Ciara Sun on Building Web3 Beyond the Hype
In Brief
Ciara Sun, Founder and Managing Partner of C² Ventures, predicts Asia will lead global blockchain innovation, highlighting talent, regulation, adoption, and execution over hype in Web3 growth.
Ciara Sun believes that Asia will become the global hub for blockchain innovation, with Japan, Korea, and Southeast Asia leading in talent, regulatory clarity, and adoption. In this interview, the Founder and Managing Partner of C² Ventures discusses key Web3 trends, the importance of interoperability, how she balances risk with growth in early-stage investments, and why execution matters more than hype when building successful projects.
Can you introduce yourself and tell us about your journey into Web3?
Prior to founding C² Ventures, I was Head of Listing, Investments, Global Markets, and Institutional Business at Huobi, a global exchange. I joined crypto full-time in late 2017 and have really enjoyed my journey in Web3 since then.
What trends in Web3 development excite you the most right now?
I think the big picture is that Web3 and blockchain are becoming invisible to users while becoming native to capital markets. A few areas stand out. For example, companies in public markets that focus on digital asset sharing are gaining huge popularity and attention. Listed entities are now accumulating crypto on their balance sheets.
We have portfolio companies like BNC, which is building a BNB sharing program as a NASDAQ issuer, as well as several Bitcoin-sharing companies. In Hong Kong, there’s 1732, and in Korea, Sora Ventures is promoting a Bitcoin-heavy sharing model across Asia. All of this brings crypto into equity capital markets.
In addition, areas like RWAs and data primitives—such as tokenized payments and reliable data feeds—are becoming important. For example, our portfolio company World Liberty Financial is innovating in this space.
In more crypto-native areas, we see strong trends in interoperability, liquidity, and messaging. The future is going to be multi-chain and cross-chain, with cross-chain intents, bridges, and secure messaging and settlement protocols—like what LayerZero and Axelar are building—continuing to play a critical role.
We also see the rise of agent marketplaces, user-owned data networks, and high-risk engines such as options and interest rate infrastructure. Together, these make Web3 more AI-assisted, chain-invisible, and accessible to public markets.
How do you balance early-stage investment risk with the need for sustainable growth?
That’s a very good question. We balance early-stage risk with sustainable growth using specific tools and measurements when it comes to releasing capital. We often release capital in milestones tied to outcomes such as testnets or active user growth.
We underwrite both go-to-market strategies and technical development, and we also support ecosystem grants, creator funnels, exchange and partner access. We instrument unit economics early, looking at retention, cost to serve, share of revenue quality, and liquidity metrics.
We prefer to go “token last,” using progressive decentralization gated by real usage, and we require 24 to 30 months of runway plus strong risk controls, such as multi-venue liquidity audits and incident playbooks from day one.
How important is interoperability in your investment thesis, and how do you see it evolving?
It’s extremely important. Capital and users are inherently multi-chain. DeFi TVL, which currently sits around $147 billion, and stablecoins—about $277 billion on-chain—need to flow seamlessly across apps and chains.
That’s why secure bridges, intents, and cross-chain messaging will remain dominant. We’ve backed cross-chain infrastructure like LayerZero, Axelar, and Orderly.
At the app level, we also see interoperability becoming critical. Features like smart logins, session keys, and routing actions to the best venue—while ensuring compliance—are going to matter a lot. Stablecoins are also forming critical settlement rails. For example, our portfolio project USD1 has expanded beyond EVM to Tron and other chains to support cross-border settlements aligned with emerging standards.
In your experience, what differentiates a successful Web3 project from one that fails to gain traction?
Traction comes from product truth and disciplined execution, not just token hype. Many projects launch with excitement but fail to gain real product traction.
Teams that ship fast and consistently, with strong token design that rewards contributors and sustains circulation, are much more likely to succeed. For example, some of our portfolio companies are reducing flows and adding ongoing spending mechanisms to reinforce value.
Flexibility is also critical. Founders need to pivot quickly, understand market fit, and foster a strong team culture. Teams that integrate data and community feedback early gain a real edge in this market.
Which regions hold the most untapped potential for blockchain innovation?
We’re very bullish on Asia. Talent and regulatory clarity are shifting eastward. In East Asia, Japan and Korea are leading in premium IP and gaming, with regulatory improvements as well. Japan’s “game of chance” culture is huge, while Korea contributes massively to both derivatives and spot trading volumes.
Southeast Asia also holds big potential, with strong developer communities and mobile-first consumers driving adoption. Many of our portfolio companies are seeing significant user inflows from these regions.
How do you incorporate regulatory trends into your investment strategy without stifling innovation?
We structure for optionality. Typically, we start with equity SAFEs and only add a token when utility and jurisdictional clarity are achieved. We also design entity and tech setups with compliance in mind from the start.
My experience running global markets at Huobi taught me the importance of adapting to diverse jurisdictions. We favor progressive decentralization—moving governance and operations on-chain as product-market fit hardens. We also engage with regulators through sandboxes and encourage third-party audits to manage risks before scaling.
What qualities in a founding team make you confident to invest beyond just the product idea?
Execution beats narrative. Founders must show resilience, adaptability, and strong distribution capabilities from day one. We look for native ecosystem builders with business development muscle, financial discipline, and good risk management practices.
Many successful companies in this market pivoted multiple times before finding the right product-market fit. Founders who learn fast, ship faster, and earn trust are the ones we back.
How do you see the current bear and bull cycles affecting early-stage Web3 funding?
Cycles definitely affect pricing and pace, but not our standards. The global crypto market cap is now close to $4 trillion, with $277 billion in stablecoins. Liquidity is selective, rounds move quickly, and valuations stretch.
We respond by tightening selection and linking funding milestones to actual progress. During bear markets, pricing improves and talent deepens, which benefits disciplined builders. Institutional flows, like US spot BTC ETFs posting multi-billion monthly inflows, are becoming the real swing factor.
Public market adoption is also widening. For example, BNC disclosed that nearly 300k BTC was in custody, helping catalyze Asia’s Bitcoin adoption. These dynamics are creating persistent new demand channels. Good companies are built in bear markets, so we plan for both cycles.
What role will AI play in shaping the next generation of blockchain-based applications?
AI is already adding real traction. Web3 platforms now serve millions of users. For example, Mask Network has over 200 million users, and its decentralized compute infrastructure is onboarding enterprise-grade GPUs.
I’m optimistic about the future of AGI, though we’re still in a consolidation phase where large models are being refined. In the near term, I see AI acting as a UX and coordination layer for Web3, making interactions simpler and more seamless.
How do you measure the impact and success of your incubation efforts beyond financial returns?
For us, incubation is about compounding compatibility, not just valuation. We measure shipping quality—like release timelines, bug rates, and security governance. We also look at open-source contributions, ecosystem partnerships, and founder development, such as time-to-hire for key roles.
Long-term investor quality and strategic alignment matter as much as financial outcomes.
Where do you see C² Ventures in five years, and what’s your vision for shaping Web3?
We want to remain builder-first and be a trusted partner from idea to scale. Our goal is to deliver platformized support through repeatable playbooks that help founders navigate token design, security, growth, and compliance.
We also want to serve as the bridge from APAC to the global stage, connecting East and West, and turning Asia’s developer and IP base into global distribution power. Another goal is to drive stablecoin adoption and interoperability, making Web3 invisible yet powerful for users.
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About The Author
Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
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Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
