🚨 The next crypto cycle will not be driven by hype but by fundamentals and empathy.

At a fireside chat during Consensus Hong Kong on Feb. 12, Ella Zhang, head of YZi Labs, outlined her core investment philosophy, stressing that long-term value creation in crypto and technology depends on first-principles thinking, founder resilience, and empathy-driven support.Investing from first principles, not trendsZhang said YZi Labs prioritizes fundamentals over market narratives, focusing on whether a product solves real user pain points and can develop into a sustainable business.“We only invest when we find a real problem, the right founders, and the right product,” she said, adding that YZi Labs often backs teams at an early stage and continues supporting them as they scale, not just with capital but with strategic guidance and resources.Founder resilience and empathy as differentiatorsZhang highlighted resilience and curiosity as defining traits of successful entrepreneurs, arguing that sustained curiosity helps founders identify structural gaps and long-term opportunities.She emphasized empathy as central to YZi Labs’ approach. “Only when you truly put yourself in the entrepreneur’s shoes can you understand how hard it is to stay focused while managing countless challenges,” she said. The firm aims to support founders through mentorship and community-building, particularly during periods of stress or failure.Ecosystem leverage through BNB ChainZhang pointed to BNB Chain as a key distribution layer for new projects, citing its scalability, low costs, and large user base. She said these attributes make it a natural launchpad for protocols seeking rapid adoption.YZi Labs, she added, remains open to backing repeat founders, including those whose previous ventures failed, as long as they maintain a long-term mindset rather than pursuing short-term gains.AI agents and stablecoins as next growth wavesLooking ahead, Zhang said AI agents represent a major growth area, but their value ultimately depends on serving real human needs. Products that deliver public benefit and achieve scale can generate commercial value regardless of whether end users are humans or autonomous agents.She also described stablecoins as one of crypto’s most successful real-world applications, enabled by improving regulatory clarity. With more countries exploring fiat-pegged stablecoins, Zhang expects another wave of adoption, while noting unresolved challenges around custody, on-chain FX, and trading infrastructure.CZ’s mentor role at YZi LabsZhang also addressed the role of Changpeng Zhao, describing him as a mentor within YZi Labs rather than an operator. Zhao, often referred to internally as the firm’s “most famous intern,” shares lessons from his entrepreneurial journey with founders, reinforcing a culture of learning and long-term thinking.Overall, Zhang framed the next phase of crypto innovation as one driven less by speculation and more by disciplined investing, resilient founders, and ecosystems designed for real-world adoption.