This article explores how onchain platforms challenge traditional business models by making software, data, and processes openly accessible. It discusses various forms of power, such as liquidity network effects and the erosion of switching costs, highlighting how these factors influence competitive advantages in the crypto space.

The article argues that crypto is overvalued because it lacks the strong network effects seen in successful platforms like Facebook. It highlights that crypto users are priced significantly higher than Meta's, despite lower retention and monetization. The author concludes that current valuations reflect an unrealistic expectation of future growth and network benefits.