Recently, there has been an interesting phenomenon: the leading capital in the circle is quietly adjusting its geographical positions—funds that previously clustered in certain popular regions are beginning to shift towards Europe and the Middle East; some smaller funds have even directly abandoned the 'global net' strategy to focus on 1-2 regulatory-friendly regions. As an analyst who has dealt with capital for many years, I can confidently say: this wave of capital migration is not accidental, but a signal of the restructuring of the 2025 crypto geographical landscape! Today, I will take you through the three underlying logic points of capital's choice of region, and how ordinary people can follow along without being foolishly taken advantage of!
The first logic: Regulatory certainty > Market size. Many people think that 'wherever the market is large, that's where to go,' but capital knows better than we do: a market without regulatory certainty, no matter how big, is just a bubble. Take last year's emerging market as an example; initially, the policies were loose, and projects flooded in, but six months later, the policies changed abruptly, and many projects were directly cleared out, leaving investors with nothing. After the implementation of the European MiCA legislation, although the market size is not as large as North America, because the regulatory framework is clear, capital is more willing to invest long-term—last year, VC investment in the European crypto sector grew by 210%, far exceeding the global average. My personal judgment is that by 2025, capital will continue to concentrate in areas where 'regulatory rules are clear,' such as Europe, certain states in North America, and some countries in the Middle East. Regions with fluctuating and unclear policies will gradually be abandoned by capital.
The second logic: Practicality of scenarios > Concept speculation. Capital is not foolish; it will no longer pay for 'metaverse' or 'Web3 concepts,' but will focus more on the actual application scenarios of crypto technology. This is also why the Middle East can attract a large amount of capital—the cross-border trade and energy payment scenarios there are naturally suitable for the implementation of crypto technology, and the government also provides policy support and infrastructure matching. For example, a crypto cross-border payment project from a Middle Eastern country, which went live last year, directly connected with local oil trading companies, with transaction volume growing by 500% in six months, so capital is naturally willing to follow up with investments. In contrast, some regions, although having loose policies, lack real application scenarios, and projects can only rely on speculation to drive up prices; such areas will eventually be abandoned by capital. I personally suggest that when ordinary people consider where to invest, they should first ask themselves: what real problem does this region's crypto project solve? If they can't answer, just pass.
The third logic: Talent and technology reserves > Short-term dividends. When capital lays out its investments, it not only looks at the present but also the future. Why is North America still an important stronghold for crypto capital? Because it has the world's top crypto technology talents and supporting industrial chains—from underlying public chain technology to compliant financial services, forming a complete ecosystem. Europe has also recently been working hard to attract talent, implementing visa policies for crypto technology professionals to fill the talent gap. From my personal observations, by 2025, capital will be more inclined to invest in areas that are 'talent-intensive + have strong technology reserves,' such as California in the US, and Switzerland and Singapore in Europe. Although these regions have high entry barriers, the long-term returns are more stable. For ordinary people, there's no need to invest in projects in these regions; you can also pay attention to technology output projects in these areas, such as compliant public chain infrastructure and crypto security technology companies.
Finally, a reminder for ordinary people: the direction of capital migration is our directional indicator for investment, but do not blindly follow the trend. For example, if capital is flocking to the Middle East, you don't necessarily have to invest in Middle Eastern projects; you can also focus on European projects that provide technical services to the Middle East. Follow me @链上标哥 to avoid getting lost!
