AI and Robotics Surpass Cryptocurrency in Popularity! AllianceDAO: Crypto Innovation is Dull, Startups are Returning to Traditional Finance, Seeking Breakthroughs in AI.

04/04/2025

Web3 Venture Capital Accelerator AllianceDAO Founders Discuss Recent Market Trends

Imron Khan and Qiao Wang, the founders of Web3 venture capital accelerator AllianceDAO, discussed recent market trends in their latest podcast episode. They addressed the overshadowing popularity of AI and robotics over cryptocurrency, the active movements of well-known exchanges like Binance and Robinhood, and the unequal collaboration between stablecoin issuer Circle and Coinbase. They pointed out that there is currently little innovation in the crypto space, leading many new entrepreneurs to pivot towards AI and traditional finance. The two also discussed the impact of AI on future education, stating, “Incorporating AI into parenting is important, but guiding them through trial and error and learning is the true essence.”

AI Topics and Trends Overpower the Crypto Space, Crypto Innovation Lacks New Tricks

Khan and Wang revealed the prevailing consensus in the venture capital community: “AI and robotics are advancing so rapidly that they are nearly overshadowing the volume of cryptocurrency.” They admitted that current crypto innovation is somewhat dull, primarily focused on:

Stablecoins
Real-world assets on-chain (RWA)

For instance, Fidelity recently launched its own stablecoin, prompting other traditional financial institutions to follow suit, making it feel like a “traditional asset moved to the blockchain” scenario.

Binance’s Internal and External Battles, High-profile Attacks on Competitors like Hyperliquid and Jupiter

Regarding Binance’s recent aggressive actions:

They launched community operations against competitor Hyperliquid in an attempt to suppress liquidity.
They also introduced meme coins (Mubarak, Broccoli, etc.) on Pump Swap, leading the community to question whether Binance has abandoned quality.

The two pointed out that Binance’s actions are actually a response to both Jupiter Pump and Hyperliquid, leading to a comprehensive showdown of “on-chain vs. off-chain.”

Robinhood Enters Three Major Battlegrounds, Seeking Dominance in Crypto, Stocks, and Banking

Recently, Robinhood held a large conference reminiscent of an Apple launch event, revealing several new strategies:

A full commitment to asset tokenization, even aiming to allow everyone to buy and sell real estate like NFTs.
The introduction of a physical “Cash Delivery Service,” enabling people to obtain cash without needing to visit an ATM.
A 2% cash reward for transferring brokerage accounts, aggressively targeting traditional finance users.

The host stated that Robinhood poses a significant threat to Coinbase and the entire crypto space, as it seeks to dominate the ecosystems of traditional finance, trading platforms, and Web3 applications.

USDC’s Major Risks Exposed, Circle’s IPO and Unequal Partnership with Coinbase

Stablecoin issuer Circle is expected to pursue an IPO valued at around $4 to $5 billion, with financial reports indicating that half of their revenue is shared with Coinbase. The two likened this to “the USDC issuer being consumed by the distributor,” akin to how Pump can dominate users and suppress AMM protocols like Radium. Additionally, they noted that if the U.S. lowers interest rates, it could severely impact Circle’s revenue sources, namely Treasury bond interest, which may be one reason for Circle’s urgency to IPO.

Boring Crypto Innovation, New Entrepreneurs Turning to Traditional Finance and AI for Breakthroughs

The two highlighted the pain points in current crypto innovation, stating that there are few highlights and it feels dull. For instance, new trading protocols like “Pump” have already consumed Radium’s trading volume, leaving limited room for future growth. In contrast, many startups are turning back to “traditional finance pain points” for solutions and even shifting towards AI.

Tesla as a Startup, the Most Liquid AI Investment Target

The host believes that Tesla is not just an automaker but the most liquid investment target globally, particularly due to its advancements in Full Self-Driving (FSD) technology and robotics (Optimus). They pointed out that FSD has made remarkable progress in recent months, even operating without human intervention, which is a major reason for their optimism about Tesla.

AI National Power Competition, Sino-U.S. Tech War Heating Up

The latter part of the program shifted to geopolitics and the tech war, with the two pointing out:

China is rising on the back of manufacturing advantages, catching up with the U.S. in cars, social media, and chips.
The U.S. is learning from Japan’s 1960s national industrial strategy, trying to regain control over chips and manufacturing.

They believe that AI, robotics, and manufacturing will be the key battlegrounds over the next decade.

Blooming AI Tools, Google Reclaims Its Field with Data Advantages

The host unanimously agreed that Google is currently the most investable AI stock, citing reasons such as:

The database covering unstructured content like YouTube, suitable for in-depth research.
Co-founder Sergey Brin’s strong return to lead AI efforts.
The Gemini voice conversation feature is nearing human-level quality.

The Era of Vibe Coding Has Arrived, Inspiring Founders to Turn the Tide

The program also discussed the “Vibe Coding” wave:

Non-engineer founders can now directly use AI for frontend design.
Tools like Cursor and WindSurf can significantly increase development efficiency by 2 to 4 times.
Individuals can create mini apps to solve their own problems and even sell them online.

They predict that “tens of millions of small apps” tailored to specific needs will emerge in the future.

AI Will Disrupt Education and Healthcare, Children No Longer Wasting 8 Hours in Class

The host shared an example from Alpha School:

Students only need to study for 2 hours a day, yet their grades surpass 98% of schools in the U.S.
AI serves as a private tutor, with learning efficiency far exceeding that of traditional classrooms.

The future learning approach may combine “AI tutoring” with “free exploration,” allowing children to learn faster while maintaining a passion for self-directed learning.

AI Doctors Are Coming, Apple Set to Engage, Other Startups Following Suit

Khan shared his medical experience, believing that AI diagnoses are accurate, patient, and efficient, already capable of assisting or even replacing initial diagnoses. With its vast array of wearable devices and health data, if Apple launches AI healthcare products, it could potentially ignite the market.

AI Will Significantly Sweep Away Entry-Level Positions

AI is replacing a large number of entry-level positions, including:

Legal assistants and medical administration
Investment analysts and startup researchers
Basic software engineers

The host believes that future job hunting will rely less on resumes and more on “works published on social media,” allowing truly capable individuals to stand out.

The Ultimate Proposition of AI Education: Allowing Children to Choose and Experiment

At the end of the program, parenting concepts were discussed, with both stating: “Instead of controlling children, it’s better to give them choices and opportunities for trial and error.” They shared their experiences of using Kindle and AI tools to guide children in reading and learning, demonstrating that AI is not just a work assistant but an indispensable coach for future living.

Risk Warning

Investing in cryptocurrency entails high risks, with prices potentially fluctuating dramatically, and you may lose your entire principal. Please assess the risks carefully.