Since Bitcoin’s creation over a decade ago, the cryptocurrency industry has rapidly expanded. By early 2024, thousands of cryptocurrency projects and blockchain-based companies have emerged, serving millions of users worldwide.
A clear geographic divide has appeared: the East hosts a high concentration of users, while much of the technological innovation comes from the West. This divide fueled a debate at Solana’s Breakpoint.
Cindy Leow, co-founder of Drift Labs, highlights this dynamic, pointing to the more mature capital markets in the West that fuel significant “0 to 1” innovation. This is evident with projects like Solana and Ethereum, which were spearheaded by Western founders.
On the other hand, Eastern markets excel in distribution, driven by factors like capital restrictions in Asia and a booming developer landscape. Leow’s team taps Western talent for technology development while looking to countries like Taiwan, Vietnam, and Singapore for distribution roles.
Joanna Zeng, co-founder, and CEO of SOON, explains that Western education and immigration systems often enable Eastern entrepreneurs to establish themselves in the U.S. This geographic blend allows them to expand their ventures in Western markets, leveraging Western capital while tapping into Eastern user bases.
Presence of capital in the West and good marketing in the East
According to Cindy, the U.S. remains advantageous for startups raising funds, thanks to its abundant capital despite strict regulations. However, as companies scale, they often find a larger user base in Asia, where the crypto market is thriving.
Dovey Wan of Primitive Ventures noted that non-financial applications, such as Optimism, often turn to Asia due to limited opportunities in the U.S. Successful projects like Axie Infinity, for instance, originated in Asia, further illustrating the region’s strengths in viral marketing and growth.
The regulatory environments in the East and West significantly affect the crypto landscape. Joanna points out how stablecoins like USDT and USDC operate differently under these varying regulations. For example, stricter U.S. regulations, including tax requirements on platforms like Coinbase, push some users towards compliant platforms despite the higher costs.
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In contrast, countries like India present additional hurdles, where local banks may block accounts linked to platforms like Binance. Users in such regions often prefer compliant platforms for security, despite added expenses.
Asia’s Developer Advantage
Joanna also highlighted how her company, though based in the West, relies on highly skilled and cost-effective developers from Asia, particularly China. She believes the next wave of talented developers will come from emerging markets in the Asia-Pacific region.
Additionally, while many cutting-edge ideas originate in the West, most of the actual development is taking place in the East. Joanna’s team, for example, launched a test version of their platform in just five months—far quicker and more cost-effective than similar Western projects.
While the East-West divide exists in terms of innovation and user adoption, Joanna emphasizes that crypto is fundamentally about decentralization, transcending borders. By combining the strengths of both regions, the global crypto community can build a better, more inclusive future.
