The Hot Start Problem

Crypto startups that launch a token before finding product-market fit face what the author calls the "hot start problem," which shortens their window to build organic traction before token rewards diminish. The article says Tina, a friend and fellow investor of the author, coined the term. It argues that the problem is easier to overcome in passive networks, such as staking, liquidity provision, and DePIN hardware, than in active networks like gaming or gig work, where premature tokens often obscure true product-market fit. It also cites second movers such as GMX and dYdX, which used tokens to overtake earlier perp exchanges.