HTX Ventures head Alec interprets the key to Web3 development: focus on real applications and emphasize risk management

It is often said that "the spring river water warms, and the ducks know first." For the prospects of an industry, venture capital firms that "test the waters" with real money often have the sharpest insights. After experiencing a relatively quiet two years, the crypto industry is returning to the attention of investors. Data from CryptoRank shows that in the first quarter of 2025, VC investment in the crypto industry reached $4.8 billion, equivalent to 60% of the total VC investment in 2024. This increase is attributed to improvements in the policy environment, global capital flows, and project innovations, indicating that the Web3 sector is welcoming new development opportunities.

As the head of HTX Ventures, the global investment arm of the crypto exchange Huobi HTX, Alec Goh has become an important observer and promoter in this wave of revival, thanks to his solid traditional finance background and unique understanding of the Web3 industry. Recently, Alec was interviewed by Tech In Asia and shared his insights on the industry's development trends for 2025.

Alec previously worked at Goldman Sachs and Deutsche Bank, where he was responsible for mergers and acquisitions and investments, giving him a profound understanding of risk management, asset allocation, and institutional frameworks. When discussing the recovery of the Web3 industry, Alec pointed out, "The industry landscape is undergoing profound changes." He believes that the Web3 market will become more mature in 2025 and gain widespread mainstream recognition.

Taking the United States as an example, the new government's supportive policies for Web3 have become a key driver. Alec specifically mentioned that the executive order signed by the Trump administration established Bitcoin as a strategic reserve asset for the nation, injecting confidence into institutional investors worldwide. At the same time, countries like Bhutan are actively promoting the use of Bitcoin in public spending. Observing this global trend, HTX Ventures proactively invested in high-potential projects like Babylon in 2024, continuously laying out a Bitcoin staking and yield ecosystem.

However, in the face of these positive changes, Alec still reminds investors to remain rational and cautious: "A more mature ecosystem does not mean that previously successful investments will continue to perform well."

Regarding the key developments for 2025, Alec emphasized that the Web3 industry needs to focus on "real-world application scenarios." He stated that projects like stablecoin cross-border payment networks and real asset tokenization will be important directions for promoting healthy industry development. "By strengthening practical applications, we can weaken the elements of excessive speculation in the Web3 industry," Alec said.

For project teams, Alec advises establishing clear and sustainable business models; for investors, it is essential to ensure that every investment is based on rigorous business logic.

As an investor with experience in both traditional finance and the crypto market, Alec particularly emphasizes the importance of "risk management" in the Web3 industry. The traditional financial sector has established a comprehensive risk control system through long-term experience accumulation, while the Web3 field still has a long way to go in this regard. Many Web3 projects focus on product implementation while neglecting risk management, ultimately leading to losses. "If we want institutional capital to flow in on a large scale, we need to change this situation," Alec said.

"The key lies in having a strong security infrastructure and appropriate compliance policies," he added. Regular smart contract audits and setting reasonable token lock-up mechanisms to prevent premature capitalization of projects that could lead to systemic risks will be effective measures.

Looking ahead, Alec believes that more and more regulatory jurisdictions are expected to align with the United States in establishing digital asset reserves, which will gradually harmonize the global regulatory system, reduce corporate compliance costs, and further unleash the industry's potential. However, he also warns that the Web3 industry still needs to shed its past speculative image and truly gain widespread recognition from society through technological innovation and practical applications.

"The speculative impulse in human nature will never disappear," Alec admitted, "but as industry practitioners, if we wish to be taken seriously, we must confront the issues and drive Web3 towards mature and sustainable development."