Alliance DAO co-founders clarified: They will not short L1 tokens, but simply believe that L1 tokens are not a high-quality investment.

Alliance DAO co-founder QwQiao stated in an article on the X platform that he will not short L1 tokens, but he cannot convince himself that they are "great investments." However, L1 tokens are not "bad investments" either, as there are thousands of assets to choose from, and some high-quality assets can always be found. QwQiao claims that every asset he currently holds has a sustainable competitive advantage and operates in an exponentially growing sector.

QwQiao previously pointed out that L1 tokens lack a moat, are easily commoditized, and struggle to capture meaningful value, suggesting that betting on the application layer might be the way forward.