Multicoin Co-Founder: AI makes software homogeneous, and the DeFi moat lies in distribution and capital

The cryptocurrency venture capital firm Multicoin Capital's co-head of venture capital, Spencer Applebaum, pointed out that AI has greatly lowered the threshold for protocol development, leading to rapid homogenization of pure software, while the core barriers of financial services remain outside of code.

Applebaum believes that the relevant barriers mainly include three aspects: first, distribution channels centered around sticky customer relationships and order flow; second, balance sheets and capital scales that AI cannot create out of thin air, such as cross-currency prime brokers with risk resistance capabilities, and reserves backed by the protocol; third, proprietary data underwriting involving offline proprietary data and non-public risk control, such as OnRe reinsurance or GPU collateralized loans.

He also stated that underlying general L1 and L2 are losing their native distribution and capital monopoly advantages. The key for startup teams to break through lies in entering high-risk tolerance markets that traditional giants are unwilling to touch due to compliance or reputation concerns, and gradually building the aforementioned barriers.