2017 is the ICO era and crowdfunding has directly replaced VC and PE. Therefore, the bull market in 2017-18 belongs to OG platforms and belongs to agency investment. As long as you hold a part, you can make money.
With the rise of defi in 2021, the real market has begun to diversify and diversify. You can make money as long as you run fast.
At that time, IEOs could also negotiate with the project team to issue a portion of shares to users, so the launch price was generally low, and buying new instead of old was also typical of this period.
But now IEO compliance in most countries is generally considered to have legal risks, so it can only be airdropped and priced at market price, which means that if the circulation is large and the opening price is low, the project's performance is relatively stable, such as BB and Lista, but compared with 21 years, it still increases too fast and lacks a full washing process.
This rising wave in 2024 was started by BTC ETF. This wave of smart money belongs to king-level projects and Lumao Studio. They love each other and together create a beautiful wave of data. On the one hand, the project can raise more money from venture capital funds There is a lot of money (if you look at the top venture capital funds in the market, they are all worth more than a billion US dollars, which will really push the price of good projects up), and on the other hand, projects with money and users are full of confidence, and on-chain There are millions of users. It doesn't matter if a certain platform is not available. Most of them need CEX. If there is no CEX, there will still be Dex. If not, there will be Dex on your own chain.
Exchanges have no pricing power, so for projects with high valuations, it is better to look at fundamentals, not only market value but also circulation volume.
Today, it is true that the market has changed again. The war between Lumao Studio and L2 Project has become a farce, and the era of Lumao may be coming to an end. Now, there are more professional players in both the primary and secondary markets. They have various tools for hedging, but they have also expanded the market size. Now, as ordinary investors, they use ICO in 2017, IEO in 2021, matryoshka, and I am even afraid that the hair combing strategy in 2023 is not suitable for today's market.
Is it the lack of venture capital and fewer project participants that will lead to a healthier market? In each cycle, there will be some projects that go through a rise and fall phase, and there are countless king-level projects that fall into failure, whether web2 or web3, business success is rare, and projects that break through the gap and pass the cycle are even rarer.
Investing is risky so be cautious when entering the market.
