2. Asset Management Challenges in the Web3 Era: Volatility, Complexity, and Information Asymmetry
Web3 offers high-yield opportunities not found in the traditional financial system. Its investment targets are diverse, including DeFi lending, staking, and NFT marketplaces, each with its unique appeal. However, at the same time, there are risks specific to Web3. Numerous factors, such as high volatility, smart contract vulnerabilities, regulatory uncertainty, and information asymmetry, make investment decisions difficult.
2.1. Limitations of Traditional Financial Advisory in the Web3 Space
Traditional financial advisory services focus on conventional asset classes like stocks and bonds and have limited coverage of the Web3 domain. Many financial advisors lack expertise in blockchain technology and cryptocurrencies, and are unable to provide appropriate advice on new investment targets like DeFi and NFTs. Furthermore, the high fees often associated with traditional services fail to meet the needs of early adopters who want to actively manage their assets in Web3.
2.2. Information Asymmetry and Risks in Web3
Information asymmetry is a major issue in the world of Web3. While new projects and protocols emerge rapidly, evaluating their credibility and future potential is not easy. Especially for novice investors, it is difficult to determine which information is reliable in the flood of data, increasing the risk of making poor investment decisions. Moreover, the lack of technical expertise can make them targets for fraudulent projects.
2.3. Barriers to Entry for Novice Web3 Investors
Given the above background, the barriers to entry are particularly high for those new to Web3 investment. There are numerous technical hurdles, including understanding specialized terminology, managing wallets, and executing transactions. Concerns about scams and hacking risks also deter beginners from entering the Web3 space. These barriers to entry prevent many individuals from accessing opportunities for wealth creation in Web3.
Last updated