A million dollars. Now, that’s a number that’ll turn heads, especially in the boom bust cycle that is the Web3 world full of hype. FO COM, spearheaded by Hengfeng International, recently crossed that rubric with a provocative move. SOL fare launched their million-dollar prize pool at the “With FO · Web3 Music Festival” in Hong Kong. The aim? To onboard the next billion users into their walled garden. Bold, right? But is it really brilliant, or just burning cash?

Is Web3 Just Another Hype Cycle?

Let’s face it, the Web3 world is fraught with ambitious projects claiming to be the next big thing and then… nothing. The festival itself, with its FoChat, FoPay integrations, and fashion show featuring the FO-X ecosystem sounds interesting enough, but the core question remains: Does throwing money at a problem actually solve it, or does it just mask deeper issues?

Think about it. Remember the dot-com boom? Real companies were swallowed whole while business plans were still valued based on eyeballs instead of realistic revenue. We took note of parallel trends during the ICO craze of 2017. Are we doomed to continuously go through these booms of all-out extravagance, followed by busts of disappointment and despair?

The uncomfortable truth is that for lasting adoption, it takes more than shiny spectacles and dollars in prizes. It requires real utility, a seamless user experience, and a compelling reason for people to switch from the established Web2 giants.

Short-Term Gains, Long-Term Pain?

A million dollars is a significant investment. What's the breakdown? How much of that is actually going to end users, as opposed to administrative costs, marketing, and the prize pool itself. Who exactly is benefiting? More importantly, are these real new users, or are they just existing crypto fans following the latest trend?

Here’s a scenario. A user onboards, engages in the prize pool activity, potentially wins a nonlife-changing prize, and then… what? Do they become loyal FoChat users? Or do they immediately begin using FoPay for all their day-to-day transactions? Or do they just pass the buck to the next incentivized project?

When the odds are in favor of the “Likely Outcome,” that million dollars just became a marketing cost. This leads to doubts about its ROI in the long haul.

MetricIdeal OutcomeLikely Outcome
User Registration100,000 new, active users100,000 registrations, 20% active for 1 month
FoChat UsageDaily active users increase by 50,000Daily active users increase by 10,000 for 2 weeks
FoPay Transactions10,000 daily transactions2,000 daily transactions for 1 week

Underlying the press releases is a focus on community co-creation, and creating a feeling of belonging. Is this million-dollar activity truly benefiting the community, or is it primarily benefiting FO.COM and its investors?

Community First, or Company First?

The FoAngel Catwalk Show, where the winner becomes a "FO angel" and participates in FO brand activities, feels more like a marketing stunt than a genuine effort to empower the community.

A thriving decentralized Web3 ecosystem organically grows, fostering without speculation through the focus of solving real user problems and community building. Simply put, FO.COM needs to stop pouring money into user acquisition. Rather, they need to discover what will create irreplaceable stickiness and the best use case in their native environment.

Now, picture using that million dollars to give direct support to developers through developer grants. It might encourage open-source development and produce curricular materials to onboard new developers! These programs don’t bring immediate pizzazz, but they can help grow a more sustainable and involved community in the long run.

The FO Festival's million-dollar gamble might pay off in the short term, generating headlines and attracting a wave of new users. The true ROI of Web3 goes beyond just the number of users. It’s measured not in platitudes or window dressing, but benefits, quality of life and community that believes in what you’re trying to do.

Only time will tell if FO.COM’s gamble will be a bold pioneering move for the industry or a cautionary tale destined to scare future innovators. Honestly, I’m betting on a smarter, more calibrated, and more participatory alternative. Now, don’t get me wrong— I do think this strategy is the future of Web3 and am cautiously optimistic about it. What do you think?

Only time will tell if FO.COM's gamble will be a pioneering move or a cautionary tale. I'm personally betting, with a healthy dose of skepticism, that a more measured, community-driven approach is the path to the future of Web3. What do you think?