The world of Web3 is in constant motion—a space where innovation, speculation, and idealism collide. Seven years ago, the term “Web3” was barely known in China. Today, over 500 million people use crypto assets globally, and stablecoins alone represent more than $173 billion in value. Yet, for many, the inner workings of this digital frontier remain mysterious.
This is not just a story about price surges or market crashes. It’s a first-person journey through the rise, fall, and rebirth of an industry—seen through the eyes of someone who entered it fresh out of university and emerged as a venture capitalist shaping its future.
The Birth of a Digital Gold Rush
Bitcoin’s conceptual birth dates back to 2008, when the mysterious Satoshi Nakamoto introduced the idea of a decentralized digital currency. In China, Bitcoin China launched in 2011, followed by OKCoin and Huobi in 2013—marking the early days of crypto trading.
But real mainstream attention came in 2017. That year, Bitcoin soared from under $1,000 to nearly $20,000. Initial Coin Offerings (ICOs) became overnight sensations, fueled by charismatic influencers like Li Xiaolai and Xue Manzi promoting projects with promises of decentralization and wealth.
By early 2018, blockchain fever had reached its peak. Investor Xu Xiaoping’s viral WeChat message declaring “Blockchain revolution has arrived!” echoed across networks. Then came the “3 o’clock Blockchain Group”—a legendary WeChat chat founded at 3 a.m. by Yu Hong and fellow enthusiasts. Within days, it exploded into a powerhouse of investors, founders, and visionaries whose collective net worth topped trillions.
As the saying went:
“If you haven’t heard of 3 o’clock Blockchain, you’re not in the circle. If you’re not in it, you’re not a big player. If your feed isn’t flooded by it, you haven’t felt ‘a day in crypto equals a year in real life.’”
👉 Discover how early believers turned bold ideas into billion-dollar realities.
The Rise and Fall of Terra & DeFi Mania
In 2018, I traveled to Seoul to meet Terra, a high-profile Korean project co-founded by Do Kwon and Dan Shin—latter known as the “e-commerce godfather” for building Tmon, a platform with $3.5 billion in annual GMV.
We invested $2 million. What intrigued me wasn’t just their background but their ambition: to build Chai, a payment app that could become “the global Alipay,” backed by a stablecoin ecosystem. At the time, it sounded revolutionary—even if I didn’t fully grasp how it would work.
This era was defined by narratives over fundamentals. Projects raised millions based solely on whitepapers and hype. One Dutch auction-style Layer 2 project raised $26 million without a live team or product—its token now worthless.
When bear markets hit, reality set in.
Bitcoin crashed from over $14,000 to $3,400 by December 2018. Ethereum fell from $800 to below $100. I bought ETH at $200—only to watch it drop further. For the first time, I wondered: Is this all just a scam?
Then came 2020—and DeFi changed everything.
The DeFi Revolution: Fire Stolen from the Gods
The pandemic brought chaos. On March 12, Bitcoin plummeted from $10,000 to $3,000 in hours. Many believed crypto was dead.
But developers kept building.
At DevCon IV and V, despite crashing prices, engineers passionately discussed decentralized governance and privacy—ideals I didn’t yet believe in. Meanwhile, our fund passed on Solana when it was valued below $100 million (now worth over $84 billion), dismissing its "Proof-of-History" consensus as too centralized.
Yet DeFi proved resilient.
With yield farming, users could earn rewards by providing liquidity to protocols. Yearn.finance, created by Andre Cronje, automated this process and ignited a new wave of innovation. Total Value Locked (TVL) in DeFi jumped from less than $1 billion in early 2020 to over $100 billion by mid-2021.
Projects like SushiSwap and Yam Finance—named after food—emerged daily. My friends set alarms at 3 a.m. to be first into new liquidity pools chasing double-digit APYs.
Terra’s Anchor Protocol offered 20% returns on stablecoin deposits—a siren song for retail investors. I invested briefly but withdrew after learning the yields were subsidized, not sustainable.
I was lucky.
Terra collapsed in 2022. Three Arrows Capital (3AC), which I’d also invested in, imploded shortly after. Then came FTX.
SBF—once hailed as a philanthropic genius sleeping in his office—was revealed to have misused customer funds. Billions vanished overnight.
But even in loss, clarity emerged: Crypto accelerates human behavior—both brilliance and betrayal.
Beyond the Hype: Real-World Impact of Web3
To outsiders, crypto still feels like speculative theater—luxury yachts, meme coins, and flamboyant founders. But beneath the surface lies real utility.
- Tether (USDT) reported $97.5 billion invested in U.S. Treasuries in Q2 2024.
- Ethereum generated $2.2 billion in protocol revenue last year.
- Pump.fun, a meme issuance platform, earned $78 million between March and August 2024 alone.
Meme coins may seem frivolous—but they represent a cultural shift akin to modern art: value derived from shared belief rather than tangible output.
Meanwhile, real-world adoption grows:
- In Indonesia, more people trade crypto than stocks.
- In Argentina, where inflation erodes savings, crypto transactions exceeded $85 billion in 2023.
- Grab, Southeast Asia’s super-app, now supports crypto payments.
- Worldcoin, backed by Sam Altman, uses iris scanning to verify unique human identities—over 10 million users enrolled globally.
- Blackbird lets diners pay with crypto using its $FLY token while earning loyalty rewards.
Stablecoins are transforming cross-border payments. Stripe acquired Bridge—a stablecoin infrastructure firm—for $1.1 billion—the largest acquisition in crypto history.
Crypto vs AI: Lessons from Two Tech Revolutions
Comparing crypto and AI may seem apples-to-oranges—but investors see parallels.
Both have infrastructure and application layers. But key differences matter:
| Focus | Crypto | AI |
|---|---|---|
| Infrastructure Cost | Low (decentralized mining) | High (80–90% of funding goes to cloud/AWS) |
| Liquidity | Tokens tradable pre-revenue | Private valuation until IPO |
| Killer App | Still emerging | ChatGPT achieved PMF |
| User Awareness | Must know which chain they're on | Invisible backend |
In crypto, success hinges on ecosystem strength, not just technical superiority.
Consider:
- Polygon, once dismissed as an Ethereum fork, now ranks top-five in users and assets.
- Avalanche succeeded only after embracing Ethereum compatibility.
- Near Protocol, despite elite credentials and $400M funding, struggles with under $60M in TVL.
Why? Because developer and user momentum create self-reinforcing flywheels.
👉 See how today’s leading blockchains are building ecosystems that attract builders and users alike.
The Road Ahead: Agility in a Shifting Landscape
Seven years ago, I joined crypto with no conviction about decentralization—only curiosity.
Today, I believe in its potential—not because every project succeeds, but because the failures have clarified what works.
Just as finance survived Madoff, crypto will outlive its scams.
Take my friend R., who built a creator-focused platform because his TikTok-influencer girlfriend kept losing most of her earnings to platform fees. Three years later, his company employs 200 people and is valued at over $200 million.
That’s progress rooted in real need—not speculation.
The core lesson?
"Work hard—or you’ll become a rich ordinary person." — A veteran investor’s advice that still rings true.
Venture capital is about finding needles in haystacks. In crypto, the haystack moves faster than ever.
So we stay agile.
Frequently Asked Questions
Q: Is crypto still relevant after so many crashes?
A: Yes. Each cycle strengthens infrastructure and weeds out weak projects. Real adoption—from payments to identity—is growing steadily outside headlines.
Q: Are meme coins a legitimate part of the ecosystem?
A: They reflect cultural trends and decentralized consensus. While speculative, platforms like Pump.fun show they can generate real revenue and engagement—similar to social media or art markets.
Q: Why do some technically superior blockchains fail?
A: Technology alone isn’t enough. Ecosystems win—through developer tools, user bases, and liquidity. Without community traction, even groundbreaking tech fades.
Q: Can crypto ever surpass traditional finance?
A: Not by replacing it—but by offering alternatives where legacy systems fall short: financial access in high-inflation countries, faster settlements, or fairer creator economies.
Q: How should new investors approach Web3?
A: Focus on fundamentals—real usage, sustainable tokenomics, strong teams—and avoid chasing hype. Diversify across infrastructure and applications.
Q: Will AI replace blockchain?
A: No—they’re complementary. AI needs secure data and micropayments; blockchain can provide both via decentralized agents and smart contracts.
👉 Start your journey into the future of digital finance today—where innovation meets opportunity.