Forward the Original Title ‘从“仰视”到“平视”，我是如何对Web3祛魅的 — — 一个普通Web3参与者的亲历感受’

The first time I heard about and participated in blockchain was around the end of 2017 or the beginning of 2018. At that time, I was working for a major Internet company. Thanks to the innate advantages of major Internet companies in trying new technologies first in their business and their relatively strong programmer atmosphere, I had the opportunity to come into contact with blockchain relatively early. At that time, I often hung out with a group of programmer friends, and the most common topics I heard them talk about were: “Bitcoin”, “Mining”, “ICO”, “Aircoin”, etc.

I don’t come from a technical background, so what they said at the time was completely confusing to me. But because I come from a content background, my intuition tells me that blockchain is a very different technology.

So, I started reading the Bitcoin whitepaper and the Ethereum whitepaper. I remember very clearly that one night I read the English whitepaper of Bitcoin 10 times but didn’t understand it. I only remembered one title: “Bitcoin: A Peer-to-Peer Electronic Cash System”. This title is deeply ingrained in my mind, and my intuitive feeling is three words: awesome!

This is where it all begins. Or to use a more popular term on the Internet now: the gears of fate begin to turn.

Interestingly, although I started to understand the blockchain from Bitcoin, I followed my friend’s advice and started playing with aircoins. As you can imagine, I did not escape the fate of leek.

So at that time, my attitude towards blockchain was very contradictory. On the one hand, like many people, I think this is a new leek-cutting scam - in fact, at that time, such a situation did exist; on the other hand, I think that at least Bitcoin’s idea is very new and indicates some possibility for the future.

From 2019 to 2020, I did not participate much in this industry. I was just learning about the development of this industry as a learner and observer. To this day, I still feel that “learner” and “observer” are the labels that best suit me.

2021: Immersed in the Beauty of Web3

If 2017-2018 was a “superficial dip” into blockchain, then 2021 can be described as a year of “deep involvement.”

That year, I was working at a dollar-denominated fund. Thanks to the platform advantages of VC work, I had more opportunities to learn about the developments in cutting-edge technology and emerging fields. Coincidentally, it was also the year when the crypto market experienced a bull run, and “Web3” began to replace blockchain as a new narrative.

When I think back to that bull run, a few events come to mind that left a deep impression on me:

• In early 2021, Bitcoin reached a market capitalization of $1 trillion for the first time.
• Major companies like Tesla disclosed their holdings in Bitcoin.
• Artist Beeple sold an NFT artwork titled “Everydays: The First 5000 Days” for $69 million.
• Basketball star Stephen Curry spent $180,000 on a BAYC NFT. Yes, you read that right—$180,000.
• El Salvador passed a bill making Bitcoin legal tender.
• DAOs—new types of social organizations in Web3—began to emerge.

Looking back now, in 2021, the entire sentiment in the Web3 industry that I have experienced is very high. This surge is reflected in:

1. Investment and entrepreneurship are booming

Because I am in the VC industry, I will have many opportunities to communicate with investors and entrepreneur friends. During the entire process, Web3 will always be a topic that will never be absent. At that time, I saw many investors begin to leave the traditional investment field and transform into Web3.

Not just investors, but entrepreneurs too. In traditional VC investment, high-level talents from large companies are often the first choice for investment. But that year, I also saw many outstanding talents from large companies begin to flock to the Web3 field to start businesses.

When I asked those investors and entrepreneur friends who have invested in Web3 about the reasons for choosing Web3, a common answer is: The Web3 industry is like the Internet in the 1990s. It is a blue ocean. The sooner you occupy the ecological niche, the more industry dividends you can get.

2. Frenzy Hype

In Web3, speculation is a common verb. Especially during a bull market, speculation becomes even more prevalent.

1. Speculating on coins, especially on contract trading, was rampant. Judging purely from the candlestick charts, the cryptocurrency market saw substantial gains throughout 2021. Consequently, social media was often filled with posts showcasing substantial profits and tips on how to easily make money in the crypto market. Exposure to such information almost daily could create an illusion—that making money in this industry is particularly easy. Regardless of professional background or education, with leverage during a bull market, one just needs to have enough courage, and everyone can seemingly make money effortlessly.
2. Speculating on NFTs was also a highlight of 2021. Undoubtedly, NFTs were the talk of the town, especially with projects like BAYC attracting a wave of Web2 users. During that time, aside from speculation, the greatest value of NFTs was seen as profile pictures. If your social media avatar was a bored ape or a CryptoPunk, congratulations—many would regard you as an OG or a particularly noteworthy individual, often associated with wealth or status. NFTs, in this sense, perfectly catered to human desires for flaunting achievements. Therefore, many people around me were speculating on NFTs, especially among younger friends. Given that NFT minting often didn’t align with East Eight District time, those seeking to mint high-demand NFTs had to stay up late. In the industry, NFTs were humorously referred to as “little pictures,” and the act of speculating on NFTs was encapsulated in a common phrase: Did you “liver” today?

3. DAOs Thrive with Enthusiasm

Even now, I still believe that the emergence of the term “DAO” in 2021 was highly valuable. DAO stands for Decentralized Autonomous Organization. Unlike the speculative behaviors surrounding asset trading like coins and NFTs, DAOs involve relatively less tokenization and more exploration of an entirely different organizational form compared to traditional models. This organizational form is characterized by three crucial features: 1) decentralization, with no distinction between leaders and subordinates; 2) collaborative work based on consensus and democratic decision-making rules; and 3) remote operations, with tasks completed through online cooperation.

Of course, like many emerging phenomena, DAOs initially gained traction abroad. Familiar DAOs from that time include Bankless DAO (aiming to promote the widespread adoption of truly decentralized financial systems and societal consensus), Pleasr DAO (comprised of digital artists and collectors focused on acquiring culturally significant works), and ConstitutionDAO (raising funds to bid on a copy of the United States Constitution). Subsequently, DAO organizations also took root domestically and saw the emergence of experimental DAO projects.

Similar to NFT speculation, young people were the main participants in DAO organizations. They were more receptive to novelty, and many young people at the time identified as “digital nomads,” finding DAO-like organizational structures better suited to their lifestyles.

Reflecting on 2021, I inevitably felt the influence of the Web3 bull market frenzy. If I were to describe my experience of Web3 in 2021 with one phrase, it would be “immersive admiration.” This immersive admiration stemmed from the industry’s representation of cutting-edge technologies such as cryptography, distributed ledgers, and smart contracts. It also arose from the perception that this industry offered easier ways to make money compared to others, and from the emergence of new organizational forms like DAOs, exploring new possibilities for future societal and collaborative structures.

In summary, during a bull market, everything seems wonderful.

2022: From Admiration to Sobriety, Change Strikes Swiftly

If 2021 was a year of optimism during the bull market, then 2022 proved to be a year of shattered dreams for the crypto market. This year witnessed numerous historical events that will be remembered in the cryptocurrency industry:

• In May 2022, the public blockchain Terra collapsed, causing the Luna token to plummet overnight.
• In July 2022, the leading investment fund Three Arrows Capital filed for bankruptcy protection.
• In November 2022, the major exchange FTX was exposed for misappropriating user funds, leading to bankruptcy within just a few days of the issue being discovered.

Despite some positive events during the year, such as Ethereum completing its transition from PoW to PoS consensus mechanisms, these incidents marked some of the darkest moments in the history of the crypto industry, setting a tone of recession for the Web3 sector in 2022.

Instead of hearing inspiring and uplifting news, I began to hear more voices of disappointment and utter dismay: substantial losses from coin speculation, projects exiting the scene, operations halting due to funding failures, and crypto funds ceasing investments. No one discussed which coins were worth speculating on anymore, no one speculated on whether NFTs would rise—instead, everyone was selling, but due to poor liquidity, many NFTs ended up worthless. Discussions on DAOs and the future of mass adoption in the industry also dwindled. The entire industry quieted down, or as I previously described, fell into a recession.

Like many others, after witnessing and experiencing so many thrilling and tumultuous events in the industry, I started to detach from the admiration I held for Web3 in 2021 and gradually became more sober:

On one hand, the massive fluctuations in the cryptocurrency market showed me that entering this field brought not only overnight riches but also profound regrets of enormous losses, especially for those who treated Web3 as a gambling arena by using high leverage on contracts.

On the other hand, the industry’s issues with opaque fund usage and lack of effective regulation significantly undermined people’s confidence in this field. While it’s beneficial for long-term development to uncover such issues early on, it sobered the exuberant mood and prompted everyone to objectively reassess Web3.

Lastly, attempts that I perceived as having more social value, such as further exploration and discussion of DAO models or using tokenization to promote charity and environmental protection, did not see significant progress this year. Instead, they fell silent alongside the downturn of the crypto market.

For a while, I pondered a question: why did so many newcomers enter the industry in 2021? I believe mediums like NFTs played a significant role because they expanded the application scenarios of Web3 (even if just as avatars), allowing more Web2 users to intuitively experience NFTs and Web3. The issue arises when people realize soon after that NFTs are primarily investment/speculation assets. Thus, overall, the integration of Web3 with real-life scenarios remains weak, with its core focus still on asset or financial attributes—creating more tokenized financial derivatives to attract and enhance liquidity, thereby generating more investment and speculative opportunities.

At that time, I believed that for Web3 to truly achieve long-term industry development, it must strike a balance between financial speculation and practical application scenarios.

2023: Market is Recovering, Yet Unable to Return to the Past

After enduring the bear market of 2022, 2023 can be described as a year of self-healing for the crypto community. During this year, the price of Bitcoin gradually climbed from $16,000 per coin at the end of 2022. Mainstream exchanges like Binance also increased their efforts towards regulatory compliance. However, when discussing with friends who invest in primary projects, many chose to allocate to secondary projects or continued to adopt a wait-and-see attitude. As one friend put it, “With the prices of mainstream coins in the secondary market so low now, why take the risk on uncertain primary projects?”

Initially, I thought that as the market slowly recovered, discussions about Web3 on social media would regain their fervor. I remember during the bull market of 2021, a niche social platform like TikTok gathered a large number of people interested in Web3. In circles like the Web3 Research Institute, a simple post could garner many likes. However, in 2023, when I revisited this social platform, I found that many active individuals and projects no longer posted updates. New posts received minimal likes and comments. It seemed that everything couldn’t return to how it used to be.

Therefore, during this year, I consciously engaged with many individuals, including those outside the industry, newcomers, and experienced players in DeFi and MEME, to understand their perspectives on Web3. I received a unanimous answer: Web3 is simply a gambling den for cutting leeks, and success depends on who the leeks are.

Based on this feedback, I began to contemplate writing a book aimed at objectively introducing more people to the development of Web3 at that time. I wanted to provide a balanced view of Web3, encouraging both myself and those interested in entering this field to approach it with a clear perspective, rather than biased views of good or bad. Thus, I collaborated with a dozen friends from the industry, each with profound professional backgrounds and knowledge, to publish a popular science book titled “From Technology to Application: A Layman’s Guide to Web3.” It was officially released at the end of 2023 and received positive reviews. Looking back, although only half a year has passed, the chapters and framework in the book are already insufficient to cover the current state of Web3 development. My mindset towards this industry has evolved significantly, but what remains unchanged is its rapid development according to its unique rhythm.

2024: Bull Market Returns, Is Mass Adoption Still Far Away?

As of now, the bull market in 2024 is certain. This year, two major events have acted as catalysts for the continuous rise in cryptocurrency prices: first, the approval by the U.S. SEC for the issuance of a Bitcoin spot ETF, indicating that more Wall Street funds will flow into Bitcoin and directly boost the prices of Bitcoin and other cryptocurrencies; second, Bitcoin will undergo another halving cycle, which historically triggers a bull market, and this year is likely no exception.

Based on my own observations, I have compared this bull market with the one in 2021 to see what remains unchanged and what has changed.

Unchanged:

1. Speculation is amplified during bull markets. In 2021, NFTs were a speculative asset, while in 2024, MEME coins have become a unique speculative asset. In my view, there is no right or wrong for speculation related to assets, as traditional stock markets also involve short selling and going long. However, due to the significant volatility and lack of effective regulation in the cryptocurrency market, speculation by each participant during a bull market can be magnified infinitely when aggregated into candlestick charts.
2. Tokens still require better liquidity and the ability to generate passive income. Besides NFTs in 2021, GameFi and SocialFi were also notable sectors. The tokenization characteristic unique to Web3 requires specific sectors or businesses to enhance token liquidity and thus create more assets. In 2024, Bitcoin’s ecosystem is experiencing continuous speculation, from inscriptions to runes and from Bitcoin Layer 2 to Bitcoin staking protocols, almost repeating Ethereum’s experiences. Meanwhile, Ethereum-based staking projects have become a hot topic. Since Ethereum’s transition from POW to POS in 2022, today’s focus is not just on staking rewards but on how to enhance capital utilization efficiency on top of staking to achieve higher returns.

Changed:

1. The path to Mass Adoption has become diversified. In 2021, Mass Adoption of Web3 was expected through gaming and social projects, but the results did not meet expectations. In 2024, the integration of Web3 with AI and its combination with offline physical infrastructure is shaping another narrative, hoping that “indirect methods” can achieve Mass Adoption goals. From this perspective, Web3 needs AI or IoT, rather than AI and IoT needing Web3. Additionally, the approval of a Bitcoin spot ETF and the acceptance of cryptocurrency donations in the U.S. presidential election indicate that cryptocurrencies have become mainstream. However, this represents a Mass Adoption where everyone can own cryptocurrencies, rather than a Mass Adoption where everyone must own cryptocurrencies.
2. The importance of MEME culture in Web3 has been further highlighted. In the decentralized world of Web3, believing in and supporting what you believe in is a core spirit. MEMEs are a direct expression of the native spirit of Web3. This also explains why MEME coin gains have outperformed other altcoins in this bull market.

After experiencing the bull markets of 2021 to 2024, as I mentioned earlier, my view of Web3 has shifted from admiration to a more balanced perspective. In my view, Web3 involves selling an idea or vision to the public and crowdfunding, where those who agree and participate receive token incentives. To make tokens effective and liquid, they are given financial attributes. In short, it’s a consensus among a group of people wrapped in financial clothing, constantly seeking utility scenarios for token empowerment.

Conclusion: How to Establish Yourself Better in Web3

Above is my understanding of Web3. As I mentioned at the beginning, I consider myself a learner and observer in this field. Over the past two years of deep involvement and firsthand experience, I’ve had many opportunities to interact with industry peers and professionals. I’ve found that many people face a common question when choosing Web3 as a future development field: how can they establish themselves better in this domain?

This question varies for each individual, as everyone derives different answers based on their own experiences and perceptions. I can’t claim to be a Crypto native because most of my career experience is in Web2, and I haven’t had a long-term career in well-known Web3 projects or investment firms. Therefore, it’s challenging to point to notable achievements (although my personal investment returns have been decent). Fortunately, over these two years, I’ve learned a lot from industry practitioners and gained valuable experiences. Combining these experiences with those of my friends, here are some insights I’d like to share:

• Avoid entering this circle with a speculative mindset: While this industry offers numerous money-making opportunities, they are not as plentiful as they seem. There’s a saying that making money in this field follows a pyramid model: the first tier involves accumulating positions in projects or tokens; the second is VC investing; the third is trading with arbitrage and quantitative strategies; the fourth is investing after thorough research; and the fifth is hodling coins. From my experience, frequent traders may not necessarily achieve high returns. Instead, traders focusing on arbitrage and quantitative strategies, along with long-term investors in mainstream coins like Bitcoin, tend to have stable returns. For the former, it is due to their professional capabilities, and for the latter, it is because of their belief in the long-term value across bull and bear cycles. Thus, in Web3, for most people, achieving a consistently stable return is far superior to frequent speculation for high-risk, high-return opportunities.
• Assume the best intentions when evaluating others: Web3 is a relatively mixed field. Since everyone enters for different reasons, and much communication and collaboration occur virtually, the cost of trust in people or projects is relatively high. If you’ve found a team you can work with long-term, congratulations, you’re fortunate. If not, that’s okay too. Through interacting and experimenting with different people, despite encountering disappointments, you’ll eventually find like-minded partners to collaborate with. In fields with high liquidity and trust costs, assuming the best intentions is crucial.
• Do Your Own Research (DYOR): This is one of the most widely circulated phrases in Web3 and is universally acknowledged as valuable advice. Given the diverse array of people, opinions, and information in this field, assuming the best intentions when evaluating others also necessitates developing independent thinking and judgment amidst a bewildering environment. Formulating your own mindset and adopting a professional investment methodology is essential. Remember, don’t let emotions or others’ biases sway you; everything requires thorough research.

Writing this article is, in some ways, summarizing my evolving understanding of Web3 over a period of time. This field has provided me with investment returns better than many other traditional investment types, and has also introduced me to a diverse range of people: true industry builders, skilled traders, and some speculative investors looking for short-term gains. This diversity makes it all quite fascinating. More importantly, experiencing this field firsthand has made me aware of my ecological niche within it and how to uphold certain principles.

Of course, these insights are based on my personal experiences and perceptions and may not be universally applicable. I believe everyone in this field will have their own understanding, insights, and experiences of Web3. My best wishes to everyone to both make money and find a suitable niche in this ever-evolving field.

Disclaimer：

1. This article is reprinted from[Liam Wang]. Forward the Original Title‘从“仰视”到“平视”，我是如何对Web3祛魅的 — — 一个普通Web3参与者的亲历感受’. All copyrights belong to the original author [@LiamWang88]. If there are objections to this reprint, please contact the Gate Learn team, and they will handle it promptly.
2. Liability Disclaimer: The views and opinions expressed in this article are solely those of the author and do not constitute any investment advice.
3. Translations of the article into other languages are done by the Gate Learn team. Unless mentioned, copying, distributing, or plagiarizing the translated articles is prohibited