Despite years of innovation and investment, the web3 industry continues to grapple with a central question: when will it achieve its breakthrough moment with everyday users? In an interview with Avalanche, Vera Im (Senior Investment Associate at the Blizzard Fund) shares that the answer lies not in speculative hype or technical complexity, but in creating consumer applications that are intuitive, relevant, and rooted in real-world problems. Drawing on her own journey from startup employee to crypto investor, Im offers a grounded perspective on why mainstream adoption remains out of reach—and what it might take for web3 to finally experience its long-awaited “Facebook moment.”

When Will Web3 Go Mainstream?

Will Web3 Go Mainstream?

In 2018, Vera Im received a small amount of Bitcoin from a prominent figure in the crypto community. At the time, she was somewhat skeptical but intrigued. While many of her peers were focused on conventional career paths, this early exposure to cryptocurrency marked a turning point. Over time, as her modest crypto holdings gained value, Im’s interest deepened. Today, she is a Senior Investment Associate at the Blizzard Fund, a $200 million ecosystem fund as of May 2025, playing an active role in evaluating early-stage web3 projects. Her path into venture capital was not direct, but shaped by a range of experiences that gave her a well-rounded view of both startups and investment.

Lessons from Startup Life and Entry into web3

Originally from South Korea, Im moved to the United States to study economics at Brown University. After graduation, she joined an early-stage startup in New York where she took on a variety of responsibilities, including handling payroll—far beyond her original role. This hands-on exposure to the practical struggles of a startup gave her a lasting perspective. She later worked briefly as a product manager at a traditional finance company, a role she found unfulfilling. During the pandemic, she relocated to Miami, where she met artists exploring NFTs and blockchain applications. This environment reignited her interest in crypto, and after returning to New York, she discovered Avalanche at an event. That led to her current role at Ava Labs, where she has been involved for nearly three years.

Vera Im (Senior Investment Associate at the Blizzard Fund)

The Search for a Mainstream Breakthrough

Despite years of development, the web3 industry has yet to achieve a defining consumer application that brings widespread adoption. Im refers to this as the missing “Facebook moment”—a point when a product becomes so widely used that not participating feels like missing out. She points out that Facebook succeeded by being accessible and intuitive to people of all backgrounds, including her own mother, who is not particularly tech-savvy but has no trouble using platforms like Instagram. In contrast, many web3 products remain difficult to navigate, with terminology and interfaces that cater to a niche audience rather than the general public. For web3 to reach the same level of ubiquity as past social media platforms, it must overcome these barriers.

Repetition and Imitation in Product Development

Im notes that many founders in the space are creating iterations of existing projects in the hope of replicating past success, often without addressing a clear or significant problem. This tendency has led to a market saturated with similar offerings that fail to stand out or provide meaningful improvements to users’ lives. She compares this to the film industry’s tendency to remake well-known stories, which rarely generates real excitement. For web3 to evolve, it needs original ideas that address genuine user needs rather than chasing trends or attempting to capitalize on hype.

The Role of User Feedback in Building Better Products

One of the most persistent issues Im observes in web3 is the lack of structured user feedback during product development. Many teams prioritize internal discussions and investor input while overlooking the needs and experiences of actual users. As a result, the final products often lack clarity and usability for those outside of the web3-native community. Im believes that consistent user interviews and feedback loops should be integral to the development process, even more so than adhering to a predefined roadmap. Iterating based on real-world use and adjusting the product accordingly is a necessary step for any application hoping to reach a broader audience.

The Big Blockchain Game List reported that out of 911 games currently listed, 334 are live, while 577 remain in various developmental stages. A comparative analysis since the list's creation in 2021 reveals that 31% of the total 1,318 games have been discontinued, amounting to 407 titles due to reasons such as funding challenges and market conditions. Many believe that web3 gaming’s next big moment will come from small, agile teams rather than large gaming studios. Indie developers have the flexibility to experiment with novel gameplay and monetization strategies without the constraints of traditional corporate structures. Studios like Pixels have demonstrated how continuous iteration and adaptation can drive progress in the space. 

Big Blockchain Game Report: Q1 2024 Discontinued Web3 Games

Visibility and the Challenge of Perception

Another hurdle facing web3 projects is visibility. According to Im, many promising initiatives are overshadowed by high-profile controversies and a media landscape that focuses largely on market volatility and scams. These negative headlines contribute to a public perception that makes people hesitant to explore web3 beyond buying well-known assets like Bitcoin. As a result, projects with strong potential and thoughtful design often struggle to gain the attention they deserve. Im emphasizes the importance of storytelling in shaping how projects are received. She believes that communicating the right narrative is critical—not just for attracting users, but also for establishing trust and relevance in a crowded field.

February 2025 set a new record for cryptocurrency hacks, with a total of $1.5 billion stolen from decentralized platforms. The Bybit exchange hack accounted for the majority of these losses, with $1.4 billion drained due to a multisignature vulnerability. This attack surpassed previous records, making it the largest DeFi exploit in history.

Other security breaches included the zkLend lending protocol, which lost $9.5 million due to a rounding bug, and Ionic Money, which was exploited for $8.6 million through a fake token collateral scam. Nearly all major exploits in February were linked to off-chain vulnerabilities, including social engineering attacks and compromised user interfaces. These incidents reinforced the need for improved security measures across the web3 ecosystem, particularly in the areas of operational security and governance.

Exploits and Hacks in the Dapp World Feb 2025

The Intersection of AI and Crypto as a Potential Catalyst

Im sees the rapid growth of artificial intelligence as a potential catalyst for web3’s long-awaited adoption milestone. With the widespread use of tools like ChatGPT, AI has already achieved what she describes as its “Facebook moment.” Looking ahead, she believes the development of autonomous agents could lead to an “Instagram moment” for consumer AI, a second wave of widespread adoption. These agents will require financial infrastructure to interact with real-world systems independently—a role that crypto infrastructure is well-positioned to fulfill. Im sees this convergence of AI and crypto as a likely driver of the kind of superapp that could finally deliver mass consumer adoption for web3.

Supporting Problem-Solving Over Hype

Throughout her observations, Im remains focused on the importance of identifying and supporting founders who are solving meaningful problems. While some projects apply blockchain or tokens simply to attract investment, she stresses the importance of asking whether the technology is genuinely necessary. She believes that effective applications of crypto infrastructure should enhance business models or consumer experiences, not just serve as a marketing tool. The long-term success of web3, in her view, will come from builders who are grounded in problem-solving and user needs, not short-term trends or speculative goals.

A Measured Path to Adoption

Although the industry still faces significant challenges, Im remains cautiously optimistic about web3’s future. Her perspective, shaped by both operational startup experience and venture investment, offers a grounded view of what it will take for the industry to grow. As the market matures, the combination of thoughtful product development, improved storytelling, and alignment with emerging technologies like AI may help web3 finally reach a point of mass adoption. Until then, the search for crypto’s “Facebook moment” continues—with the understanding that it will require more than just innovation; it will require relevance, clarity, and genuine value for everyday users.

Source: Avalanche