Crypto Assets Going Mainstream: The Transformation from Native Encryption to Crypto-Related

In 2025, Crypto Assets finally ushered in the dawn of mainstream acceptance. With the clarification of regulatory frameworks and the acceptance by traditional financial institutions, Crypto Assets seem to have won. However, this trend signifies a major shift for early-stage venture capital: crypto-related projects are gradually surpassing crypto-native projects. This article will delve into the core differences in building these two types of projects.

Characteristics of Crypto Native Projects

So far, the most successful Crypto Assets products have been almost exclusively designed for native encryption users. These users possess sufficient risk tolerance and are willing to test new products in a risky environment. Although the overall market size is limited, the native encryption market experienced exponential growth driven by the DeFi summer of 2020 and the macro environment of 2021.

The key features of native encryption projects include:

1. Extreme Power Law Distribution User Pattern
2. Retaining core users is a key challenge.
3. The project lifecycle is usually short.
4. Continuous innovation is the way to survive.

The Rise of Crypto-Related Projects

As Crypto Assets gradually move towards the mainstream, more and more traditional institutions are beginning to embrace this technology. This has led to the rise of crypto-related projects that take encryption technology as a feature rather than the product itself. For example:

• Fintech companies using stablecoins for cross-border payments
• Robot companies that incentivize data collection using a decentralized physical infrastructure network (DePIN)
• Utilizing Zero-Knowledge Transmission Layer Security Protocol (zkTLS) to authenticate private data for consumer companies

Comparison of Native Crypto and Crypto-Related Projects

1. Market Size: Crypto-related projects usually have a larger potential market.

2. Founder Background: The founders of crypto native projects often have a deep understanding of crypto culture, while the founders of crypto related projects tend to focus more on business acumen and industry experience.

3. Competitive Landscape: Crypto native projects face intense internal competition, while crypto-related projects may need to compete with traditional giants.

4. Growth Strategy: Crypto native projects rely on core users and continuous innovation, while crypto-related projects focus more on user acquisition and market penetration.

5. Source of funds: Crypto native projects may rely on token issuance, while crypto related projects are more likely to adopt traditional financing methods.

Insights on Venture Capital

1. Avoid reverse filtering: Do not become a bag holder by only investing in projects that have been rejected by non-professional venture capitalists.

2. Reassessing Founder Criteria: Successful founders of crypto-related projects may differ significantly from those of traditional crypto-native projects.

3. Focus on industry expertise: In the Crypto Assets related field, in-depth industry knowledge may be more important than pure encryption experience.

4. Emphasize geographical location: For certain crypto-related projects, whether the founders have a deep understanding of the target market may be a key screening criterion.

With the continuous development of the Crypto Assets industry, we will see more interesting projects emerge. Whether they are Crypto native or Crypto related projects, the key lies in finding the real market demand and meeting those needs in an innovative way.