The case of the missing Web3 users

gm 👋

A hippo-themed memecoin, MOODENG, just hit a wild $255M market cap, riding on the viral fame of a baby pygmy hippo from Thailand. Meanwhile, Web3 music platform Audius rolls out pay-to-unlock features, letting fans directly support artists with credit cards converted into USDC.

TL;DR

Singapore = crypto hub: Token 2049 showed Asia’s dominance in Web3, with tokenized assets and Solana making big moves.

Web3 user drop-off: Airdrops attract users, but they leave fast. Focus needs to shift from tokens to real products.

Our takeaways from Token 2049 week on Web3 and AI

Singapore is crypto's playground: Token 2049 turned Singapore into a crypto wonderland. The entire city felt like it was wrapped in blockchain logos, with even taxi drivers casually dropping crypto lingo. It’s the kind of mainstream exposure the industry needs for mass adoption.

Asia…the real crypto hub: Move over, Silicon Valley—Asia is where Web3 action is happening. Exchanges in the region are processing mind-blowing volumes, while places like Singapore and Japan foster real-world blockchain applications. The East is leading the charge in Web3.

Real-World Assets (RWA) go digital: Tokenizing assets like real estate and fine art is the next big thing. Projects like Centrifuge and Diamore are democratizing investment, allowing anyone to own fractions of high-value items.

The new internet backbone: Decentralized Physical Infrastructure Networks (DePIN) are disrupting big tech. Platforms like Helium and Filecoin are creating decentralized alternatives to traditional networks, reshaping how we think about digital infrastructure.

Solana breaks barriers: Solana’s low-cost, high-speed transactions are revolutionizing blockchain. With partnerships from Google Cloud and Franklin Templeton, Solana is showing it’s ready for mainstream adoption.

Blockchain gaming levels up: Web3 gaming is becoming indistinguishable from traditional games. Platforms like Gamee and TONToncoin are making waves, with Telegram adding games to its platform, blending social interaction with gaming seamlessly.

AI and blockchain: The fusion of AI and blockchain is creating ethical, transparent systems. Projects like Ocean Protocol and Fetch.ai are pioneering this space, showing how the two technologies can revolutionize industries together.

Cross-chain future is now: Interoperability is key. Projects like Polkadot and Cosmos are enabling seamless asset transfers between blockchains, unlocking new possibilities in decentralized finance.

Privacy takes the spotlight: As more value gets locked into blockchain networks, privacy becomes crucial. Zero-knowledge proof protocols from platforms like Aztec and Oasis Network are ensuring secure, private transactions without compromising on transparency.

DAOs are growing up: Decentralized Autonomous Organizations (DAOs) are evolving beyond simple governance. Projects like MakerDAO and Aragon are exploring new models that could reshape how we structure organizations in the future.

Our final thoughts: Token 2049 showed that Web3 and blockchain are just getting started, with innovations in AI, privacy, and decentralized systems adding fuel to the revolution. If this year’s event was anything to go by, next year’s Token 2049 will be even wilder.

The case of the missing Web3 users

Web3 projects are facing a serious challenge: user retention. Despite the promise of a more equitable internet built on blockchain and cryptocurrencies, many projects struggle to keep users around after the initial buzz.

The typical strategy involves launching projects with token airdrops, attracting users eager to farm tokens. But as Evgeny Gaevoy, CEO of Wintermute, points out, this leads to temporary spikes in activity followed by a sharp drop as users move on to the next shiny airdrop.

Airdrops are often cashed out quickly, and while some tokens thrive, most depreciate over time, as noted in a CoinMetrics report. The focus on tokenomics over genuine product development has slowed the creation of truly useful applications, says Urvit Goel from Optimism Unlimited.

Instead of relying on tokenomics as the primary driver, Goel suggests focusing on user experience and adding blockchain features to enhance it. Allen Ng of Everest Ventures Group echoes this, advising Web3 teams to work backward from a clear vision of user experience rather than starting with tech.

Web3’s long-term success will depend on building sustainable, engaging products—not just attracting tourists with token rewards.

News

🏁 Lamborghini brings cars to Web3 games with Animoca, Motorverse partnership.

💸 Nibiru Foundation launches strategic venture arm to ‘support Web3 innovation’

👀 SEC appeals decision that restricted its crypto oversight.

📁 Hacker admits to swiping $38 million in crypto from investment firm.

🔻 Bitcoin tumbles back toward $60,000 as tensions in the Middle East rise.

💳 BBVA plans Visa-backed stablecoin launch in 2025.

WEB3 NOTES

• Read: Japan crypto review may open door to lower taxes, dedicated ETFs (Bloomberg.com)

• Learn: Why selling gilts on the blockchain is just a token gesture (Financial Times)