Allen Ng, founder of EVG, shares his unique perspective on the transition from traditional venture capital to the dynamic world of Web3. With a background in fostering unicorn companies and advising prominent Web3 projects, Ng offers valuable insights into the distinct challenges and opportunities presented by this emerging technology, particularly within the Asian market. He discusses the key differences between Web2 and Web3 product development, the importance of adaptability in the rapidly evolving crypto space, and the unique cultural factors driving Asia’s embrace of digital assets.
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Rethinking Success: The Shift from Web2 to Web3
Ng’s journey into Web3 was driven by a fascination with its novel economic model, where projects can effectively operate as both primary and secondary markets simultaneously. This allows for faster feedback loops and greater market responsiveness compared to the traditional Web2 IPO trajectory. “In Web3, a Series B project can function like a public company,” Ng explains, highlighting the immediate market engagement enabled by token listings. This contrasts sharply with the often protracted fundraising and development cycles characteristic of Web2 ventures.
Building in Web3: A Different Ballgame
Ng emphasizes the stark differences in product development and growth strategies between Web2 and Web3. While Web2 relies heavily on quantifiable metrics and VC funding for user acquisition, Web3 demands a more nuanced approach. Building a successful Web3 product necessitates a deeper understanding of community building, tokenomics design, and global market engagement, requiring founders to cultivate a broader skillset.
“In Web3, your concerns extend beyond your company’s immediate financials,” Ng states. “You need to consider token listings, community development, airdrop programs, and developer incentives.” He highlights the importance of non-monetary value creation, such as rewarding early adopters with exclusive NFTs, to foster a sense of shared ownership and loyalty. This emphasis on community and shared value creation sets Web3 apart from the more individualistic focus of Web2.
The Asian Crypto Advantage: Beyond Speculation
Ng challenges the prevailing narrative of Asian crypto adoption being solely driven by speculation. He argues that the decentralized and liberating ethos of crypto resonates deeply with individuals in regions with certain economic and social limitations. “Crypto offers an alternative financial system and a new form of asset ownership,” Ng observes, particularly in countries with less developed traditional financial markets. While acknowledging the speculative element within the crypto space, he stresses that it’s a global phenomenon, not unique to Asia.
Building for a Global Stage: Advice for Asian Developers
Ng encourages Asian developers to embrace a global mindset from the outset. “Web3 transcends geographical boundaries,” he asserts, urging developers to overcome language barriers and cultural reticence to effectively communicate their vision and connect with a global audience. He emphasizes the importance of strong storytelling and confident self-promotion in a borderless digital landscape. He also advises focusing on building products based on genuine expertise rather than chasing fleeting trends.
Adaptability and Resilience: Navigating the Web3 Landscape
The rapid pace of innovation in Web3 requires a constant state of adaptation. Ng highlights the importance of embracing a trial-and-error approach and remaining flexible in the face of technological advancements. “Don’t build what you think is the hottest business model today,” he warns. “Build what you’re best at, and you’ll have greater staying power.” He uses the example of the rapid rise of Web3 wallets in 2022 to illustrate the need for continuous evolution and responsiveness to market shifts.
In conclusion, Allen Ng’s journey from Web2 investor to Web3 founder provides invaluable insights into the transformative potential of this nascent technology. His emphasis on community building, adaptability, and a global mindset offers a compelling roadmap for aspiring Web3 builders, particularly within the dynamic and rapidly growing Asian crypto market.
