A Blockchain Capital partner described “arbitrage” as a central strategy behind several successful companies in the crypto sector. In this framing, arbitrage is not limited to trading price differences. It refers to the ability to identify gaps in markets or institutions, enter through those openings, and build a business structure around demand before the advantage disappears.
From gaps to durable barriers
The article cites Tether, Circle, Ethena and RedotPay as examples of companies that illustrate this approach. The common pattern is to discover an unmet need, create a growth flywheel, and then convert an early or temporary edge into a more durable barrier. In other words, the opportunity itself is only the starting point; the harder task is turning that opportunity into products, trust and scale.
The article also argues that founders in crypto need to become “bilingual.” They must understand crypto-native capital markets, including the way capital, users and growth move inside the sector. At the same time, they need to speak the language of mainstream business, including compliance, institutional trust and consumer-grade products. According to the article, this dual capability is what allows a company to move through the full process from cold start to broader adoption.