Cryptocurrency is like a game: trading tokens, making (and losing) money, and gaining followers on X.
Do you feel the same way? But unlike real games, failures in cryptocurrency games can have serious consequences.
After the Terra crash, according to an online record by a Korean father, a family of three (including a 10-year-old daughter) committed suicide due to financial losses. If I publicly admit that cryptocurrency is a game, I would feel guilty. Too many people have been scammed and lost their life savings.
But viewing cryptocurrency as a game helps me stay sane and motivated to keep playing. Because the madness we experience in this industry is just one aspect, its greatest advantage is: allowing ordinary people to achieve the dream of financial freedom.
As DegenSpartan said:
'After you graduate, you will have a brief period to indulge in gambling, then become an elite, or spend your life relying on a salary.'
In this article, I want to share the script of crypto games, my thought framework, and how to win in crypto games.
Rules of crypto games
Once you notice the similarities between cryptocurrency and (especially MMORPG) games, you can't ignore it.
During economic downturns, with no new capital inflows, the PvP (Player vs Player) mode prevails. In bull markets, as new capital enters, we switch to PvE (Player vs Environment) mode.
If you don't like KOLs influencing you, we think of the saying 'Don't hate the player, hate the game.'
We even designed token economics to prevent people from dumping tokens through various game theories.
Like game upgrades, crypto games are also constantly evolving, with new stories emerging and disappearing.
For example, Pranksy, once a top NFT player, is now completely unable to keep up with the pace of meme coins. The gameplay has changed, but he still insists on playing a game that few are interested in.
Of course, meme coins can be terrible, but a few years ago, those who didn't know how to play the NFT minting and trading game said the same thing about NFTs.
You face two choices in the game: either adapt and participate, or wait for new gameplay. There’s a third, more difficult choice: to change the rules of the game itself.
For example, Cobie launched the Echo platform, allowing retail investors to participate in venture capital and buy tokens like in the ICO era. The story of meme coins will gradually be overturned by those players who decide to change the rules of the game.
However, meme coins also deserve praise because they have actually succeeded in changing the rules of the game.
For the past year or so, we've been playing a 'points' game. You deposit assets into protocols, accumulate points, and pray for generous airdrops. I know you enjoy this game because 'DeFi degen's bull market script' is still one of my most popular posts.
Anyway, it turns out that many people have been scammed.
Higher TVL means higher valuations, so the FDV of token issuances is ridiculously high, benefiting only those VCs and teams that entered at lower valuations, and of course, the yield farmers selling airdrops.
As a result, many turned to meme coins, standing in opposition to VC tokens.
While Pranksy is failing, the meme coin protagonists Ansem, Murad, and players joining their tribe are winning.
In the overall gameplay, we continuously introduce new mini-games. You must decide whether to participate. If you do, make sure you understand the rules, as there will always be opponents.
For example, daos.fun allows trading of tokenized funds. However, it is confusing that the trading price of the hottest 'fund' ai16z is 52 times the NAV (Net Asset Value). Its trading resembles that of meme coins.
Players are all trying to understand it. Squiggly compares the fund to a 'Grayscale structure' or a Friend.tech trading fee Ponzi scheme. BREAD has a different opinion on Friend.tech.
Although it’s the same product, players' understanding can be vastly different. Players must find their advantages in the game to profit.
This might be straightforward. After the team announced plans to whitelist a new 'fund' on the website, I expect degens holding other 'fund tokens' may sell some old fund tokens to invest in the new fund. In fact, once the new fund is added, the price of all old fund tokens will drop by about 50%.
Generally, the more confusing the gameplay, the greater the space for you to profit through knowledge asymmetry.
The beauty of cryptocurrency is that there will always be some people who join new trends without thorough research, and as long as you do a little basic research, there are opportunities to profit.
That said, I often try new things with a little money first, then research to understand how it works in practice. Learning by doing, and when I know whether I can win this game, I invest more.
Ton's click-to-earn game thrives because it contrasts with complex DeFi games: you just need to click a button on the screen to earn money.
However, due to the game being too simple, the rewards are low; unless you exploit the system by manually clicking on hundreds of mobile phones.
Crypto technology becomes more interesting and complex here: there are multiple layers, roles, and strategies to choose from. If you wish, you can also opt for side quests.
Let me give you an example.
Recently, I have been working to become an active representative in multiple DAOs, particularly Lido, Arbitrum, and Uniswap.
DAOs advocate for the vision of decentralized organizations, but most DAOs are far from being decentralized, which is an open secret. For instance, in Arbitrum DAO, 14 addresses control over 50% of the voting power, and other DAOs are similar.
Uniswap DAO had no idea that Unichain would launch the UNI staking feature. This also explains why the fee switch has been off for months. Insiders know that once UNI staking is implemented, the fee switch will no longer be necessary, and the DAO was kept in the dark.
DAOs recognize that vote concentration is a significant issue. To address this, they initiated incentive campaigns to attract new participants. By becoming an active governance representative in a DAO, you can earn $3,000 to $10,000.
But it's not easy. You must actively monitor forum discussions, comment, and vote on proposals. The hardest part is getting token holders to delegate their tokens to you, which touches on political games.
After I posted about coordinating token holders and protocol incentives, an anonymous whale delegated 2.5 million LDO to me. Frankly, the reason I received this delegation is that I have become somewhat well-known on X for posting frequently. Playing the popularity game well on X can bring more opportunities to the cryptocurrency industry, which few are aware of.
Now, multiple protocols reach out to me, thanking me for voting for their proposals or requesting my support for future proposals. Every DAO that doesn't appear in the X feed or even DAO forums has an important relationship-building process.
To be honest, I love this game. I firmly believe in a decentralized future and hope to have an impact.
Player mindset
Did you know that Vitalik Buterin founded Ethereum shortly after Blizzard removed the damage component from the warlock's 'Life Drain' spell?
'I cried myself to sleep that day when I realized the horror that centralized services could bring. I quickly decided to quit.' - Vitalik Buterin
Vitalik decided to quit World of Warcraft because he felt he couldn't influence the rules of the game.
The wonderful thing about cryptocurrency is that each of us can play a role and influence the rules of the game.
Like blockchain, crypto games are also decentralized. Venture capitalists, retail investors, builders, KOLs: we all have our roles, with some being more influential than others.
Ansem, Murad, and other meme coin KOLs drive the meme coin cycle, but you can choose not to join their game.
A bit off-topic, but I am actually surprised by how little influence venture capital has on shaping the narrative. Cryptocurrency venture capital should advocate for their investments, but their attention on X is minimal.
Do they really not care? Or are they playing a different game?
A notable example is Kyle from Multicoin, who is struggling to make money. More venture capitalists should share their views on this industry, advocate for their portfolio projects, and provide in-depth research to clarify current developments.
From my interviews with cryptocurrency venture capitalists, a possible explanation is that they are essentially just retail investors with more money.
When Vitalik was playing World of Warcraft (2007-2010), I was playing another MMORPG game - Lineage 2.
In Lineage 2, you can choose a race (human, elf, orc, etc.) and a class (warrior, mystic).
You can level up by completing quests and defeating enemies to gain experience (XP), which unlocks new abilities, better equipment, and access to more challenging content.
I spent two years diligently studying, sleeping only a few hours a day. Those memories are deeply etched in my mind and shaped my views on cryptocurrency trading.
Just like gaining XP in a game, you can gain XP in cryptocurrency by learning about blockchain, studying DeFi, researching token economics, etc. The more you refine your skills, the better you will do.
But you must pay attention to your HP (health points) and MP (mana points).
HP and MP are like your health, financial stability, and emotional resilience. Both cryptocurrency and gaming require relentless effort, and you will inevitably feel burnt out. In the cryptocurrency industry, the pressure to stay ahead, continuously monitor the market, and not miss trends creates a high-pressure environment, like being in an endless game where you can't choose to exit.
I was exhausted during the last bull market cycle, so I now manage my 'HP' by taking breaks every three months.
Is it strange that I view cryptocurrency from this perspective?
Demographically, they also have similarities: crypto games are predominantly male, while only about 35% of MMORPG players are female.
Koreans' obsession with cryptocurrency is on par with their obsession with esports (like League of Legends), even exceeding their interest in 'real sports'.
What I want to say is that having a gamer's mindset can help you stand out in the cryptocurrency industry. Just choose the right game and understand your role in it.
In Naval's famous short post 'How to Get Rich Without Luck', he mentioned 'game' and 'play' 15 times! His advice is:
Ignore those status game players who gain status by attacking wealth-creating game players.
Choose an industry where you can collaborate long-term with others.
Play iterative games. All returns in life, whether wealth, relationships, or knowledge, come from compound interest.
One of my favorite quotes is:
Accumulating specific knowledge feels like playing a game for you, but for others, it feels like work.
So, what game are you playing in the cryptocurrency industry?
What role do you play in cryptocurrency?
In recent years, cryptocurrency has become increasingly complex. Before 2020, success was as simple as investing in ICOs and trading on CEX. Since then, new games in the cryptocurrency industry have exploded in growth: DeFi, L2, NFTs, RWA, Runes, meme coins, and more.
How do you keep up?
Are you specializing in a particular industry or trying to 'cover all bases'?
In MMPORG games, you first choose a race, then a class. In Lineage 2, I decided to choose the least popular option because I wanted to stand out and increase my chances of becoming a 'hero.'
I chose a human summoner, then specialized in warlock, and then in arcane lord. This is the least popular class because its specialty is using pets to defeat enemies.
Similarly, you can start by learning the basic skills of cryptocurrency and then focus on active trading, DeFi yields, meme coins, DAOs, etc.
Many people lack the determination to learn specific skills and often jump between various narratives without truly understanding. They miss out on the knowledge needed to master the complex mechanisms behind specific industry game theory. They become liquidity for exits.
In fact, jumping from one narrative to another while making money might be a special skill. You realize the money rotation game and manage to sell at the top before the money shifts to another narrative. But are you good at this?
However, I believe that specialization can yield rich results in the current market stage.
Specialization can be anything, for example:
Crypto Koryo excels at creating Dune dashboards and monetizing them;
USD Denominated focuses on the stablecoin market, navigating the complexities of the market to achieve the highest returns;
Andy is fully immersed in the modular industry;
wale.moca focuses on NFTs;
Bold Leonidas publishes crypto comics every day.
But be sure to pay attention to what influential people say, as their motivations often differ from what you imagine. The game they play is different from the one they promote. You don't want to play games with rules that are unfavorable to you. For example, Ansem recruits celebrities and somehow profits.
Why do you think I post on X?
The purpose of my posts on X is:
Stay informed about the market,
Attract customers to my DeFi creator space Pink Brains, recently
Build my influence and gain token delegated voting.
This strategy allows me to explore multiple topics, even if I am not an expert in any one of them.
However, when you start gaining followers on X, you choose an industry you are passionate about. As your followers grow, your topics should also diversify. Posting can enhance your influence, so everyone should do it.
Becoming a KOL is like becoming a hero in Lineage 2. Your character gains a special aura that enhances your attributes and allows you to broadcast your information to the entire server. I chose the least popular character because it has less competition in becoming a hero.
Many of you work in cryptocurrency companies, which forces you to focus on roles like marketing, market making, or sales. This gives you an advantage over those who treat cryptocurrency as a hobby: leveraging industry relationships, gaining insights, and even influencing the rules of the game.
Specialization is now the real alpha hiding place.
While holding Bitcoin or Ethereum guarantees profit, achieving a 100x return requires deeper digging, just like mining for gold in a developed industry. As Naval said, find work that makes you feel like you're playing.
Whether it's DeFi, on-chain wallet tracking, or DAO forum alpha hunting, let curiosity lead you. By accumulating specific knowledge, you will discover opportunities that others miss. This niche market is small enough to escape the radar of big players but large enough to fill your pockets; cryptocurrency games could be your gold mine.
[Disclaimer] The market has risks, and investment should be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views, or conclusions herein align with their specific circumstances. Invest at your own risk.
This article is authorized for reprint from: (Foresight News)
Original author: Ignas
