Privy (State of the Art wallets) was an unlock for individual App builders but builders only enabling new wallet creation sets back (permissionless) crypto (adoption) - as users can‘t enjoy & hence understand the benefit of composable apps & moving seamlessly around crypto.

founder @converseapp (acq) - building new stuffs

Funnily I said in 2024 that fragmentation is overblown as everyone referred to ETH l2s (which are totally fine in async and will be nicely aggregated, integrated with each other).

However, user assets in different apps & exotic chains are a real issue.

I guess that’s half of the truth. (Some founders prob don’t mind offering value to other builders, rather want their users to get best experience.)

In 2022 there was no good wallets, onboarding flows etc. and Privy solved a hard industry problem (UX) & apps were ok to give up some user composability for UX.

In 2025 the main industry problem is likely less UX but rather fragmentation and Privy adds to it - while it still offers great value to apps & new users.

Founder dilemna - you want to benefit from others' liquidity & onramping but you don't want others to benefit from yours.

Pretty sure Privy would not have worked as well with a composable approach.