The wave of real-world asset tokenization (RWA) is indeed fierce. Traditional financial giants like BlackRock are getting on board, the technological foundation is gradually improving, and regulators around the world are exploring frameworks. These factors combine to drive a deep integration between the traditional economy and the encryption world. High-quality assets such as real estate, bonds, and commodities have achieved greater liquidity through on-chain implementation, which is indeed exciting.

But amidst the excitement, we must be aware of the risks lurking beneath the surface.

The essential tests of RWA focus mainly on several dimensions. First is the authenticity of the underlying assets – does the certificate you receive correspond to assets that truly exist? Second is the clarity of ownership – who is the real owner, and does the on-chain record correspond with legal reality? Furthermore, there is the protection of legal rights – when the execution of a smart contract conflicts with real-world legal terms, how are your rights safeguarded?

The technical risks should not be underestimated either. Vulnerabilities in smart contracts, risks associated with third-party custody mechanisms, and the predicament of seemingly sufficient liquidity when it truly needs to be realized—these are all black swans that investors are likely to overlook. Some projects rely on unverified operational models, and some even hide more sinister structures.

So what should investors do? Distinguishing between true and false has become a required course.

The key points to consider are three aspects: First, are the asset proof documents and independent valuation reports complete and withstand scrutiny? Second, is the legal structure clear, including the terms of relevant smart contracts, custody agreements, and risk commitments? Third, regarding the promised returns, if the figures are unreasonably high, it can basically be judged that there is a problem.

The true value of RWA ultimately comes from high-quality underlying assets, rather than merely because it is on the chain. In the current environment of innovation and bubbles, adhering to a reverence for fundamental value laws is the key to surviving longer and earning more steadily through cyclical fluctuations.