From building the DEX team to the break in the funding chain, a review of the first entrepreneurship in Web3.

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Written by: Keegan (Original article published on June 30, 2025)

Preface

In the previous article "I Decided to Upgrade from 'Writing Tutorials' to 'Doing Projects'," I reviewed the technical content I produced over the past few years and clarified my future direction: no longer focusing solely on "explaining technology," but hoping to adopt a Builder's perspective to reflect on the projects I have worked on in the past and document the process of new projects I will attempt myself—discussing not just "how to write technology," but also "how to get things done, or not done."

In this retrospective, I want to start from my earliest Web3 startup experience in 2018. It was my first time fully immersing myself in an on-chain project as a Builder.

It was a hopeful yet ultimately disappointing experience. From the peak of a bull market to the arrival of a bear market, from high team morale to a broken funding chain and project dissolution. Although it did not succeed in the end, it allowed me to truly stand at the core of Web3 for the first time.

This article is a reflection on that entrepreneurial experience. It marks the starting point of my "project-driven content output" and aims to provide a genuine reference perspective for those of you walking the path of a Web3 Builder.

Starting Point

The starting point of this experience was a friend's recommendation.

In the first half of 2018, a friend from "Heima"—whom I met during a technical sharing session I was invited to—contacted me. At that time, I was still in Guangzhou, and he was in Shenzhen. He mentioned that he was involved in a decentralized exchange (DEX) project, developing a DApp based on the Loopring protocol, and wanted to recommend that I come over to discuss potential collaboration.

What attracted me to this project was not just the "blockchain" label. What truly moved me was its high alignment with three directions I was focusing on at the time:

  • First, the direction was DEX, which is one of the core tracks of blockchain;
  • Second, the underlying technology used the Loopring protocol, which at the time seemed to be an advanced DEX technical solution;
  • Third, they were looking for a technical leader who understood mobile development, was familiar with product implementation logic, and had full-stack App capabilities—exactly matching my skill set at the time.

I had already made up my mind to dive into Web3 and was looking for a suitable entry point. This project came at just the right time, giving me a sense of "the moment has arrived."

So, I took the weekend to travel from Guangzhou to Shenzhen to meet the project's initiator.

The founder was a post-90s individual who had previously done Android development. After making a good amount of money from trading cryptocurrencies, he began planning his own blockchain project. He was very optimistic about Loopring, having participated in the early token issuance and holding a significant amount of tokens, making him a die-hard fan. Therefore, he wanted to create a DApp based on the Loopring protocol, even naming the product Loois.

Overall, I had a good impression of him: he was down-to-earth, had a strong drive to get things done, and showed a certain level of courage. Although he lacked management experience and did not have a product background, these were precisely the areas I could complement.

Additionally, it was still a bull market at that time, and the company had a profitable business line, so there was no immediate need for financing, and there was no pressure on funds.

At that moment, I felt: the direction was right, the person was reliable, and the gap was something I could fill. I was willing to give it a try to see if this idea could really be realized.

We talked all day, and in the end, I decided to join as the CTO and become a partner through a technical equity stake.

Building the Team

After officially joining, I did not give myself much of a transition period but quickly stepped into the CTO role and began assembling the product and technical teams.

Before this project, I had led several small R&D teams and participated in the entire process of building systems from scratch. The challenge this time was that we not only had to start from 0 but also explore product implementation in a completely new track—Web3. Time was tight, the tasks were heavy, and there was almost no room for trial and error.

I spent a week establishing the basic technical direction and architectural plan while also starting to recruit team members. At that time, remote work was not yet widespread, and offline work was the absolute mainstream. To maximize commuting time savings, I rented a place in the community directly across from the company and brought my family and children over from Guangzhou. This "zero commute" lifestyle allowed me to fully immerse myself in the project.

When building the team, I was acutely aware of the time constraints and the need to quickly establish an efficient and collaborative technical team. The core members mainly came from three sources:

  • Most were excellent subordinates I had previously led, familiar with my management and work style, allowing them to quickly get into the groove;
  • Some were outstanding colleagues I had worked with before, possessing rich experience and capabilities;
  • Additionally, I selected some talented individuals from my public account followers, hoping they would bring fresh perspectives and energy.

With these channels, I was able to quickly identify reliable and capable team members, ensuring team quality and execution.

My team-building strategy included three key points:

  • First, quickly identify core members to ensure a solid foundation for the team;
  • Second, accurately match roles and responsibilities based on project needs, clearly defining key positions such as product manager, mobile development, front-end, back-end, smart contract development, testing, etc.;
  • Third, create efficient collaboration processes, promote flat communication and agile development, and use project management tools to track tasks, ensuring transparency and quick feedback.

Through these methods, we built a team of over 20 people in a very short time, covering all key positions such as product manager, UI design, mobile development, front-end, back-end, smart contract development, testing, and operations. This speed is still considered very rapid in today's entrepreneurial environment.

The overall capability of the team was strong and full of energy. From day one, we established a clear collaboration rhythm: I led the product direction breakdown, the development process was divided by modules, project management was tracked using tower.im, with weekly syncs and flat communication in between.

What satisfied me the most was that, although the team had just been formed, the execution was extremely strong, and the adjustment costs were very low.

In this state, we completed the development and launch of the first version of Loois in just a month and a half.

Looking back, this was the fastest-paced and most positive atmosphere of the entire project.

Highlight Moment

As Loois officially launched, we also held a small release conference, inviting some friends and media from the industry. Although the scale was small, over 200 people attended, nearly filling the venue. We also started an online live stream, with viewership surpassing 10,000, which was considered a good level of attention for a blockchain project at that time.

As the CTO, I took the stage to present, providing a complete introduction from technical solutions, product positioning, protocol selection to future roadmaps. It was my first official appearance as a Builder in a Web3 project.

To systematically explain our vision and mechanisms, I personally wrote the project's white paper, covering Loois's business architecture, business model, economic model, and future development plans. At that time, we indeed painted a big picture: not only did we plan to integrate Loopring, but we also aimed to connect with multiple protocols like 0x and R1, and to achieve cross-chain trading, with the goal of becoming a decentralized trading aggregator—actually very similar to the aggregated trading experience provided by today's OKX Web3 wallet.

However, while we painted a big picture, the speed and quality of our product iterations were genuinely on point. The team adopted a bi-weekly iteration rhythm, releasing progress updates every two weeks to ensure the community could continuously see the project's evolution. Loois's user interface and interaction experience stood out among similar products at the time, and many early users gave high praise.

The official Loopring team also expressed recognition after seeing our product and invited us as an ecological partner to participate in the 2018 Digital Economy Summit Forum they hosted, bringing us more industry exposure. Later, they also provided us with a small investment support through project tokens. Although the amount was not large, for us, it was both a financial supplement and an "official endorsement" from the upstream protocol.

Subsequently, I was invited to participate in several industry salons and private board meetings, beginning to connect with more venture capitalists in the blockchain space and expanding my early network in the Web3 circle.

One of the most impressive individuals was the investor known in the circle as "Old Rascal," Jiang Haibing. He was the second employee at Alipay and later founded Duoniu Capital in 2014, focusing on early investments in the blockchain field. We had several discussions with him, and he expressed strong interest in Loois. Although we ultimately did not reach an investment agreement, we gained invaluable insights from those exchanges, deepening our understanding of "how to pitch a project for financing."

This phase was the most hopeful for the project and the most confident for the team. Although the shadow of a bear market was already faintly appearing, we still believed that as long as we produced a product, financing and growth were just a matter of time.

But soon, we would have to face the backlash of reality.

Backlash of Reality

For a period after the release conference, the team was in high spirits, product progress was smooth, user feedback was good, and ecological cooperation and media attention were gradually increasing. From the outside, everything seemed to be "on the rise."

However, we did not realize that we were actually at a critical point of a downward cycle.

Although Loois's product had launched and the experience was better than many similar products, the entire market was gradually cooling down. The bear market of 2018 was quietly approaching—the heat on-chain was receding, and investors' enthusiasm was rapidly waning.

Initially, we were not anxious. After all, the company still had other profitable business lines, and there was still money in the account. The product had launched, and the feedback was not bad; everyone generally believed, "As long as we continue to develop the product, financing and growth are just a matter of time."

But soon, reality began to gradually shred our confidence.

The originally profitable business line suddenly "bled"

That business line, which supported the entire company's cash flow, quickly cooled down at the beginning of the bear market, with clients gradually leaving and business revenue plummeting. Our Loois team’s salaries were dependent on the entire company system, meaning our wages were not self-sustaining from the Loois project but relied on other businesses for "blood transfusions."

Once the blood transfusion capacity weakened, the pressure immediately transmitted to us.

Financing obstacles: ideals are full, but the market is getting colder

At that time, we officially started the financing process and began pitching externally. But reality quickly dealt us a heavy blow.

Many investors lacked confidence in the DEX track and had limited understanding of the Loopring protocol; although our product had launched, the user base was still small, and the data was not persuasive; the backgrounds of our team members did not carry the aura of "serial entrepreneurs" or "star tech teams."

Worse still, the entire industry was entering a "capital winter," and investors began to become particularly cautious. Projects had to be highly certain and resilient to cycles to gain favor.

After several rounds of roadshows, the reasons for rejection we received were highly similar: "The project is good, but we can't invest right now."

Internal concerns: invisible money, visible anxiety

As funds became tighter, anxiety began to spread. Some members were those I had brought over from Guangzhou, who had originally viewed this as a long-term battle. At first, we could still comfort ourselves with "the money will be raised soon," but gradually, even I began to doubt that statement.

The founder also seemed overwhelmed. The wealth accumulated from early cryptocurrency trading had significantly shrunk due to the sharp decline in coin prices. Under pressure, he began to become impatient, and internal communication gradually became chaotic.

The most typical symptom was: we were still desperately writing code and optimizing, but no one could answer the question, "Will we still be able to get paid next month?"

It felt like you were driving a car with good performance, pressing the accelerator steadily, and steering in the right direction—but you didn't know if there was a gas station ahead.

Things didn't suddenly collapse at a specific moment; instead, they quietly slid toward chaos step by step.

First, funds became tight, and salary payments were delayed; then team members silently updated their resumes and sought opportunities; later, communication became difficult, decision-making was delayed, and team morale visibly declined.

We tried to "grit our teeth and persevere," continuing to refine the product and seek funding, but at a certain point, we all knew in our hearts: this car was really out of gas.

From the superficial highlights to the backlash of reality, and then to the true realization of being stuck in a quagmire—this is the power of a bear market. It doesn't destroy you overnight; instead, it gradually erodes your confidence, resources, and endurance like a tide.

This is the harsh reality that many Web3 entrepreneurs will experience: it's not dying from technical problems, but being defeated by cycles and confidence.

In the end, we announced the cessation of the Loois project and disbanded the team.

Fortunately, at that time, a partner was preparing to launch a centralized exchange (CEX) and highly recognized our team's execution and collaboration, actively inviting us to participate in building its core system.

Although transitioning from DEX to CEX had some idealistic discrepancies, we all knew: at that stage, staying in the industry and doing something practical was more important than anything else.

I accepted the job and began a new journey as a Builder.

Gains and Reflections

This experience of failure brought me not only lessons but also many irreplaceable accumulations and insights.

First, my network in the Web3 circle began to take shape. In an emerging industry, this is very important. I started to integrate into the social circles of some core Builders, and these connections proved useful in various subsequent situations:

  • Information exchange and sharing helped me quickly broaden my industry perspective;
  • When I needed to recruit talent, I could find trustworthy recommendations within the circle;
  • When I wanted to find new job or collaboration opportunities, I could directly access internal referral channels.

Secondly, there was a leap in my professional capabilities. During that time, I not only improved my technical skills in Golang and Solidity but also began to understand how to write white papers and design economic models. More importantly, I truly participated for the first time in bridging "on-chain products" and "business logic."

I also had the opportunity to participate in industry events as a Builder, communicating with seasoned entrepreneurs and investors, and personally learning how they understand trends, assess risks, and judge timing. These processes rapidly broadened my business perspective.

Finally, I gained a real understanding of the industry ecosystem. I began to gradually see through the "surface" and "essence" of the Web3 circle: the blockchain circle, the cryptocurrency circle, speculation, ICOs, pump-and-dump schemes—especially in Shenzhen, where the entire industry ecosystem was far more chaotic than I had imagined. Web3 has strong financial attributes, and during periods of explosive growth and decline, it attracts both genuine Builders and a large number of money-grabbers. This is a reality that must be faced in the industry.

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