Web3 is exciting, chaotic and full of opportunity, but it’s also a space filled with false promises, bad actors and wasted potential.

After working across multiple Web3 startups, I’ve seen the good, the bad and the ugly. Here are five hard truths I wish I had known earlier, lessons that can save you time, money and frustration.

Hype Fades, Utility Survives

Hype can bring users in, but it won’t keep them. Projects that rely on speculation rather than real value don’t last.

Common mistakes include:

• Airdrops, high APYs and speculative pumps that create short-term excitement but no loyalty.

• Products that collapse in bear markets because they were never built for sustainability.

Fix: Build something people actually need, not just something they can speculate on. If a project can’t survive without hype, it was never meant to last.

Tokenomics Won’t Save a Bad Product

A token is not a growth hack. Many projects assume that adding a token will drive adoption, but if the core product lacks real value, the token won’t help.

Common mistakes include:

• Designing products that only function because of token incentives.

• Creating unsustainable token models that weaken the ecosystem rather than strengthening it.

Fix: If users wouldn’t engage with your product without a token, they won’t stay once incentives disappear. Align tokenomics with real utility, not just speculation.

A Community is More Than a Discord Server

Airdrop hunters and speculators are not a real community. A large Twitter following or an active Discord doesn’t mean much if engagement is driven by rewards rather than genuine interest.

Common mistakes include:

• Mistaking follower count for an engaged user base.

• Attracting bots and short-term participants who leave as soon as incentives stop.

Fix: A real community is built around shared values, authentic engagement and trust. Sustainable projects cultivate relationships, not just audiences.

Regulation is Coming, Ignore It at Your Own Risk

Many Web3 founders operate under the assumption that regulations won’t impact them. But governments worldwide are moving fast to regulate crypto, NFTs and DAOs.

Common mistakes include:

• Relying on legal gray areas that won’t last.

• Ignoring compliance until it becomes a problem.

Fix: Think ahead. Just because something isn’t enforced today doesn’t mean it won’t be tomorrow. Future-proofing your project now can save you from costly legal issues later.

Most Projects Will Fail and That’s Okay

The reality is that 90% of Web3 startups won’t survive. Some fail because they chase hype over real value. Others fail due to poor timing, execution or lack of adoption.

Common mistakes include:

• Assuming success is guaranteed just because an idea sounds innovative.

• Not adapting when market conditions shift.

Fix: Failure isn’t the end, it’s a filter. The best builders adapt, pivot and keep going. The Web3 space rewards resilience.

Final Takeaway

Web3 is still evolving, but the fundamentals remain the same. Short-term thinking kills projects. Execution, adaptability and real value are what make them succeed in the long run. The question is, are you building for hype or for lasting impact?