Hash Global founder's summary from attending Hong Kong Web3 conference: continue focusing on investing in Chinese-speaking teams, striving to stay ahead of exchanges' preferences
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Hash Global founder's summary from attending Hong Kong Web3 conference: continue focusing on investing in Chinese-speaking teams, striving to stay ahead of exchanges' preferences
The most powerful aspect of Web3 is that it democratizes the creation and realization of "value."
Navigating Web3 tides with focused insightsAuthor: KK, Founder of Hash Global
During last week’s Hong Kong Web3 Conference, I had many conversations with project founders and industry friends. Below are ten reflections from those discussions.
Recently, I listened to Mr. Zhu Xiaohu from GSR Ventures sharing his views on differences in AI investment opportunities between China and the U.S., which resonated deeply with me. I highly recommend checking out that episode of Zhang Xiaojun's podcast on xiaoyuzhou.fm.
1. We remain focused on Chinese-speaking teams—this is where we have accumulated experience, understanding, and can add meaningful value post-investment.
We’ve observed that Web3 startups led by Chinese teams receive far less systematic support compared to their Web2 and Web1 counterparts. This gap is precisely why building RPC Cat Friends Club—a community for Web3 Chinese entrepreneurs—is one of our primary goals and core missions.
We envision the Cat Friends Club as a space where relationships can be deepened, connections made, and information and resources exchanged—an open resource network. Whether or not we invest, serving projects and founders openly will naturally allow VCs to uncover value. We also warmly welcome fellow VCs to join, co-build, and utilize this network.
2. We only invest in projects we believe possess long-term value (though of course, we may occasionally misjudge or miss opportunities).
Deep down, most people already have a rough sense of whether a project holds real value. This has little to do with whether it’s labeled Web3, Web2, Web1, or Web0. Bitcoin, Ethereum, Solana, even Dogecoin—all carry value, regardless of being “Web3.” Traditional investors simply need time to understand these new asset classes and develop novel valuation frameworks.
A project may launch or grow using uniquely Web3 methods, but over time it must land on tangible revenue/profit or some form of sustainable value creation—achieving positive economic effects. A Ponzi-like start might be acceptable, but a project cannot remain stuck in a perpetual Ponzi state. Just like Didi and Kuaidi burned cash in the Web2 era—something Web1 observers didn’t understand—eventually Didi still had to answer how it would generate revenue. In Web3, such revenue often materializes at the protocol or community level.
Consensus itself is indeed valuable—memes, for example, represent cultural genes spreading through networks, and thus hold value. Biological genes replicate via carriers like humans; does DNA have no value? Without DNA, humanity wouldn't exist. Web3 technology now enables memes to capture value during propagation. But teams cannot exploit "consensus" or "meme" labels for market manipulation or pyramid schemes. When intentions and methods become corrupted, outcomes inevitably diverge.
3. Within the scope of our understanding, we aim to lead more rounds and move forward slightly further by engaging in early-stage incubation. We pay particular attention to application-layer projects because, in our view, Web3 technologies are now mature enough to support large-scale applications in certain domains.
Some applications can only thrive within China’s internet ecosystem. We’re already witnessing early signs of Web3 data models and value realization emerging in China and Asian markets—phenomena unseen in the U.S. We believe application-layer opportunities here offer significantly greater potential.
Starbucks has discontinued its Odyssey program, yet Blackbird raised $25 million in the U.S. after launching membership systems across 13 New York restaurants. In contrast, we see several areas in China and Asia with even greater promise:
1) New models for data distribution and value extraction;
2) Innovative digital advertising paradigms;
3) Applications capable of transforming the current inequitable creator economy. These innovations serve massive Web2 user bases.
4. We seek diverse projects committed to accumulating private-domain traffic data and realizing its value—such as club management platforms and the novel business models they enable.
We believe Web3 can achieve mass adoption fastest through such initiatives. This isn’t futuristic—it’s happening right now.
Data from private-domain traffic, on-chain activity, and decentralized storage represents information that traditional internet or AI giants cannot monopolize or effectively access. Here, Web3 and AI technologies can powerfully complement each other. As we stated early last year, breakthroughs in large AI models act as a crucial “productivity pump” enabling widespread Web3 adoption. Web3 data can now be better utilized by AI applications, accelerating the closure of Web3’s value loop.
In our investor report earlier this year, we wrote: We are witnessing rapid convergence between AI and Web3 technologies.
We are entering the Personal Internet era, which carries two meanings:
a. An internet personalized by AI assistants tailored to individual users;
b. Data ownership returning to individuals.
This Personal Internet requires two foundational technologies: AI and Web3—neither can be missing.
5. We are bullish on DePin-type projects rooted in Hong Kong and the Greater Bay Area supply chain, featuring clear business models and visible operational revenues.
However, such projects remain rare today. Many teams appear to use Web3 merely as a fundraising theme or get-rich-quick scheme. While Web3 tokenomics can enhance existing models, they rarely solve previously unsolvable problems (exceptions like Helium aside). We favor projects that can clearly articulate their revenue sources. Some teams begin with genuine intent but gradually shift focus solely toward launching tokens.
Frankly, we don’t particularly like the term DePin—Decentralized Physical Infrastructure. We prefer calling it IoT 3.0. Better conceptual framing shapes our investment framework and methodology. Many valuable projects we back aren’t necessarily “infrastructure,” nor initially “decentralized.” Emphasizing “physical” adds little meaning. Instead, “IoT + Web3.0” better captures the kind of ventures we pursue.
Upon reflection, we’ve invested far fewer DePin projects than expected last year. Recently, however, we led two DePin investments—one launching in Japan, another related to dog walking. Both share a key trait: solid revenue, even profitability.
6. For many Web3 projects—and meme coins alike—community KOLs wield greater influence in promotion than VCs. We encourage founders to collaborate closely with KOLs.
Sometimes raising funds from KOLs may be wiser than taking another VC round. This is one of Web3’s defining characteristics.
7. The U.S. excels in infrastructure and protocol-layer projects—they’re impressive. But these may not be our sweet spot, especially given their typically high valuations.
We’re also not adept at party-round fundraising formats. We must work within our own limited capabilities when investing.
8. Asia sees many “inscription” and “local dog” projects, many of which involve speculation or market manipulation.
We must filter out noise—especially projects relying purely on “consensus” hype or mystical leaps of faith.
We don’t deny inscriptions are a great innovation—similar to ICO-era token launches. Back then, everything felt exciting and logical. But only a tiny fraction survived with real underlying value. Web3 cannot keep endlessly launching new projects and assets without grounding them in fundamental value logic. Inter-asset pledging and repeated restaking might work once, but endless layering risks echoing traditional finance’s MBS and CDS structures. Eventually, Lehman bankers didn’t even know who lived in the houses backing their securities. Watch *The Big Short*.
Rising asset prices create room for technological innovation and adoption, but should we ask: How much net new value do these recursive layers and “safe yields” actually generate? And how much systemic risk do they introduce?
9. Asset issuance is a powerful tool granted by Web3 technology—but we want to see viable business logic behind it.
Some projects issue large volumes of assets to raise capital and attention, attract exchange listings, then “repay” earlier funding debts—a uniquely Web3 pattern. But this capital game carries inherent risks. If they fail to become the next Didi of Web2, they risk becoming mere retail-pump schemes. Exchanges may eventually drop such projects, as they ultimately damage the platform’s most valuable asset: users. Projects following this path may find themselves blocked midway, unable to repay prior obligations. True value realization must come from the project itself—not secondary market prices.
10. We must strive to stay ahead of exchange “preferences,” rather than chasing them.
Investing only in what exchanges favor may yield short-term gains but fails to generate long-term alpha—and undermines the essence of venture capital. Ultimately, exchanges also want truly valuable projects to succeed post-listing and deliver returns to public-market investors. Only then can Web3 close its value loop, allowing Web3’s “usage rights” to surpass Web2’s “ownership” in capital value.
Of course, we hope our portfolio companies gain exchange recognition for stronger returns. But we must follow our own value logic—not speculate on exchange tastes. Otherwise, we invert the natural order.
Web3’s greatest strength lies in democratizing “value creation and realization”—but this also brings more noise, bubbles, and sometimes ugliness. Global regulation hasn’t caught up yet, so market volatility will likely persist for the foreseeable future. Already, there are signs of capital inflow lagging behind asset issuance speed.
This article outlines several of our investment preferences. If you resonate with them or are innovating in related fields, feel free to DM our official Twitter Hash Global or apply to join the Cat Friends Club via Ready Player Club. Thank you!
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