network-effect

One of the key benefits of blockchain technology and crypto projects is their ability to reduce the costs of networking. (Catalini & Gans). Startups can bootstrap digital platforms solely by relying on early adopters and investors to compete against established players without the need to resort to traditional funding. With incentives primarily geared towards users or other providers of key resources, early adopters are keen to experiment with those platforms hoping that the increased network activity results in greater diffusion thereby increasing the value of the native crypto asset.…