The Essence of Crypto Assets and Future Development Trends

Crypto Assets have become one of the fastest-growing networks in human history for three main reasons:

1. The decentralized feature combats the concentration of wealth and power.
2. Revolutionary Innovation of Blockchain Technology
3. The ability to create wealth for users

However, in recent years, the capital raising methods for encryption projects have gradually deviated from their original intention. In the past, they relied on stimulating community participation enthusiasm, but now they have shifted to a venture capital support model with high valuations and low liquidity. This has led to poor performance of tokens supported by venture capital since 2023, and retail investors are unwilling to pay high prices for them.

In contrast, Memecoins are popular due to their more equitable capital formation methods. They typically release all tokens at issuance, have a low initial valuation, and start trading on decentralized exchanges. For ordinary speculators, Memecoins provide an opportunity for early participation and the potential for high returns.

The value sources of different types of tokens can be simply summarized as:

• The value of Memecoin = The influence of meme dissemination
• The value of venture-backed tokens = The founder's background and experience
• ICO token value = content dissemination power + technical potential

The traditional venture capital model has led to a highly homogeneous investment environment, restricting innovation. In contrast, the ICO model allows any team to showcase projects to the crypto community and raise funds, providing opportunities for people from different backgrounds.

In the future, with the development of blockchain technology and the reduction of transaction costs, we may see more innovative financing models emerge. Retail investors also need to wisely choose their investment targets and reject those projects that are overvalued but have a very low actual circulation.

Although many ICO projects ultimately fail, a few successful cases may still bring substantial returns for early investors. This high-risk, high-reward characteristic is what makes the Crypto Assets market unique.