The founder of Continue Capital, Ma Ma, shared ten things on It's easier to understand.
1. In the long term, MEV is the basic indicator to measure the development prospects of a chain.
MEV stands for "Maximum Extractable Value." When a blockchain has a large number of transaction activities, there will be room for arbitrage, resulting in the MEV problem. MEV itself is a blockchain network problem, but in Ma’s view, MEV is also a basic indicator to measure the development prospects of a chain. There are serious MEV problems on the Ethereum chain, and the same is true for Solana.
2. TVL is a kind of MEME. After you increase the price of L1 Token by 5x-10x and align it with ETH, then measure the capital turnover rate.
The total value locked on the chain (TVL) is just a vanity illusion. When you rank other L1 tokens at the same level as Ethereum, you will find that the actual efficiency of capital use and economic activity is not so high.
3. FDV is not MEME
Fully diluted valuation (FDV) has reference value.
4. Economic security is a MEME, unreliable (refer to LUNA/ATOM)
The security that relies on the economic support of tokens is false and unreliable.
5. The execution layer is where the greatest value is captured.
6. A chain of decentralized exchange data can better reflect the degree of ecological prosperity. Remember to remove the data of "Stablecoin Swap Trading Pair" and "L1 Token-U/ETH Trading Pair". In some DEXs, nearly 60% of the trading volume may be the above two types.
7. The target customer group of L1/L2 is developers, not community users. Don’t develop strategies around the community, but around developers.
8. It is inevitable that the total market capitalization of U.S. stocks will be limited to 7 stocks, and the market capitalization and trading volume of the currency circle will also be significantly concentrated.
9. Don’t just tell me how many users you have, tell me how much revenue you have. The ultimate goal of acquiring users is to find a business model and monetize users.
10. Committed to introducing traditional investment systems/valuation models into the currency circle. Value is the foundation of prosperity.
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