Web3 Lawyer: Is Web3’s one-stop service for corporate transformation reliable?

In the impression of many non-currency veterans, starting a Web3 business is equivalent to issuing a coin .

Although this sounds a bit like swearing, it still represents the misunderstanding of some friends in the current Web3 industry. For many entrepreneurs who have just entered the Web3 circle, the biggest obstacle to transformation is how to develop Tokens, how to connect to online exchanges, and how to engage in market operations in the currency circle. These technical and market challenges make many entrepreneurs feel at a loss. And when there are so many different lines, and you don't know where to start, "one-stop service" comes into being, trying to solve complex problems in a simple and quick way.

As lawyer Hong Lin saw in a WeChat group, the "one-stop service" of coin issuance in the currency circle has become more and more active recently. All-round service providers include token development, DAPP development, private equity, community operations, online exchanges, and even Follow-up legal services are provided throughout the entire process. For project parties with no technical and market experience, this is undoubtedly a blessing from heaven

• just pay the fee, and the project's currency issuance, online and promotion can be handled in one stop. However, behind this apparent convenience, there are many pitfalls hidden.

Web3 misunderstanding: not just issuing coins

In fact, the connotation of Web3 is much richer than simply issuing coins. Web3 is the next generation development stage of the Internet, emphasizing decentralization, user autonomy, data privacy and the widespread application of blockchain technology. It not only involves the financial field, but also covers many aspects such as social networking, entertainment, content creation, and supply chain management.

However, the large number of projects focusing on issuing coins in the current market has led many people to equate Web3 with "issuing coins". This narrow perspective not only limits people's awareness of the potential of Web3, but also allows truly valuable Web3 applications to be buried. In this context, entrepreneurs are often forced to focus on token issuance and market hype, while ignoring the deeper technology and application development of Web3.

In order to realize the customized needs of Party A, some service providers in the circle will use various means to create false users and false prosperity. On the surface, it seems that the project is hot, the community is active, and the token trading activity is high, but these "prosperities" are often the result of human manipulation. In fact, there are not many real users participating behind the scenes, and the vast majority of active accounts are organized and disciplined "10U God of War Group". These so-called "war groups" usually create market activity by purchasing and manipulating tokens to attract more investors' attention.

What is even more serious is that in order to pursue short-term results, some service providers even adopt the pyramid selling model to attract people, exaggerating the potential and prospects of the project, and attracting novice investors who do not know the truth. These service providers induce investors to invest large amounts of money through exaggerated market forecasts and false success stories. However, once these investors entered the market one after another, they found that the project lacked substantial progress and the token price could not be maintained.

When service providers fail to fulfill their promises, project parties will naturally face doubts and accusations from investors. Many entrepreneurs who originally hoped to save trouble and issue coins through "one-stop service" eventually found themselves falling into the trap set by their friends. The project was unsustainable and even faced legal risks. This crisis of trust has caused headaches for many entrepreneurs who are interested in long-term development in the Web3 field.

Returning to business fundamentals, does issuing a currency really equal

success?

Putting aside the legal risks and returning to the fundamentals of business, what entrepreneurs need to think about is: Can the currency issuance itself really determine the success of the project? In other words, even if you can successfully issue coins and list them on exchanges, it may be difficult to start a good life. After all, what truly determines whether a project can operate in the long term is a clear business model, market demand and sustained operational capabilities.

Coin issuance, as a financing tool, is essentially similar to traditional companies raising funds by issuing stocks or bonds. Token issuance can provide initial financial support for a project, but it does not directly determine the success of the project. Real business success requires the value creation of the project itself, the satisfaction of users' real needs, and continuous innovation and operational capabilities.

Understanding and meeting market needs is the key to the success of any commercial project, and the Web3 project is no exception. A successful Web3 project first needs to have a clear and feasible business model. The existence of Token is not only to issue tokens to raise funds, but also to ensure that the project can realize its own value in the future. The business model needs to answer key questions such as what problems the project solves, who are the target users, and how to achieve profitability. Entrepreneurs need to conduct in-depth research on the target market and understand the real needs and pain points of users in order to design truly attractive and competitive products. Ignoring market demand and relying solely on token hype without substantial product and service support will greatly reduce the sustainability of its long-term development. On the contrary, a project with a clear business model and practical application scenarios can rely on its own value support to maintain long-term and stable development even if the token price fluctuates greatly.

The success of the Web3 project does not only rely on the initial token issuance, but also requires long-term operation and maintenance. This includes continuous iteration of technology, community construction and management, market promotion and maintenance, etc. If a project lacks an effective operating strategy after issuing tokens, the user experience declines, and it is unable to maintain user activity and participation, then the value of its tokens will be difficult to stabilize and improve.

There are too many projects on the market that ignore these fundamentals, and eventually the token price plummets. After the token is issued, the project will still face huge pressure to survive. Countless cases have proven that relying solely on token issuance to raise funds, due to the lack of a clear business model and sustained operations, has led to a rapid decline in token prices after a short-term surge, a loss of investor confidence, and a project team also facing the crisis of a broken capital chain. .

Mankiw lawyer advises

In actual operation, the trust relationship between service providers and project parties is often based on contracts and agreements, but these contracts cannot fully protect the rights and interests of the project party. Once problems arise with service providers, project parties often lack effective legal channels to protect their own interests. In this case, the project party not only needs to bear financial losses, but may also affect its reputation and future development opportunities due to project failure.

When facing the temptation of one-stop service, entrepreneurs need to have a clear understanding to avoid falling into the trap set by "friends". The following are some suggestions from Lawyer Honglin to help entrepreneurs make more informed decisions when choosing service providers.

1. Choose a reputable service provider and a transparent cooperation model

Uncle Jack Ma said something very true before, there is no business to business, only business to business. When you go out to hang out, character is the most important thing. When choosing a one-stop service provider, priority should be given to companies with a good reputation and reputation in the industry. You can evaluate the service provider's reliability by looking at its past project cases, customer reviews, and word-of-mouth within the industry. A reputable service provider usually pays more attention to the long-term development of the project rather than just the short-term market effect.

Entrepreneurs should ensure the transparency of the cooperation model when cooperating with service providers. Clarify the responsibilities and obligations of both parties, sign a detailed contract, and stipulate the specific content and delivery standards of each service. Avoid choosing service providers that are vague and overpromising to avoid disputes and trust crises during the cooperation process.

2. Dual support from technology and market

The technical foundation of the Web3 project is crucial. Whether it is the security of smart contracts, the stability of the blockchain network, or the user experience of DApp, solid technical capabilities are required. A project with excellent technology can ensure the security of user data, efficient transactions and stable operation of the system, thereby winning the trust and support of users.

The community is the lifeblood of the Web3 project. An active and high-quality user community can provide continuous support and impetus for the project. Entrepreneurs need to invest resources in building and maintaining the community, and attract and retain user participation and contributions through transparent communication, effective incentive mechanisms and valuable content. An excellent service provider should not only provide technical support such as token development, but also have market operation and promotion capabilities. It is recommended that entrepreneurs give priority to service providers that can provide independent and professional community management services and avoid service providers that rely on fake users and short-term prosperity to ensure the true activity of the community and the long-term participation of users.

3. Legal and Compliance Guarantee

As countries around the world increasingly tighten regulations on cryptocurrency and blockchain technology, compliance operations have become an aspect that Web3 projects must pay attention to. Entrepreneurs need to understand and abide by relevant laws and regulations to ensure that projects operate within a legal and compliant framework. Through legal and compliant operations, projects can not only avoid legal risks, but also enhance the trust of investors and users.

Web3 projects involve complex legal and compliance issues, and entrepreneurs should choose service providers that can provide comprehensive legal services. Ensure that the project can comply with relevant laws and regulations during the issuance of coins, listing on the exchange, and subsequent operations to avoid project failure due to legal risks.

Summarize

Issuing coins is only the starting point of the project, not the end. Entrepreneurs want to save trouble by issuing coins through "one-stop service". This mentality is understandable, but do not regard issuing coins as the master key to solve all problems. To gain a foothold in the Web3 world, the real moat is solid technical capabilities, clear business models and compliant operating paths, rather than simple token issuance or short-term market speculation.

Only by organically combining these three can we stand out in the fiercely competitive Web3 field and achieve real long-term development. I sincerely hope that all entrepreneurs who are transitioning to Web3 will keep a clear head, deeply understand the nature and potential of Web3, and avoid being confused by the temporary market craze. Only by being down-to-earth can we create our own glorious chapter in this field full of opportunities and challenges.