Unchained The LayerZero/Wormhole Bidding War Shows How to Value a Crypto Business - Ep. 890
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Aug 22, 2025 
David Nage, a VC Portfolio Manager at Arca, and Lawson Bae, Founder of Relayzero, dive into the heated bidding war between LayerZero and Wormhole over Stargate DAO. They analyze LayerZero's shocking $110 million bid and its implications for valuing DApps as real businesses. The discussion highlights how traditional business principles are seeping into crypto strategies, the importance of transparency in DAO acquisitions, and the potential for a consolidation wave in the industry. Tune in for insights on this pivotal moment in crypto M&A!
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On‑Chain M&A Marks Market Maturity
- This is the first on‑chain takeover battle and signals crypto M&A maturing beyond speculative token plays.
- Buyers now analyze on‑chain businesses using fundamentals and traditional valuation approaches.
Buying Revenue Back In‑House
- LayerZero aims to buy Stargate primarily to capture its revenue, since Stargate collects transaction fees while LayerZero mostly earns messaging fees.
- The acquisition is a way to bring revenue back in‑house and consolidate related teams and assets.
Value DAOs With On‑Chain Fundamentals
- Value on‑chain protocols by verifying treasury, revenue, and fee data on chain before pricing the enterprise value.
- Apply revenue multiples based on growth; slower growth means lower multiples and vice versa.
