YettaSing

I increasingly feel that those truly exceptional individuals possess a powerful ability to derive mental models or, at a fundamental level, the ability to think in terms of first principles. They can abstract a transferable thinking model from a scenario at a high level, and then use this thinking model to connect the past and present, blending Eastern and Western ideas.

This ability relies not just on the accumulation of experience but also on the disassembly and interpretation of structures. They can break down an issue to its core, starting from the most fundamental logic and then reverse-engineering the applicable boundaries. Therefore, chatting with them often gives one the feeling of having one's thoughts opened up.

For instance, recently, I have been analyzing many PIPE deals and have learned a lot about past crypto deals on Wall Street from a liquid partner. He told me that the transition from GBTC to ETFs and now to treasury management actually reflects a deeper macro-financial structural change. As crypto assets gradually become a legitimate and institutional-grade asset class, this evolution has generally gone through three key stages:

- GBTC Stage: As an important channel for institutional investors to initially access Bitcoin, GBTC provided regulated market exposure. However, it lacked a redemption mechanism, leading to a long-term disconnect between price and net asset value. Although this stage laid the groundwork, traditional financial packaging methods were evidently subject to significant structural limitations.
- BTC ETF Stage: Products like BTC ETFs introduced a daily subscription/redemption mechanism, bringing prices closer to net asset value and greatly enhancing liquidity and institutional accessibility. However, due to their passive management nature, they could not capture staking yields, on-chain value creation, and other native mechanisms, leaving a gap between them and the local potential of crypto.
- Corporate Financial Strategy Stage: From MicroStrategy and Metaplanet to the recent SBET we participated in, an increasing number of companies are integrating crypto assets into their financial operations. This stage has transcended passive holdings, beginning to enhance capital efficiency through debt financing, yield reinvestment, and on-chain yields, further driving shareholder returns.

Each step represents a leap in the complexity and institutionalization of crypto financial tools. Only by realizing this historical evolution can one seize the next opportunity for structural change.

I increasingly feel that those truly impressive individuals possess a powerful ability to derive mental models, or fundamentally, the ability to think from first principles. They can abstract a transferable thinking model from a scenario at a high level and then apply this thinking model across time and integrate Eastern and Western ideas.

This is not just about the accumulation of experience; it is also about the disassembly and interpretation of structures. They can break down something to its core, starting from the most fundamental logic, and then reverse-engineer the applicable boundaries. Therefore, talking to them always gives a sense of thoughts being connected.

For instance, recently due to analyzing many PIPE deals, I learned a lot about past crypto deals on Wall Street from a liquid partner, who told me that the transition from GBTC to ETF and now to treasury management actually reflects a deeper macro-financial structural change. As crypto assets gradually become a legitimate and institution-grade asset class, this evolution roughly experiences three key stages:

- GBTC Stage: As an important channel for institutional investors to early access Bitcoin, GBTC provided regulated market exposure. However, it lacked a redemption mechanism, leading to a long-term price disconnection from net asset value. Although this stage laid the foundation, the traditional financial packaging methods were clearly subject to significant structural limitations.
- BTC ETF Stage: BTC ETF products introduced a daily subscription/redemption mechanism, bringing prices closer to net asset value, greatly enhancing liquidity and institutional accessibility. However, due to its passive management nature, it cannot capture staking yields, on-chain value creation, and other native mechanisms, still leaving a gap with the local potential of crypto.
- Corporate Financial Strategy Stage: From MicroStrategy, Metaplanet, to our recent participation in SBET, an increasing number of companies are integrating crypto assets into their corporate finance operations. This stage has surpassed passive holdings, starting to enhance capital efficiency through debt financing, reinvestment of earnings, on-chain yields, etc., further driving shareholder returns.

Each step represents a leap in the complexity and institutionalization of crypto financial instruments. Only by recognizing this historical evolution process can one seize the next opportunity for structural change.

Every transformation in finance begins with a new user interface.

- In the Card Era, the credit card became the new interface for cash.
- In the Digital Era, digital wallets became the new interface for e-commerce.
- In the Web3 Era, stablecoins are becoming the new interface for bank.

The Senate's passage of the Genius Act clears the way for tradfi to issue stablecoins, opening the door for more tradfi institutions to enter the stablecoin space.

But over time, this won’t just legitimize stablecoins, it will trigger deposit flight. If users can store, spend, and earn on-chain with instant settlement and yield, why leave money in a bank?

Just like PayPal pulled volume from card networks, stablecoins will siphon deposits from banks, pushing crypto closer to a narrow banking future.

The Senate's passage of the Genius Act clears the way for tradfi to issue stablecoins, opening the door for more tradfi institutions to enter the stablecoin space.

But over time, this won’t just legitimize stablecoins, it will trigger deposit flight.

If users can store, spend, and earn on-chain with instant settlement and yield, why leave money in a bank?

Just like PayPal pulled volume from card networks, stablecoins will siphon deposits from banks, pushing crypto closer to a narrow banking future.

The current world easily leads people into a sense of nihilism.

The world is increasingly no longer a whole, as geopolitical tensions tear apart unfathomable gaps, and the once-global ideals of globalization have become fragmented, shattered in the name of interests, fear, and control.

At the same time, humanity is addicted to the pleasure of instant gratification, like a collective falling into some sweet illusion. Dopamine has become synonymous with divinity, as social interaction, finance, emotion, and monetization are blended into an invisible yet powerful system, like soft shackles gently constraining each individual.

In this world, trust has become a luxury. In the high-frequency trading game of Crypto, founders jumping ahead of investors has become a reasonable operation, and no one talks about moral boundaries anymore. The pace is too fast, fast enough that no sense of responsibility can grow in time.

Before us lies ruins, and behind us, delusion. The only light seems to come from AI.

But if we think further, when AI perhaps becomes the true ruler, we will coexist with machines in an indescribable structure. What will the new order look like afterward? Or will it just be another form of chaos and dependency?

The fog is getting thicker, and we can only guess as we walk, like in the darkness before dawn, holding onto a vague prayer: don’t let all of this truly be meaningless.