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 .
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.
Web3 Misconceptions: More Than Just Coin Issuance
In fact, 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.
Returning to business fundamentals, does issuing coins really equal success?
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 tokens without substantial product and service support will greatly reduce the sustainability of its long-term development. On the contrary, a project with a clear business model and practical application scenarios can rely on its own value support to maintain long-term stable development even if the token price fluctuates greatly.
The success of Web3 projects not only depends on the initial token issuance, but also requires long-term operation and maintenance. This includes continuous technology iteration, community building and management, market promotion and maintenance, etc. If a project lacks an effective operation strategy after issuing tokens, the user experience declines, and it is unable to maintain user activity and participation, then the value of its tokens will be difficult to stabilize and increase.
There are too many projects in the market that have ignored these fundamentals, and eventually the token prices have plummeted. After issuing tokens, the projects will still face huge survival pressure. Countless cases have proved that relying solely on token issuance to raise funds, due to the lack of a clear business model and continuous operation, has led to a rapid decline in token prices after a short-term surge, investor confidence has been lost, and the project team is also facing the crisis of a broken capital chain.
Attorney Mankiw recommends
In practice, the trust relationship between service providers and project owners is often based on contracts and agreements, but these contracts cannot fully protect the rights and interests of project owners. Once problems arise with service providers, project owners often lack effective legal means to protect their own interests. In this case, project owners not only need to bear financial losses, but may also affect their reputation and future development opportunities due to project failure.
When faced with the temptation of one-stop services, entrepreneurs need to have a clear understanding and avoid falling into the trap set by "friendly competitors". The following are some suggestions from Lawyer Honglin to help entrepreneurs make more wise decisions when choosing service providers.
1. Choose a reputable service provider with a transparent cooperation model
Uncle Jack Ma once said something very true: there is no business-to-business, only business-to-business. In the business world, character is the most important thing. When choosing a one-stop service provider, you should give priority to companies with a good reputation and word of mouth in the industry. You can evaluate the reliability of the service provider by looking at its past project cases, customer reviews, and word of mouth in the industry. A reputable service provider usually pays more attention to the long-term development of the project, rather than just the short-term market effect.
When cooperating with service providers, entrepreneurs should ensure the transparency of the cooperation model. Clarify the responsibilities and obligations of both parties, sign a detailed contract, and stipulate the specific content and delivery standards of each service. Avoid choosing service providers that are vague and make excessive promises, so as to avoid disputes and trust crises during the cooperation process.
2. Dual support of technology and market
The technical foundation of Web3 projects is crucial. Whether it is the security of smart contracts, the stability of blockchain networks, or the user experience of DApps, solid technical capabilities are required. A technically strong project can ensure the security of user data, efficient transactions, and stable operation of the system, thereby winning the trust and support of users.
The community is the lifeline of the Web3 project. An active and high-quality user community can provide a steady stream of support and impetus for the project. Entrepreneurs need to invest resources in building and maintaining the community, and attract and retain user participation and contributions through transparent communication, effective incentive mechanisms and valuable content. An excellent service provider should not only be able to provide technical support such as token development, but also have the ability to operate and promote the market. It is recommended that entrepreneurs give priority to service providers that can provide independent and professional community management services, and avoid those that rely on fake users and short-term prosperity, to ensure the real activity of the community and the long-term participation of users.
3. Legal and Compliance Guarantees
As the regulation of cryptocurrencies and blockchain technology becomes increasingly strict around the world, compliance operations have become an aspect that Web3 projects must pay attention to. Entrepreneurs need to understand and comply with relevant laws and regulations to ensure that the project operates within a legal and compliant framework. Through legal and compliant operations, the project can not only avoid legal risks, but also enhance the trust of investors and users.
Web3 projects involve complex legal and compliance issues, so entrepreneurs should choose service providers that can provide comprehensive legal services. They should ensure that the project complies with relevant laws and regulations during the process of issuing coins, listing on exchanges, and subsequent operations, and avoid project failure due to legal risks.
Summarize
Issuing coins is only the starting point of a project, not the end point. It is understandable that entrepreneurs want to use "one-stop service" to issue coins, but don't regard issuing coins as a panacea to solve all problems. To gain a foothold in the Web3 world, the real moat is solid technical capabilities, a clear business model and a compliant operation path, rather than simple token issuance or short-term market speculation.
Only by combining these three elements can we stand out in the fiercely competitive Web3 field and achieve real long-term development. I sincerely hope that all entrepreneurs who are transforming to Web3 will keep a clear mind, deeply understand the essence and potential of Web3, and avoid being confused by the temporary market craze. Only by being down-to-earth can we create our own glorious chapter in this field full of opportunities and challenges.
