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What is the value of the web, 30? Is it NFT or metauniverse?

Time : 29/10/2021 Author : f3yr9b Click : + -
        The thing is like this: Zhu Xiaohu bought a pair of shoes, ran a step and sent a circle of friends; Generally speaking, buying shoes is not new, sending friends is nothing, and running is not uncommon. But what's strange is that he aims at stepn, the most popular Web3.0 game at present. The core play method of this product is that users invest money to buy NFT of a certain shoe. Running with NFT of shoes can get tokens, and upgrading shoes with tokens can get more income. On the first day of running, Zhu Xiaohu earned $30. He estimated that it would take three months for the money to get back. By this calculation, it cost about 2700 dollars to buy this pair of shoes.
 
        But soon, he added a comment under this state, "unfortunately, such a model has regulatory risks in China" &mdash& mdash; It has long been pointed out that stepn is similar to a domestic product qubu plus blockchain in previous years. At that time, qubu was investigated on suspicion of pyramid selling and illegal fund-raising. How about stepn? Who knows. The world is different. Investors who initially doubted and even despised blockchain have also rushed into Web3.0. It is no wonder that Web3.0 is the only "hot concept" in the investment industry in 2022. After Solana, with the total market value of $1.7 trillion and more than $30billion of venture capital pouring into this field in 2021, cryptocurrency is an industry that no investor can ignore.
 
        However, even though some large companies, such as Sequoia, a16z and recently Bain Capital, are establishing their encryption business, many small companies are still unprepared to enter the Web3 world. A bunch of big companies can't maintain an industry by themselves. More high-quality investors supporting the founders are equal to a stronger encryption ecosystem. Therefore, it is time to step back and reflect on what I have learned from experience &mdash& mdash; More importantly, it opens the door to new investors in the Web3 world. Venture capital companies can only invest 20% of their funds in liquid assets at most &mdash& mdash; Beyond this figure, the securities and Exchange Commission says you must become a registered investment adviser.
 
        If you include the salary of the compliance officer you need to hire, the process may take up to 12 months and cost about $500000. For Sequoia Capital or a16z, this may not be a big deal, but if you operate a $10million fund, the cost of becoming RIA will exceed your annual management fee. Another option is to establish a hedge fund centered on token trading, which will bring a series of additional fund management requirements. Web3 founders do their best to ensure that their community feels they have ownership of the project &mdash& mdash; Not the investors, not even the founders themselves.
 
        Most venture funds require their portfolio companies to have at least 10% equity, but Web3 founders do not want any single investor to have more than 5% equity. This distributed Spirit extends to the Web3 governance structure. Web2.0 companies will have a board of directors, and decentralized autonomous organizations allow anyone who holds shares of the company to vote in their decisions, weighted according to the size of the shares. The collective may decide to move in a direction that you as an investor never thought of or would never approve. The founder you initially supported may lose control of the direction of the project, but you must be able to let it go. For a Web2.0 company, the seed valuation of $30million is quite high.
 
        You can even call it expensive. In Web3, the seed round financing of $10million to $70million is reasonable. Most investors are willing to accept such a large number, because the time of listing on the cryptocurrency exchange is much shorter than that on the stock exchange, which provides investors with faster liquidity and exit ways. A successful Web2.0 startup may take 10 years or more to go public. In Web3, it's not surprising that a project goes public within a few months &mdash& mdash; For example, Solana took about 16 months, and it took longer.
 
        On the other hand, the standard stock IPO lock-in period is usually 90 to 180 days, while the Web3 token lock-in period is at least one year, sometimes as long as three years. In June last year, a16z raised more than $2.2 billion of encryption risk fund, becoming the world's largest encryption venture capital institution with capital management scale. In February this year, Sequoia Capital launched an investment fund focusing on cryptocurrency, with a capital scale of $500million to $600million. According to media statistics, this top venture capital invested in 20 Web3.0 companies this year alone. The wind from overseas has blown to China. When the Internet dividend subsided, Web3.0 was regarded as the successor. In addition to various structural factors, some domestic institutions have actively participated in the new wave.
 
        But this does not mean that traditional VC has reached a consensus on Web3.0. Although most people agree with the "trend", it is still a vague vision, and some people are still watching carefully on the shore. Compared with RMB funds, dollar funds undoubtedly play a more active role in the Web3.0 investment market, and some institutions have made moves. In April, Bai capital partner Wang Tianfan revealed in a podcast that Bai has actively invested in Web3.0. The logic is that during the resumption of trading with the team in the past two months, he found that many themes have changed in the venture capital market, but the value of the blockchain market has been rising.
 
        "After experiencing so many ups and downs, we finally found that the only constant is the non consensus Web3.0, so we think there may be some problems that can be studied." the most mainstream U.S. dollar funds in China, especially transnational U.S. dollar funds, have been very actively deployed in the field of Web3.0. ". The layout of domestic institutions in Web3.0 can be traced back to 2017, 2018, and even earlier, when the currency circle was hot. For example, IDG invested in REBO as early as 2013, but it formed a time node where Web3.0 atmosphere is widely seen today, that is, from the end of last year to the beginning of this year.
 
        However, different institutions have different weights on Web3.0. For example, new funds made by partners from mainstream dollar funds are often easier to focus on Web3.0. Pure dollar funds that make decisions in the United States will also take Web3.0 as the main direction. But for comprehensive funds, Web3.0 is just a sector. "At present, the position of Web3.0 of large PE like tiger may account for 10% of the overall capital allocation.". On the one hand, dollar funds are under pressure from the whole chain of raising, investing and withdrawing, among which the pressure of "investment" is that "many things cannot be invested".
 
        For example, the US dollar fund "cannot invest in hard technology" and "it is difficult to raise RMB", which was repeatedly pointed out in previous reports. On the other hand, the TMT and consumption fields that dollar funds were originally good at encountered cyclical challenges. Exports are narrow, and dollar funds always have to find an export direction. Now, in the big track, only Web3.0 can carry it. "Whether the fund is ready to invest or not, Web3.0 is a direction it will look at. If it doesn't, it may have a holiday.". VC's eternal fomo (fear of missing) emotion is also very easy to understand in Web3.0 investment &mdash& mdash; When you find that you have nothing to invest in, there are 20 colleagues in the investment front line in the institution who spend millions of dollars a year at home, while others deal with several cases in Web3.0 last month &mdash& mdash; In this case, you must be affected by the market atmosphere to some extent.
 
        When you decide to invest in this industry, you must be logical and self consistent. Driven by the market, you will find all kinds of possibilities to make logic self consistent. But the logic itself may be problematic. Derrick, an investor from a dual currency fund, said that on the one hand, he agreed that there may be no real investment hot spots this year, and the changes in the macro environment have made the primary market sentiment low to the freezing point. However, he was slightly skeptical about the logic that "one track is because the other track that he had previously pitched is not working". "What if this industry is not as good as those you invested in before?" Some institutions switch to Web3.0 not based on faith, but on the perspective of individual interests &mdash& mdash; Try and see if you can survive.
 
        In addition, the narrative logic and development path of Web3.0 are completely different from Web2.0. "For example, the company of boring ape first launched an NFT, and then began to tell a bigger story. When financing, you think it is a company selling pictures, but now it tells you that it is a meta universe company. The problem is that the traditional dollar fund may not recognize this story.". Some dollar funds are already looking for a compromise and trying to participate in the feast of Web3.0 investment. For example, in a news I heard, the practice of a mainstream US dollar fund based in China is that partners set up a company outside to let the fund invest in the equity of that company, and then the company will invest the investment money it gets into Web3.0 company. The main capital distribution method of Web3.0 company is to distribute tokens. After realization, the fund will be distributed to shareholders in the form of profit distribution.
 
        In the view of some people, Web3.0 is not a new concept, but comes down in one continuous line with bitcoin and blockchain. It has been more than ten years since the birth of bitcoin in 2009, and it has experienced waves of doubts. The last wave of doubts was after the collapse of the peak in 2018. But now bitcoin is back, with the price floating around $30000. "To be honest, mainstream investors didn't care about this field before. Today, we think the voice of Web3.0 is ringing because mainstream investors finally put down their arrogance and doubt and embraced this industry.". If you are in the VC industry, active or passive, Web3.0 is the field you have to understand now.
 
        But really betting is another matter. Different voices are still intertwined in the Web3.0 world. People who are firmly optimistic, cautious and even bearish have their own reasons. 1. Stronger consensus: Web3.0 cannot bypass bitcoin. After bitcoin halved in May 2020, there will be a new bull market. The concept of Web3.0 will be widely discussed in 2021. In the past, you may also discuss whether bitcoin is Ponzi. After this bull market, most sovereign countries, institutions, media and individual investors basically recognized the investment value of bitcoin as a digital asset. 2. The bull market has brought enough volume: after this round of bull market, the volume of cryptocurrency has exceeded $2trillion.
 
        In the ranking of sovereign currencies, bitcoin has reached the level of more than ten. 3. Out of the loop application: the application side NFT drives Web3.0 out of the loop. Driven by the technology giant, the concept of metauniverse is popular, and metauniverse is naturally combined with Web3.0, which further ignites Web3.0. 5. In the past five years, the innovation of consumer Internet has been relatively few, and the development of Web2.0 has touched the ceiling. With the influx of Web2.0 entrepreneurs into Web3.0, Web3.0 has obvious profit-making effect, causing capital admission. "Web3.0 is a return of value and the reconstruction of production relations, which can maximize the value of creators and legalize the value of ownership. It is a subversion of the current Internet model.
 
        From the perspective of institutions, we believe that Web3.0 is full of opportunities for innovation and the effect of making money at this stage. These two points have also been fully confirmed by the market, which is the reason why Huaying is determined to layout Web3.0. ". But those who hold a wait-and-see attitude also have a set of logic. Some funds that invest in Web3.0 may not invest in lines. It is true that there are many yuancosmos concept companies in China that have taken VC money, but yuancosmos is still slightly different from Web3.0. In derrick's understanding, Web3.0 is a word with rich connotation, which is often mixed with concepts such as metauniverse, NFT, crypto and blockchain, but these words actually describe different things at different levels.
 
        For example, blockchain is a decentralized information storage technology, but the application scenario can also be a highly centralized central bank digital currency. At present, the commercial application of metauniverse is more inclined to provide a more immersive environment through wearable devices, which is not necessarily directly related to Web3.0. After the boom of any industry, there is a stage of foam and disillusionment. Now Web3.0 is a mixture of good and bad people, including speculators who lack faith. At the same time, he also holds a more pragmatic attitude, "I don't think it's easy to say that Web3.0 wants to subvert everything, but we should treat its value rationally.".
 
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