The 2017 bull market was largely driven by the rise of ICOs, where public fundraising took the place of traditional venture capital and private equity. This period belonged to the OG platforms and proxy investments. Essentially, if you got in early, you could profit. Fast forward to 2021, DeFi took center stage, and the market began to branch out. The IEO trend also allowed investors to secure project shares at lower prices before listings, making buying into new projects more appealing than sticking with older ones. However, the legal risks associated with IEOs have shifted the market, with airdrops and market-priced offerings becoming the norm. Despite these adjustments, the speed of developments has led to less market stabilization than during the peak of 2021.
In 2024, BTC ETFs triggered a fresh wave of growth, with top-tier projects and funds like Lumao Studio spearheading the movement. This created a financial ecosystem where project teams could secure substantial capital from billion-dollar VCs, driving up valuations. These teams now have extensive user bases and are less reliant on specific platforms, with a multitude of CEXs, DEXs, and even self-hosted options at their disposal. However, while the market has changed, especially with the collapse of Lumao Studio’s dominance, the fundamentals of evaluating projects beyond just market cap and circulation remain critical.
Today’s market has evolved yet again, with more seasoned players utilizing sophisticated tools to mitigate risks, further expanding the market’s scope. However, strategies from the past, like ICOs, IEOs, or the more recent 2023 tactics, may no longer be effective for average investors. The future seems to favor more stable, long-term projects that can withstand both bull and bear cycles. With only a small fraction of startups, whether in web2 or web3, succeeding, investors need to exercise caution in navigating these unpredictable waters.
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