Yes, totally true. This is dangerous though when those circumstances change and basically invalidate the whole category.
I can think of NFT infrastructure here:
Various product categories were created with market leaders that owned them.
But the NFT hype didn’t hold and we effectively realized the use cases didn’t manifest beyond ZIRP-driven speculation and a small collector-artist scene.
So that can negate the whole category or crown a different winner when a technology changes.
Imagine if we used NFTs to verify if an AI or human made a piece of media.
Suddenly “marketplace” becomes a much less interesting category than scalable, fast APIs to create NFTs
I can think of NFT infrastructure here:
Various product categories were created with market leaders that owned them.
But the NFT hype didn’t hold and we effectively realized the use cases didn’t manifest beyond ZIRP-driven speculation and a small collector-artist scene.
So that can negate the whole category or crown a different winner when a technology changes.
Imagine if we used NFTs to verify if an AI or human made a piece of media.
Suddenly “marketplace” becomes a much less interesting category than scalable, fast APIs to create NFTs