Decoding cryptoasset network effects

Using dual-logarithmic grids to rapidly classify value propositions.

Estimated Reading Time: 20 minutes

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The conversation around cryptocurrency network effects is broken.

The last twenty years has seen the rise and transformation of p2p networks into some of the most valuable companies in the world, and subsequently, a rush of Silicon Valley venture capitalists trying to discover the next distributed network unicorn. Lost in this mosh pit of money are the fundamental value propositions for up-and-coming companies and cryptoassets—the real drivers of valuation growth have been discarded and replaced by frameworks based on Metcalfe’s Law. The result is untethered future valuation expectations and distorted relative price projections between (crypto)assets.