The Three-Disk Theory is a cognitive model about Ponzi schemes proposed by Crypto Vedo. This article explores the reasons for the three bull markets based on this theory: MEME coin is a mutual aid disk, DeFi is a dividend disk, and ICO is a split disk.
Overview of the Three-Disk Theory
Crypto Vedo believes that one of the greatest values of cryptocurrency is that it has achieved the democratization and tradability of Ponzi for the first time. Each bull market is driven by Ponzi's fundamental innovation. Studying Ponzi's innovation can help you find the big trend level alpha in the market. There are three main types of Ponzi models: dividend plate, mutual aid plate, and split plate. These three models are a combination of all Ponzi models, each with its own advantages and disadvantages, corresponding to different start-up, operation and collapse logics.
- Dividends: 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, resulting in mismatch of capital flow, and the income is settled by transaction
- Split: Split an asset into new assets, attract incremental funds through new low-priced assets, and realize profits through the appreciation of assets
MEME coin is a mutual aid
The core of traditional mutual aid is the mismatch of funds, which usually involves multiple participants transferring money to each other in sequence to form a capital cycle. This model is the most decentralized one, because once the rules are established, there is no need for the "management party" to intervene later, and the withdrawal is essentially a tax. As a mutual aid platform, MEME coin has the following characteristics:
- Fair launch: everyone can participate and everyone can help each other
- Full circulation: no need for project party to reserve
MEME coin is actually a kind of capital mismatch on a time scale, which forms a passive lock-up through the uniqueness of time. Therefore, the rise of MEME coin is actually the current buyers sending money to the previous buyers, forming a cycle of mutual transfers. As time passes, this mismatch forms a passive lock-up state.
DeFi is a dividend-sharing platform
DeFi is the core narrative of the last bull market (2020). It realizes token economics by writing financial rules into smart contracts. DeFi distributes protocol tokens in the form of liquidity mining, and tokens are obtained by depositing money into the protocol. DeFi is a typical dividend-sharing platform, where users invest money all at once and earn income through linear dividends over time.
ICO is a split
ICO was the core narrative of the last bull market (2017), which attracted incremental funds by writing an idea into a white paper and issuing tokens for financing. The emergence of ICO has continuously split the asset target of cryptocurrency into new investment targets to attract incremental funds.
The coin circle is the trading circle
From the perspective of token economics, the past decade represents the evolution of the Ponzi scheme. In the process of continuous evolution, the project has become more and more decentralized. The rise of MEME coin marks the combination of mutual assistance and splitting, representing the trend of the continuous development of the currency circle.
Conclusion
Through the Ponzi scheme, we can gain a deeper understanding of how different types of crypto assets and projects perform in the market. Understanding these theories helps us better grasp market trends and make smarter investment decisions.