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Network Effects, Moats, & the Business of web3

a16z Podcast

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How to Launch a Marketplace

When launching a marketplace, whether it's web three or not, the key is to figure out how to get your initial users and create a network effect. Instead of focusing solely on going after supply or demand first, the real question is who you need to subsidize and who will pay to use your platform. By recruiting users who create the most value for everyone else, offering incentives to initial developers or liquidity providers, and kickstarting the network effect, you can successfully launch your platform.

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