2026-01-21 06:23:51

I recently came across a set of data that really hit home. The decentralized storage project WAL raised $140 million, claiming to revolutionize the storage ecosystem. However, in the past 22 hours, it has actually fallen by 4%. Even more striking is that 83,000 USDT of funds are rapidly withdrawing, with 35.8% coming from institutional big players—highlighting the stark contrast between capital enthusiasm and market flight.

Basically, is the financing side mistaken, or is the market voting with its feet?

After careful analysis, I found that the issue isn't that simple. The WAL project's technical foundation is indeed solid—it's a decentralized storage solution based on Sui chain, using erasure coding technology to keep costs far below cloud storage, and successfully migrated millions of identity credentials from Humanity Protocol. From a technical implementation perspective, the team’s execution is evident.

But this is a deadlock: technical prowess ≠ market demand.

Where are the current hot spots in the crypto world? AI concepts, Meme coins, narrative hype. Storage infrastructure like this is akin to city main roads—everyone agrees they’re essential, but no one is willing to spend real money to "build better roads." Essential needs will always be overshadowed by the allure of high profits—that’s human nature.

The final blow is an overly narrow ecosystem. The entire project’s fate is tied to the Sui ecosystem. Once the main ecosystem’s trend shifts, from funding enthusiasm to user growth, everything will cool down accordingly. Such a concentrated bet carries enormous risk in the crypto market. Great technology paired with bad timing, plus ecosystem dependency, often leads to this kind of ending.

WAL-5,88%

SUI-4,03%

MEME0,69%

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SelfRugger

· 10h ago

Another technical genius dies because of poor storytelling Institutional big players are leaving, which indicates a problem Why are all the projects in the Sui ecosystem so competitive?

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LayerZeroHero

· 10h ago

Another project with impressive technology, booming funding, and ultimately failing because of storytelling. Major institutional players leading the run, this signal couldn't be clearer. Infrastructure with no room for imagination is a original sin in this market.

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VCsSuckMyLiquidity

· 10h ago

Technical strength ≠ ability to survive, this truth is being verified in the crypto circle like a cure-all. --- It's the same old script again, from fundraising frenzy to withdrawal wave, institutional big players are the first to run. --- Sui chain's bets are too aggressive, a single-ecosystem is a ticking time bomb. --- Basically, there's no hot topic, storage can't compare to the imagination space of AI and Meme. --- Infrastructure is always the one that is underestimated, just like no one would praise a sewer. --- $140 million raised in vain, the market's face-to-face data rebuttal feels really satisfying. --- The team's execution ability is indeed no problem, but in a bear market, it's worthless. --- The Sui ecosystem is so tightly bound, a change in sentiment could lead to immediate disaster. --- Can't beat hype expectations with just demand, this is probably the cruel rule of the crypto world. --- Looking at the speed of capital withdrawal, you can tell that institutions are more than anyone else clear about it.

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DataOnlooker

· 10h ago

A typical case of "no matter how good the technology is, it can't be sold," this is the curse of the crypto world. Institutions move faster than anyone else, what does that mean? It shows that they have long seen through it—no matter how good the storage solution is, it can't generate the same imaginative space as AI. To put it simply, being trapped by Sui is the problem. Why is multi-chain deployment so difficult? The funding round is the real killer; once the hype dies down, it's over, really.

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CommunityJanitor

· 10h ago

Technical expertise can't withstand crypto enthusiasts who just want to make quick money. Ultimately, it's because of choosing the wrong track. --- Raising 140 million still falling apart, this round of institutions really ran away fast. --- It's a typical case of "I do something awesome, but no one cares." This is too common in the crypto world. --- When the Sui ecosystem cools down, the entire project goes down with it. All-in plays like this, playing with fire, will get burned. --- Storage is indeed a necessity, but necessities are not valuable. The market is only interested in AI and Meme trends. Sigh. --- Wow, spent 140 million telling a technical story, but the story simply can't be sold. --- Look at how quickly the big institutional players are retreating... They either don't understand the technology or see through that it's not profitable. --- Reality is always harsh. No matter how advanced the technology, someone has to pay for its "excellence." The question is, why would they buy? --- It feels like a failure of storytelling. No matter how solid the technology, you have to be able to tell a good story. --- The Sui ecosystem has nailed this project down. Walking on one leg will eventually lead to a fall.

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WalletDetective

· 10h ago

Once again, a financing myth is shattered, a typical case of technical prowess being useless. How did the institutions run so fast... It seems insiders had already smelled the opportunity. The storage sector was never able to catch the hype; who will foot the bill?

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LayerZeroHero

· 10h ago

It has proven that the cost advantage of erasure coding is a joke in the face of market narratives. The data is here—35.8% institutions are fleeing, indicating that even professional players have seen through it.

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