Many newbies may not know about that past yet. Today, Youyou will give you an analysis and comparison from the following aspects to help newbies in the cryptocurrency circle have a better understanding of the current situation in the cryptocurrency circle!
First, from the number of currencies, there were only a few currencies in the last bull market, and there were only a few high-quality tracks and currencies. In addition, the speed of new listings was also very slow, which led to the concentration of funds of many people, making it easier to pull up a copycat! At that time, doubling was as easy as drinking water, and the increase list often started at 50%!
Secondly, let’s analyze it from the track! The track is also the sector, which is what we often say is the track or sector you are optimistic about. As shown in the figure, according to the statistics of Feixiaohao, the current currency circle is divided into 94 sectors, and this wave of bull market has pumped out many new sectors, such as DePIN, inscription, rune, bankruptcy sector, etc. The emergence of these sectors is undoubtedly one of the reasons for weakening the combat effectiveness of retail investors in the currency circle!
There are more sectors, more corresponding coins, and more things for you to analyze or KOL to pay attention to. Many retail investors still have the habit of buying coins all in. For example, someone who was optimistic about the decentralized sector has already gone all in, but suddenly an inscription sector appears and he wants to get on board again. Then he has to sell the coins in the decentralized sector and rush to the inscription sector. People are still the same people, and their U keeps getting smaller and smaller as they change positions and tracks again and again! ! ! In the end...
Third, let’s analyze it from the properties of the coin! The coin circle is divided into spot and contract. You can make money only when the spot price rises, while you can open long and short contracts. How can the spot price rise? It can only rise if many people and a lot of funds buy it! In fact, the essence of the coin circle is also a Ponzi scheme, so there is a saying that the coin circle is a trading circle! (Part of the following content comes from the Internet)
Although there are many Ponzi schemes, there are only three models in the final analysis: dividend scheme, mutual assistance scheme, and split scheme. All Ponzi schemes are a combination of these three models. The three schemes can appear alone or in combination. Each has its own advantages and disadvantages, corresponding to the corresponding logic of starting, operating, and crashing.
Dividend-sharing: Invest a whole sum of money at once and earn profits through linear dividends over time;
Mutual assistance: A transfers money to B, B transfers money to C, and C transfers money to A, thus forming a flow mismatch, and the income is settled on a transaction basis;
Split: Split an asset into new assets. Attract incremental funds through new low-priced assets. Profits are realized through the appreciation of the assets.
In terms of logical design, the three disk features are as follows:
We generally believe that MEME coins have two most important properties:
Fair Launch: Everyone can participate (everyone can help each other);
Full circulation: no need for reservation by the project party;
MEME coins are actually a kind of fund mismatch on a time scale. Let's assume that in a bull market, a certain MEME coin has been rising strongly. In fact, those who bought the coin at a high price today pay the ones who bought the coin yesterday, and those who bought the coin yesterday pay the ones who bought the coin at the lowest price the day before yesterday. Because of the uniqueness of time itself, "passive lock-up" is formed, so we have the following comparison:
DeFi is the core narrative of the last bull market (2020). Technically, it is to write financial rules into smart contracts (a way to combine blockchain technology and a certain field). From the perspective of token economics, it distributes protocol tokens in the form of liquidity mining: deposit money into the protocol to obtain tokens.
For example, the two most important aspects of the financial field are trading and lending, so there are Uniswap and Compound. In Uniswap, users deposit token A and token B into a trading pair LP into a fund pool to earn income. In Compound, users need to deposit loanable tokens into a fund pool to earn income. Most of the income is in the form of protocol tokens, and a small amount is real money (stablecoins).
DeFi is a typical dividend-sharing platform, because the basic logic of the dividend-sharing platform is "invest a whole sum of money at one time, and get linear dividends over time to earn income", isn't it exactly the same as the above approach? We also have the following comparison:
ICO is a split
ICO was the core narrative of the last bull market (2017). The general way of playing it was to write a white paper about an idea in any field, and then raise funds to issue tokens. As a result, most people mistakenly believed that the only application scenario of blockchain was "issuing tokens" (another way to combine blockchain technology with a certain field). Therefore, in that cycle, many strange tokens appeared, such as "issuing a token for environmental protection", "issuing a token for computers", "issuing a token for charity", and so on.
We know that splitting is to continuously split an asset into new targets. Incremental funds are attracted through new low-priced targets. The income is realized through the appreciation of the target. Isn’t this the performance of ICO? If we regard the cryptocurrency track at that time as a capital plate, the emergence of various ICOs is to continuously split the asset target of cryptocurrency into new investment targets (new ICO tokens) through "new stories" to attract incremental funds. So we still have a comparison chart:
The coin circle is the trading circle
We can even view Bitcoin mining as a kind of dividend distribution (staking mining machines to generate BTC income).
Is the order of evolution: dividend plate (BTC mining) – split plate (ICO) – dividend plate (DeFi) – mutual aid plate (MEME)? At the same time, the project is becoming more and more decentralized.
On the other hand, if we view MEME as a track, the emergence of more and more MEME coins is actually a reflection of the split-up. Therefore, we can consider MEME to be a combination of (mutual aid + split-up).
Mutual aid may be the real answer to the "no mutual support" in this bull market (Restaking is a dividend plate, DePin is a dividend plate, Layer2 is a split plate, and it is obvious that retail investors only want to play mutual aid in this bull market).
This is why this round of MEME beats many big projects or big institutions! In the final analysis, retail investors are not fools. If you have a project with a valuation of billions of dollars, who will play with you? If you have a new coin and a website, it will be a top-level project. Who will play with you!!! Retail investors in the cryptocurrency circle can say that I don’t understand, but you can’t treat me as a fool!
If you are a newbie in the cryptocurrency circle and want to learn more about it, you can click on the introduction to join us!
