Friends of Mlion, have you ever thought that you might be the "taker" of VC tokens? Arthur Hayes, the founder of BitMEX, recently published an in-depth article on his blog, specifically discussing this issue. He didn't just talk about it casually, but gave a lot of practical information and in-depth analysis!
Hayes believes that the rise of cryptocurrency is by no means accidental, and there are three driving forces behind it: government control, revolutionary technology, and wealth effect. 💪 But as the market develops, VC tokens have gradually taken a dominant position, which makes retail investors feel at a loss. 😖
Think about it, the fully diluted valuations and initial circulating supply of those VC tokens are frighteningly high, how can retail investors afford it? 💸 Even if they can buy these tokens on centralized exchanges, the high prices make them discouraged, and in the end they can only watch the market liquidity lack and the price plummet. 📉
Isn't this exactly the same as the traditional IPO system? Retail investors are always being ripped off and never get enough returns to improve their financial situation. 😢 Hayes pointed out that this is because venture capital-backed projects have reached high valuations when they go public, and the profit potential of ordinary investors has been greatly weakened.
But did you know? The rise of Memecoin has brought a ray of hope to the market. 🌈 Although these tokens created based on Internet culture and memes have no actual intrinsic value, they can spread quickly and attract the attention of speculators. 🚀 For retail investors, the charm of Memecoin lies in the ability to enter the market at a lower cost and pursue short-term wealth growth.
Hayes also proposed a simple framework to understand the source of value of different types of tokens. The value of Memecoin comes from the spread of its meme content, while VC tokens rely more on the background of the founder and the stereotype of "successful founder". 🤔 This makes people think, are we investing in the project itself, or in those illusory labels?
So, where should retail investors go? Hayes gave his advice. He believes that in the future, the cryptocurrency market should pay more attention to how to get retail investors involved and truly benefit from it. 💡 Founders should return to the fundamental purpose of the project - creating products that can meet user needs, rather than simply relying on venture capital funding.
At the same time, he also emphasized the importance of decentralized exchanges and new token issuance methods. These emerging models allow investors to directly participate and set prices based on market reactions, which not only allows more teams from different backgrounds to get opportunities, but also allows investors who are willing to take risks to get high returns. 🎉
So, retail investors, have you woken up? 💪 Don't blindly follow the trend and become the "taker" of VC tokens. To analyze and track market trends, you can try Mlion (please visit: 🤖👉mlion.ai). As an AI investment research assistant in the Web3 field, Mlion combines real-time news with AI in-depth analysis to provide you with accurate market insights and investment advice. Whether it is currency price prediction, project research reports, or quickly capturing market hotspots, Mlion can help you seize opportunities in advance. The Mlion platform now has a new feature-ML SWAP, which can realize one-click cross-chain exchange, which is convenient and fast. Supporting more than 50 chains and more than 40 plug-in wallets, SOL and BTC chains can be easily handled. Especially the BTC chain, the cross-chain exchange of contracts that other platforms cannot do, Mlion can help you achieve it!
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The above content is for information sharing only and does not constitute any investment advice! Investment is risky, so be cautious when entering the market!
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