Ba Altcoin Groups and the Core Issues of Web3 Today

The current crypto market can be divided into three quite clear groups of altcoin projects, and if we look directly at the essence, we will understand why most retail investors continue to suffer losses. Group One: High-Quality Projects These are foundational projects, mainly focusing on core blockchain and basic infrastructure. Through many market cycles, they have maintained their value and often grow well whenever capital flows back in. Names like ETH, LINK, or XRP belong to this group. Their common points are real-world applications, large communities, and indispensable roles within the ecosystem. Group Two: Pure Scam Projects This group only exists on paper with flashy whitepapers. When listed on exchanges, that is usually also the peak price. After the team sells all tokens, the project almost disappears. Late investors who buy in are almost certainly the ones bearing the consequences. Group Three: “Misaligned” Projects – Also the Largest Group This is the biggest current issue in Web3. These projects are not necessarily scams; some have operational products, but the goals of the project and the investors are completely misaligned. Investors see tokens as investment assets, expecting appreciation. Meanwhile, the project views token buyers as users paying fees to generate attractive data. Tokens lack mechanisms to reduce supply and long-term incentives to increase price. The project waits for users, users wait for the project to “pump the price” – and ultimately, both are disappointed. From the project perspective, expecting retail investment capital in crypto to sustain a large product is unrealistic. Making half-hearted products, self-congratulating on their efforts, but not creating real economic value. For investors, ignoring infrastructure platforms to buy these types of projects makes losses almost unavoidable. Where Is the Future of Web3? If Web3 relies only on weak projects and the current “not smart” capital flows, then a future is hard to envision. True hope lies elsewhere: when high-quality capital and talent from Web2 participate, combined with AI to create more efficient and practical business models. In the context of the traditional Internet facing many difficulties, it is entirely possible for businesses and talents to find new directions through Web3. Then, a smarter and more sustainable growth cycle can form. In summary, Web3 is not lacking in potential, but for it to truly explode, it needs the right people, the right money, and the right approach.