Cryptocurrency is no longer just a financial tool, but a mainstream entertainment. Even if many people are not involved in the cryptocurrency market, almost everyone has heard of it, and it has even become a hot topic in the US election. The popularity of cryptocurrency has gone beyond the financial field and has become an entertainment industry.

Author: Matti. Ported by: Bosen Quantitative Consultant Xiao Sun (bosen0722)

CT is a false prophet

As a source of information, CryptoTwitter (CT) is actually full of useless noise. Although people can occasionally get some investment advice from it, it is more like a never-ending drama. CT constantly reinforces the belief that "the early bird catches the worm", making many newcomers believe that they can succeed as long as they participate. However, this concept is often wrong. CT is more like a reality show that entertains the audience by selling tokens, far away from the original cryptocurrency idealism.

From Anarchism to Tik Tokization

Cryptocurrency has undergone a huge transformation from the earliest anarcho-capitalist dreams to today's TikTok-ization. CT is not the driving force behind the industry, it is just one of the manifestations of cryptocurrency's gradual mainstreaming. Imitation and hype in the industry have replaced real innovation, and the myth of a four-year bull market has become the core concept that people believe in. Although this belief has injected continuous funds and attention into the market, it has also hindered real innovation.

Lack of innovation and short-term interests

Currently, innovation in the crypto industry lacks motivation because short-term interests drive the behavior of most participants. A large amount of money flows into short-term projects rather than long-term innovation. Venture capital firms have gradually slowed down their fundraising because it is becoming increasingly difficult for them to get returns from these projects. Past investment returns have given people a blindly optimistic illusion that every cycle will bring returns, but this may not be the case.

Disadvantages of the “four-year cycle”

The four-year cycle theory of cryptocurrency has fostered short-term thinking and the “greater fool” theory—people are always looking forward to finding the next buyer before the market crashes. This philosophy has fostered complacency in the market, making it difficult for real technological innovation to emerge. In order to maintain this narrative, participants in the cryptocurrency field would rather continue to brag about their “culture” and “community” while ignoring the actual innovation of the product.

Narratives and markets

The "narratives" that are prevalent on CT actually have no real basis. What really drives the market is not slogans on social media, but real innovation and technology. However, most of the narratives in the current crypto market are empty and spread through social media. Although the market relies on narratives to drive the bull market, when these narratives are not supported by innovation, they will eventually collapse.

Future challenges and opportunities

The future of cryptocurrencies may be facing a major adjustment, which will be painful in the short term, but may be good for long-term innovation. The market is too dependent on macroeconomic interventions, such as interest rate cuts or the launch of ETFs, rather than bottom-up technological breakthroughs. If the current bubble bursts, it may force the industry to refocus on real technological innovation rather than relying solely on narratives and hype.

What should ordinary people do?

[No investment and financial advice, the cryptocurrency world is risky, so be careful when investing! ]

If you don’t have much time to research, don’t want to be distracted and contribute real money to others, but want to make stable profits in the crypto industry, you can try quantitative strategies. For example, through CCR intelligent spot robots and CCG contract quantitative robots, you can reasonably control positions, use big data to calculate the timing of transaction entry and profit-taking, and liberate manpower!