After finishing the previous analysis of HoloworldAI, many friends privately messaged me asking for my views on the entire AI + Web3 track. Today, let's talk about this topic and also discuss why I think now might be a good entry point.
Recently, I attended several Web3 events and found that people's attitudes towards AI projects have changed significantly. Last year at this time, as long as a project had some AI concept, its valuation could multiply several times. And now? Investors have become very cautious, and the first question is, "Do you have a product? Do you have users?" This return to rationality, I think, is a good thing.
The bubble has burst, and only truly valuable projects will emerge. Just like DeFi in 2018 and GameFi in 2021, every track must go through such cycles. AI+Web3 is now at this critical juncture.
Why do I have confidence in HoloworldAI? Actually, it is because it has done a few things right at this juncture.
Firstly, it does not pursue the ultimate advancement of technology but focuses on making existing technology usable. I have seen too many projects that come out saying they want to surpass GPT and create the next generation of AI models. Brother, OpenAI burns billions of dollars a year; how can a small team compete with them? HoloworldAI is very pragmatic, simply integrating the best existing AI models to solve real user problems.
Secondly, it has chosen a relatively niche but valuable market. The direction of IP+AI has few competitors but a considerable market space. Especially in the Web3 world, the value of IP is being re-recognized. A good IP paired with AI capabilities can create far more value than purely technical projects.
Thirdly, its product thinking is very Web3. It is not simply packaging Web2 products and claiming to be a Web3 project, but truly redesigning the provision and consumption model of AI services in a Web3 way. Users truly own the AI characters they create, and creators can share in the platform's development benefits, which are things that Web2 products cannot achieve.
Of course, I am not blindly optimistic. The AI+Web3 track does indeed face many challenges.
The difficulty of technology integration is greater than expected. AI and blockchain are two complex technical fields in themselves, and to organically combine them, teams need to have deep accumulation in both directions. Most teams either understand AI but not Web3, or understand Web3 but not AI; there are not many who understand both.
User education costs are also high. AI tools themselves have learning thresholds, and coupled with the complexity of Web3, it is indeed not easy for ordinary users to get started. This requires project parties to put significant effort into product experience.
Regulatory risk is also a problem. The pace of AI development is too fast, and regulatory policies have not kept up. Especially for AI services involving token incentives, there may be compliance issues in certain regions.
But I think these challenges are also opportunities. Precisely because the barriers are high, the projects that can truly be realized will have a strong competitive advantage. Moreover, the direction of AI+Web3 itself is an unstoppable trend, and sooner or later, there will be projects emerging.
From an investment perspective, I think now is a good time to position. Market sentiment is relatively rational, and valuations are quite reasonable. Projects like HOLO, which have actual products, have a market cap of less than $100 million, which is much cheaper compared to purely conceptual projects.
My allocation strategy is as follows: treat AI+Web3 as a separate theme, accounting for about 10-15% of the total position. Within this theme, choose 2-3 projects from different directions for allocation, and HoloworldAI is one of them.
The investment logic is also quite simple: look at product progress in the short term, user growth in the medium term, and market development in the long term. If the product can continue to iterate, and the number of users can steadily increase, then it indicates that the direction is correct. As for the specific token price, I think it is a result rather than a cause; a good project's token price will eventually rise.
Finally, let me share a feeling. This round of AI fever is different from the past in that AI is truly beginning to solve real problems. From ChatGPT to Midjourney, from Runway to various AI tools now, ordinary people can feel the value brought by AI. Web3 is also transitioning from pure financial speculation to practical applications. I believe the combination of these two trends will create some truly valuable projects.
HoloworldAI may be one of them. Of course, investment carries risks, and everyone should make cautious decisions based on their own situation. I am just sharing my observations and thoughts, which do not constitute investment advice.
