Ben Scharfstein
@scharf
Blur v Opensea driving take rates to 0 makes me bullish on crypto. To me, one of the biggest value props of crypto is getting us closer to the efficient market and reducing rent extraction. Tokens potentially align incentives here, Opensea yet to crack (maybe doesn’t apply in this case)
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Noah Bragg 🔥
@nbragg
But how do companies make a profit in that case?
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Ben Scharfstein
@scharf
A few things: -Protocols don’t need to profit -OS has made a ton of money to this point, just because they don’t have a long term sustained profit engine, doesn’t mean they can’t profit -By doing things that are differentiated and value add. For example, their APIs are very useful and benefit from economies o
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Tom McLeod
@tmcleod
"OS has made a ton of money to this point, just because they don’t have a long term sustained profit engine, doesn’t mean they can’t profit" How do share holders profit? How many businesses destroy their main engine of profit and survive? Where is OS a Protocol?
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Ben Scharfstein
@scharf
Seaport is a protocol that Opensea builds and productizes in the same way Farcaster is a protocol that warpcaster / mmc builds. Opensea will need to find other ways to profit. I think they can! Profits are value transfer from users to companies. Less profit is good for consumers.
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Ben Scharfstein
@scharf
Reducing profits != eliminating profits
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