Layer-1 Blockchain Investment Debate Intensifies Between Qiao Wang and Haseeb Qureshi

The crypto industry is grappling with a fundamental question about the long-term value of Layer-1 (L1) blockchains, as two prominent figures, Qiao Wang and Haseeb Qureshi, presented opposing views this week. Their debate centers on whether defensibility or exponential adoption potential should determine the investment case for L1 networks.

Qiao Wang, co-founder of Alliance DAO, argues that most L1 blockchains lack enduring value due to weak defensibility. He believes that users and developers can easily abandon one chain for another, with minimal friction, making L1s more like interchangeable utilities than irreplaceable platforms. Wang points to the rapid acceleration of new blockchain launches and the ease of redeploying applications as key weaknesses. He does not expect L1s to collapse but questions their long-term performance, except for vertically unified designs that control both the ledger and applications, such as Solana, Base, and Hyperliquid, which he cites as emerging models with stronger exit barriers.

In contrast, Haseeb Qureshi of Dragonfly Ventures defends L1s, emphasizing their exponential growth potential. In his essay "In Defense of Exponentials," Qureshi compares the current skepticism toward blockchains like Ethereum and Solana to early doubts about Amazon's e-commerce dominance. He argues that applying traditional metrics, such as price-to-earnings ratios, fails to capture how network effects compound over time. Qureshi contends that if blockchains eventually support a significant share of global economic activity, their valuations could justify far beyond current assumptions, rewarding those who focus on long-term scale rather than short-term fundamentals.

The debate highlights a philosophical divide in the crypto investment community, with Wang's caution rooted in defensibility and Qureshi's optimism in future adoption. This clash underscores the uncertainty surrounding L1 valuations as the industry matures, influencing how investors evaluate tokens going forward.