Pantera Partner: Analysis of Common Business Models in the Crypto Industry

Author: Mason Nystrom, partner at Pantera Capital; compiled by: 0xjs@Bitchain Vision

There are several common crypto business models: exchanges and markets, transaction sorting, asset management.Let’s dig into some examples.

Exchange model

Subset 1. Market Model – Transaction Fees

• Create new assets and markets (e.g. Polymarket, Perps)

• Expand access to emerging assets (Coinbase and BTC)

• Convenience Fee (Swap in wallet)

• SaaS-Supported Markets – Proof Markets

Subset 2): Liquidity Services

• Create a valuable professional liquidity pool and charge terminal applications access fees (such as hooks) or market making matchmaking fees (such as Swap)

• DEX

• Lending

MEV / Transaction sorting: own and monetize valuable order flows

• App PFOF (e.g. TG Bots)

• Sorter mode – have your own sorter and MEV (e.g. L2)

• SaaS supports transaction sorting and monitoring – RaaS, RPC providers, security providers, oracles, etc.

Asset Management: Fees are charged based on asset management scale or income

• Custodian – Earn fees based on assets

• Staking providers, LSTs, LRTs – earn some income

• Stablecoin issuer