The Evolution and Future Outlook of the Internet Capital Market

The concept of "Internet Capital Market" encompasses rich connotations. In the current context, it mainly refers to the financial technology innovations that transcend geographical boundaries, derived from the advantages of blockchain technology. People can use digital currencies for lending, tokenize various assets, issue stablecoins, and these are all classified under the category of "Internet Capital Market."

However, for seasoned practitioners deeply engaged in the field of on-chain trading, the meaning of the internet Capital Market goes far beyond this. It also encompasses a variety of investment tools that have emerged over the past decade, such as NFTs, DeFi, and early token issuances, as well as various tradable tokens since the advent of Ethereum smart contracts.

This article will focus on the essential logic behind tokens, narratives, and high multiple returns, analyzing this aspect of the internet Capital Market. We are entering what seasoned crypto participants refer to as the "New Metaverse" era. To deeply understand this, it is first necessary to observe the evolution of capital formation mechanisms and their impact.

The Evolution of Market Financing Mechanisms

Looking back at the past few cycles, we can see that the market financing mechanism is constantly changing. From early token issuance, to small coins on centralized exchanges, and then to popular concept coins, it can generally be summarized into the following stages:

Early Token Issuance ( around 2017 )

The financing at this stage is mainly based on the "commitment" of the project party, and the purpose of the investors' capital is to hope for profit from resale. Most project technologies are not mature or lack practical value, often evolving into a game of "passing the parcel."

Institutional capital influx ( Bull market in 2021 )

This wave of enthusiasm has attracted a large amount of institutional capital, but from the current perspective, it has also had certain negative impacts on the industry – overvaluation, unreasonable incentive design, etc. However, this stage has also given birth to some high-quality projects and protocols, laying a foundation for the development of the industry.

Polarization

After the collapse of a certain trading platform, the cryptocurrency sector has fallen into a trust crisis, and many people have begun to question the entire industry. However, it is necessary to recognize that innovations such as stablecoins and asset tokenization are playing an important role in practical scenarios. This stage includes both purely conceptual hype projects and more "serious" narratives. Some projects have already transitioned from mere conceptual labels to substantial development stages.

Compliance and the Integration of Digital Markets

We are entering a more mature stage—institutional investors are starting to pay real attention to this field. With the advancement of digitalization and mainstreaming, more and more high-quality participants will join in.

The Future Landscape of the Internet Capital Market

In the coming years, we may experience an unprecedented period of prosperity—a perfect combination of regulation, technology, and capital, a significant portion of which will occur on-chain. Some of the most valuable companies are likely to choose to issue tokens on-chain.

In fact, this trend has already begun to emerge. Some purely on-chain projects, unbound by traditional equity structures, have quickly grown into giants with a market value of hundreds of billions of dollars. This represents a brand new model for the operation of the Internet Capital Market.

In the future, we may see more similar cases emerge. This will be an era full of opportunities—don't let excessive doubt stifle once-held dreams. It's time to have a grander vision, as new development scripts are unfolding.

In this era of the internet Capital Market, innovators can issue on-chain tokens and retain a certain percentage, turning them into products worth hundreds of millions or even billions of dollars. If they are confident in their projects, they can completely opt to issue on-chain tokens and let the market assess their value.

Conclusion: From Speculation to True Ownership

In the short term, the market undoubtedly still has speculative attributes. However, in the long run, this wave of digitalization will attract more outstanding and truly creative talents to join, which may become an important turning point for the development of the industry, giving rise to more high-quality on-chain products.

We have seen some projects make substantial progress—stable income, a considerable user base, and even the emergence of physical products. Although there may still be valuation disputes, this is undoubtedly a significant improvement compared to the past era of merely selling promises.

Labeling every project as "concept hype" may likely result in missing important opportunities. The most influential innovators in the future may choose to issue tokens on-chain. Some of these assets could ultimately become significant forces in shaping the future of finance. Simply categorizing them as "concept hype" might lead to missing out on potential massive returns.

This is the evolution of investment methods: we are moving from trading worthless air coins to truly having substantive and enduring on-chain assets, which are likely to shape the future world.

It's time to regain confidence, break free from the constraints of the past, and redraw the grand blueprint. The future is full of hope; do not let the shadows of history obscure the optimistic outlook for the future.

This is the future landscape of the internet capital market.