Hong Kong Web3 Summit: Home Crowd Popularity Declines, RWA Becomes the Focus, Chinese Pros Gather to Attract Attention

The 2025 Hong Kong Web3 Carnival will be held from April 6 to 9 at the Hong Kong Convention and Exhibition Centre. This is the third annual event co-hosted by Wanxiang Blockchain Lab and HashKey Group. Although the official announcement states that nearly 400 top global experts, scholars, and industry leaders will participate, and the exhibition area has increased by 50% compared to last year, the actual on-site attendance seems to be below expectations.

Multiple attendees reported that the overall foot traffic has decreased by nearly half compared to previous years, and the number of booths has been reduced from over 150 last year to less than 100. In comparison to the 300 booths at Singapore's Token2049, the scale is clearly smaller. Some even jokingly referred to this as "the most low-key conference ever." The reasons for this situation may include: market sluggishness leading to decreased enthusiasm for attendance; the Consensus Conference held in February diverted some attention; a general lack of hotspots and innovation in the industry, with participants focusing more on price rather than technology.

From the booth situation, a certain trading platform's booth is the most eye-catching and is also the main gathering place for foot traffic. Next is the MEME project GMGN. In terms of hot topics, Payfi remains a focal point, with traditional financial institutions making significant contributions in this area. Institutions such as the Shanghai Data Exchange and Bosera Asset Management also have booths, focusing respectively on RWA and digital currency funds.

It is worth noting that previously popular concepts such as DePin seem to have lost their appeal at the main venue. Some public chain projects also did not receive much exposure at the main venue, possibly related to the performance of coin prices. Content related to the Bitcoin ecosystem is almost ignored.

From the composition of the participants, KOLs have become the main force, while venture capital institutions are relatively low-key. This stands in sharp contrast to the high-profile performance of venture capital institutions during the last bull market.

Although the main venue is not very popular, the surrounding activities are still lively. Over 100 side events, including various cruises, night events, and parties, have attracted many participants. The Chinese community remains the core group at the Hong Kong conference, while the number of overseas participants has decreased.

The most notable aspect of this conference is the gathering of pro in the Chinese industry. During one event, several well-known exchange founders came together, attracting market attention. The complex relationships and interactions among them have become a hot topic of discussion.

In contrast, the situation of Ethereum founder Vitalik is not very ideal. Against the backdrop of Ethereum's price slump, his speech seems to have failed to resonate much. Interestingly, the founder of a certain exchange appears to be more popular on site than Vitalik, reflecting a shift in the industry's focus.

Overall, from the boom in 2023 to the crowd in 2024, and now to this year's quietness, the Hong Kong conference reflects the ups and downs of the industry. Although challenges are currently faced, the bear market also provides an opportunity for quality projects to stand out. At the same time, the integration of traditional finance with emerging fields and the improvement of regulations have brought new opportunities and challenges.

Although the development of Web3 in Hong Kong has not been smooth sailing, the ecosystem has begun to take shape. In terms of policy, Hong Kong maintains an open attitude globally. The government has invested funds to support the construction of the Web3 ecosystem, attracting numerous related enterprises to settle in the region. The number of fintech companies in Hong Kong continues to grow, covering multiple fields.

The latest policy indicates that the Hong Kong Securities and Futures Commission allows virtual asset spot ETFs to participate in on-chain staking activities under regulation, and has relaxed some restrictions on virtual asset trading platforms. Although Hong Kong's role as a window may be limited at present, in the long run, it remains an ideal choice for traditional institutions to enter the Web3 space.

Here, Tuo Luo Finance also attaches a small essay from some participants at X, allowing everyone to glimpse the views of industry professionals in the current cycle. Due to space limitations, it has been shortened; you can go to X to view the original text.

AB Kuai.Dong@_FORAB

1. This should be the coldest Hong Kong conference I've attended, and friends in the exhibition industry generally complain that this year's recruitment is difficult, while friends in the media complain that there are fewer and fewer projects.

2. Many peers who have left major firms this year are somewhat thinking about returning to work at exchanges. Although the salary is fixed and the work is somewhat routine, the advantage is that there is someone to pay the salary + working at a big platform gives a sense of prestige. This once again confirms the saying that in a bull market people want to stir things up, while in a bear market they want to go to work.

3. The project teams that completed their token issuance a few years ago are pondering what to do during this bear market, so that they can issue tokens again in the next bull market. Meanwhile, the recent token issuers are basically feeling distressed, as if everything they do is wrong.

4. This year, the VC peers are generally showing a polarized state. For example, the valuations for the projects they previously invested in were too high, and this wave has been significantly cleared by the market. However, when encountering many new projects subsequently, the valuations are very cheap.

5. An event where CZ and Vitalik appeared together, unexpectedly CZ was more popular than V God, causing everyone to rush to take pictures with CZ, who complained that you should also go find Vitalik.

6. Last year, everyone was still arguing about whether there was a problem with Ethereum, but this year there seems to be a complete consensus. Whether it’s at a public appearance by Vitalik or in private settings, there are questions and discussions everywhere.

7. I asked several market makers and institutions, and most of them expect ETH to drop below 800, mainly betting on the panic exit of those involved in circular loans and ICOs. However, in June 2022, everyone thought the same, and it finally touched 880.

8. This year, there are noticeably fewer Westerners attending the conference, even in the tech sector, the proportion of foreigners has decreased. Two years ago, everyone was very Fomo about the Hong Kong story and was willing to come from afar, but this year seems to lack the enthusiasm of that time.

9. This time I encountered quite a few pros involved in making profits from the market. To some extent, some of these pros have indeed changed their family's economic situation through these profits. From the end of last year to the beginning of this year during this wave of token issuance, although the witch buried some studios, it also created wealth for a group of people.

10. Although it is still difficult for everyone to evaluate the progress of compliance in Hong Kong, it has already become an interesting center for crypto exchanges, with undercurrents flowing. Many projects that cannot return have generally come from Singapore, while the old hands in trading have mostly come from the mainland, leading to many interesting frictions and collisions between them.

11. Some Chinese top bloggers, in their industry layout, not only cover the cryptocurrency sector but also involve streetwear brands, medical beauty, Hong Kong listed companies, etc., gradually forming a large-scale industrial network, which is increasingly similar to brokerage investment companies in Europe and America.

DeFi Teddy@DeFiTeddy2020

VC coins that only focus on narrative will be unable to support high valuations; Meme coins will exist in the long term, but the dividends are disappearing; Projects are returning to fundamentals and PMF (Product-Market Fit); RWA is slowly rising; AI X Crypto is looking for PMF and may have an explosion in 1 day; Future projects will have two exit strategies: IPO and TGE.

VC: Can't invest anymore, less action, mainly managing exits and the secondary market, barely looking at AI;

Project team: The original path is blocked, crazy pivoting, the most concerning word is Runway;

Investment Research KOL: The market doesn't want to see content, and I also don't know what else I can produce.

ZTZZ ฿@ZTZZBTC

KOL: The quality of this generation of KOLs is far inferior to that of the KOLs from 2017-2018. Looking back, the valuable insights, the motivation for creating buzz, and even the long-term vision of the KOLs from 1718 were among the best in the internet sphere.

Project Party: Indeed, only fire reveals true gold, and interesting projects and teams have started to emerge in the bear market. However, where the next hotspot will be is still not very clear. Plus, many VCs have lost their shirts, so everyone is currently in a cautious investment state. If you are a new project party, don't give up on thinking, and don't stop working hard. Most of the people who have entered the circle to do projects this round are highly educated individuals, and their common traits are very obvious. The wild heroes of the crypto world have indeed decreased. Some projects are still alive, but they are already dead. Too many project party bosses are eagerly seeking exit paths.

The on-chain exchange sector indeed has opportunities for overtaking on the curves. It shouldn't be some BOT robot. We are still unclear about what the final form of this product will look like, but the moment this thing truly appears, it will be like a supernova explosion, bringing impact and challenges to the hegemony of CEX exchanges.

cryptoHowe.hl | 0xU@0xcryptoHowe

The quality and atmosphere of the conference this year are less than one-fifth of last year's impression. There were still quite a few new project parties at last year's venue, even the Meme project parties had booths. This year, a glance showed that most were large Infra and technical service providers. It's apparent that everyone has less money now. There were quite a few newcomers this time, while the old-timers didn't come much. At the same time, the KOL presence this time is very high. There were many fewer project parties and VCs.

The dog-fighting tool sector is still very hot. Recently, several new dog-fighting tools have been discussed, but overall functionality and UI are quite similar. Some large institutions, adhering to the mentality of "better to gamble wrong than to miss out," have started to develop such tools themselves, indirectly indicating that many still believe there is a possibility for another meme explosion in the future. However, the timing for launching tool-type products is not great right now, and it's difficult to create differentiation. It mainly relies on early positioning in the ecosystem, various marketing promotions in the mid to late stages, and the team's own network resources. The cost-effectiveness of the meme sector remains highest in the order of casino > tool facilities > platforms.

RWA and AI are the two most discussed topics. RWA is actually something I didn't expect; I thought people would mention some Meme AI-type Alpha. Overall, the RWA track is basically difficult to refute, but its essence has little relation to Crypto. It can be simply understood as a new direction that traditional old money is seeking, one that can meet compliance requirements while allowing for faster and simpler fundraising. The business mainly focuses on toB and toG, and retail investors basically have no way to participate.

I asked around about everyone's expectations for the market, and most believe it will be after June. However, I personally think June is indeed a bit soon, and the certainty for the second half of the year may be greater, so let's be patient.