Some crypto VCs still think the moat for crypto networks is the “tech”.

If that were the case, BTC would have “died” by now.

ETH flourishing in spite of other “better tech” is another example.

In open source software, tech by definition cannot be the moat.

Similarly, if tech is the secret sauce, then $BCH and $BSV should not be worth such a tiny fraction of $BTC.

Likewise the valuation gap between $ETH and $TRON should not be that large if tech was the differentiating factor since the latter is a copy of the former.

No. The real moat for a crypto network is the community not the tech.

Community is what drives development, adoption and ultimately network effects.

Therefore, if you want to identify winners and losers, focus on the community, not the tech.

Most founders seem to think that a broad distribution of their token builds community. That’s misguided.

To build a strong community you need to inspire belief in your platform and token. The problem is some founders don’t even believe in their own token.

In addition, people need to believe they are on a bigger mission and they are going to emerge victorious and get rich along the way. The strongest communities are the ones whose token prices have appreciated substantially. This reinforces their conviction.

Having a unified and cool identity helps too. Think XRP army, LINK marines, SNX spartans, Band jedis etc. it sounds frivolous but it works in practice. Having thought leaders within the community is important too. They rally the troops and create the propaganda.

The strongest communities tend to be tribal and partial. They gang up on anyone that questions their vision. Their primary objective is to grow the community and drive token price maximization.

Most of the DeFi projects don’t yet have a strong community. Take Compound and Balancer for example, they have users and fans but not really a community yet. Most retail investors who mine $COMP and $BAL sell the tokens after receiving them.

There is no loyalty. They don’t see a grander vision and don’t care to HODL the tokens.

IMO, the strongest communities today are:
Bitcoin
Ethereum
Chainlink
Binance

These had strong communities that has waned by varying degree in the past year:
XRP
BCH
BSV
EOS
Tezos
Cosmos

These have emerging communities:
Polkadot
Synthetix
Aave
Band
Thorchain

Which others have I missed?