Founder of Folius Ventures: 8 Insights on the Development of the Cryptocurrency Field

Insights from the founder of Folius Ventures on cryptocurrency development.

Founder of Folius Ventures, MapleLeafCap, wrote an article outlining some of his thoughts after meeting many excellent entrepreneurs in the Web2 to Web3 application space. The article covers topics such as USD payments, Parachains, value capture, and in-game economic ecosystems.

1) USD payment is already the strongest application in the industry. Allowing users to buy and sell with USDX is still the best way to expand the user base, as most people cannot handle their own utility tokens. 2) The pure halal account system is currently a self-indulgent solution in the industry, and a semi-centralized solution like CEX is best suited for comrades who want to land quickly. This is estimated to mature within 12-24 months. 3) Parsi uses free coins, the multiplier behind cash flow, and the mismatched circulation time to achieve economies of scale and network effects through wealth effects, and ultimately relies on product bottom lines and entertainment consumption needs to solidify its position. Many current Web3 products have neither economies of scale nor network effects, so when they are not ready, they cannot match Parsi’s hormones. However, Parsi has not yet figured out how to change user profiles, continue to incentivize newcomers, bind continuous contributors, and balance food and profit tiers.

4) There are many ways to capture value, not just buybacks. How about increasing airdrops, blind boxes, and drop rates within games after staking? What about premium buybacks/cashbacks for Stakers and potential in-game values? What about significant tax cuts, discounts, or subsidies for many tax scenarios? I personally believe that teams with powerful products and mechanisms can lead in new user acquisition and retention for a certain period of time. 5) NFTs, like FTs, will become a standard feature of a fusion Web3 project. In terms of games, the industry’s throughput cost does not support the on-chain of general game props, so CEX transactions will still be the mainstream for a while. 6) We generally haven’t figured out how much of the in-game economy and industrial chain should belong to the official side/how much should belong to the players, and how durable goods should be consumed in the end.

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7) There are only two real money-spending scenarios for apps. As mentioned earlier, entertainment determines consumption intensity, and the other is people who have ROI needs outside the app paying for certain behaviors in the app, most typically ads/eyeballs. Currently, the best is high-frequency daily utility apps, and they are already profitable in Web2. 8) The vast majority of projects currently seen in Web3 do not understand 2C products or how to grow users. First, we must recognize that many of the industry’s key channels have not been opened up, that the ready-made TAM is very small, and that many infrastructure issues are messy. Secondly, we must understand that adding Web3 features is equivalent to starting to play a financial game.

Reference: https://twitter.com/MapleLeafCap/status/1677726456036855813

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