Alliance DAO Says It Won’t Short L1s, But Calls Them Low-Quality Bets

• Qiao Wang of Alliance DAO doubts the long-term value of L1 tokens, citing lack of a strong moat.
• He views L1 tokens as “low-quality bets” but doesn’t believe they are bad investments overall.
• Wang suggests the app layer offers more secure investment opportunities with stronger value capture.

The debate over the value of Layer-1 blockchains flared up this week. Alliance DAO co-founder Qiao Wang said most L1 tokens don’t have lasting strengths. Meanwhile, Dragonfly’s Haseeb Qureshi released a long essay arguing that smart-contract chains will hold long-term value. 

Their exchange shows a divide between investors bullish on crypto’s growth and those who think the hype exceeds the fundamentals.

L1s Have “No Moat” and Are Becoming Commodities

Qiao Wang responded to Qureshi’s essay by explaining why he finds it hard to hold L1 tokens for the long run.…

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