# Web3 Industry Transitions from Ideals to Corporatization

The Web3 industry is transitioning from its early, philosophically driven phase into a phase of corporatization. In this process, tangible profitability and structured operations are becoming increasingly important.

Enhanced understanding among market participants, regulatory environment improvements, and the influx of traditional financial capital are accelerating these changes. Consequently, Web3 projects are now being evaluated based on their real business performance rather than ideological propositions.

Corporatization is manifesting through strategic mergers and acquisitions (M&A) and initial public offerings (IPOs), integrating into the mainstream and aligning with conventional standards.

# From Ideals to Business Focus

The Web3 industry is at a significant inflection point. Previously assessed on philosophies and ideals, it is now increasingly pivoting towards business-centered operations. The era when decentralized ideals were more valued than business metrics is receding. Despite lacking immediate revenue models, the potential of these projects was acknowledged, fueled by speculative fervor in the cryptocurrency market.

However, a notable shift is occurring. Projects are now developing substantive revenue models and gaining recognition based on business performance. Some projects are already generating significant revenue, earning market validation. The Web3 industry is no longer just a philosophical novelty but is evolving into one that demands demonstrable results.

This report will examine how this structural transition is taking place and what new directions it implies for the Web3 industry.

# Changing the Rules of the Game

The rules surrounding the Web3 industry are changing. The emphasis is shifting from narrative-driven to performance-driven evaluations, indicating the industry’s maturation. This trend is fueled by three main factors:

1. Higher market participant comprehension.
2. Regulatory environments being refined, facilitating Web3’s mainstream integration.
3. The accelerating inflow of traditional financial capital, imposing stricter standards.

Despite the market’s maturation, it’s undeniable that the Web3 industry still responds to strong narratives. It remains fundamentally an attention economy, structured around participant engagement. Narratives form emotional consensus, translating into market value. Thus, projects can still attract significant attention and see price surges based on compelling stories.

However, as participants become more accustomed to these patterns, narrative-driven market reactions are weakening. Rises fueled solely by anticipation are increasingly unsustainable, and peaks are noticeably subdued. This indicates the limitations of a narrative-centric market structure.

The transition is further accelerated by regulatory inclusion and the influx of traditional financial capital. Regulatory frameworks mitigate regulatory uncertainties for projects while demanding higher levels of transparency and accountability. Projects must now demonstrate tangible business structures and operational success beyond visionary presentations. Traditional financial capital evaluates projects on quantifiable metrics like profitability, growth rates, and financial health rather than short-term market reactions.

# From Age of Exploration to Corporatization

The Web3 industry faces fundamental changes in structure and strategy. Projects are now emphasizing traditional business metrics such as sustainable revenue models and stable cash flows, in addition to product-market fit. To evolve into systematic corporate structures, they are adopting strategies like IPOs or vertical integration through strategic M&A.

## Background and Necessity of Corporatization

Initially, the Web3 industry resembled an experimental ecosystem led by small teams. Fast execution remains crucial, but as the industry scales, structured operations become equally important. This mirrors the historical shift during the Age of Exploration when commercial companies emerged to manage resources and risks more effectively than individual explorers, who initially relied on royal or noble sponsorship.

## Accelerating Growth Through Corporate Expansion Strategies

Corporatization in the Web3 industry goes beyond merely expanding organizations; it involves aggressive business expansion and broader integration with mainstream capital. Two primary directions dominate this transformation:

1. Vertical integration through active M&A, consolidating key value chains within the ecosystem.
2. Inclusion into mainstream frameworks through IPOs.

Notably, vertical integration through M&As consolidates major value chains within the ecosystem, responding to intensified competition as the industry matures. Integrating user experiences and creating synergies between services is becoming necessary. For example, Jupiter is transitioning to a corporate structure by integrating trading-related functions across the Solana ecosystem. Jupiter has acquired Moonshot (a meme coin trading app), DRiP Haus (an NFT marketplace), and SonarWatch (a crypto portfolio app), among others.

While these M&As resemble traditional corporate growth strategies, they signify a critical paradigm shift in Web3. The core values of decentralization and community governance are being realigned for efficiency and economies of scale, indicating a pragmatic evolution prioritizing market competitiveness and sustainability over ideological values.

On the other hand, several Web3 projects are actively pursuing IPOs. Circle is bolstering transparency by disclosing the operational details of USDC reserves and is pushing for an IPO, while Coinbase turned into the first Web3 company to adopt conventional accounting and disclosure standards through its Nasdaq listing. These moves illustrate the transformation from merely technical experiments to stable corporate structures, adhering to traditional capital market norms and securing institutional investor confidence.

# Conclusion

The Web3 industry has entered an era of corporatization. Moving beyond evaluations based on potential and philosophy, the industry is reorganizing around structured operations and tangible business outcomes. This shift, driven by the industry’s integration into mainstream frameworks, demands structural sustainability beyond technical experimentation. Now is the time to explore the practical benefits derived from decentralization and how these can translate into business opportunities.

Concerns persist that centralized operational structures and profit-centric strategies may clash with the initial values of Web3. However, corporatization is not a step backward but a developmental process addressing investor protection, operational accountability, and trust-based market environments overlooked in the past. While the Age of Exploration focused on ‘discovering’ unknown territories, the corporatized Web3 aims to build valuable structures on these discoveries and expand into broader markets. The outcomes of this corporate transition are worth watching closely.

*This article is a full text of “Transition of Web3 Industry: From the Age of Exploration to Corporatization” by Tiger Research, a global Web3 specialized research institution partnered with Block Media. The report is also available on the official Tiger Research site.*