10 THINGS THOSE IN TRADFI SHOULD CONSIDER WHEN RESEARCHING WEB3 PROJECTS

The Web3 space is buzzing, attracting attention from traditional finance (TradFi) giants eager to explore the potential of decentralized technologies. The crypto industry would be wise to learn from and adopt the proven principles and processes TradFi relies on to protect consumers. Crypto pioneers and decentralized finance companies often talk about their commitment to opening up financial opportunities to underserved populations, but that s only half the battle in achieving success for this fledgling industry. Global consumers must beBut navigating this innovative landscape can be daunting.Web3 promises a more decentralized, user-centric internet powered by blockchain. When researching Web3 projects, those in the TradFi space should look behind the hype to find projects that will deliver real value and provide a unique offering something differentInstead of centralized platforms controlling data, Web3 aims to hand control back to users through transparent, community-driven systems. The term, coined by Vitalik Buterin - one of the Ethereum founders, addresses the biggest issues that blockchain developers face when creating Web3 apps. And those are that the blockchains should be scalable, decentralized, and secure. Harmony has been built to address all 3 of those challenges.This shift is creating new opportunities, but also new risks. Together with some of my esteemed colleagues, I gave Cointelegraph my opinion about the most important point that TradFi folks should consider when researchingFor TradFi professionals accustomed to established frameworks and regulatory structures, understanding the nuances of Web3 is crucial before diving in. The emergence of top web3 projects across various domains, including decentralized finance (DeFi) platforms, NFT marketplaces, and web3 gaming, highlights the growing interest and investment in this space. These developments leverage blockchain innovation, offering new ways of interacting and engaging online.It's not enough to simply chase the hype; thorough research and a strategic approach are essential for identifying projects with genuine value and long-term potential. Top 10 Web3 Crypto Projects to Consider in 2025. The Web3 space is evolving at breakneck speed. From decentralized finance (DeFi) to NFTs, from DAO governance to AI-powered blockchains 2025 is poised to be a pivotal year. In this article, we re diving deep into 10 Web3 projects that are turning heads and opening wallets in the cryptoThis guide explores ten critical considerations for TradFi professionals venturing into the world of Web3 projects, helping them make informed decisions and capitalize on this emerging paradigm.

1.Understand the Core Principles of Web3

Before evaluating specific projects, TradFi professionals need a solid grasp of the fundamental principles underpinning Web3.This includes understanding concepts like decentralization, blockchain technology, cryptography, and smart contracts. I shared with Cointelegraph my opinion about the most important point that TradFi folks should consider when researching Web3 projects: When researching Web3 projects, those inWithout this foundational knowledge, it's easy to get lost in the technical jargon and miss the key differentiators between projects.

• Decentralization: Web3 aims to distribute power away from central authorities, fostering greater transparency and resilience.
• Blockchain Technology: This distributed ledger technology underpins most Web3 projects, providing a secure and transparent record of transactions.
• Smart Contracts: These self-executing contracts automate agreements and processes, eliminating the need for intermediaries.
• Cryptography: Cryptographic techniques secure transactions and protect user data in Web3 environments.

2. In this blog post, we will explore ten exciting Web3 project ideas that have the potential to revolutionize various industries and provide lucrative investment opportunities. 1. Decentralized Finance (DeFi) Platforms. Decentralized Finance (DeFi) has emerged as one of the most promising use cases for Web3.Look Beyond the Hype and Focus on Real-World Utility

The Web3 space is rife with hype and speculation. The relationship between the Metaverse and Web3, as well as the differences and similarities between Web 3.0 and Web3, are also discussed. Maslow's hierarchy of needs theory inspired a novel hierarchy of needs theory within Web3. Finally, several future research directions of Web3 are worth considering.Many projects promise revolutionary changes but lack concrete use cases or sustainable business models. An understanding of the overall ecosystem as well as the details of individual projects is essential for those in TradFi who are exploring Web3. Read more atTradFi professionals should focus on identifying projects that offer tangible value and address real-world problems.

Ask yourself: Does this project solve a genuine problem?Does it offer a unique advantage over existing solutions? Proponents of each often see one or the other as inherently superior. Native crypto users tend to ride hard for decentralization over everything; those in web2 and banking often argue that DeFi simply replicates TradFi but worse. This guide gets into the nitty gritty, covering the strengths and weaknesses of TradFi vs. DeFi.Is there a clear path to adoption and revenue generation?

For example, while some NFT projects focus on speculative art, others are revolutionizing supply chain management by providing verifiable proof of origin and authenticity.

3.Scrutinize the Underlying Technology and Architecture

A project's technological foundation is crucial to its long-term viability. Together with some of my esteemed colleagues, I gave Cointelegraph my opinion about the most important point that TradFi folks should consider when researching Web3 projects: When researchingTradFi professionals should carefully examine the underlying blockchain, consensus mechanism, scalability solutions, and security protocols.

Consider these questions: Is the blockchain scalable to handle increasing transaction volumes?What consensus mechanism is used, and is it energy-efficient?Are there robust security measures in place to prevent hacks and exploits?

Projects built on robust and secure platforms are more likely to withstand the test of time. Q. How do I start investing in Web3 crypto? Start by researching Web3 projects, creating a crypto wallet, choosing a reputable exchange, and buying tokens tied to Web3 platforms or ecosystems. Q. Is it safe to invest in Web3 crypto? Web3 investing carries risk.Ethereum, for instance, is a popular choice due to its established ecosystem and active developer community, while other blockchains are emerging with specific advantages.

4.Assess the Tokenomics and Economic Model

Tokenomics refers to the economic model governing a project's native token.This includes the token's distribution, supply, utility, and governance mechanisms.Understanding the tokenomics is essential for evaluating a project's potential for long-term growth and sustainability.

Key considerations include: How are tokens distributed (e.g., through a fair launch, ICO, or airdrop)?What is the total token supply, and is it fixed or inflationary?What role does the token play within the ecosystem (e.g., governance, staking, utility)?

A well-designed tokenomics model can incentivize participation, reward long-term holders, and drive sustainable growth.However, poorly designed tokenomics can lead to token inflation, market manipulation, and project failure.

5. My two cents on @cointelegraph about the things that folks in TradFi should consider when researching Web3 projects:Evaluate the Team and Community

The team behind a Web3 project is just as important as the technology.TradFi professionals should research the team's experience, expertise, and track record.A strong and reputable team is more likely to navigate the challenges of building and scaling a successful Web3 project.

Furthermore, a vibrant and engaged community can be a valuable asset. Below, 10 members of Cointelegraph Innovation Circle discuss some helpful things the crypto industry can learn from the TradFi industry, including practices DeFi companies should consider adopting and adapting for their own customer base. Establishing an insurance systemA strong community can provide feedback, contribute to development, and advocate for the project.

Look for teams with a proven track record in both the traditional and Web3 spaces. Politicians leading the Liberal Democratic Party s Web3 PT, Web3-startup founders, representatives from world-renowned DeFi projects, major financial institutions, and legal experts allAlso, assess the community's level of engagement and its overall sentiment towards the project.

6. Top 10 Web 3.0 Apps in 2025. In 2025, several Web3 applications will stand out for their innovative features and user benefits, making them among the best in the field. Let s have a look at the top 10 Web3 applications in 2025: SapienAnalyze the Regulatory Landscape

The regulatory landscape for Web3 is still evolving, and regulations vary significantly across jurisdictions. With bitcoin prices at all-time highs, we explore how TradFi engagement, stablecoins and tokenization are driving web3 growth opportunities.TradFi professionals must understand the legal and regulatory implications of investing in or engaging with Web3 projects.

Considerations include: Is the project compliant with relevant regulations, such as securities laws and anti-money laundering (AML) requirements? 作者:北辰 2025 香港 Web3 嘉年华在上周三如约而至，尽管这周热度可能过去了，但我们现在可以抛开现场的热 点，来冷静地回顾峰会的内容，看看大咖们都分享了啥，链茶馆逐字梳理了 嘉宾们的演讲及圆桌之后，整理了速读版的内容，带你 5 分钟速读。What is the project's legal structure, and where is it registered? Digital assets can present expansive and valuable opportunities for a TradFi institution that s prepared to lay the necessary foundation. As digital asset options continue to gain attention and acceptance from investors, traditional financial institutions may be considering adding digital assets to their offerings and/or portfolios. As with any other industry, standing still isn t anWhat are the potential regulatory risks and uncertainties?

Navigating the regulatory landscape can be complex, so it's essential to consult with legal and compliance experts.

7. How Open-Source Web3 Projects Change Things. Open-source Web3 projects are like super-powered Legos for the internet. They re transparent, accessible, and constantly evolving, changing things in exciting ways: More power to the people: Open code lets anyone build and improve, democratizing innovation. No gatekeepers, just a global communityUnderstand the Risks and Mitigation Strategies

Investing in Web3 projects carries significant risks, including market volatility, security vulnerabilities, regulatory uncertainty, and technological risks.TradFi professionals should carefully assess these risks and develop appropriate mitigation strategies.

Common risks include:

• Smart Contract Risks: Bugs or vulnerabilities in smart contracts can lead to loss of funds.
• Security Risks: Hacks and exploits can compromise the security of Web3 platforms and assets.
• Regulatory Risks: Changes in regulations can impact the legality and viability of Web3 projects.
• Market Volatility: The cryptocurrency market is highly volatile, and prices can fluctuate dramatically.

Mitigation strategies include diversifying investments, conducting thorough security audits, and staying informed about regulatory developments.

8. Web3 represents the new era of the internet one that s more decentralized, user-centric, and often powered by blockchain technology. Instead of large platforms or central authorities owning data, Web3 hands control back to users through transparent and community-driven systems. This shift also paves the way for new forms of digitalConsider the Project's Scalability and Sustainability

Scalability refers to a project's ability to handle increasing transaction volumes and user adoption without compromising performance or security. Web3: The Key to Modernizing and Innovating Traditional Finance. With the wave of mass adoption of digital modes of finance, it is time for TradFi to adopt some of the features of the Web3 universe to stay relevant and competent. The sudden popularity of Web3 is rooted in its characteristics.Sustainability refers to its ability to maintain long-term viability and generate revenue.

Key questions include: Can the project scale to accommodate a large number of users and transactions?Does it have a sustainable business model that generates revenue and covers operating costs?Is the project environmentally sustainable, considering the energy consumption of blockchain technology?

Projects that prioritize scalability and sustainability are more likely to achieve long-term success.

9.Evaluate the Project's Governance Model

Governance refers to the mechanisms by which a Web3 project is managed and controlled.Decentralized Autonomous Organizations (DAOs) are a common governance model in Web3, allowing token holders to participate in decision-making.

Key considerations include: How is the project governed? Below, 11 members of Cointelegraph Innovation Circle share essential things any TradFi organization must be prepared to do if it s considering digital assets and why these steps shouldn t be skipped. Focus on robust risk management. One essential thing to remember is the need for robust risk management.Who has the power to make decisions?What are the mechanisms for proposing and voting on changes? Web3 is getting more and more attention from powerful companies and people in the old financial world. Many people want to know what benefits the underlying technology could have for their work and which of the many projects on the market would be suitable financial investments.Is the governance model transparent and accountable?

A well-designed governance model can foster community participation, promote transparency, and ensure that the project is aligned with the interests of its stakeholders.

10. Market Cap: $ 2 918 831 886 923 / 24h Vol: $ 127 033 902 995 / BTC Dominance: 60. %Start Small and Diversify Your Investments

Given the inherent risks and uncertainties of the Web3 space, TradFi professionals should start with small, well-researched investments and gradually increase their exposure over time.Diversifying investments across different projects and sectors can help mitigate risk.

Avoid putting all your eggs in one basket.Spread your investments across different asset classes and projects.Continuously monitor your investments and adjust your strategy as needed.

Web3 Project Ideas and Examples for TradFi Consideration

The Web3 space offers numerous potential investment opportunities for TradFi professionals.Here are some examples of exciting Web3 project ideas:

Decentralized Finance (DeFi) Platforms

DeFi platforms offer traditional financial services, such as lending, borrowing, and trading, in a decentralized and permissionless manner. The defining feature of tradfi is centralization: unlike DeFi (decentralized finance) which operates on blockchain protocols, tradfi makes banking institutions central to all transactions. TradFi faces limitations like high entry barriers, reliance on centralized control, and reduced consumer autonomy, highlighting the appeal of decentralizedThese platforms can provide greater transparency, efficiency, and accessibility than traditional financial institutions.

NFT Marketplaces

NFT marketplaces facilitate the trading of non-fungible tokens (NFTs), which represent unique digital assets.NFTs can be used to represent a wide range of assets, including art, collectibles, and virtual real estate.The rise of NFTs is already drawing mainstream interest from tradfi companies looking to explore fractional ownership.

Web3 Gaming

Web3 gaming integrates blockchain technology and NFTs into online games, allowing players to own and trade in-game assets.This creates new opportunities for players to earn rewards and participate in the game's economy.

Decentralized Social Media

Decentralized social media platforms offer users greater control over their data and content.These platforms are resistant to censorship and provide users with more privacy.

Q&A: Common Questions About Web3 Investing for TradFi

Q: How do I start investing in Web3 projects?

A: Start by educating yourself about the Web3 ecosystem and the underlying technologies.Then, research specific projects that align with your investment goals and risk tolerance.Create a crypto wallet, choose a reputable exchange, and buy tokens tied to Web3 platforms or ecosystems.Remember to start small and diversify your investments.

Q: Is it safe to invest in Web3 projects?

A: Web3 investing carries inherent risks, including market volatility, security vulnerabilities, and regulatory uncertainty.However, by conducting thorough research, diversifying your portfolio, and implementing appropriate risk management strategies, you can mitigate these risks.

Q: What are the key differences between TradFi and DeFi?

A: The defining feature of TradFi is centralization, where banking institutions are central to all transactions. DeFi operates on blockchain protocols, aiming for decentralization.TradFi often faces limitations like high entry barriers, reliance on centralized control, and reduced consumer autonomy.DeFi seeks to overcome these limitations.

Conclusion

The Web3 space presents both tremendous opportunities and significant challenges for TradFi professionals.By understanding the core principles of Web3, conducting thorough research, and carefully assessing the risks and rewards, TradFi institutions can navigate this emerging landscape and capitalize on the transformative potential of decentralized technologies.

Key takeaways:

• Educate yourself: Understand the fundamentals of Web3 before investing.
• Do your research: Evaluate projects based on their technology, team, tokenomics, and regulatory compliance.
• Manage your risk: Diversify your investments and implement appropriate risk mitigation strategies.

The future of finance is evolving, and Web3 is playing a crucial role.By taking a strategic and informed approach, TradFi professionals can position themselves to thrive in this new era.

Ready to explore the world of Web3?Start your research today and unlock the potential of decentralized finance!