Web3 Misconceptions: More Than Just Coin Issuance

In the impression of many people who are not old hands in the cryptocurrency circle, starting a Web3 business is equivalent to issuing a coin.

Many people who are not old hands in the cryptocurrency circle think that starting a Web3 business is equivalent to issuing a coin. Although this may sound like an insult, it more or less represents the misunderstanding of some people in the current Web3 industry. For many entrepreneurs who have just entered the Web3 circle, the biggest obstacle to transformation is how to develop tokens, how to connect to online exchanges, and how to mix in the cryptocurrency circle to engage in market operations. These technical and market challenges make many entrepreneurs feel at a loss. And when you don’t know where to start, “one-stop service” comes into being, trying to solve complex problems in a simple and fast way.

As lawyer Hong Lin saw in a WeChat group, the "one-stop service" for coin issuance has become increasingly active recently. All-round service providers take care of everything from token development, DAPP development, private placement to community operation, listing on exchanges, and even subsequent legal services. For project parties without technical and market experience, this is undoubtedly a blessing from heaven - just pay the fee, and the project's coin issuance, listing and promotion can be done in one stop. However, behind this apparent convenience, there are many places where it is easy to step on the trap.

The connotation of Web3 is much richer than simply issuing coins. Web3 is the next generation of the Internet, emphasizing decentralization, user autonomy, data privacy and the widespread application of blockchain technology. It not only involves the financial field, but also covers social, entertainment, content creation, supply chain management and many other aspects.

However, the large number of projects that focus on issuing coins in the current market has led many people to equate Web3 with "issuing coins". This narrow perspective not only limits people's understanding of the potential of Web3, but also buries truly valuable Web3 applications. In this context, entrepreneurs are often forced to focus their energy on token issuance and market hype, while ignoring the deeper technology and application development of Web3.

In order to meet the customized needs of Party A, some service providers in the circle will use various means to create the illusion of fake users and false prosperity. On the surface, the project is hot, the community is active, and the token trading is active, but these "prosperities" are often the result of human manipulation. In fact, there are not many real users involved behind the scenes. The vast majority of active accounts are organized and disciplined "10U Ares Group". These so-called "Ares Groups" usually create market activity by purchasing and manipulating tokens to attract more investors' attention.

What is more serious is that some service providers, in order to pursue short-term results, even adopt a pyramid scheme to attract people, exaggerate the potential and prospects of the project, and attract uninformed investors. These service providers induce investors to invest a lot of money through exaggerated market forecasts and false success stories. However, once these investors enter the market, they find that the project lacks substantial progress and the token price cannot be maintained.

When the service provider fails to deliver on its promise, the project will naturally face doubts and accusations from investors. Many entrepreneurs who originally hoped to issue coins through "one-stop services" eventually found themselves trapped in the trap set by their competitors, and their projects were difficult to continue, and even faced legal risks. This crisis of trust has caused headaches for many entrepreneurs who are committed to long-term development in the Web3 field.

Putting aside the legal risks, returning to the fundamentals of business, what entrepreneurs need to think about is: Can the issuance of coins really determine the success of the project? In other words, even if you can successfully issue coins and list them on exchanges, it may be difficult to start a good life. After all, what really determines whether a project can operate in the long term is a clear business model, market demand and continuous operational capabilities.

Issuing tokens, as a financing tool, is essentially similar to traditional companies raising funds by issuing stocks or bonds. Token issuance can provide initial financial support for a project, but it cannot directly determine the success of a project. Real business success requires the value creation of the project itself, the satisfaction of users' real needs, and continuous innovation and operational capabilities.

Understanding and meeting market demand is the key to the success of any business project, and Web3 projects are no exception. A successful Web3 project first needs to have a clear and viable business model. The existence of tokens is not only to issue tokens to raise funds, but also to ensure that the project can realize its own value in the future. The business model needs to answer key questions such as what problems the project solves, who the target users are, and how to achieve profitability. Entrepreneurs need to conduct in-depth research on the target market and understand the real needs and pain points of users in order to design truly attractive and competitive products. Ignoring market demand and relying solely on the hype of