Investment Labels and Illusions Behind the Web3 Industry: Rational Thinking Over Following Trends

In the Web3 industry, the phenomenon of some projects paying a price to gain endorsement from well-known platforms has prompted me to reflect. I once naively believed that as long as we had a good product and did proper promotion, we could successfully raise funds, but the reality requires building a network of relationships with various parties. This new world, which claims to "reshape the global trading system," still cannot escape the factional struggles inherent in human nature.

Although the factional disputes have gradually faded in the face of interests as the industry matures, the phenomenon of labeling still exists. People are accustomed to quickly identifying project characteristics, development stages, and potential value through various labels. These labels have become tools for expectation management, giving projects a brand premium.

Similarly, the spread of memes relies on familiar "narratives" or "IP", attracting widespread attention through celebrity effects or trending topics. As more people begin to discuss and profit from it, more individuals will be drawn in, creating a collective frenzy.

Web3 is like a dream kingdom, where people constantly search for the next wealth creation myth. Project teams spare no effort in attracting the attention and funds of investors. Although everyone understands that returning to value is the right path, many still hope to gain huge profits through speculation, falling into a cycle of doubt, excitement, entry, and loss.

What we see as a windfall is likely just an illusion carefully designed by the project party, and the wealth effect is an enticing bait. In this field full of opportunities and risks, it is crucial to maintain rational thinking and prudent decision-making.