The Catalyst for the Next Bull Market: A New Way to Drive Traffic from Web2
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The Catalyst for the Next Bull Market: A New Way to Drive Traffic from Web2
What kind of projects have logically sound new concepts?
Navigating Web3 tides with focused insightsAuthor: Brother Gua, Melon Field Guild
I. The Wealth Code Revealed by the Early 2023 Mini Bull Market
On January 1, 2023, BTC was trading at around 16,500 USD. As of February 6, when this article was written, BTC had risen to approximately 23,000 USD—an increase of over 40% in just over a month.
This small spring rally brought about long-absent sector rotation. Last year's bear-market darling, new blockchain Aptos, was aggressively pumped by South Korean retail traders, surging nearly sevenfold from its low of 3 USD to a peak of 20.4 USD. Those familiar with the Aptos ecosystem know it remains largely inactive—but during a bull run, even sluggish elephants can soar. Rumor has it that a thin string is pulling it upward, tied to a certain Zhao family deity floating in the clouds (gossip only; details omitted).
Among the rotating sectors, AI led the charge. Its flagship token AGIX surged tenfold. We consulted senior scientists who confirmed: AGIX has no real-world applications yet—it’s still at the PPT stage and nowhere near the scale of ChatGPT. Yet none of this stops AI as a narrative from flying to the moon.
Notice a pattern? This mini-bull market reaffirmed an axiom: Crypto trades on novelty, not legacy. Aptos is a new Layer 1; AI is a fresh sector untouched in previous cycles. Hence, the key focus for 2023 should be clear: which projects carry logically sound new narratives?
II. How to Identify Projects with Logical New Narratives
Let’s clarify: not every novel idea deserves blind investment. Suppose a whitepaper claims they’re developing brainwave-based quantum entanglement for instantaneous data transmission stored in nano-chips implantable in the human brain. That’s certainly novel—but would you believe it?
New concepts must align with technological and societal trends. So how do we identify them without burning out? Crypto moves fast—“one day here feels like a year.” Missing one project while others profit can feel devastating. A recent insightful article suggested using a “point + line + surface” framework: pick one or two broad surfaces to analyze first. I fully agree. Most investors don’t have enough capital to cover all Web3 sectors and build full portfolios. Focus on one surface, drill down into specific lines, then select entry points. For example, during the 2021 bull run: surface-level analysis pointed to new Layer 1s emerging; line-level required innovative models, strong funding, and vibrant communities; point-level Solana offered POH innovation backed by FTX’s SBF—clear signal to go all-in. Other altcoins could remain minor positions. Result? Hundredfold returns. Hindsight is 20/20, but the method works.
Now, what surface should we watch for the next bull cycle? As mentioned, projects with logically grounded new narratives offer higher odds of explosive growth—not that established sectors like L1s, DeFi, NFTs, GameFi, or metaverse lack opportunity, but newer narratives are more likely to spawn 100x gems.
I’ve been closely watching the “Web2-to-Web3 onboarding” space. My bold prediction: the next bull market narrative will center on building Web2.5 ecosystems—bridges that bring more Web2 users (i.e., new retail money) into Web3. A recent article noted that the current mini-rally is driven by existing capital, not significant inflows—insufficient for a true bull market.
Assuming our surface-level focus is “Web2-to-Web3 onboarding,” how do we break it down further? Two major hurdles currently block mainstream Web2 adoption:
1. Infrastructure isn't ready—entry barriers for Web2 users are too high;
2. Beyond play-to-earn, Web2 users lack motivation to enter Web3.
Thus, our line-level analysis proceeds along these two axes.
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First, infrastructure remains a persistent challenge requiring massive funding or elite teams. Consider Twitter—the most likely candidate to achieve Web2.5 integration. Acquired by crypto-native Elon Musk, it already hosts a large Web3 community and wields unmatched reach across Web2. If Twitter launches its own token, wallet, and decentralized storage layer, millions of Web2 users could seamlessly transition into Web3. No direct new projects exist yet, but related older ones like Mask have seen wild swings—up 4–5x—on speculation alone.
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Second, why would Web2 users want to join Web3? “Everything usable and fun already exists in Web2. Spare me the decentralization talk—smooth UX and quality service rank highest in user priorities. Only when Web3 matches those standards will I consider decentralization as a bonus.” This reflects the mindset of most users. Over the past two years, many Web3 projects tried luring users via “play-to-get-rich” schemes—a short-lived strategy akin to printing money indefinitely. Even Satoshi opposes such inflation; death spirals await ahead. Yet another, proven-effective approach exists: leveraging celebrity influence and real IPs for user acquisition—our primary focus here.
Recall the ignition point of the last bull market in early 2021: NFTs. Back then, NFTs weren’t overloaded with gimmicks—no PFPs, no game utilities—just a new transparent model enabling artists and celebrities to monetize their work fairly. Remember this headline:
On March 11, 2021, digital artist Mike Winkelmann (Beeple) made history at Christie’s auction house, selling his artwork *Everydays – The First 5000 Days* for $69.3 million—the most expensive NFT sale ever recorded.
And who could forget *NBA Top Shot*, which pulled countless NBA fans from Web2 into Web3?
This form of user acquisition is healthy and sustainable:
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Step One: Artists, celebrities, and creators naturally want to turn their works into NFTs—immediate liquidity and visibility serve their core interests. Thus, they are natural allies of NFTs and transparent blockchain contracts.
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Step Two: They bring their fanbases into Web3: “Support your idol—buy their NFT, join their DAO, vote for them.” Fans willing to die for their stars surely won’t hesitate to install MetaMask?
This model isn’t new in Web2—it’s called private traffic monetization.
III. Three Stages of IP-Driven Onboarding Models
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Stage One: Visual Content. Human acceptance speed of different IP types correlates with biology. Why did image-based NFTs dominate Web3 first? Visual input through eyes is fastest—“the eyes are the windows to the soul.” Patterns and colors processed visually reach the brain quicker than any other sensory input—hence “attention economy.” That’s why Beeple’s art, CryptoPunks, and Bored Apes led the last NFT bull run.
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Stage Two: Audio Content. After sight comes sound. Music delivers pleasure and emotional resonance, offering solid IP potential. a16z-backed Audius experimented early, though focused more on social features. Recently, traditional record labels minted music NFTs but used old marketing tactics—limited success. During last year’s bear market, two Web3 music projects emerged: Melody faded quickly; MMMM continues development. If it survives until the next bull run and builds a product centered on song IPs and social engagement, it might not just go to the moon—it could reach Alpha Centauri. We hope such products break into the mainstream soon.
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Stage Three: Literary Content. Text takes longest to stimulate neurons, requiring both eye and brain processing before delivering intellectual satisfaction. Since mental stimulation is less immediate than visual or auditory inputs, Web3 development here is nascent—but the potential is enormous. Text has been humanity’s greatest vessel of civilization for millennia—widest distribution, longest tail effects. A great literary IP can grow hotter over decades. Take *The Three-Body Problem*: Liu Cixin wrote it in 2006; its popularity has grown steadily since, now adapted into a TV series aired on CCTV. Can you name a single image from 10+ years ago that still excites you (excluding adult content)?
The power of text was proven in Web2. Chen Tianqiao, once China’s richest man, founded Shanda Literature in 2008 under Shanda Group. Through aggressive acquisitions—including Qidian, Rongshuxia, and Jinjiang—it captured 70% of Chinese original literature, becoming an internet-native private publishing giant—the textbook case of internet disrupting traditional publishing.
In 2015, deep-pocketed Tencent acquired Shanda Literature, merged it with its own literary assets, forming today’s behemoth “China Reading Limited” (Yuewen Group), which went public in Hong Kong two years later. Check its IP portfolio: *Douluo Continent*, *Ghost Blows Out the Light*, *The Lost Tomb*, *Nirvana in Fire*, *The King’s Avatar*, *Joy of Life*, *My Wife is a Tyrant*, etc. Annual revenue reached ~$850 million in both 2021 and 2022.
But crisis looms. The dragon-slaying hero has become a bigger dragon. Companies like Yuewen now monopolize resources, squeezing creators on one side and charging readers premium prices on the other. Except for top-tier authors like Tang Jiasan Shao, Tomato, and Mao Ni, most writers struggle—powerless to negotiate: reject commercial terms? Fine, we’ll promote someone else. Worse, corruption risks emerge from unchecked authority.
Fortunately, Web3 waves are rising. If Web2 publishers revolutionized traditional publishing 15 years ago, why can’t Web3 literary IP projects overthrow Web2 giants? A single spark can start a prairie fire!
IV. Building a Web3 Product for Literary IPs
Yuewen Group claimed to disrupt traditional publishers by doing three things:
1. Converting physical books into online text;
2. Using transparent web data to share revenue with authors based on performance (votes, clicks);
3. Embedding works into broader entertainment ecosystems for future adaptation into films or games.
A Web3 version can evolve further:
Position it as a platform—one that avoids turning from hero to villain. Yuewen is a centralized entity with gatekeeping power over content selection and promotion. Web3 can introduce DAO governance: decisions on content quality and promotion made collectively by the community—fans first. Staff serve the DAO. In short: a Web3 literary IP platform should merely connect creators and fans—no middlemen like Yuewen skimming profits. Revenue comes from only two sources: pre-agreed cuts with creators and investment gains from rising IP values.
For creators, each work published on the Web3 platform is like an IPO. The platform issues NFTs and tokens representing the work, embedding copyright into them. A simple model:
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Instead of printing 100,000 physical copies, issue 100,000 NFTs—only holders can access the content;
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Future chapters require payment in native tokens;
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After reading, users can resell NFTs to new fans.
All creator earnings (sales and royalties) are locked in smart contracts—automatically executed, tamper-proof.
Fans gain an additional identity beyond reader: investor. In Web2, we were mere consumers—no financial upside even if we spotted a masterpiece early. Not so in Web3. If you discover a promising work on an IP platform, buy its NFT or token. As demand grows, value rises. Imagine being awed by *The Three-Body Problem* back in 2006—not just recommending it to friends, but owning its NFT—growing and profiting together. Isn’t that better?
V. A Web3 Literary IP Case Study: Read2N
I first noticed Read2N last year. As a serious reader, I scoffed: “Another StepN clone? Do I need financial incentives to read? That’s insulting!” Misled by the name “Read-to-Earn.”
During Lunar New Year downtime, I dug deeper—and realized I was wrong. Read2N’s essence is: A decentralized marketplace for investing in high-quality literary IPs! Think of it as a fusion: a Web3 incubator for great writing + an OpenSea for literary NFTs.
Read2N’s core logic mirrors my earlier proposal, but improves upon it in several ways:
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Each book gets its own DAO. Creators assign copyright to the DAO, which mints NFTs as securitized rights. Owning the NFT grants reading access. Supply is limited. Currently, NFTs are free-minted. Holders also receive a portion of project income—representing partial royalty rights.
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The team earns 6% of all marketplace transactions as primary revenue, plus 30% of rental income as secondary revenue. Unlike most projects relying on NFT/token sales, this revenue model is healthier.
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Creators receive 30% of total project revenue. The more transactions and rentals a book generates, the higher their income. From AMAs and community insights: creators average 2–3 BNB (~$600–$1,000) within 15 days of launch—with daily earnings increasing.
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The remaining 70% of revenue is allocated as follows: part to NFT holders and loyal users; part to team operating costs; the rest to governance token (WCM) holders.
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Fans can access books via:
1. Whitelist lottery for free NFT access;
2. Buying the book’s NFT directly from the marketplace;
3. Paying daily rent to read.
Currently, reading rewards users with the sub-token RCM. Since RCM launched on December 15, 2022, its price rose from 0.4 USD to 3 USD, pushing up NFT and WL prices to ~4 BNB. Thus, fans become investors: if you believe in a book, buy its NFT, earn yield, and ride price appreciation. But what happens when hype fades, people dump RCM, and NFT prices collapse? This is inevitable: initial momentum built on speculation reveals who’s swimming naked post-tide. If a book truly resonates, real readers will sustain NFT value—preventing zeroing out.
Read2N’s NFTs represent fractional ownership of a book’s IP—unlike StepN’s shoe NFTs. Once markets mature, some book NFTs will hold high value, others low—just like stocks: blue chips vs. penny stocks. Value judgment lies with investors. Crucially, literary value stems primarily from content quality, whereas stock valuations suffer manipulation and misinformation. In this sense, written works better embody Web3’s ideals of transparency.
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Among the 20+ authors onboarded are renowned web novelists “Wu Man Lan Jiang” and “Luo Sen”—Wu Man being a veteran from early internet forums like Tianya Zhujiu, among China’s first generation of online writers; Luo Sen, author of classic fantasy series like *The Grace of Kings*. Clearly, the team has connections and capability.
To summarize Read2N’s essence:
It offers play-to-earn mechanics, but that’s superficial. Its real innovation merges yield incentives with literary IP valuation—encouraging users to bet on and trade quality works, much like stock investing. Thus, it functions as an OpenSea for literary copyrights.
We can infer that Read2N’s user base leans more toward investors than readers. Through market dynamics and trading, genuine blue-chip works emerge. Then… approach Web2 giants like Yuewen: “We have this hit work with strong data—guaranteed success. Want to collaborate?” In this way, Read2N becomes an incubator for exceptional literary content.
Now, addressing current challenges with Read2N:
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Of the 20+ books listed, some are older works where licensing rights haven’t expired—available elsewhere online. Readers seeking only content may see little reason to pay premium prices for NFT access. Conclusion: active users are currently pure speculators. Nothing wrong—most Web3 projects rely on hype and price action initially. The key is evolving to Phase Two: attracting users who both enjoy the content and wish to invest. Can the platform draw enough high-quality new titles to differentiate itself? Success here enables Phase Three: partnering with major Web2 publishers.
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Long-term, treating NFTs as tradable assets based on work quality isn’t a Ponzi scheme—it’s a sustainable value博弈 model. However, current reliance on pumping the sub-token RCM, which indirectly lifts NFT/WL prices, does resemble Ponzi dynamics. Transitioning from this early Ponzi phase to a mature market-driven model requires careful observation.
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Another common issue for Web2-to-Web3 IP platforms: what if creators act maliciously? They transfer IP to a DAO (currently under CC0), then after it gains popularity, re-sell the same IP to a Web2 publisher like Yuewen. The DAO, bound by CC0, may struggle to sue in real-world courts. However, due to IP transparency, buyers will avoid tainted assets once they see prior DAO assignment. The solution? Build platform reputation.
For detailed strategies on Read2N, refer to the project’s Discord community—we won’t elaborate further here.
VI. Conclusion
New narratives consistently lead bull markets. This article highlights “Web2-to-Web3 onboarding” as a prime sector. Infrastructure breakthroughs may come from giants like Twitter, while user motivation can leverage IP-driven onboarding—as a complement to play-to-earn.
Web3 IP onboarding includes visual, musical, and literary IPs—all of which incentivize creators to promote due to fair revenue sharing. Visual IPs kicked off in the last cycle; music and literature remain early-stage.
The defining feature of Web3 literary IP models is transforming readers into investors. Works become securitized, allowing creators early monetization. Read2N exemplifies this: a decentralized incubator for quality writing + an NFT marketplace for literary works—not merely a read-to-earn gaming dApp.
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