The murky RWA space: 10 harsh truths—don't let the scythes blind you
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The murky RWA space: 10 harsh truths—don't let the scythes blind you
As if overnight, RWA became synonymous with financial freedom.
Navigating Web3 tides with focused insightsAuthor: Shao Jiaodan
Recently, the craze around RWA (Real World Assets) has swept through mainland social media like a storm. From blockchain circles to finance professionals, from self-media influencers to investment groups, it seems overnight that RWA has become synonymous with financial freedom. Countless "RWA project teams," "full-service providers," and "mentors" have sprung up like mushrooms after rain, each confidently claiming that RWA is the next big opportunity—and missing it means lifelong regret. Yet the louder this space gets, the more chaotic it becomes: scammers harvesting韭菜 (lǎocài, “lambs”), hype peddlers, fear-mongering marketers—all mixed together. I can't help but pour cold water on this frenzy—right now, this entire scene is nothing but a boiling pot of shit, with a few stray leaves of cabbage floating on top and nothing but knives bubbling underneath.
Today we won’t dive into technical details. Instead, let’s strip away the emperor's new clothes and expose the 10 harshest truths about the RWA world. Buckle up—we're going straight in.
Truth 1: RWA is a financing tool, not a get-rich-quick myth
Many people hear "RWA" and immediately picture instant wealth, imagining that simply tokenizing any real-world asset on a blockchain magically turns it into a golden "wealth code." Wake up! The core of RWA is using blockchain technology to tokenize real-world assets into tradable digital tokens. In plain terms, it's a financing mechanism—helping companies unlock capital or giving investors more options. It's not a lottery ticket, and certainly not a money printer.
Do you really think buying an RWA token equals holding a "100x future gem"? Don’t dream. The return model for RWA works just like traditional financial products—it depends on cash flow or appreciation potential from the underlying asset. Anyone shouting “invest in RWA and achieve financial freedom” is most likely trying to harvest you. RWA may help businesses solve funding problems, but it has absolutely nothing to do with your fantasy of sudden personal wealth.
Truth 2: Legitimate, compliant RWA products are largely inaccessible to users in mainland China
If you think RWA is a "feast open to everyone," here's your first bucket of cold water: truly compliant RWA products—such as those issued in Hong Kong or Singapore—are essentially off-limits to users in mainland China. Why? Because compliant RWA products must follow strict financial regulations. Issuers must verify investor identities, ensure legal sources of funds, and comply with local securities laws and anti-money laundering rules.
RWA products in Hong Kong target professional investors who must prove millions of HKD in assets and pass rigorous KYC (Know Your Customer) and AML (Anti-Money Laundering) checks. As an ordinary retail investor from mainland China, you can't even open an account, let alone invest. Those promoting "everyone can invest in RWA" on WeChat groups or Douyin are definitely not offering compliant products—they’re likely pushing worthless tokens or Ponzi schemes targeting your wallet.
Truth 3: Anyone telling you “you’ll profit from investing in RWA tokens” is sharpening their镰刀 (liándāo, “knife”) to harvest you
The worst thing about the mainland RWA scene is the flood of “air coins” and pyramid schemes. What’s surreal today is that people who can’t even distinguish between ABS and REITs are now teaching others how to play RWA. Their sales pitches are eerily similar: “Tokenized traditional assets gain explosive liquidity,” “RWA tokens enable 24/7 global trading,” “Holding tokens means enjoying asset appreciation.” Sound familiar? These are identical to the ICO-era slogans of “blockchain will disrupt everything.” These projects fly the RWA flag and tell you to invest a few thousand yuan to buy their “RWA tokens” and wait for 100x returns. Buddy, come on—who actually believes this nonsense? These so-called RWA tokens lack any real underlying assets; their whitepapers are plagiarized. It’s pure fraud—empty-handed deception.
Even worse, some projects operate multi-level referral programs with commission rewards—no different from传销 (chuánxiāo, “pyramid schemes”). You might see high short-term “returns,” but that’s just earlier victims feeding later ones. Once the scheme collapses, your principal vanishes without a trace. Don’t believe the lies like “RWA is the future of blockchain” or “missing RWA means missing wealth.” Real RWA is a serious financial product—not a casino where you bet your life savings.
Truth 4: Companies pursuing RWA should hire brokers, lawyers, and accountants—not middlemen
Companies interested in RWA need to stay vigilant. There’s a bizarre phenomenon in the current RWA space: self-proclaimed “RWA full-service providers”—middlemen—who are more active than actual brokers, accountants, and lawyers combined. Mainland China has seen countless “RWA full-service agencies” and “mentors” making grand promises: they’ll help you tokenize your assets, issue tokens, and sell them globally. Hah, most of these people are just intermediaries doing little more than matchmaking—charging you hefty consulting fees.
Genuine RWA implementation resembles launching an ABS (Asset-Backed Security) or REIT (Real Estate Investment Trust). You need a solid team of professional brokers, lawyers, and accountants—the iron triangle. They design transaction structures, navigate regulatory approvals, conduct due diligence, and perform valuations. What can middlemen actually do? Most don’t even understand compliance procedures. At best, they draw you a pie-in-the-sky vision and charge you a “service fee.” If your company wants to pursue RWA, don’t fall for these “mentors”—partner with reputable financial institutions instead.
Truth 5: Not everything qualifies as RWA—assets unsellable offline won’t sell on-chain either
A classic line in the RWA world: “Traditional assets suffer from poor liquidity? Just put them on-chain! Then they can trade globally!” As if tossing any random asset onto a blockchain instantly makes it desirable. Get real! If an asset can’t find buyers offline, why would it suddenly sell online? The essence of RWA is securitization—the quality of the underlying asset and its revenue model matter most. If your asset is fundamentally flawed—a pile of unsold inventory, an unrented office building—putting it on-chain changes nothing. Poor liquidity usually reflects poor asset quality, not whether it’s on-chain or not.
Investors in Hong Kong aren’t fools—they’re smart money. They evaluate RWA based on cash flows, risk exposure, and exit mechanisms. That “20% annual return” model you’re pitching? They’ll spot the lie instantly. RWA isn’t magic. On-chain or off-chain, the logic of assets doesn’t change. Those preaching “everything can be RWA” just want you to pay for trial-and-error while they profit from the chaos.
Truth 6: You don’t necessarily need to set up an entity in Hainan—data compliance isn’t that mystical
Another “mystical” belief in the mainland RWA scene: many project teams claim you must establish a legal entity in Hainan to meet data export compliance requirements. Seriously? How exaggerated. Yes, cross-border data transfer requires compliance, but national regulations like the Measures for Security Assessment of Cross-Border Data Transfer already define clear processes. Not all data exports require approval—only sensitive data transfers need registration or security assessments. Compliance depends on data type, use case, and context—not automatically requiring a Hainan entity.
Besides, Hainan’s special policies mainly support offshore operations within the free trade port—not the only path for RWA. For companies pursuing RWA, the key is completing proper compliance procedures: hiring lawyers to draft data compliance plans, communicating with regulators, and filing necessary reports. Ignore those pushing “must go to Hainan” or “Hainan is the RWA paradise.” The path to compliance has always been transparent—why complicate it unnecessarily?
Truth 7: Hong Kong’s RWA products mostly lack secondary markets—global trading? Dream on!
Another common “myth” in the RWA space: RWA tokens allow global trading with unmatched liquidity. Reality check: Hong Kong’s SFC remains extremely cautious about secondary trading. To date, RWA products issued in Hong Kong offer only very limited inter-institutional transactions. AntChain’s charging station RWA and Xunying Group’s battery swap cabinet RWA remain private placements—retail investors can’t even access the trading interface. Why? Because RWA is fundamentally a securitized asset subject to strict financial regulation, requiring compliance with securities laws and exchange rules.
Did you imagine buying an RWA token lets you trade it globally 24/7 like Bitcoin? Think again! Hong Kong’s RWA products are typically accessible only to institutional or qualified investors. Retail investors are locked out. Projects boasting “global circulation of RWA” are merely using “blockchain” as a buzzword—the reality is often a closed fund pool. Liquidity? Doesn’t exist.
Truth 8: RWA isn’t a wealth shortcut for ordinary people—don’t fall for anxiety-driven marketing
One of the most annoying aspects of the RWA space is the relentless anxiety marketing: “RWA is the future of blockchain,” “miss RWA and miss your fortune,” “ordinary people can rise through RWA.” Hearing this constantly is nauseating. RWA is a serious financial sector combining asset securitization and blockchain technology—what does it have to do with opportunities for average individuals to make money?
Who actually profits from the RWA space? Either professional financial institutions or experienced asset operators. Ordinary retail investors? At best, they can buy compliant RWA products for stable fixed returns—no different from buying bonds. Those hyping “RWA will make you rich overnight” only want you to pay for their “courses” or “tokens.” Don’t let fear manipulate you. RWA is not your savior.
Truth 9: Compliance and regulation are the soul of RWA—non-compliant RWA is just an empty promise
The greatest value of RWA lies in compliance and oversight. Without them, what separates RWA from air coins? Compliant RWA products must have clearly defined underlying assets, transparent transaction structures, and undergo scrutiny by financial regulators. Hong Kong’s RWA offerings are credible precisely because of strict supervision by the SFC (Securities and Futures Commission), protecting investor rights.
In contrast, how many so-called “RWA projects” in mainland China are genuinely compliant? Most don’t even have whitepapers. Where are the assets? How are returns generated? All based on verbal claims. If you invest and the team runs away, who will you turn to? Compliance and regulation are the soul of RWA. Any “RWA” lacking these is an unsecured, worthless promise.
Truth 10: RWA issuance isn’t cheap—it may cost more than traditional financing
Last point: many assume RWA is a “low-cost financing miracle,” but that couldn’t be further from the truth. RWA issuance involves asset valuation, legal due diligence, transaction structuring, blockchain development, and regulatory filings—each step costs money. Overall, RWA issuance may actually be more expensive than traditional loans or equity financing.
Especially for small and medium enterprises, launching an RWA requires significant upfront investment—legal fees, auditing costs, technical development. Hong Kong RWA projects routinely cost millions of HKD; few mainland companies can afford that. So stop believing the nonsense that “RWA is a savior for SMEs.” Financing choices must fit your company’s situation. RWA is not a cure-all.
Conclusion: Stay清醒 (qīngxǐng, “awake”), RWA is not your lifeline
This article isn’t meant to deny RWA’s value—asset tokenization is indeed a future trend, enabling more efficient and transparent securitization, representing a legitimate convergence of blockchain and finance. The problem is: this space is too noisy, too greedy, and treats韭菜 (lǎocài, “lambs”) as fools. Air coins harvesting lambs, fear-based marketers, overpriced middlemen—turning a serious financial field into a mess.
For ordinary individuals, participating in RWA means at most buying compliant products for steady returns—don’t expect overnight riches. For companies, pursue RWA through professional institutions and proper compliance channels—don’t get scammed by “full-service providers.” RWA is not a myth, and certainly not a casino. Recognize these 10 truths, and don’t let your wallet become someone else’s harvest field.
If after reading this, you still insist on jumping into the RWA firepit—please hand me your wallet’s private key first. I’ll keep it safe for you.
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