Crypto "Speculation" Evolution: Entering the "Adult" market, from speculation to real holding

Author: @0xkyle__  

Translated by: Zen, PANews  

The term "Internet Capital Markets" encompasses many meanings. In today’s context, it refers to the "alchemical" outcomes purely driven by the advantages of blockchain technology: financial technology that ignores geographical boundaries. You can lend using "magic internet money," tokenize treasury bills and private credit, issue stablecoins—and in today’s world where traditional finance and digital assets intersect, all of this is collectively called "Internet Capital Markets."  

But for veterans who have navigated the trenches of on-chain trading and breathe the air of this asset class, Internet Capital Markets mean more than just "on-chain treasury bills." It includes NFTs, DeFi, ICOs, all manner of speculative tools invented over the past decade, and tokens that have been tradable since the first smart contract was deployed on Ethereum in 2015.  

This article aims to focus on the underlying logic behind tokens, narratives, 10x/100x gains, and airdrops, dissecting this side of Internet Capital Markets. We are on the cusp of what OG crypto players call the "new meta." To unpack this, we must first examine these capital formation mechanisms and their differences.  

### The Evolution of Market Financing Mechanisms  

Looking back at past cycles, we’ve witnessed continuous shifts in market financing mechanisms: from ICOs to centralized exchange altcoins (CEX Alts), then to meme coins... The diagram above summarizes this evolution, which can be briefly broken down as follows:  

#### Original ICOs (2017 Era)  

In this model, funds were raised based on a project’s "promises," with the goal of selling to a bigger "fool." The technology was barely functional, if at all, or offered no real value. Most of the time, it was a game of "pass the parcel."典型 examples: Bitconnect, Dentacoin, etc.  

#### VC Paradise (2021 Bubble)  

This wave attracted institutional capital, but in hindsight, it did significant harm to the industry—absurdly high valuations, poor incentive designs (who’d work hard with $100 million in the bank?). However, it also delivered more viable products—so we can’t dismiss it entirely. Despite rampant valuation inflation, many protocols you love today emerged from this era. Take Ethena: I admire it, but the "too much too soon" funding mechanism did hurt its early token performance; yet, it’s undeniably one of the best crypto products today. This was also the era when Solana, Uniswap, and others rose. Even with debates over their governance or operations, it’s clear this period wasn’t all bad.  

#### Polarization  

After the FTX collapse, crypto faced an existential crisis—distrust spread, and many concluded "everything is a scam." I once felt the same, but nuances matter. While it may resemble a casino, not everything is a casino—stablecoins and tokenization are unlocking real value in practical use cases, beyond just memes or niche USD trading pairs. During this phase, purely memecoin projects like dogwifhat and pepe emerged alongside more "serious" narratives like AI agents. Valuations plummeted, and you might ask, "Is everything just a meme?" But in reality, labeling something a "meme" doesn’t condemn it to stay that way. Maturation is gradual; some projects, like REI, have evolved from "meme" to "serious."  

#### Legitimacy Meets Digital Markets  

We’re entering the "adult era"—institutions are here, and genuinely excited. But those of us "inside the factory," who’ve seen "how the sausage is made," can’t help but feel pessimistic about a Circle IPO.  

Knowing too much becomes a curse—labeling everything a "meme" erodes your conviction. Consider Ethereum: It was the worst-performing asset for two years, with many heavy holders capitulating and media trashing it relentlessly.  

Yet look at the present: Do you think Tom Lee knows (or cares) about the cringeworthy videos of Ethereum Foundation leaders singing and dancing on stage? Do you think institutions like BlackRock, launching tokenized funds on Ethereum, care about the Foundation’s "soy-boy mentality"?  

The answer is no—and this is what you must internalize. Most crypto has forgotten how to "dream," while traditional finance is re-learning to dream. This will create more opportunities—as digitization and mainstream adoption advance, more high-quality builders will join.  

### The Future Landscape of Internet Capital Markets  

This is what I mean by Internet Capital Markets. We’re entering an unprecedented boom—regulatory clarity, technical prowess, and capital converging, much of it on-chain. No joke: I believe some of the most valuable companies in the coming years will issue tokens on-chain.  

In fact, it’s already happening. Hyperliquid is the pinnacle of Internet Capital Markets. It took no VC money, has no equity baggage, and is purely an on-chain token project that initially wasn’t listed on exchanges.  

To emphasize: Hyperliquid was once a $40 billion enterprise with no pitch decks or equity structure burdens. This purely on-chain giant dominated the market from day one and is now on track to hit $1 billion in annual revenue—from zero. It’s the purest expression of how Internet Capital Markets work.  

But don’t mistake this for hype. I believe more such cases will emerge in the next few years. Isn’t that exciting? We’re moving into an era of abundance—don’t let cynicism kill your old dreams. Tragically, this is obvious to many, yet they’re too busy chasing 50% gains on random junk coins, because that’s what we’ve been trained to do over the past four years. It’s time to dream bigger—the script is already written.  

Today, the chains that bound us are gone. People have long been trapped in outdated structures—but in the age of Internet Capital Markets, owning 5-10% of your own token and building it into a $100 million to $1 billion product will yield far more than anyone expects.  

Yes, fundraising is still necessary, and ICOs aren’t inherently bad. But look at Hyperliquid’s path: If you believe in your product, issue an on-chain token, retain a meaningful share, and let the market—the ultimate arbiter of truth—determine its value. What’s wrong with capitalism? It makes participants short-sighted. It pushes innovation in the right direction but fails to truly drive it. Too many settle for quick money, missing the far greater gains from long-term compounding.  

Long-term thinking usually delivers geometric, not arithmetic, results—e.g., 2x in 2 years, 5x in 4 years, 10x in 5 years.  

Of course, you could earn $10 million by building a product and abandoning it, or you could spend a few more years developing it and earn $300 million.  

### Conclusion: From Speculation to True Ownership  

Finally, let’s address the market’s speculative nature. In the short term, the market is undoubtedly a voting machine—"valueless" assets will rise, "good assets" will exceed their intrinsic value, and team sell-offs may repeat.  

But the key is that this wave of digitization will attract more exceptional, truly建设性 founders. I believe this is an inflection point, spawning more outstanding on-chain products.  

Think of that diagram: It never has to go to zero, nor does it need to. Look at Hyperliquid, Ethena, Aave—they boast $1 billion in annual revenue, stablecoins with $10 billion in TVL, and $60 billion in net deposits. Look at Pengu, Rekt—197 trillion total views, 2 million merchandise units sold globally, even drinks on 7-Eleven shelves in the U.S. All backed by on-chain tokens.  

The more A/S-tier projects/founders emerge, the less attention we’ll pay to C-tier and below—fewer empty projects like "air coins," more focus on those delivering real compound growth.  

We can debate whether they’re overvalued or undervalued, but I’d rather have that debate than return to an era of buying "empty promises." A time when we were forced to purchase assets from companies peddling pledges with no results. I’d rather own something tangible than pretend to play pass the parcel.  

Treating every token as a "meme" is a massive waste of opportunity. Tokens issued by projects like Hyperliquid are no longer fantasy. The next Steve Jobs could very well issue a token on-chain. Some of these assets will eventually become on-chain giants controlling the future of finance. And we all have a chance to buy in. Dismissing them as "just a meme" is a surefire way to miss 1000x gains.  

This is how speculation evolves: From trading worthless air, we’ve arrived at a point where we can truly own solid, durable, and—most importantly—on-chain assets that will shape the future.  

It’s time to reclaim conviction, let go of past constraints, and reimagine dreams. The future is bright—don’t let the shadows of the past blind you to optimism.  

This—is what I see as the future: Internet. Capital. Markets.  

Disclaimer: The views in this article are solely those of the author and do not constitute investment advice on this platform. This platform makes no guarantees regarding the accuracy, completeness, originality, or timeliness of the information, nor shall it be liable for any losses arising from the use or reliance on such information.