Evolution of the Encryption Investment Ecosystem: Transition from East to West

In the field of cryptocurrency investment, we are at an important turning point. Recently, some well-known Asian encryption investment institutions have faced difficulties, while Western giants like a16z are continuously expanding their scale. This phenomenon reflects the profound changes that are occurring throughout the industry.

The encryption industry is forming a new division of labor model: conceptual innovation mainly comes from the West, project development is led by the East, capital is concentrated in the West, while the East provides a large amount of liquidity. This pattern is reshaping the entire industry's ecosystem.

Some Asian investment institutions suffered heavy losses after investing heavily in Bitcoin's second-layer network and had to shift to the post-investment management phase. Other institutions have begun to turn to the secondary market or reduce investments in new projects, focusing on helping the projects they have invested in to go live on trading platforms for partial exits.

In contrast, Western investment giants like a16z are continuing to expand. a16z has raised $20 billion in the field of artificial intelligence, and its cryptocurrency fund has reached $7.6 billion. Securing investment from a16z has become an important milestone for startups.

This difference reflects deeper issues. Western investment institutions can naturally integrate into the global market, while Asian investors find it difficult to directly embrace the local market and can only rely on Western endorsements to compete. As traditional Internet giants gradually withdraw, and the government and state-owned institutions maintain a cautious attitude towards the encryption sector, the situation for Asian investors is becoming increasingly difficult.

However, this imbalance is not irreversible. The key lies in whether we can build global public goods that transform local liquidity advantages into global competitiveness. This requires a new generation of practitioners to break through traditional thinking and create new paths for innovation.

The future is not always progressive. Major platforms may become the "lords" of the information age, obstructing newcomers in the name of progress. We need new innovators to break this situation. Whether the technological singularity or disruptive innovation will arrive first remains unknown.

Speculative thinking and long-termism are fundamentally different. A true long-termist must first address how to survive until the day the results become apparent. In this uncertain industry, only by adhering to long-termism can one remain undefeated in the tide.

The encryption industry is at a critical turning point. The roles of the East and West are being redefined, and a new ecosystem is forming. Whether one can seize the opportunities in this round of transformation will determine the future direction of the industry. For practitioners, this is both a challenge and a rare opportunity.