'After graduation, you will have a brief period to indulge in gambling, after which you might become elite, or you will live on a salary for the rest of your life.'
Written by: Ignas
Translated by: Luffy, Foresight News
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 severe consequences.
After the Terra collapse, according to an online record of a Korean father, a family of three (including a 10-year-old daughter) committed suicide due to financial losses. Publicly acknowledging that cryptocurrency is a game would make me 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 facet; 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 elite, or you will live on a salary for the rest of your life.'
In this article, I want to share the scripts of crypto games, my thought framework, and how to win at crypto games.
The Rules of Crypto Games
Once you discover the similarities between cryptocurrency and (especially) MMORPG games, you can't ignore it.
In times of economic hardship, without new capital inflows, PvP (player versus player) mode becomes prevalent. In a bull market, as new funds come in, we switch to PvE (player versus environment) mode.
If you dislike KOLs influencing you, we think of the phrase 'Don't hate the player, hate the game.'
We even designed tokenomics with various game theories to prevent people from dumping tokens.
Like game upgrades, crypto games are 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 memecoins. The gameplay has changed, but he still insists on playing a game that few are interested in.
Of course, memecoins can be terrible, but those who were unaware of how to play NFT minting and trading games said the same thing about NFTs years ago.
In the game, you face two choices: either adapt and participate, or wait for new gameplay. There's a third, more difficult choice, which is to change the game rules themselves.
For example, Cobie launched the Echo platform, allowing retail investors to participate in venture capital and buy tokens as in the ICO era. The story of memecoins will be gradually overturned by those players who decide to change the rules.
However, memecoins deserve praise as they have actually succeeded in changing the game.
For about the past year, we've been playing a 'points' game. You deposit assets into a protocol, accumulate points, and pray for generous airdrops. I know you enjoy this game because 'The DeFi degen bull market script' is still one of my most popular posts.
In any case, it turns out that many people were scammed.
Since higher TVL means higher valuations, the FDV of token issuances is outrageous, with benefits going only to VCs and teams that entered at a low valuation, of course, plus the airdrop farmers.
Thus, many turned to memecoins, standing in opposition to VC tokens.
While Pranksy is failing, the memecoin protagonists Ansem, Murad, and the players who join their tribe are succeeding.
'Don't hate the player, hate the game.'
In the overall gameplay, we continuously introduce new mini-games. You must decide whether to participate. If you do, make sure to understand the rules, as there will always be opponents.
For example, daos.fun allows trading tokenized funds. However, confusingly, the hottest 'fund' ai16z trades at 52 times NAV (net asset value). It trades similarly to memecoins.
Players are all trying to understand it. Squiggly compared the fund to the 'Grayscale structure' or a Ponzi scheme of Friend.tech trading. BREAD disagrees with the Friend.tech part.
Squiggly and BREAD's viewpoints, who is right?
Though it's the same product, players' understandings can differ greatly. Players must find their own advantages in the game to profit.
It could be simple. After the team announced plans to whitelist a new 'fund' on their website, I anticipated that degens holding other 'fund tokens' might sell some old fund tokens to invest in the new fund. In fact, once the new fund was added, the prices of all old fund tokens dropped by about 50%.
Generally, the more confusing the gameplay, the greater the space for you to profit from information asymmetry.
The beauty of cryptocurrency is that there are always some people who join new trends without proper investigation, and as long as you do a little basic research, you have the chance to profit.
That said, I often try new things with a little bit of money first, then research how it works in practice. Learning by doing, and once I know if I can win this game, I invest more.
Ton's click-to-earn games thrive because they contrast with complex DeFi games: you simply click a button on the screen to earn money.
However, due to the simplicity of the game, the rewards are also low; unless you exploit the system and click hundreds of phones with manual fingers.
Cryptographic 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've been working to become an active representative in multiple DAOs, particularly Lido, Arbitrum, and Uniswap.
DAOs advocate for the vision of decentralized organizations, but currently, most DAOs are far from achieving decentralization, which is an open secret. For instance, in Arbitrum DAO, 14 addresses control over 50% of the voting power, and the same goes for other DAOs.
The Uniswap DAO was unaware that Unichain would launch the UNI staking feature. This also explains why the fee switch has not been turned on for months. Insiders know that once UNI staking is implemented, the fee switch will be unnecessary, while the DAO remains in the dark.
DAOs recognize that voting centralization is a major issue. To address this, they initiate incentive programs to attract new participants. By becoming an active governance representative of a DAO, you can earn between $3,000 and $10,000.
But it's not easy. You must actively follow forum discussions, comment, and vote on proposals. The hardest part is getting token holders to delegate their tokens to you, which touches on the political game.
After I tweeted about coordinating token holders and protocol incentives, an anonymous whale delegated 2.5 million LDO to me. Frankly, I received this delegation simply because I often post on X and have gained a small reputation. Playing the popularity game well on X can bring more opportunities in the cryptocurrency field, and these opportunities are rarely known.
Now, several protocols contact me, thanking me for voting in support of their proposals, or requesting my support for future proposals. Every DAO that hasn't appeared in the X f information stream or even in DAO forums has an important relationship-building process.
To be honest, I love this game. I firmly believe in a decentralized future and wish to make 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 the day I realized how terrifying centralized services can be. I quickly decided to quit.' — Vitalik Buterin
Vitalik decided to quit World of Warcraft because he felt he couldn't influence the game rules.
The wonder of cryptocurrency is that each of us can play a role and influence the game rules.
Like blockchain, crypto games are also decentralized. Venture capitalists, retail investors, builders, KOLs: we all have our roles, with some people being more influential than others.
Ansem, Murad, and other memecoin KOLs drive the memecoin cycle, but you can choose not to join their game.
This may be a bit off-topic, but I'm genuinely surprised by how little influence venture capital has in shaping narratives. Cryptocurrency venture capital should advocate for their investments, yet their attention on X is minimal.
Do they really not care? Or are they playing another game?
A notable example is Kyle from Multicoin, who is working hard to make money. More venture capitalists should share their views on the industry, advocate for their portfolio protocols, and provide in-depth research to clarify current developments.
From my interviews with cryptocurrency venture capitalists, one possible explanation is that they are essentially just more moneyed retail investors.
When Vitalik was playing World of Warcraft (2007-2010), I was playing another MMORPG—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 tasks and defeating enemies to gain experience (XP), which unlocks new abilities, better gear, and access to more challenging content.
I spent two years diligently studying, sleeping just a few hours a day. Those memories are deeply etched in my mind and have shaped my views on cryptocurrency trading.
Just like gaining XP in a game, in cryptocurrency, you can gain XP by learning blockchain, studying DeFi, researching tokenomics, etc. The more you practice, the better you will perform.
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 games require relentless effort, and you will inevitably feel burnout. In the cryptocurrency field, the pressure to stay ahead, continuously monitor the market, and not miss trends creates a high-pressure environment, much like an endless game from which you cannot opt out.
I was exhausted from the last bull market cycle, so now I manage my 'HP' by taking breaks every three months.
Is it strange to 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 no less than their obsession with esports (like League of Legends), even surpassing 'real sports.'
What I want to say is that the mindset of a gamer can help you stand out in the cryptocurrency field. Just choose the right game and understand your role in it.
In Naval's famous short post 'How to Get Rich Without Being Lucky,' he mentions 'game' and 'play' 15 times! His advice is:
Don't pay attention to those status game players who attack wealth-creating game players to gain status.
Choose an industry where you can collaborate with others long-term.
Play iterative games. All returns in life, whether wealth, relationships, or knowledge, come from compounding.
One of my favorite quotes is:
Accumulating specific knowledge is like playing a game for you, but for others, it feels like work.
So, what game are you playing in the crypto space?
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 CEXs. Since then, new games in the cryptocurrency field have exploded: DeFi, L2, NFTs, RWAs, Runes, Memecoins, and more.
How do you keep up?
Are you specializing in a certain area or trying to 'catch them all'?
In MMORPGs, 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 improve my chances of becoming a 'hero.'
I chose human summoner, then specialized in warlock, and then arcanist as I gained experience. This is the least popular class because its specialty is defeating enemies with pets.
Similarly, you can start by learning the basic skills of cryptocurrency, then focus on active trading, DeFi yields, memecoins, DAOs, etc.
Many lack the determination to learn specific skills, often jumping between various narratives without truly understanding them. They miss the knowledge needed to master the complex mechanisms behind specific industry game theory. They become exit liquidity.
In fact, jumping from one narrative to another while making money can be a special skill. You realize the money rotation game and manage to sell at the top before the money rotates to another narrative. But are you good at this?
However, I believe that specialization can yield rich rewards in the current stage of the market.
Specialization can be anything, like:
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 yields;
Andy is fully committed to the modularity space;
wale.moca focuses on NFTs;
Bold Leonidas posts crypto comics daily.
But be sure to pay attention to what influential people say, as their motives often differ from what you imagine. The game they play is different from the one they promote. You don't want to play games where the rules are against you. For example, Ansem recruits celebrities and somehow profits.
Why do you think I post on X?
My purpose in posting on X is: 1) to stay updated on the market, 2) to attract customers to my DeFi creator space Pink Brains, and recently 3) to build my influence and gain token delegation votes.
This strategy allows me to explore multiple topics even if I'm not an expert in any of them.
But when you start gaining followers on X, you will choose a field you are passionate about. As your followers grow, your topics should diversify. Posting can enhance your influence, so everyone should do it.
Becoming an influencer is like becoming a hero in Lineage 2. Your character gains a special aura that not only enhances your stats but also allows you to broadcast your messages to the entire server. I chose the least popular character because there's less competition in becoming a hero.
Many of you work in cryptocurrency companies, and the job 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 connections, gaining insights, and even influencing the game rules.
Specialization is now a true hiding place for alpha.
While holding BTC or ETH can guarantee profits, to achieve a 100x return, you need to dig deeper, just like mining for gold in developed fields. As Naval said, find work that feels like entertainment.
Whether it's DeFi, on-chain wallet tracking, or hunting for alpha in DAO forums, let curiosity lead you. By accumulating specific knowledge, you'll discover opportunities that others miss. This niche market is small enough to escape the radar of big players, but big enough to make you rich; crypto games could be your gold mine.
