Crypto ecosystem breakdown: How can young people break through?
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Crypto ecosystem breakdown: How can young people break through?
How to effectively build a professional network in the crypto industry?
Navigating Web3 tides with focused insightsBy Alan YW
1. What does the crypto ecosystem look like?
This industry is a pyramid, divided into upper, middle, and lower tiers—each further subdivided into three levels. Climbing up isn't easy. If you want to move from Level 4 to Level 3, you'll need someone at Level 2 pulling you up hard. To squeeze from Level 7 into Level 6? You’ll still need someone from Level 5 or above giving you a hand. That's just how it works.
Top Three Levels: The Players
Level 1: Wall Street whales. These players started entering after 2020.
Level 2: Giants like Binance and Coinbase, plus top-tier incubators such as a16z. a16z deploys tens of millions—or even hundreds of millions—into projects. Why? Because they’ve raised LP capital that needs to be deployed in order to justify management fees, so they have to go big.
Level 3: The well-known elite funds; South Korea’s top exchange; slightly smaller exchange founders like KuCoin; and senior figures from major funds.
These people set the rules and create trends. North America launched Deepin, and the entire DeFi wave of 2020 was their doing. Then they spread these ideas through their subordinates.
Middle Three Levels: The Megaphones
Level 4: Major incubators accessible to most people, such as Pantera. Also includes founders of top-tier quant funds on secondary markets. To hold your ground here, you need at least $100 million in cash.
Levels 5–6: A cascading structure. Level 5 consists of protégés of Level 4; Level 6 are those under Level 5. Mostly fund affiliates and exchanges across different tiers.
Level 6 is where most retail investors peak out—perhaps a director at a large fund managing tens of millions, with some influence and a fan base within the circle.
These three layers exist solely to pass concepts down to the retail masses below.
Bottom Three Levels: The Farm
This is where ordinary retail traders and end users reside—the ones who ultimately take the bags.
The whole system runs like this: Top creates, middle transmits, bottom absorbs.
Eastern vs. Western Capital: Two Separate Worlds
Interestingly, Eastern and Western capital operate almost like parallel universes in this market. Take October last year as an example: while Eastern capital focused on Bitcoin Layer 2 and derivatives, the West pushed Deepin.
Here’s the problem—they don’t recognize each other’s narratives. Eastern Bitcoin L2 projects were largely ignored by Binance. Only MouseBit made it onto Binance, and Merlin got listed on OKX. But OKX is a tier below Binance—you know what I mean. Without Western backing, these plays can’t scale, and Eastern capital can’t reabsorb them either. The same goes for Deepin: Eastern capital wasn’t allowed into the first two funding rounds—only a small group was admitted in Round 3. Result? The distribution chain broke. Eastern retail couldn’t participate. Sure, there was mining activity around IO, but few actual buyers stepped up.
But when something comes from the top tier, harmony prevails. When Binance launches a project, they’ll definitely buy in themselves and ensure listing. With all their affiliates worldwide, it becomes seamless—like打通任督二脉 (unblocking the vital meridians). Are there arbitrage opportunities? Yes, but rare. If you can break through information barriers, money follows. For instance, take a concept already played out in China, sell it in Korea. How? Connect with wealthy Koreans. Get them to pay for recycled ideas, then mobilize local retail—done.
Sounds easy? In reality, nearly impossible. Information in this space is tightly controlled. All those conference-hopping folks? Most of it’s useless. People stick to their own circles. Outsiders simply can’t get in. Breaking in depends entirely on your skill.
So yes, the industry appears flat on the surface, but in truth, it’s strictly hierarchical. Making tens of thousands, even millions, isn’t hard. But earning passively? That requires climbing—crossing class lines. And that journey is painful. It demands leaving your comfort zone.
Want to succeed here? Don’t just collect contacts and drink your way through wisdom quotes. Focus on building deep connections with a few key individuals. Everyone profits differently—you must find what fits you.
2. How to Learn and Enter This Industry?
To excel, you must first be genuinely interested. Don’t enter purely for profit—that caps your potential. The industry is vast; you’ll surely find a niche that excites you. Once found, dive in.
This is a “long tail” industry. Find your passion, then locate someone successful in that area and connect with them. People naturally help those who remind them of their younger selves.
I’m at Level 4, connected with many top-tier leaders. I don’t act superior toward them, nor do I look down on those in Levels 5–7. We’re all young. Just talk openly. That’s one good thing about this space: diverse directions, practical people, full of energy and belief.
For young people wanting fast entry: attend offline events. Watch for the standout characters—positive or negative. Some know everyone but are seen as fools—plenty of those around. Others thrive across events, spreading information effectively—those go far.
If job hunting, aim for key roles in Levels 4–6, or positions with growth potential. A marginal role at Level 3 is less valuable than a core position in 4–6. Avoid low-tier exchanges or KOL assistant gigs—they’re meaningless. Prioritize your boss: verify he has real money and proven success. Those who blew up after a few million aren’t bosses—they’re lucky employees at best.
No matter your path, quickly identify influential figures with proven models—or ambitious peers like yourself.
3. Relationship Between Token Models and Investors?
When launching a project, understand this: initially, investors are on your side. They invest to eventually exit profitably. Your airdrops serve operational goals. These are separate: one is financial (capital in/out), the other is execution (how to operate).
Why do some projects get airdrops on Binance? Because they have the resources and relationships to make it happen! You must grasp this: they secured Binance access—and its massive user base—before designing their airdrop model. Not the other way around: airdropping first to attract users, then begging for listing. That logic is backward—get it right.
Therefore, the conclusion is clear: once respected players endorse you, success is near. So what should you do? Prioritize early investors’ returns. Ensure your supporters profit. Remember: “The gentry’s money gets split 70/30; the people’s money is returned in full.” This is your first principle.
How? Motivate investors, bind them to your cause, amplify your reach. Beyond airdrops, master the art of storytelling. Pitch visions to investors and users alike—your skill determines success. Build operational expertise or hire someone strong.
Once momentum grows, new capital joins. But follow the rule: never dump on direct investors. Feel free to dump on those they refer. This is an unwritten code. Cross-dumping among referrers isn’t your concern—they bear no shared interest. Even if my friend gets dumped after my referral, he won’t blame me. He didn’t invest because of me—he vetted deeply before committing. Know clearly whom you can dump on and whom you cannot.
When your project scales, keep your inner circle happy—then only dump on retail. Do you know these retail traders? Do they know you? Does it matter if strangers lose money? Crypto players use disposable income: maybe $1M deploying $100K, or $10K monthly income risking $100. Losses are acceptable. Cases like Liangzi—who lost everything—are rare, and frankly, not rational actors.
Target those types. Never harm your first-degree connections. In short: protect your inner circle, make wealthy friends, and dump on *their* periphery. That’s the right path.
4. User Relations and Investor Strategy?
Poor user relations mean your token gets ignored at launch. AI coins, mining tokens—if airdrop expectations aren’t managed, no one buys upon listing, leading to rapid dumping. Even early backers won’t be satisfied.
Let me use Binance-listed projects as examples—I don’t understand others. Take BounceBit: our firm believes in restaking and invested heavily. Yet BounceBit offered us pitiful yields—around $100 per BTC per month. What does this imply? The team didn’t allocate much to airdrops—they still hold significant reserves.
How do retail traders react? They call the team idiots for being stingy, abandon the project, and dump aggressively. But insiders know the team has funds to absorb sells. Once sentiment bottoms, they buy massively at lows.
What do early VCs know? Precisely how many tokens the team airdropped, how much cash remains, and which parts of the published tokenomics are false. As VCs, we prepare extra capital to accumulate in secondary markets—we know exactly when to buy.
Take TIA and TICO—we invested in both. TIA traded OTC at several dollars; retail definitely lost. Why? First round priced at $0.015—massive gap. Where would fair pricing land? Around $1–2, based on OTC benchmarks. Below $2, we aggressively bought—millions of dollars. Later it rose to double digits, netting tens of millions in profit. That’s called delivering value to the project team.
Investing is continuous. Without participation, you’d never know Round 1 was $0.015, Round 2 $0.5. Only by investing do you gain insider knowledge. Mature investors know where profits come from—it doesn’t require 6-month doubling. The key is knowing how to act at launch to secure gains.
If retail doesn’t buy, it’s a marketing failure—either poor execution or insufficient resources. It’s never an investment flaw. Retail will always buy. Top incubators own media outlets, command dozens of KOLs, control affiliated funds, and serve as LPs.
We at Level 4 must become LPs for Level 3 funds. Invest $5M over five years—access financials, have advisory rights. That’s what a real incubator does.
If you’re a minor shareholder or newcomer, you’ll have to target retail directly. Climb step by step, fall into enough traps to develop a methodology. Then use that method—with your capital and team—to network upward and find a mentor. That’s the correct positioning.
Don’t waste hundreds or thousands of dollars individually paying KOLs. Burn all your budget on promotion and you’ll have nothing left to support the price or execute plans. How do you answer to investors? Raising money from close contacts before maturity guarantees disaster.
5. How Can Young People Break Through?
Most college students today think: “I’ll work hard and complete tasks assigned by my boss.” But compared to our generation, they’re far behind.
Back when we started, we had nothing! Subway fare was $3, bus $1—I’d wake up an hour earlier just to save $2. To save a few bucks, I’d skip meals. You haven’t endured that kind of hardship, so you can’t endure the pain required.
Today’s students think: “My family’s okay, I can land a finance job, earn $200K–300K annually. Why suffer humiliation and hardship?” This mindset kills ambition.
So how do young people break through? Be just a little better than others in every aspect. First, cognition: know more than your peers. Especially for men—young age isn’t about wealth or status, but about exposure and firsthand experience. Your horizon defines your future height.
Next, emotional intelligence—not sucking up to bosses, calling them “Big Brother” constantly. True EQ means showing your boss the value you bring and making collaboration comfortable. Bosses care about your long-term (5–10 year) ROI, loyalty, and integrity.
Then comes professional skills and learning ability. Frankly, anyone with average IQ and decent education learns at similar speeds. After one month of training in our company, you’ll grasp how the entire industry operates.
But character matters most. In our field—and among my peers—we value character: the ability to generate emotional and financial value.
As for when to strike out independently, working under a mentor and going solo aren’t mutually exclusive. Those who truly care about you will give you chances when they see capability. Having someone backing you gives confidence. For example, being brought to a dinner could land your project funding in one evening.
This relationship is reciprocal. You’re my resource, I’m yours. If I surround myself with talented youth, others see me as relevant and respected—giving me leverage in negotiations.
I prefer employees or partners I can trust and who create win-win outcomes.
Today’s youth are indeed different. Perhaps due to better family conditions, they lack hunger. Did you know venture capital prefers certain types of young talent? Those from modest backgrounds—even middle-class or worse. Why? Because such founders maintain hunger, and hunger drives relentless pursuit of success.
But when hiring employees, ensure they bring mutual benefit. Everyone wants their team to grow. But most importantly, trust them—believe that when they succeed, they’ll give back.
You're right—the industry began as a loosely organized crew, built on mentorship. My mentor told me: “When you make it, don’t forget to lift others—do it sincerely, just as I did for you.” That was his expectation, and I believe I’ve fulfilled it.
It’s more like an apprenticeship system.
6. How to Balance Web2 and Web3 Careers While Advancing in Web3?
I don’t just have Web3 ventures—I have many Web2 businesses, even more than Web3, and my achievements in Web2 actually surpass those in Web3. It’s not that I’m inactive in Web3—I have many brothers handling operations for me. But in Web2, I still need to fight hard myself.
To judge if someone’s exceptional, first check their energy. I sleep only 4–5 hours daily—have done so for over a decade. Never abandon Web2 while pursuing Web3. Let your Web3 efforts grow gradually, so you can keep motivating yourself: “I’m strong, and I can become stronger.”
Earning $4K–5K monthly in Web2 is actually solid. Quitting too soon shifts your mindset. If Web3 fails to match that income, regret sets in—and panic leads to mistakes. Remember: slow is fast.
Split your time wisely. Sleep 1–2 hours less, play less, work more. Set 1–2 year goals. For example, define what you want to achieve in Web3 within two years—clear targets in income, knowledge, and network.
To succeed in Web3, consider everything. For instance, travel to meet global industry friends who host you.
Many young people say they want to earn money—$1M, $10M. But think through how. Suppose you aim for $5M annually—plan it: survive the first 10 months, start gaining traction in Month 11, earn $4.9M in Month 12. Then clarify what to learn, who to meet, and how to push yourself during the initial phase.
Doing research and earning money doesn’t conflict with academics. I recommend interning at a company. Why? It gives systematic insight into how the industry operates—who does what, what’s allowed or forbidden. You’ll learn whether researching random rumors is useful. On your own, you only see public info—no idea if it’s reliable.
An internship—even one or two months—allows deep bonding with a mentoring leader. Keep contact long-term. After university, maybe grad school, years later when he’s risen to power, reconnecting becomes golden.
This industry works that way: those who helped you will keep helping—as long as you stay credible. It’s not about reciprocity (“you helped me, now I help you”)—it’s deeper than that.
So, join companies to meet excellent, active colleagues. Even if hired normally through HR, strive to impress your boss. This widens your future paths significantly.
7. Which Skills and Knowledge Areas Should You Focus on to Improve Web3 Employability?
In my view, improving social skills is crucial. No matter how skilled your research, without a strong network and ability to access resources, real progress in this field is hard. For example, when we invest at YeeFung Fund, we don’t rely solely on research. Even if we like a project, without access, it’s useless. Weak resource acquisition means you only see public funding news—missing early opportunities.
I used to be an introvert—you might not believe it. I studied hardware programming, competed in robotics and ACM contests. But in junior year, I minored in finance and realized managing money and resources was the real game.
I respect technical people, but I won’t become one. In this industry, relationships drive progress—that’s my strength. So when asked what skills boost employability, I say: besides technical ability, social skills are equally important. Unless you’re applying to be CTO, few bosses hire solely based on tech prowess.
8. How to Effectively Build a Professional Network in Crypto?
Initially, I built my network through every possible channel. Broke but eager to earn, I cold-called people, joined elite WeChat groups, identified the most influential members, and added them. I’d ask how they made money, if they could include me. I shared my background and value proposition, asking if they’d guide me a bit.
Like this, I approached people like a “bootlicker” every day—for about six months straight. At first, we had no resources—had to humble ourselves. Forced to hustle, we tried every trick to seize opportunities, meet more people, and gradually build networks.
For young people, especially those in their early 20s, lowering your pride is actually the coolest thing. When others see you drop your guard, they perceive sincerity and dignity. Try often, keep learning, grow continuously.
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