Regarding the tokenization of US stocks, there is a view that cracking down on crypto projects is fatal, and there will be no chance to copycat even a little in the future. The reason is that the money originally used for crypto trading will be attracted away by high-quality US stocks. Undeniably, some of the funds previously involved in crypto will flow into tokenized US stocks. But this is only one side of the coin; the other side exists.

Because asset tokenization—including the tokenization of USD, US Treasuries, US stocks, physical gold, and others—will lead to a significant increase in on-chain assets. The financial sector within crypto is highly composable. If Ethereum scales properly after expansion and privacy issues are addressed, there is a possibility of a massive on-chain trading boom. This could include not only DEXs, perpetual contracts, and prediction markets but also a scenario where funds that once traded US stocks also flow into the crypto market. Funds that wanted to trade US stocks but lacked the opportunity to do so will enter the market, overall increasing liquidity.

More importantly, US stocks on the chain are not entirely unidirectional; they could be bidirectional. However, there is concern that crypto projects may not generate enough revenue to compete effectively. But wealth effects are not solely dependent on revenue; there are industries with income but low market value.

Of course, this also inevitably means the end of the widespread copycat seasons seen in the previous two cycles. But high-quality copycats and on-chain infrastructure—including public chains like Ethereum, DeFi, oracles, privacy tech, digital identity, wallets, and more—will still be in demand. There is even a high probability that new combinations involving crypto AI agents, asset tokenization, and other innovations will emerge, creating new gameplay and reintroducing sectors like prediction markets/PERP.

The core message here is: don’t think that US stock tokenization will bring about the end of the world or that liquidity will be stolen away. Once stablecoins, US stock tokenization, and similar assets go on-chain, they won’t just sit there passively; liquidity must emerge. The composability of crypto will be fully utilized. With compelling narratives and good projects, not only will crypto funds flow in, but external funds will also enter. It’s just a matter of competition on the same stage.

A few high-quality projects in the crypto space, once they have a compelling narrative, may not necessarily underperform US stocks. In the next cycle, projects similar to prediction markets or PERP are likely to emerge—these are features unique to crypto that traditional finance markets lack, with high on-chain liquidity and composability potential. The craving for money and the pursuit of innovation are so intense that, through continuous exploration, new crypto species are being created from the bottom up.

Furthermore, the copycat season of the previous cycles was never very likely to return. Even without US stock tokenization, the comprehensive copycat seasons of the past two cycles have exited the crypto stage. But a few high-quality crypto projects still have opportunities, especially those infrastructure and applications used to support US stock tokenization.

Finally, each cycle has its own "version of the son." The cycle before last, the last cycle, and this cycle all had different "version of the sons," and the next cycle will be no different.

The most golden era of the crypto Western world is gradually coming to an end. With institutional involvement, the crypto space has entered a new phase of financial innovation.

In this stage, there are still opportunities for high returns. Compared to the golden age before, the probability of hitting the jackpot is much lower, but it’s not impossible. Perhaps the "version of the son" in the next cycle is still in college, or maybe they lost a lot of money in this cycle, lying in wait—hidden dragons in the field—ready to take flight in the next cycle.