About the Transformation and Challenges in the Encryption Investment Field

Recently, there have been some notable changes in the field of cryptocurrency investment. A well-known investment institution has decided to shift to the post-investment management phase due to the poor performance of the BTC Layer 2 project, failing to achieve the expected returns after investing 40 million dollars over 3 years. This reflects the risks and uncertainties of cryptocurrency investment.

As early as 2023, some investment institutions began to shift towards the secondary market or reduce investment in new projects, focusing on helping already invested projects to list on mainstream trading platforms for exit. This strategic adjustment reflects investors' cautious attitude towards the market outlook.

However, a large venture capital institution has taken a different path. The institution's AI fund has raised as much as $20 billion, the cryptocurrency fund has a maximum scale exceeding $7.6 billion, and the minimum investment amount for the startup accelerator is $500,000. Such significant investments demonstrate its influence and confidence in the industry.

Currently, the encryption industry shows a certain pattern: Western countries dominate conceptual innovation and capital concentration, while the East focuses on project development and providing liquidity. Although some Asian exchanges still have a large amount of liquidity, the entire industry is pursuing "internationalization" and viewing the Asian market as secondary.

The imbalance between the East and the West has become more pronounced, extending from the traditional internet to the Web3 era. With a certain AI company shifting from "exporting to importing," traditional venture capital, which has been silent for many years, is beginning to revive. However, the model of USD + offshore companies + venture capital + Asian markets is gradually disappearing.

In contrast, top Western venture capital can focus on the U.S. market, and the companies they invest in naturally possess a global perspective. Asian investment institutions find it difficult to directly serve the local market and can only rely on the Western halo, competing with peers by selling liquidity from the Asian market.

This structural difference allows Western institutions to endure more failures until the next giant is born, while Asian investors face greater pressure to achieve faster returns.

The future development of the encryption industry may present a new pattern. Innovation may no longer be limited to hot discussions on social media, but rather stem from individual insights. For entrepreneurs, the importance of financial support, visibility, and key resources varies.

At the same time, the industry also faces the risk of "tech lords" monopolizing innovation. We need new talent and innovative pathways to break this situation.

Overall, the encryption investment field is at a turning point. How to establish a foothold in global competition, how to balance short-term returns with long-term value, and how to drive real innovation are questions that industry insiders need to consider. The future winners may be those who can find a balance between local advantages and a global perspective, and who can bring breakthrough public products to the industry.