Let’s talk about a truth that makes entrepreneurs want to cry: “Value creation” ≠ “value capture”

The market is evolving madly: everyone is scrambling for “front-end” and engaging in “vertical integration”.

- http://Pump.fun has transformed from a coin issuance platform to an exchange;

- Jupiter has expanded madly from an aggregator to an upward (wallet) and downward (RFQ DEX), and has also acquired competitors.

“Core logic: whoever controls the user relationship (front-end) has the power to vertically integrate downward to eat up the profits, or to put pressure on the upstream to make it cheap!”

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- Value ≠ profit: making good things is the foundation, but where the money flows is determined by the market structure.

- Distribution is king: controlling the user entrance (front-end/wallet) is the kingly way. This is the most core non-technical moat.

- Vertical integration is the killer: front-end + DEX, or even front-end + aggregator + DEX + own chain, taking over the entire value chain.

- Public chain is a land rent collector: relying on network effects and the status of the settlement layer to make steady profits.

- Pure technology protocols have a hard time surviving: without distribution capabilities, even the best technology may become cheap or traffic-choked. Cold start is hellish.

Solana case is a living textbook: see how Phantom, Pump.fun, and Jupiter rely on controlling users and vertical integration to make a living, and how pure DEX/aggregators struggle.

For entrepreneurs/investors: Don’t just focus on code and TPS! Go-to-Market strategy/brand building/user acquisition/niche positioning (especially the front end) and clear "value capture" design are the key to the survival of the project!