippage Algorithm employs AI-driven optimization, while GoPlus security partnership provides third-party safety inspection. Combined with 3,000+ listed assets offering zero maker fees and 0.05% taker fees on spot trading, and up to 500x leverage on futures with 0.00% maker and 0.01% taker fees, MEXC positions itself as the most comprehensive asset access platform.

The $300 million Ecosystem Development Fund announced at Token 2049 Dubai in May 2025 represents a five-year commitment to blockchain innovation focused on public chains, stablecoins, wallets, and media platforms. This complements MEXC Ventures' over $100 million invested across 40+ projects since 2023, including $66 million total in the Ethena ecosystem. The $30 million IgniteX CSR Initiative runs concurrently over five years to foster Web3 talent through support for early-stage startups, research, developer communities, and academic institutions. Focus areas include decentralized infrastructure, AI-blockchain integration, stablecoins, and fintech, combining mentorship, education, and funding.

Security infrastructure includes the $100 million Guardian Fund for instant compensation, Proof of Reserves backed 1:1 and beyond with real-time verification, Futures Insurance Fund covering $526+ million for market extremes, multi-signature cold storage, and proactive customer service that has recovered $1.8+ million in user assets. The fastest listing strategy gives users competitive early access to emerging tokens, particularly memecoins, positioning MEXC as the discovery platform for new projects.

BingX has built its super app around social trading and AI integration, serving 20 million users globally with positioning as a "leading crypto exchange and Web3 AI company." The platform earned recognition as TradingView's Best Crypto Exchange and Centralized Crypto Exchange of the Year at Blockchain Life 2024, processing over $12.1 billion in 24-hour trading volume across 350+ listed cryptocurrencies and 130+ million orders. Copy Trading 2.0 launched June 2025 represents a major upgrade with 8,000+ elite traders, 4 million copy relationships, dedicated sub-accounts for each follower, automatic mirroring of trader's leverage and margin mode, industry-leading 0-slippage execution, and 8-20% profit share for traders from copiers' profits.

The Chelsea FC partnership launched January 2024 establishes BingX as Men's Official Training Kit Partner for the 2024/25 season onwards, with logo placement on training wear, the "Trained on Greatness" campaign for 2025/26, and access to hundreds of millions of Chelsea fans worldwide through matchday tickets, VIP experiences, co-branded merchandise, and trading competitions. This mainstream sports positioning differentiates BingX from crypto-native competitors.

BingX's $300 million AI Initiative announced in 2025 deploys Bing AI Chat as a virtual assistant offering real-time answers, AI News Briefing gathering and summarizing market sentiment data, Trend Forecasting merging technical charts with news trends, Smart Positioning Analysis providing real-time portfolio health checks and advice, Pro Trader Recommender analyzing trading records to suggest copy trading opportunities, and AI Trade Review helping users analyze past trades and refine strategies. The three-phase development plan encompasses short-term onboarding, analysis, and automation; medium-term dedicated AI research institute; and long-term full platform AI integration.

BingX Labs launched in 2024 as an innovation hub investing over $15 million to support early-stage decentralized projects, focusing on AI-powered trading insights, predictive analytics, DeFi integrations, and strategic partnerships with blockchain developers. The platform's 800+ spot trading pairs added in 2024, 300+ futures pairs with up to 150x customizable leverage, guaranteed price feature eliminating slippage during high volatility, dual price mechanism for enhanced stability, lower funding rates for perpetual futures, and coin-margined plus USDC-margined futures options create comprehensive trading infrastructure. Demo trading with 100,000 virtual USDT enables risk-free practice, while the wealth management product allows assets to earn interest while serving as futures margin.

Competitive landscape reveals consolidation and specialization​

Binance maintains overwhelming dominance with 49.7% global market share, 190 million users, and $93 billion in daily volume, though share has declined 6 percentage points as mid-tier exchanges gain ground. The super app components include Binance Pay for payments, NFT Marketplace generating $25 million in the first month, Launchpad delivering 4.8x average ROI (best in class), Binance Earn with $38 billion locked across 137 staking assets, Binance Card offering 8% cashback, BNB Chain supporting 17,000+ dApps, and full fiat banking supporting 50+ currencies. The strategy emphasizes volume dominance, ecosystem lock-in via the BNB token, and zero-fee trading on select pairs to maintain market leadership.

Coinbase holds 6.8% global share but dominates the US market with 65% share among 120 million users. The super app components include Base Chain (Ethereum Layer 2), Coinbase Wallet with 15 million installs, Commerce processing $2.8 billion in H1 2025, Prime institutional services with 17,000 clients and $114 billion custody, and Earn products limited to 12 assets. The strategy prioritizes regulatory compliance first, institutional focus, premium pricing, and conservative approach—positioning as the trusted gateway for traditional finance entering crypto.

OKX captures 7.5% global share across 350+ assets with positioning as the Web3 innovation leader. Super app components feature the OKX Web3 Wallet (considered best-in-class supporting 70+ chains), DeFi Hub simplifying protocol access, trading bots with 940,000 traders, Jumpstart Launchpad, and an NFT marketplace. The strategy emphasizes Web3 gateway positioning, advanced trading tools, bot community development, and beautiful UX—attracting sophisticated traders seeking cutting-edge features.

Market share trends for 2025 show Binance losing ground despite maintaining dominance, mid-tier exchanges gaining with MEXC at 8.6% and Gate.io at 7.8%, regional champions emerging like Upbit with 9.4% in Korea, and derivatives platforms growing faster than spot exchanges. Feature comparison reveals divergent positioning: OKX offers the lowest trading fees at 0.08%, Binance remains competitive at 0.02-0.1% with BNB discounts, Coinbase charges premium fees at 0.60%. Asset selection shows Binance leading with 430+ cryptocurrencies, OKX at 350+, and Coinbase conservative at 270+. Web3 integration favors OKX's leadership, with Coinbase growing rapidly and Binance maintaining basic functionality.

Traditional fintech entering crypto represents high-level threats. PayPal's 400 million users, established brand, PayPal USD stablecoin (PYUSD) launch, first B2B crypto payment to Ernst & Young, and existing merchant relationships could onboard millions overnight. Revolut serves 50+ million customers with UK banking license, crypto revenue increasing 298% to over £500 million in 2024, plans for its own stablecoin, and Ledger Live partnership—already functioning as a super app adding crypto depth. Robinhood acquired Bitstamp for $200 million and expands crypto to Europe, targeting its young retail base with simple UX and positioning as the "on-ramp to crypto."

Decentralized alternatives pose structural challenges to centralized exchanges. MetaMask's 30+ million monthly active users, status as the Web3 standard with every DeFi integration, MetaMask Snaps plugin ecosystem, and upcoming mUSD stablecoin launch in 2025 create disintermediation potential. The self-custody advantage, direct DeFi access without intermediaries, no KYC requirements providing privacy, censorship resistance, and often cheaper fees attract sovereignty-focused users despite complexity barriers.

Web2 super app lessons provide strategic frameworks​

WeChat's evolution from messaging to payments to everything serves as the primary blueprint, with 1 billion+ users making it essential infrastructure for daily life in China. WeChat Pay became the payment standard, mini-programs created an open ecosystem, single sign-on provided convenience, and government integration made it essential. The crypto applications include payment integration as foundational (Binance Pay, crypto cards), open ecosystems through Launchpads functioning as mini-programs and dApps, and making apps indispensable through daily use cases—though centralization conflicts with crypto's decentralization ethos.

Grab's evolution from ride-hailing to food to payments to finance demonstrates adjacency expansion, achieving 125 million downloads with 2.6 million drivers and $14 billion valuation. Revenue streams include commissions, GrabPay, subscriptions through GrabUnlimited, and advertising. Success factors encompass local adaptation (motorcycle taxis for Southeast Asian traffic), cross-service subsidies (rides subsidize food adoption), fintech integration (GrabPay drives retention), and the same network serving multiple needs. Crypto applications include starting with a killer feature (trading) then expanding adjacently, using one asset base for multiple services, implementing subscription models like Coinbase One at $29.99 monthly, employing data-driven personalization, and balancing growth versus profitability.

Gojek's multi-service strategy from day one with ride, courier, and food evolved to 20+ services, merging with Tokopedia to create the $18 billion GoTo Group. Revenue derives from service commissions, GoPay processing $6.3 billion, and financial services. Success factors include immediate diversification keeping drivers busy, financial inclusion focus (64% of Indonesians unbanked), deep local understanding, and ecosystem flywheel effects where each service strengthens others. Crypto applications emphasize offering multiple services immediately rather than sequential addition, solving financial inclusion (crypto wallets as bank accounts), recognizing local understanding beats global templates, and understanding financial services create stickiness.

The reasons super apps succeeded in Asia but struggled in the West illuminate crypto opportunities. Asian advantages included mobile-first markets skipping the desktop era, financial inclusion gaps (billions unbanked), less restrictive initial regulations, cultural comfort with single platforms, and infrastructure gaps making services like ride-hailing essential. Western challenges encompass strong incumbent infrastructure (banks, credit cards, PayPal), privacy concerns (GDPR, cultural preferences), platform lock-in through iOS/Android ecosystems, and regulatory fragmentation across 50 states and 27 EU countries.

Crypto super apps possess unique advantages: borderless operation by nature, targeting the unbanked similar to Grab and Gojek, wallets functioning as bank accounts enabling financial inclusion, Web3 dApps serving as mini-programs without platform risk, and token incentives aligning interests. Challenges include price volatility (problematic for payments), UX complexity (wallets, gas fees, seed phrases), regulatory uncertainty, scaling limitations, and trust issues from hacks and scams.

Regulatory frameworks and investment perspectives shape super app viability​

The regulatory landscape has matured significantly in 2024-2025, with the GENIUS Act signed July 2025 establishing landmark bipartisan stablecoin legislation providing federal regulatory framework in the US. The Trump administration's January 2025 executive order established a Working Group on Digital Asset Markets, with Paul Atkins appointed SEC Chair replacing Gary Gensler's enforcement-heavy approach, and David Sacks as White House crypto/AI czar. The CLARITY Act defines SEC versus CFTC jurisdictional boundaries (digital commodities under CFTC, securities under SEC), while the Anti-CBDC Surveillance State Act prohibits retail CBDC development.

Multi-service platforms face jurisdictional fragmentation across multiple regulators (SEC, CFTC, FinCEN, OCC, state regulators) creating compliance complexity. State-by-state licensing requires money transmitter licenses in 40+ states through NMLS. Platforms offering trading, payments, and DeFi must navigate securities law, commodities law, and money transmission regulations simultaneously. The 2025 outlook anticipates reduced enforcement under Atkins' SEC, increased institutional adoption following Bitcoin and Ethereum ETF approvals, and the Crypto Task Force focusing on security status clarity, registration relief for token offerings, and broker-dealer frameworks for digital assets.

The EU's Markets in Crypto-Assets Regulation (MiCA) achieved full implementation in December 2024, providing comprehensive three-pillar structure covering Crypto-Asset Service Providers (CASPs) licensing, Asset-Referenced Tokens (ARTs) regulation, and E-Money Tokens (EMTs) regulation. CASP authorization becomes mandatory for exchanges, custody, trading, portfolio management, advice, and transfer services, with capital requirements of €50,000-€150,000 minimum plus ongoing prudential requirements. The transitional period extends until July 2026 for existing providers, creating temporary regulatory arbitrage opportunities before comprehensive enforcement.

Dubai's VARA represents the gold standard for crypto regulation according to industry participants. Henri Arslanian stated the VARA licensing was "by far the most difficult" of 60-70 applications he completed, with "the most stringent" ongoing supervision. The framework requires physical presence mandates (must have Dubai operations to conduct transactions), transparent ownership with clear chain of ownership and UBO disclosure, comprehensive rulebooks covering company regulations, compliance and risk management, technology and information, and market conduct. Marketing restrictions implemented October 2024 specify only licensed VASPs can market activities, applying to all targeting UAE. Notable licenses include Binance (first major exchange), Nine Blocks Capital (first licensed crypto hedge fund), OKX (January 2024 full approval), and Laser Digital.

The Middle East crypto market reached $110.3 billion in 2024 with projections of $234.3 billion by 2033 representing 8.74% CAGR. UAE crypto app downloads surged from 6.2 million in 2023 to 15 million in 2024, a 241% year-over-year increase. In March 2025, MGX (Abu Dhabi) invested $2 billion in Binance representing the largest institutional crypto investment to date. For super apps, Dubai presents very high compliance bars with timing improving due to regulatory clarity, bespoke regulatory pathways for DeFi services (Mantra Chain received VASP license with DeFi extension), prohibition of anonymity-enhanced cryptocurrencies, and one-year renewable licenses with annual supervision fees.

Ciara Sun's investment thesis emphasizes operational value-add through "active role in investments to ensure long-term success" from token design and community building to marketing and business development. Her C² Ventures maintains intimate understanding of exchange listings through collaboration with "world's top centralized and decentralized exchanges," helping portfolio companies navigate "wide range of liquidity channels." The chain-agnostic approach makes early-stage investments across all major Layer 1 and Layer 2 ecosystems, focusing on "empowering builders with capital and operational expertise to build and scale the next generation of Web3 and metaverse applications." Her background as VP of Huobi leading global business development, listings, and institutional business provides deep understanding of how exchanges evolve into multi-service platforms.

Henri Arslanian's perspective centers on institutional-grade compliance and traditional finance best practices. His statement that institutional investors want digital assets "via fund managers who have established digital assets track record, are regulated, have traditional finance experience" signals the importance of operational excellence. His emphasis that "regulatory clarity allows us to take bigger swings" while maintaining "highest operational due diligence requirements" suggests successful super apps must solve concentration risk and counterparty exposure while building diversified revenue streams. His role advising "world's leading crypto exchanges" at PwC and co-founding ACX International (world's largest crypto compliance services firm with 250+ staff) positions him uniquely to evaluate super app operational complexity.

Broader VC investment reached $13.6-13.7 billion in crypto and blockchain funding in 2024 (28% increase from 2023's $10.1-10.3 billion), with PitchBook forecasting over $18 billion in 2025 representing near-doubling. Seed stage activity surged with pre-seed transactions in Bitcoin startups increasing 50% in 2024 and 767% from 2021-2024. Median seed-stage pre-money valuations jumped 70% from $11.8 million to $20 million in 2024, while early-stage valuations more than doubled year-over-year. Licensed entities command 20-40% valuation premiums, with regulatory moats increasingly recognized as competitive advantages.

M&A activity signals consolidation with 2024 seeing 143 deals totaling $2.8 billion (excluding the outlier Stripe-Bridge acquisition). The 2025 projection anticipates up to $30 billion in deal value (10x increase) across approximately 400 deals. Major transactions include Coinbase acquiring Deribit for $2.9 billion in May 2025 (largest crypto-crypto acquisition achieving global derivatives leadership), Kraken acquiring NinjaTrader for $1.5 billion enabling entry to regulated futures, equities, and payments, Ripple acquiring Hidden Road for $1.25 billion in April 2025 (first crypto firm owning global prime brokerage), and Stripe acquiring Bridge for $1.1 billion in October 2024 for stablecoin infrastructure (closed February 2025).

Future innovations will make blockchain invisible by 2030​

Account abstraction through ERC-4337 represents the most transformative near-term innovation, enabling gasless transactions where paymasters enable fee payment in any token or sponsor transactions entirely, social recovery replacing seed phrases with trusted contacts, multi-signature and spending limits through programmable security policies, biometric authentication via Apple and Google passkeys eliminating private key management, and transaction batching approving multiple operations with a single signature. Leading implementations include Coinbase Smart Wallet (free, self-custodial, passkey-based on Base Sepolia testnet), Argent specializing in Layer 2s (zkSync, StarkNet) with social recovery, and Safe (formerly Gnosis Safe) as the leading multi-signature solution for DAOs and institutions. Deployment costs have fallen to $0.15-$0.45 per account on Layer 2s versus $7-$10 on Ethereum mainnet.

Intent-based architectures create paradigm shifts where users declare desired outcomes ("I want to buy rETH on Arbitrum with USDC on Mainnet") rather than specify execution steps. Solvers compete to fulfill intents via optimal pathways, eliminating MEV exploitation. The architecture flows from intent expression (user signs intent message with constraints for price, time, assets) through intent pool (decentralized discovery mechanism for solvers), solver competition (third parties compete for best execution), to settlement (final state verified on blockchain). Leading projects include Anoma (intent-centric architecture with decentralized solving supporting cross-domain intents), Essential (DSL for expressing intents with ERC-compatible AA standard for EVM chains), SUAVE by Flashbots (unbundles block building creating decentralized MEV alternative), and production implementations like UniswapX and CowSwap.

Real-world asset tokenization has reached $30.24 billion in September 2025, representing 380% growth in three years. Private credit dominates at 58% market share ($14 billion), US Treasuries at 34% ($8.2 billion). Major institutional players include BlackRock's $2.9 billion BUIDL fund, Franklin Templeton's $420 million BENJI fund, and Centrifuge with $1 billion TVL. Market projections range from conservative $3 trillion by 2028 (Bernstein) to moderate $16 trillion by 2030 (BCG, Roland Berger) to bullish $30 trillion by 2034 (Standard Chartered). Super app integration will offer tokenized real estate, commodities, bonds, and private equity directly in-app with $10 minimum fractional ownership, instant settlement, 24/7 trading of traditionally illiquid assets, and programmable assets with embedded compliance and automatic dividend distribution.

AI integration is accelerating with the global blockchain AI market valued at $550.70 million in 2024 projected to reach $3.7 billion by 2033. Current innovations include AI trading bots offering 24/7 automated trading with speeds 5-10 seconds faster than competitors (platforms like 3Commas, Cryptohopper, Photon Sol), AI-enhanced smart contracts bringing AI datasets on-chain through Chainlink and oracle networks, and predictive analytics with Token Metrics AI raising $8.5 million for real-time insights from AI agents. By 2027-2030, AI agents will handle portfolio management, tax optimization, and risk assessment as standard features, natural language processing will enable complex transaction execution through conversational interfaces, and AI-driven personalization will tailor DeFi strategies to individual risk profiles.

Web3 gaming integration has captured $40 billion of the $184 billion global gaming market in 2024, projected to reach $60 billion by 2030. Currently 4.2 million daily active wallets engage in blockchain gaming representing 30% of Web3 activity. Major franchises like Ubisoft (Might & Magic: Fates) and Sega (KAI: Battle of Three Kingdoms) are entering the space. The play-to-own evolution moves beyond play-to-earn to emphasize engaging gameplay with true asset ownership, interoperability enables cross-game asset transfers and reputation systems, AI-powered gaming creates autonomous worlds with dynamic NPCs, and SocialFi integration combines gaming with social tokens and community engagement. By 2027-2030, gaming becomes the primary onboarding mechanism for mainstream crypto adoption, with seamless in-game asset trading within super app wallets, cross-title item compatibility, integration with DeFi enabling in-game assets as loan collateral, and virtual economies rivaling real-world GDPs.

Layer 2 solutions drove 20% increases in Ethereum activity in 2025 with combined TVL exceeding $10 billion across major networks. Transaction throughput reaches 4,000-65,000 TPS versus Ethereum's 15-30 TPS, with fee reductions exceeding 90% compared to mainnet. Arbitrum leads with 40,000 TPS and 600+ dApps holding $6.2 billion TVL, while Base (Coinbase) processed 81 million stablecoin transactions in September 2025 focusing on retail applications. By 2027-2030, Layer 2s will handle 95%+ of transaction volume while Ethereum mainnet serves as settlement layer, interoperability protocols will make chain selection invisible to users, specialized Layer 2s for specific use cases (gaming, social, finance) will proliferate, and Layer 2 tokens will become major crypto assets.

User adoption will reach 4 billion by 2030 through invisible interfaces​

Expert projections for crypto super apps anticipate explosive user growth from 560-659 million current users globally to 1 billion by 2026-2027 (5x increase from 2024) and 4 billion by 2030 according to Raoul Pal—representing one-eighth of the global population. The adoption curve follows internet adoption trajectory with 43-137% annual growth rates. Market capitalization forecasts suggest the crypto market reaching potentially $100 trillion by 2034, Bitcoin at $77,000-$155,000 range in 2025 with potential path to $1 million by 2035, stablecoin markets at $3-10 trillion by 2030, RWA tokenization at $3-30 trillion by 2030-2034, and blockchain solutions market at $162.84 billion by 2027 and $3.1 trillion by 2030.

Stablecoin payment adoption represents the most critical near-term catalyst. The $260 billion stablecoin market processed $27.6 trillion in transfer volume in 2024, exceeding Visa and Mastercard combined. Merchants save 2-3% in credit card fees, settlement occurs instantly versus 2-3 day bank transfers, and global reach enables borderless payments without currency conversion fees. Predicted timelines suggest Amazon and Walmart launching branded stablecoins with SMBs (restaurants, coffee shops) adopting crypto payment rails by 2025-2027, traditional payment companies pivoting or facing extinction while emerging markets achieve mass stablecoin adoption by 2027-2030, and universal interoperability creating unified global payment systems with traditional banking obsolete except for regulated stablecoin services by 2030-2033.

The convergence of centralized and decentralized finance creates hybrid models where CeFi provides regulatory compliance, user trust, and institutional-grade custody while DeFi provides efficiency, transparency, programmability, and 24/7 operation. Integration mechanisms include DeFi protocols with compliance layers (KYC/AML at entry points), CeFi platforms adopting DeFi technologies (AMMs, smart contracts), regulated stablecoins bridging centralized and decentralized systems, and institutional DeFi with permissioned access and reporting. Financial systems won't be fully centralized or fully decentralized but exist on a spectrum, with super apps offering both CeFi and DeFi services seamlessly and users choosing based on use case rather than ideology.

Banking sector transformation follows a clear timeline. In 2025-2027, traditional banks lose deposits to yield-bearing stablecoins and payment processors face existential threats from crypto rails. From 2027-2030, bank branch networks shrink dramatically as digital-native crypto banks scale and traditional banking deposits flee to programmable money. By 2030-2035, banking becomes obsolete except for regulated stablecoin services as the financial system operates on programmable money infrastructure. Capital markets experience 24/7 trading of all asset classes, instant settlement eliminating counterparty risk, fractional ownership democratizing access to high-value assets, and peer-to-peer lending at scale reducing the need for bank intermediation.

Technical prerequisites for mass adoption are being solved now: account abstraction eliminates seed phrase barriers, Layer 2s provide speed and low costs comparable to Web2, intent-based UX removes the need to understand blockchain, stablecoins provide price stability for everyday use, while interoperability protocols unify the fragmented ecosystem and regulatory clarity enables institutional participation. User onboarding strategies emphasize gaming as gateway (4.2 million daily active wallets bringing users on-chain organically), stablecoins for payments (emerging markets adopting for currency stability, enterprises for cost savings), social and creator tokens (communities bringing fans on-chain through tokenized engagement), invisible blockchain (Mercado Bitcoin's model where users don't realize they're using crypto), and financial incentives (yield-bearing accounts outperforming traditional savings).

Conclusion: invisible blockchain powers the financial future​

By 2030, the crypto super app will be indistinguishable from mainstream financial services, with users never seeing blockchain technology, accessing multiple financial services (banking, investing, payments, lending, insurance) in one application, owning real tokenized assets (real estate, bonds, art, commodities) alongside crypto, participating in creator economies via social tokens, gaming for value with truly owned tradeable items, paying for everything as merchants seamlessly accept crypto via stablecoins, controlling complex operations through natural language intent commands, trusting smart wallets with biometric authentication and social recovery, accessing global markets with 24/7 trading and instant settlement, and earning passive income through staking, yield farming, and lending integrated into savings accounts.

The strategic imperative centers on three converging forces reshaping finance: regulatory maturation providing operational clarity through frameworks like MiCA, GENIUS Act, and Dubai VARA; VC capital deployment exceeding $18 billion in 2025 funding the infrastructure buildout; and platform consolidation through M&A potentially reaching $30 billion as exchanges acquire capabilities and geographic reach. The transformation from exchanges to ecosystems isn't optional—it's the survival imperative for centralized platforms facing structural threats from decentralized alternatives capturing sophisticated traders and traditional fintech companies onboarding mainstream users.

Success requires balancing seemingly contradictory forces: centralized efficiency with decentralized innovation, regulatory compliance with permissionless access, institutional-grade security with consumer-friendly interfaces, and trading revenue with diversified income streams. Henri Arslanian's emphasis on institutional standards and Ciara Sun's focus on operational value-add through ecosystem partnerships illuminate the dual requirements of technical excellence and strategic positioning. MEXC's hybrid CEX-DEX model and BingX's AI-powered social trading represent divergent yet viable approaches—asset access versus user empowerment, institutional infrastructure versus mainstream appeal.

The super app won't be called a "crypto app"—it will simply be how people manage financial lives. Blockchain will be invisible infrastructure like TCP/IP underpinning the internet. The question isn't whether crypto super apps transform finance, but how quickly traditional finance gets displaced by superior technology offering lower costs, instant settlement, global access, programmable functionality, and true asset ownership. Those positioning at the convergence of technology, regulatory compliance, and user experience are building the next generation of trillion-dollar platforms serving billions of users in the financial system's greatest restructuring since the advent of central banking.

Introduction​

Digital assets are no longer the speculative fringe of finance; they have become a mainstream allocation for pension funds, endowments, corporate treasuries and sovereign wealth funds. In 2025, macro‑economic conditions (easing monetary policy and lingering inflation), regulatory clarity and maturing infrastructure encouraged institutions to increase exposure to crypto assets, stablecoins and tokenized real‑world assets (RWAs). This report synthesizes up‑to‑date data on institutional flows into digital assets, highlighting allocation trends, the vehicles used, and the drivers and risks shaping the market.

Macro environment and regulatory catalysts​

• Monetary tailwinds and search for yield. The Federal Reserve began cutting interest rates in mid‑2025, easing financial conditions and reducing the opportunity cost of holding non‑yielding assets. AInvest notes that the first rate cut triggered a $1.9 billion surge in institutional inflows during the week of September 23, 2025. Lower rates also drove capital out of traditional safe‑havens into tokenized treasuries and higher‑growth crypto assets.
• Regulatory clarity. The U.S. CLARITY Act, the stablecoin‑focused GENIUS Act (July 18 2025) and the repeal of SEC Staff Accounting Bulletin 121 removed custodial hurdles and provided a federal framework for stablecoins and crypto custody. The European Union’s MiCAR regulation became fully operational in January 2025, harmonising rules across the EU. EY’s 2025 institutional investor survey found that regulatory clarity is perceived as the number‑one catalyst for growth.
• Infrastructure maturation. Multi‑party computation (MPC) custody, off‑exchange settlement, tokenization platforms and risk‑management models made digital assets safer and more accessible. Platforms like Cobo emphasise wallet‑as‑a‑service solutions and programmable payment rails to meet institutional demand for secure, compliant infrastructure.

Institutional allocation trends​

Overall penetration and allocation sizes​

• Widespread participation. EY’s survey of 352 institutional investors (January 2025) reports that 86 % of respondents already hold or intend to hold digital assets. A majority (85 %) increased their allocations in 2024 and 59 % expect to allocate more than 5 % of assets under management (AUM) to crypto by the end of 2025. The Economist Impact research brief similarly finds that 69 % of institutions planned to increase allocations and that crypto holdings were expected to reach 7.2 % of portfolios by 2027.
• Motivations. Institutions cite higher risk‑adjusted returns, diversification, inflation hedging, technological innovation and yield generation as primary reasons for investing. Many investors now view under‑exposure to crypto as a portfolio risk.
• Diversification beyond Bitcoin. EY reports that 73 % of institutions hold altcoins beyond Bitcoin and Ether. Galaxy’s July 2025 lending commentary shows hedge funds executing $1.73 billion in short ETH futures while simultaneously pouring billions into spot ETH ETFs to capture a 9.5 % annualised basis yield. CoinShares’ weekly flow data highlight sustained inflows into altcoins like XRP, Solana and Avalanche even when Bitcoin funds see outflows.

Preferred investment vehicles​

• Exchange‑traded products (ETPs). The EY survey notes that 60 % of institutions prefer regulated vehicles (ETFs/ETPs). Spot Bitcoin ETFs launched in the U.S. in January 2024 quickly became a primary access point. By mid‑July 2025, global Bitcoin ETF AUM reached $179.5 billion, with more than $120 billion in U.S.‑listed products. Chainalysis reports that assets in tokenized U.S. treasury money‑market funds (e.g., Superstate USTB, BlackRock’s BUIDL) quadrupled from $2 billion in August 2024 to over $7 billion by August 2025, giving institutions a compliant, yield‑bearing on‑chain alternative to stablecoins.
• DeFi and staking. DeFi participation is rising from 24 % of institutions in 2024 to an expected 75 % by 2027. Galaxy notes that lending protocols saw elevated borrowing rates in July 2025, causing liquid staking tokens to de‑peg and underscoring both the fragility and maturity of DeFi markets. Yield farming strategies and basis trades produced double‑digit annualised returns, attracting hedge funds.
• Tokenized real‑world assets. About 57 % of institutions in EY’s survey are interested in tokenizing real‑world assets. Tokenized treasuries have grown over 300 % year‑on‑year: the market expanded from about $1 billion in March 2024 to roughly $4 billion by March 2025. Unchained’s analysis shows that tokenized treasuries grew 20 × faster than stablecoins and offer roughly 4.27 % yields. Chainalysis notes that tokenized treasury funds quadrupled to $7 billion by August 2025, while stablecoin volumes also surged.

Flows into Bitcoin and Ethereum ETFs​

Surge of inflows after ETF launches​

• Launch and early inflows. U.S. spot Bitcoin ETFs began trading in January 2024. Amberdata reports that January 2025 saw net inflows of $4.5 billion into these ETFs. MicroStrategy’s treasury company added 11,000 BTC (~$1.1 billion), illustrating corporate participation.
• Record assets and Q3 2025 surge. By Q3 2025, U.S. spot Bitcoin ETFs had attracted $118 billion of institutional inflows, with BlackRock’s iShares Bitcoin Trust (IBIT) commanding $86 billion AUM and net inflows of $54.75 billion. Global Bitcoin ETF AUM approached $219 billion by early September 2025. Bitcoin’s price rally to ~$123,000 by July 2025 and the SEC’s approval of in‑kind creations boosted investor confidence.
• Ethereum ETF momentum. Following SEC approvals of spot Ethereum ETFs in May 2025, ETH‑based ETPs attracted heavy inflows. VanEck’s August 2025 recap notes $4 billion of inflows into ETH ETPs in August, while Bitcoin ETPs saw $600 million outflows. CoinShares’ June 2 report highlighted a $321 million weekly inflow into Ethereum products, marking the strongest run since December 2024.

Short‑term outflows and volatility​

• US‑led outflows. CoinShares’ February 24 2025 report recorded $508 million of outflows after an 18‑week run of inflows, driven mainly by U.S. Bitcoin ETF redemptions. A later report (June 2 2025) noted modest Bitcoin outflows while altcoins (Ethereum, XRP) continued to see inflows. By September 29 2025, digital asset funds faced $812 million in weekly outflows, with the U.S. accounting for $1 billion in redemptions. Switzerland, Canada and Germany still recorded inflows of $126.8 million, $58.6 million and $35.5 million respectively.
• Liquidity and macro pressures. AInvest’s Q3 2025 commentary notes that leveraged positions faced $1.65 billion in liquidations and that Bitcoin treasury purchases fell 76 % from July peaks due to hawkish Federal Reserve signals. Galaxy highlights that while 80,000 BTC (~$9 billion) was sold OTC in July 2025, the market absorbed the supply with minimal disruption, indicating growing market depth.

Diversification into altcoins and DeFi​

• Altcoin flows. CoinShares’ September 15 report recorded $646 million inflows into Ethereum and $145 million into Solana, with notable inflows into Avalanche and other altcoins. The February 24 report noted that even as Bitcoin funds faced $571 million outflows, funds tied to XRP, Solana, Ethereum and Sui still attracted inflows. AInvest’s September 2025 piece highlights $127.3 million of institutional inflows into Solana and $69.4 million into XRP, along with year‑to‑date Ethereum inflows of $12.6 billion.
• DeFi yield strategies. Galaxy’s analysis illustrates how institutional treasuries use basis trades and leveraged lending to generate yield. BTC’s 3‑month annualized basis widened from 4 % to nearly 10 % by early August 2025, encouraging leveraged positions. Hedge funds built $1.73 billion of short ETH futures while buying spot ETH ETFs, capturing ~9.5 % yields. Elevated borrowing rates on Aave (peaking at ~18 %) triggered deleveraging and liquid staking token de‑pegs, exposing structural fragility but also demonstrating a more orderly response than previous crises.
• DeFi growth metrics. Total value locked (TVL) in DeFi reached a three‑year high of $153 billion by July 2025, according to Galaxy. VanEck reports that DeFi TVL increased 11 % month‑over‑month in August 2025, and the supply of stablecoins across blockchains grew to $276 billion, a 36 % increase year‑to‑date.

Stablecoins and tokenized cash​

• Explosive growth. Stablecoins provide the plumbing for crypto markets. Chainalysis estimates that monthly stablecoin transaction volumes exceeded $2–3 trillion in 2025, with adjusted on‑chain volume of nearly $16 trillion between January and July. McKinsey reports that stablecoins circulate ~$250 billion and process $20–30 billion of on‑chain transactions per day, amounting to more than $27 trillion annually. Citi estimates that stablecoin issuance increased from $200 billion at the start of 2025 to $280 billion, and forecasts issuance could reach $1.9 trillion (base case) to $4 trillion by 2030.
• Tokenized treasuries and yield. As discussed earlier, tokenized U.S. treasuries grew from $1 billion to $4+ billion between March 2024 and March 2025, and Chainalysis notes AUM of $7 billion by August 2025. The yield on tokenized treasuries (~4.27 %) appeals to traders seeking to earn interest on collateral. Prime brokerages such as FalconX accept tokenized money‑market tokens as collateral, signalling institutional acceptance.
• Payments and remittances. Stablecoins facilitate trillions of dollars of remittances and cross‑border settlements. They are widely used for yield strategies and arbitrage, but regulatory frameworks (e.g., GENIUS Act, Hong Kong’s Stablecoin Ordinance) are still evolving. Flagship Advisory Partners reports that stablecoin transaction volumes reached $5.7 trillion in 2024 and grew 66 % in Q1 2025.

Venture capital and private‑market flows​

• Renewed venture funding. AMINA Bank’s analysis notes that 2025 marked a turning point for crypto fundraising. Venture capital investment reached $10.03 billion in Q2 2025—double the level a year earlier, with $5.14 billion raised in June alone. Circle’s $1.1 billion IPO in June 2025 and subsequent public listings of firms like eToro, Chime and Galaxy Digital signalled that compliant, revenue‑generating crypto firms could access deep public‑market liquidity. Private placements targeted Bitcoin accumulation and tokenization strategies; Strive Asset Management raised $750 million and TwentyOneCapital $585 million. Securitize launched an institutional crypto index fund with $400 million anchor capital.
• Sector concentration. In H1 2025, trading and exchanges captured 48 % of VC capital, DeFi and liquidity platforms 15 %, infrastructure and data 12 %, custody and compliance 10 %, AI‑powered decentralized infrastructure 8 % and NFTs/gaming 7 %. Investors prioritised firms with validated revenue and regulatory alignment.
• Projected institutional flows. A forecasting study by UTXO Management and Bitwise estimates that institutional investors could drive $120 billion of inflows into Bitcoin by the end of 2025 and $300 billion by 2026, implying acquisition of over 4.2 million BTC (≈20 % of supply). They project that nation‑states, wealth‑management platforms, public companies and sovereign wealth funds could collectively contribute these inflows. Wealth‑management platforms alone control ~$60 trillion in client assets; even a 0.5 % allocation would generate $300 billion of inflows. The report argues that Bitcoin is transitioning from a tolerated asset to a strategic reserve for governments, with bills pending in several U.S. states.

Risks and challenges​

• Volatility and liquidity events. Despite maturing markets, digital assets remain volatile. September 2025 saw $903 million net outflows from U.S. Bitcoin ETFs, reflecting risk‑off sentiment amid Fed hawkishness. A wave of $1.65 billion in liquidations and a 76 % drop in corporate Bitcoin treasury purchases underscored how leverage can amplify downturns. DeFi deleveraging events caused liquid staking tokens to de‑peg.
• Regulatory uncertainty outside major jurisdictions. While the U.S., EU and parts of Asia have clarified rules, other regions remain uncertain. SEC enforcement actions and MiCAR compliance burdens can drive innovation offshore. Hedgeweek/Blockchain News notes that outflows were concentrated in the U.S. whereas Switzerland, Canada and Germany still saw inflows.
• Custody and operational risks. Large stablecoin issuers still operate in a regulatory grey zone. Run risk on major stablecoins and valuation opacity for certain crypto assets pose systemic concerns. The Federal Reserve warns that stablecoin run risk, leverage in DeFi platforms and interconnectedness could threaten financial stability if the sector continues to grow without robust oversight.

Conclusion​

Institutional flows into digital assets accelerated markedly in 2025, transforming crypto from a speculative niche into a strategic asset class. Surveys show that most institutions either already hold or plan to hold digital assets, and the average allocation is poised to exceed 5 % of portfolios. Spot Bitcoin and Ethereum ETFs have unlocked billions in inflows and catalyzed record AUM, while altcoins, DeFi protocols and tokenized treasuries offer diversification and yield opportunities. Venture funding and corporate treasury adoption also signal confidence in the long‑term utility of blockchain technology.

Drivers of this institutional wave include macro‑economic tailwinds, regulatory clarity (MiCAR, CLARITY and the GENIUS Act), and maturing infrastructure. Nevertheless, volatility, leverage, custody risk and uneven global regulation continue to pose challenges. As stablecoin volumes and tokenized RWA markets expand, oversight will be critical to avoid systemic risks. Looking ahead, the intersection of decentralized finance, tokenization of traditional securities, and integration with wealth‑management platforms may usher in a new era where digital assets become a core component of institutional portfolios.

In the world of high finance, some conversations are so critical they happen behind closed doors. At TOKEN2049 on October 1st, one such session is set to capture the industry's attention: “Goldman Sachs with Zoltan Pozsar: Macro & Crypto.” This isn't just another panel; it's a 30-minute fireside chat governed by Chatham House Rules, ensuring that the insights shared are candid, unfiltered, and unattributable.

The stage will feature two titans of finance: Zoltan Pozsar, founder of Ex Uno Plures and the intellectual architect of the "Bretton Woods III" thesis, alongside Timothy Moe, Partner and Co-Head of Asian Macro Research at Goldman Sachs. For attendees, this is a rare opportunity to hear a visionary macro strategist and a top-tier institutional investor debate the future of money, the waning dominance of the dollar, and the explosive role of digital assets.

The Speakers: A Visionary Meets an Institutional Powerhouse​

To understand the weight of this session, one must understand the speakers:

• Zoltan Pozsar: Widely regarded as one of Wall Street's most influential thinkers, Pozsar is a former senior adviser at the U.S. Treasury and strategist at the New York Fed. He is most famous for mapping the "shadow banking" system and, more recently, for his compelling "Bretton Woods III" thesis, which argues that we are shifting from a dollar-centric financial system to one based on "outside money" like commodities, gold, and potentially, crypto.
• Timothy Moe: A veteran of Asian markets, Moe leads Goldman Sachs' regional equity strategy, guiding the firm’s institutional clients through the complexities of 11 Asia-Pacific markets. With a career spanning decades at firms like Salomon Brothers and Jardine Fleming before becoming a partner at Goldman in 2006, Moe brings a grounded, practical perspective on how global macro trends translate into real-world investment decisions.

Pozsar’s Thesis: The Dawn of Bretton Woods III​

At the heart of the discussion is Pozsar’s transformative vision of the global financial order. He argues the world is moving away from a system built on "inside money" (fiat currencies and government debt) towards one underpinned by "outside money" – tangible assets outside the control of a single sovereign issuer.

His core arguments include:

• A Multipolar Monetary World: The era of absolute U.S. dollar dominance is ending. Pozsar foresees a system where the Chinese renminbi and the euro play larger roles in trade settlement, with gold re-emerging as a neutral reserve asset.
• Persistent Inflation and New Portfolios: Forget the inflation of the 1970s. Pozsar believes chronic under-investment in the real economy will keep prices high for the foreseeable future. This renders the traditional 60/40 stock/bond portfolio obsolete, leading him to suggest a new allocation: 20% cash, 40% equities, 20% bonds, and 20% commodities.
• De-Dollarization is Accelerating: Geopolitical fractures and Western sanctions have pushed nations like China to build parallel financial plumbing, using currency swap lines and gold exchanges to bypass the dollar framework.

Where Does Bitcoin Fit In?​

For the TOKEN2049 audience, the key question is how crypto fits into this new world. Pozsar's view is both intriguing and cautious.

He acknowledges that the core thesis of Bitcoin—a scarce, private, non-state form of money—aligns perfectly with his concept of "outside money." He appreciates that its value comes from being outside government control.

However, he raises a critical question: money has always been a public or public-private partnership. A purely private money with no state sanction is historically unprecedented. He humorously notes that Western central bank digital currencies (CBDCs) "miss the point," as they fail to offer the very non-inflatable, non-governmental properties that attract people to Bitcoin in the first place. His primary concern for Bitcoin remains the tail risk of a cryptographic failure, a technical vulnerability that physical gold doesn't share.

Bridging Theory and Action: The Goldman Sachs Perspective​

This is where Timothy Moe’s role becomes crucial. As a strategist for Goldman Sachs in Asia, Moe will be the bridge between Pozsar’s grand theories and the actionable questions on investors' minds. The discussion is expected to delve into:

• Asian Capital Flows: How will a multi-polar currency system affect trade and investment across Asia?
• Institutional Adoption: How do Asia's institutional investors view Bitcoin versus other commodities like gold?
• Portfolio Strategy: Does Pozsar’s 20/40/20/20 allocation model hold up under the scrutiny of Goldman's macro research?
• CBDCs in Asia: With Asian central banks leading the charge on digital currency experiments, how do they view the rise of private crypto?

Final Thoughts​

The "Goldman Sachs with Zoltan Pozsar" session is more than just a talk; it's a real-time glimpse into the strategic thinking shaping the future of finance. It brings together a prophet of a new monetary age with a pragmatic leader from the heart of the current system. The conversation promises to offer a nuanced, high-level perspective on whether crypto will be a footnote in financial history or a cornerstone of the emerging Bretton Woods III order. For anyone invested in the future of money, this is a dialogue not to be missed.

Overview​

Digital asset treasuries (DATs) are publicly listed corporations whose primary business model is to accumulate and manage crypto‑tokens such as ETH or SOL. They raise capital through stock offerings or convertible bonds and use the proceeds to purchase tokens, stake them to earn yield, and grow tokens per share via savvy financial engineering. DATs blend features of corporate treasuries, investment trusts and DeFi protocols; they let mainstream investors gain exposure to crypto without holding the coins directly and operate like “on‑chain banks.” The following sections synthesise the visions of four influential leaders—Tom Lee (Fundstrat/BitMine), Joseph Lubin (Consensys/SharpLink), Sam Tabar (Bit Digital) and Cosmo Jiang (Pantera Capital)—who are shaping this emerging sector.

Tom Lee – Fundstrat Co‑founder & BitMine Chairman​

Long‑term thesis: Ethereum as the neutral chain for the AI–crypto super‑cycle​

• In 2025 Tom Lee pivoted the former Bitcoin miner BitMine into an Ethereum treasury company. He argues that AI and crypto are the two major investment narratives of the decade and both require neutral public blockchains, with Ethereum offering high reliability and a decentralised settlement layer. Lee describes ETH’s current price as a “discount to the future”—he believes that the combination of institutional finance and artificial intelligence will eventually need Ethereum’s neutral public blockchain to operate at scale, making ETH “one of the biggest macro trades of the next decade”.
• Lee believes tokenised real‑world assets, stablecoins and on‑chain AI will drive unprecedented demand for Ethereum. In a Daily Hodl interview he said ETH treasuries added over 234 k ETH in one week, pushing BitMine’s holdings above 2 million ETH. He explained that Wall Street and AI moving on‑chain will transform the financial system and most of this will happen on Ethereum, hence BitMine aims to acquire 5 % of ETH’s total supply, dubbed the “alchemy of 5 %”. He also expects ETH to remain the preferred chain because of pro‑crypto legislation (e.g., CLARITY & GENIUS Acts) and described Ethereum as the “neutral chain” favoured by both Wall Street and the White House.

DAT mechanics: building shareholder value​

• In Pantera’s 2025 blockchain letter, Lee explained how DATs can create value beyond token price appreciation. By issuing stock or convertible bonds to raise capital, staking their ETH, using DeFi to earn yield and acquiring other treasuries, they can increase tokens per share and maintain a NAV premium. He views stablecoins as the “ChatGPT story of crypto” and believes on‑chain cash flows from stablecoin transactions will support ETH treasuries.
• Lee emphasises that DATs have multiple levers that make them more attractive than ETFs: staking yields, velocity (rapid issuance of shares to acquire tokens) and liquidity (ability to raise capital quickly). In a Bankless discussion he noted that BitMine moved 12 × faster than MicroStrategy in accumulating crypto and described BitMine’s liquidity advantage as critical for capturing a NAV premium.
• He also stresses risk management. Market participants must differentiate between credible leaders and those issuing aggressive debt; investors should focus on execution, clear strategy and risk controls. Lee warns that mNAV premiums compress as more companies adopt the model and that DATs need to deliver performance beyond simply holding tokens.

Vision for the future​

Lee predicts a long super‑cycle in which Ethereum underpins tokenised AI economies and digital asset treasuries become mainstream. He foresees ETH reaching US $10–12 k in the near term and much higher over a 10–15 year time horizon. He also notes that major institutions like Cathie Wood and Bill Miller are already investing in DATs and expects more Wall Street firms to view ETH treasuries as a core holding.

Joseph Lubin – Consensys Founder & SharpLink Chairman​

ETH treasuries as storytelling and yield machines​

• Lubin argues that Ethereum treasury companies are more powerful than Bitcoin treasuries because ETH is productive. By staking tokens and using DeFi, treasuries can generate yield and grow ETH per share, making them “more powerful than Bitcoin treasuries”. SharpLink converts capital into ETH daily and stakes it immediately, creating compounding growth.
• He sees DATs as a way to tell the Ethereum story to Wall Street. On CNBC he explained that Wall Street pays attention to making money; by offering a profitable equity vehicle, DATs can communicate ETH’s value better than simple messaging about smart contracts. While Bitcoin’s narrative is easy to grasp (digital gold), Ethereum spent years building infrastructure—treasury strategies highlight its productivity and yield.
• Lubin stresses that ETH is high‑powered, uncensorable money. In an August 2025 interview he said SharpLink’s goal is to build the largest trusted ETH treasury and keep accumulating ETH, with one million ETH merely a near‑term signpost. He calls Ethereum the base layer for global finance, citing that it settled over US $25 trillion in transactions in 2024 and hosts most real‑world assets and stablecoins.

Competitive landscape and regulation​

• Lubin welcomes new entrants into the ETH treasury race because they amplify Ethereum’s credibility; however, he believes SharpLink holds an advantage due to its ETH‑native team, staking know‑how and institutional credibility. He predicts ETFs will eventually be allowed to stake, but until then treasury companies like SharpLink can fully stake ETH and earn yield.
• In a CryptoSlate interview he noted that the supply–demand imbalance for ETH and daily purchases by treasuries will accelerate adoption. He emphasised that decentralisation is the direction of travel and expects both ETH and BTC to continue rising as the world becomes more decentralised.

SharpLink’s execution​

• SharpLink quietly shifted its focus from sports betting technology to Ethereum in early 2025. According to shareholder filings, it converted significant portions of its liquid reserves into ETH—176 270 ETH for $462.9 million in July 2025 and another 77 210 ETH for $295 million a day later. An August 2025 direct offering raised $400 million and a $200 million at‑the‑market facility, pushing SharpLink’s reserves beyond 598 800 ETH.
• Lubin says SharpLink accumulates tens of millions of dollars in ETH daily and stakes it via DeFi to generate yield. Standard Chartered analysts have noted that ETH treasuries like SharpLink remain undervalued relative to their holdings.

Sam Tabar – CEO of Bit Digital​

Rationale for pivoting to Ethereum​

• After profitably running a Bitcoin mining and AI infrastructure business, Sam Tabar led Bit Digital’s complete pivot into an Ethereum treasury and staking company. He sees Ethereum’s programmable smart‑contract platform, growing adoption and staking yields as capable of rewriting the financial system. Tabar asserts that if BTC and ETH had launched simultaneously, Bitcoin might not exist because Ethereum enables trustless value exchange and complex financial primitives.
• Bit Digital sold 280 BTC and raised around $172 million to purchase over 100 k ETH. Tabar has emphasised that Ethereum is no longer a side asset but the centerpiece of Bit Digital’s balance sheet and that the firm intends to continue acquiring ETH to become the leading corporate holder. The company announced a direct offering of 22 million shares priced at $3.06 to raise $67.3 million for further ETH purchases.

Financing strategy and risk management​

• Tabar is a strong proponent of using unsecured convertible debt rather than secured loans. He warns that secured debt could “destroy” ETH treasury companies in a bear market because creditors might seize the tokens when prices fall. By issuing unsecured convertible notes, Bit Digital retains flexibility and avoids encumbering its assets.
• In a Bankless interview he compared the ETH treasury race to Michael Saylor’s Bitcoin playbook but noted that Bit Digital is a real business with cash flows from AI infrastructure and mining; it aims to leverage those profits to grow its ETH holdings. He described competition among ETH treasuries as friendly but emphasised that mindshare is limited—companies must aggressively accumulate ETH to attract investors, yet more treasuries ultimately benefit Ethereum by raising its price and awareness.

Vision for the future​

Tabar envisions a world where Ethereum replaces much of the existing financial infrastructure. He believes regulatory clarity (e.g., the GENIUS Act) has unlocked the path for companies like Bit Digital to build compliant ETH treasuries and sees the staking yield and programmability of ETH as core drivers of future value. He also highlights that DATs open the door for public‑market investors who cannot buy crypto directly, democratizing access to the Ethereum ecosystem.

Cosmo Jiang – General Partner at Pantera Capital​

Investment thesis: DATs as on‑chain banks​

• Cosmo Jiang views DATs as sophisticated financial institutions that operate more like banks than passive token holders. In an Index Podcast summary he explained that DATs are evaluated like banks: if they generate a return above their cost of capital, they trade above book value. According to Jiang, investors should focus on NAV‑per‑share growth—analogous to free cash‑flow per share—rather than token price, because execution and capital allocation drive returns.
• Jiang argues that DATs can generate yield by staking and lending, increasing asset value per share and producing more tokens than simply holding spot. One determinant of success is the long‑term strength of the underlying token; this is why Pantera’s Solana Company (HSDT) uses Solana as its treasury reserve. He contends that Solana offers fast settlement, ultra‑low fees and a monolithic design that is faster, cheaper and more accessible—echoing Jeff Bezos’s “holy trinity” of consumer wants.
• Jiang also notes that DATs effectively lock up supply because they operate like closed‑end funds; once tokens are acquired, they rarely sell, reducing liquid supply and potentially supporting prices. He sees DATs as a bridge that brings tens of billions of dollars from traditional investors who prefer equities over direct crypto exposure.

Building the pre‑eminent Solana treasury​

• Pantera has been a pioneer in DATs, anchoring early launches such as DeFi Development Corp (DFDV) and Cantor Equity Partners (CEP) and investing in BitMine. Jiang writes that they have reviewed over fifty DAT pitches and that their early success has positioned Pantera as a first call for new projects.
• In September 2025 Pantera announced Solana Company (HSDT) with more than $500 million in funding, designed to maximize SOL per share and provide public‑market exposure to Solana. Jiang’s DAT thesis states that owning a DAT could offer higher return potential than holding tokens directly or via an ETF because DATs grow NAV per share through yield generation. The fund aims to scale institutional access to Solana and leverage Pantera’s track record to build the pre‑eminent Solana treasury.
• He emphasises that the timing is critical: digital asset equities have enjoyed a tailwind as investors search for crypto exposure beyond ETFs. However, he warns that excitement will invite competition; some DATs will succeed while others fail. Pantera’s strategy is to back high‑quality teams, filter for incentive‑aligned management and support consolidation (M&A or buybacks) in downside scenarios.

Conclusion​

Collectively, these leaders see digital asset treasuries as a bridge between traditional finance and the emerging token economy. Tom Lee envisions ETH treasuries as vehicles to capture the AI–crypto super‑cycle and aims to accumulate 5 % of Ethereum’s supply; he stresses velocity, yield and liquidity as key drivers of NAV premiums. Joseph Lubin views ETH treasuries as yield‑generating machines that tell the Ethereum story to Wall Street while pushing DeFi and staking into mainstream finance. Sam Tabar is betting that Ethereum’s programmability and staking yields will rewrite financial infrastructure and warns against secured debt, promoting aggressive yet prudent accumulation through unsecured financing. Cosmo Jiang frames DATs as on‑chain banks whose success depends on capital allocation and NAV‑per‑share growth; he is building the pre‑eminent Solana treasury to showcase how DATs can unlock new growth cycles. All four anticipate that DATs will continue to proliferate and that public‑market investors will increasingly choose them as vehicles for exposure to crypto’s next chapter.