In a recent interview with Block Fuel, Lingling Jiang, Partner of DWF Labs, shared her insights on the evolving crypto landscape, crypto VC investment philosophies, and emerging trends in Web3. Having transitioned from traditional finance as an options trader to the crypto industry in 2019, Jiang provided a unique perspective on how institutional attitudes towards crypto have shifted — particularly in Asian markets.
Institutional Adoption and Market Sentiment
Jiang recalled that in 2019, crypto was still viewed with scepticism in Hong Kong despite the presence of major exchanges. However, she now sees a growing wave of professionals from Web2 and traditional finance moving into Web3. Hong Kong in particular has made regulatory strides with its digital asset policies, enabling asset exchanges like HashKey to obtain licences. Moreover, traditional banks are beginning to explore crypto services, further legitimising the industry in the region.
Investment Philosophy: Balancing Hype and Substance
When asked about DWF Labs’s investment approach, Jiang emphasised that Web3 investments are unique in that hype plays a crucial role. However, while hype can drive short-term gains, she also assesses whether projects also have long-term viability and revenue potential.
A key focus for Jiang is evaluating the founders and team behind a project. She prioritises experience, track record, and transparency, noting that adaptability is essential. Many successful projects today have pivoted significantly from their original vision, and the ability to adjust to market conditions is crucial for longevity.
Shifting Crypto Narratives
Jiang also discussed changing narratives in crypto, from memecoins to airdrops and hype cycles. While these trends come and go, the projects that build strong communities tend to retain longevity. She pointed out that successful projects strike a balance between hype and product quality. Long-term community value is what sustains a project beyond the initial excitement.
She cited Hyperliquid as an example, noting that after its airdrop, many investors she knew continued to hold and support the token rather than selling immediately. This kind of sustained engagement is what distinguishes fleeting trends from lasting success.
Market Making and Trading Platforms
Jiang also shed light on the role of market makers (MMs) in the crypto ecosystem. DWF Labs operates as an MM in two key areas:
- Exchanges – Engaging in high-frequency trading across more than 60 platforms.
- Tokens – Providing liquidity for projects on exchanges, with a focus on long-term partnerships rather than short-term gains.
US Crypto Regulations and Market Outlook
Regarding the US regulatory landscape, Jiang noted that before Donald Trump’s presidency, many Asian companies were hesitant about entering the American market due to unclear regulations. While there is now renewed optimism, companies are still waiting for clear policies before making significant commitments.
Trends: AI, Stablecoins, and the Future of Crypto
Reflecting on the past year, Jiang observed that the market focus has shifted. In 2024, Layer 1 and Layer 2 blockchain projects were dominant, but in 2025, AI-driven products are taking centre stage. She highlighted that projects incorporating AI must prove their utility beyond chatbot functionalities. At Consensus Hong Kong, she spoke with teams developing AI tools for DeFi, such as data analysis and automated trading execution. These innovations remove human emotion from the trading process, potentially leading to more efficient decision-making.
Another major narrative this year is stablecoins. Jiang shared about her Partner role at Falcon Finance, a synthetic dollar offering sustainable and competitive yields.
As the crypto space continues to evolve, Jiang’s insights demonstrate the importance of balancing hype with substance, adapting to shifting narratives, and staying ahead of emerging trends. With AI and stablecoins gaining prominence, it is clear that the market is entering a new phase, where both innovation and regulatory clarity will play pivotal roles.
Listen to the full interview here.