What I want to talk about next is the investment and financing part, because I think the case of Ethena is worth discussing.
Like many people, I also consider investment and financing as an important consideration when evaluating project development potential and expected returns from airdrops. But after gradually accumulating experience, I discovered that the investment and financing of some projects may be different from what we ordinary retail investors think of, and such projects have a distinctive feature like Ethena: innovation.
Factors such as product innovation and competitive product advantages are certainly part of investors' assessment of the feasibility of a business model. This is not only true in the currency circle, but also applies in the general business environment. However, in a rapidly developing and changing environment like the currency circle, sometimes industry leaders and venture capital investors will choose to invest in some infrastructure or innovative projects based on promoting the development of currency circle applications. The return on investment Rate may not be a consideration in this type of investment decision.
As He Yi, the head of Binance Labs, once mentioned, Binance Labs has invested in hundreds of projects. Not every one of them is invested because it can make money or will make money. Some are chosen because they are optimistic about its innovative model. Provide support and support.
Extending this point, when we evaluate Binance Labsâ investment projects, we also need to consider whether the project is a relatively lacking infrastructure on a specific blockchain (BNB), or whether it is valuable to the industry. The development direction of additional meaning, these are some factors that I will evaluate.
As far as Ethena is concerned, its vision is to bring a new stablecoin option to the blockchain and build the underlying structure of its stablecoin with an innovative model. Such narratives and attempts are enough to attract industry pioneers who are willing to see positive development in the industry to join the investment and financing lineup, because this market needs this kind of driving force for innovation so that everyone can see new possibilities. Not to mention that the concept of Ethena originated from Arthur Hayes's article, so do you think he himself could not support the practice of Ethena?
Returning to $ENA , I think investors also need to clearly understand what they are thinking about when investing and financing. Do they think ENA is an investment target that can make a profit without losing money, or do they think it is to support the practice of an innovative protocol? ?
Why is this important? Because this is related to our view of the ENA token. As I mentioned in the previous articles in this $ENA token use case analysis series, Ethenaâs development focus is more focused on the stable currency USDe. , instead of $ENA . The development direction of such a team will actually reflect the value of the ENA token. If the protocol does not carry out more practical designs for the token to boost its value, how can it be attractive enough to attract more investors? What about buying the token? (Of course, on Ethena's side, it also involves factors such as ENA being the mining currency setting for airdrop income)
So in short, I think that if investors in ENA at this stage simply think that with so many industry leaders and venture capital institutions investing, the value of the token will not disappoint investors, then you may be thinking too simply. . (However, it is certainly unlikely that venture capital or angel investors will lose money. After all, there will be a significant gap between the price in the primary market and the price in the secondary market for our retail investors)
In summary, I would advise Ethena investors to:
Donât overestimate the value of ENA
At least at this stage, before Ethena gives more empowerment to ENA, the application of USDe is more the main body of Ethena's development than ENA. There are no absolutes in anything. Of course, investors can take a gamble on ENA. Perhaps in the near future, ENA will really have breakthrough and powerful empowerment. But if you are like me and prefer low- to medium-risk investment options, I would recommend not to use ENA as a long-term holding target. After receiving the airdrop, you should try to sell as much as you can to ensure your basic income.
Partners are also welcome to leave a message below to discuss your ideas with me. If nothing unexpected happens, this article should be the last in this series of articles on ENA token use case analysis. It seems that there are not many other ideas for the time being. The next one should be Start writing organized information for other projects.
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â»The above content is purely personal sharing and not sponsored. It does not constitute investment advice. Users are advised to DYOR and evaluate their own personal risks.
â»If you want to participate in the Ethena Season 2 airdrop event and earn ENA, you can use my code:
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#Ethena #USDe #ENA #AirdropâŹâ© #ArthurHayes