#Meme #ValueInvesting
Although this article is a casual essay, it has a focus and is very well written. It mainly talks about value and meme. The main points are:
1. Value Coins and Market Conditions
2. The rise and risks of Meme coins
3. Changes in market cycles and investment strategies
4. A brief discussion of Ponzi strategy
5. Investment logic and market navigation
The work has been saturated in the past two weeks. I am flying in the sky, but I am losing money on the chain. I used to shout about ambushing value coins every day, but in the end I found that they are not as valuable as memes. The former value only maximizes the emotional value, while the latter requires all, both emotion and freedom. Today I will just talk to you about value and memes. It's still the same. I just talk about whatever comes to my mind. To be honest, the pictures are randomly inserted later.
As "Wall Street traders" in 2024, do you remember how you initially viewed blockchain? I believe that many people initially viewed blockchain as a technological revolution, which attracted many investors to invest in projects with revolutionary innovation potential such as Ethereum and Solana.
These projects are not only cutting-edge in technology, but also have established a deep value foundation in the cryptocurrency circle. However, grassroots people enter the cryptocurrency circle not for an annualized return of 10%, but to change their fate and cross levels. Therefore, as the market matures and project valuations increase, many early investors and institutions begin to seek to encircle and suppress retail investors at the peak of the bull market, thereby completing asset transfers. Yes, I didn't expect it, they stole my home again.
However, as more and more so-called "value" coins are unlocked and flow into the market, coupled with insufficient liquidity and the phenomenon of off-market capital deviation, the market begins to face the problem of oversupply.
The faster pace of unlocking increases the amount of assets circulating in the market, which drives down prices. Although investment tools such as ETFs provide some financial support, when the market demand for these so-called value coins is not enough to absorb the supply, prices inevitably fall.
Speaking of memes, the rise of meme coins simply reflects the desire of the leeks to get a piece of the pie, and the desire of market participants for quick returns, while ignoring the risks involved.
While Meme coins can provide significant returns in the short term, this investment often lacks sustained market support and prices can quickly collapse once inflows cease. This phenomenon not only affects the Meme currency market, but may also trigger a broader market adjustment.
After a deep market correction, investors tend to re-evaluate their investment options and return to projects with sustainable development potential. During this stage, there may be a wave of investment enthusiasm based on fundamental analysis, driving the market back to healthy development.
Accompanied by the cyclical fluctuations of the market, once the bottom is stabilized, the adjusted Meme coins may attract investors to re-enter the market due to their low valuations, bringing about a new round of price increases.
In general, the development of the cryptocurrency market is full of uncertainty and opportunities. Investors need to stay alert when participating in the market, understand market dynamics, and make wise investment decisions. I hope this article can provide you with valuable insights and help you better navigate this changing investment environment. The unpredictable nature of the cryptocurrency world is like the wheel of history, always moving forward in a constant cycle. From value investing to the hype of Meme coins, the enthusiasm of the market seems to always be hovering between constant burning and extinguishing.
When the market adjusts deeply, especially when some currencies may fall by more than 70%, the total market value will return to a lower level, sowing the seeds for the arrival of the next bull market. During this period, the market may experience a relatively calm accumulation phase, and then the balance of the cryptocurrency circle may again lean towards projects with real innovation and value.
History always repeats itself in a surprising way, just as the money people earn from value investing eventually flows into Meme coins, which were low in price at the time, which may bring about a new round of price increases. In this process, the enthusiasm of investors will most likely be rekindled, and the market will once again set off a wave of investment enthusiasm, and even those investment strategies that were once considered outdated may regain favor.
Thinking further, what is the easiest way to make money in the cryptocurrency world? After much thought, the one that makes money quickly is meme; the one that makes a lot is Ponzi. Meme + Ponzi, the best! Do you remember the formula I wrote to you a long time ago? The cryptocurrency world is the entertainment world, traffic is money, and the purchase of the project = the number of people spreading it * purchase rate * purchase amount.
Meme wins in terms of dissemination. A few meme pictures, a WeChat chat record, a vague screenshot, a slogan, or a story can all be spread across WeChat groups in no time. Meme has a very important dissemination attribute, and Ponzi scheme, after careful consideration, is actually better than technological innovation. In other words, the ultimate value capturer of technological innovation is still Ponzi scheme.
Let me give you an inappropriate example. Is stock a Ponzi scheme? If the price-earnings ratio is more than 30 times, I think it is a Ponzi scheme, because a company needs to make money for 30 years before it can give shareholders a 100% return. What everyone is speculating on is the future. Whoever sees the future first, whoever bets first, will have the advantage. Jia Yueting's Faraday has been very popular these days. Do you think he is not a Ponzi scheme? So far, only a few vehicles have been delivered. It is because of the prosperity of the stock market that economic development and technological innovation have accelerated. But it is also because of the prosperity of the stock market that the speed of making money has increased 100 times. I think you understand what I mean.
Ponzi schemes are not scary, what is scary is that you didn't see through it earlier and enter the market bravely. If you lose money, people will say you are stupid, but if you make money, they will give you a thumbs up. Memes are not vulgar. You know, the simplest things can cover the widest group of people.
In short, no matter how the market changes, the core investment logic - finding and holding crypto assets that are truly innovative and have potential - remains unchanged. This is a possible path to success, but also a path full of thorns. I hope every investor can stay sober and seize opportunities in this unknown journey.
