WuBlockchain
Alliance co-founder Qiao Wang said on the Good Game Podcast that a 20x price-to-earnings ratio is not cheap for trading products operating under constant competition, citing Hyperliquid as his example. He went further, arguing that even a 5x multiple is high for the category.
His reasoning rests on the structure of on-chain trading itself. With switching costs virtually zero, users can migrate between venues at no expense, which makes it hard for any single trading product to sustain earnings over the long term. Valuations, he argued, should therefore account for how long profits can last rather than just what current earnings happen to be.
The framing is a direct challenge to how DeFi trading venues are often valued, where a low P/E has been treated as a discount signal. Wang's argument flips that: in a commoditizing market, today's earnings say little about tomorrow's, and the multiple should compress accordingly.
Frequently asked questions
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Why does Qiao Wang think a 20x P/E is not cheap for trading products?
He argues trading products face constant competition and, on-chain, switching costs are virtually zero. That makes long-term earnings hard to sustain, so even a 5x multiple is high in his view, not just 20x.
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What role does Hyperliquid play in Wang's valuation argument?
Wang cited Hyperliquid as his example of a trading product whose price-to-earnings ratio should not be treated as cheap at 20x, given the competitive dynamics of on-chain trading.
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How do zero switching costs affect on-chain trading venue earnings?
Because users can move between on-chain venues at virtually no cost, no single trading product can easily retain market share or sustain earnings over the long term. Wang says valuations should reflect how long profits last, not just their current level.
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What valuation approach does Wang suggest for perp DEXs instead?
He suggests valuing trading products based on how long their profits can survive under competition, rather than anchoring to current earnings alone. A low P/E is not a discount if those earnings are likely to erode.
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Who is Qiao Wang and where did he make these comments?
Qiao Wang is the co-founder of Alliance, a crypto accelerator. He made the remarks on September 15, 2026, on the Good Game Podcast.
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