Cryptocurrency is like a game: trade tokens, make (and lose) money, and gain followers on X.
Do you feel the same way? But unlike real games, failures in cryptocurrency games can have serious consequences.
After the Terra crash, according to an online record from a Korean father, a family of three (including a 10-year-old daughter) committed suicide due to financial losses. Admitting that cryptocurrency is a game publicly 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'll have a brief period to indulge in gambling, then become elite, or live paycheck to paycheck for your whole life.'
In this article, I want to share the script of crypto games, my thought framework, and how to win in crypto games.
Rules of crypto gaming
Once you discover the similarities between cryptocurrency and (especially MMORPG) games, you can’t ignore it.
In times of economic hardship, with no new capital inflow, PvP (player versus player) mode prevails. In a bull market, as new funds come in, we switch to PvE (player versus environment) mode.
If you don’t like KOLs influencing you, we might think of the saying 'Don’t hate the player, hate the game.'
We even designed the tokenomics to prevent people from dumping their tokens through various game theories.
Just like game upgrades, crypto gaming is also constantly evolving, with new stories emerging and disappearing.
For example, once a top NFT player, Pranksy now can't keep up with the pace of meme coins. The gameplay has changed, but he still insists on playing a game that few people are interested in.
Of course, meme coins can be terrible, but a few years ago, those who didn’t know how to play the NFT minting and trading game said the same about NFTs.
You face two choices in the game: either adapt and participate, or wait for the new gameplay of the game. There’s also a third, more challenging option: changing the game rules themselves.
For instance, Cobie launched the Echo platform, allowing retail investors to participate in venture capital and buy tokens just like in the ICO era. The story of meme coins will gradually be overturned by those players who decide to change the game rules.
However, meme coins are also worth praising because they have actually succeeded in changing the game rules.
For about the past year, we have been playing a 'points' game. You deposit assets into a protocol, accumulate points, and pray for generous airdrops. I know you like this game because 'DeFi degen's bull market script' is still one of my most popular posts.
In any case, it turns out that many people have been scammed.
Higher TVL means higher valuations, thus the FDV of token issuances are ridiculously high, benefiting only those VCs and teams that entered at low valuations, and of course, the yield farmers dumping airdrops.
Thus, many turned to meme coins, standing in opposition to VC tokens.
Although Pranksy is failing, the meme coin protagonists Ansem, Murad, and the players who joined their tribe are succeeding.
In the overall gameplay, we continually introduce new mini-games. You must decide whether to participate. If you do, make sure you understand the rules, as there will always be opponents.
For instance, daos.fun allows trading tokenized funds. However, it’s confusing that the trading price of the hottest 'fund' ai16z is 52 times its NAV (Net Asset Value). It trades similarly to meme coins.
Players are all trying to understand it. Squiggly compares the fund to the 'Grayscale structure' or Friend.tech trading fee Ponzi scheme. BREAD holds a different opinion on Friend.tech.
Although it’s the same product, players’ understandings are vastly different. Players must find their advantages in the game and profit from them.
This could be simple. After the team announced plans to whitelist a new 'fund' on the website, I expect degens holding other 'fund tokens' might sell part of their old fund tokens to invest in the new fund. In fact, once the new fund is added, the price of all old fund tokens will drop by about 50%.
Generally, the more confusing the gameplay, the greater the opportunity for you to profit through knowledge asymmetry.
The beauty of cryptocurrency is that there will always be some people who jump into new trends without thorough research, and as long as you do a bit of basic research, there’s a chance to gain profits.
That said, I often try new things with a little money first, then do research to understand how it works in practice. Learning by doing, and only investing more funds when I know whether I can win this game.
Ton’s click-to-earn game thrives because it contrasts with complex DeFi games: you simply click a button on the screen to earn money.
However, because the game is too simple, the rewards are low; unless you exploit the system by manually clicking on hundreds of phones.
Crypto technology becomes more interesting and complex here: there are multiple layers, roles, and strategies to choose from. If you want, you can also choose side quests.
Let me give you an example.
Recently, I have been working hard to be an active representative in multiple DAOs, particularly Lido, Arbitrum, and Uniswap.
DAOs advocate for the vision of decentralized organizations, but most DAOs are far from achieving decentralization, and this is an open secret. For example, in Arbitrum DAO, 14 addresses control over 50% of the voting power, and other DAOs are similar.
Uniswap DAO didn’t know that Unichain would launch the UNI staking feature. This also explains why the fee switch hasn’t been turned on for months. Insiders know that once UNI staking is implemented, the fee switch will no longer be necessary, while the DAO remains in the dark.
DAOs recognize that voting centralization is a big issue. To address this, they have launched incentive campaigns to attract new participants. By becoming an active governance representative in 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 posted about coordinating token holders and incentive measures for the protocol, an anonymous whale entrusted me with 2.5 million LDO. Frankly, the only reason I received this delegation is that I am somewhat famous for frequently posting on X. Excelling in popular games on X will bring more opportunities to the cryptocurrency industry, which few people are aware of.
Now, multiple protocols are contacting 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 feed 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 hope to make an impact.
Player mindset
Did you know that soon after Vitalik Buterin removed the damage component from the 'Life Siphon' spell of warlocks, he founded Ethereum?
'I cried myself to sleep that day when I realized the horror that centralized services could bring. 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 wonderful thing about cryptocurrency is that each of us can play a part and influence the game rules.
Like blockchain, crypto games are also decentralized. Venture capitalists, retail investors, builders, KOLs: we all have our roles, and some are more influential than others.
Ansem, Murad, and other meme coin KOLs drive the meme coin cycle, but you can choose not to join their game.
A bit off-topic, but I am surprised at how little influence venture capital has in shaping narratives. Crypto venture capital should advocate for their investments, but their focus on X is negligible.
Do they really not care? Or are they playing another game?
A notable example is Kyle from Multicoin, who is struggling to make money. More venture capitalists should share their views on this industry, advocate for their investment 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 profession (warrior, mystic).
You can level up by completing quests 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 only a few hours a day. Those memories are deeply engraved in my mind and shaped my view of cryptocurrency trading.
Just like gaining XP in a game, in cryptocurrency, you can gain XP by learning about blockchain, studying DeFi, researching tokenomics, etc. The more you hone your skills, the better you will do.
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 gaming require relentless effort, and you will inevitably feel burnout. In the cryptocurrency industry, the pressure to stay ahead, constantly monitor the market, and not miss trends creates a high-stress environment, much like being in an endless game where you cannot choose to exit.
I was exhausted during 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 share similarities: crypto games are male-dominated, while only about 35% of MMORPG players are female.
Koreans are just as obsessed with cryptocurrency as they are with esports (like League of Legends), even more so than with 'real sports'.
What I want to say is that the mindset of a gamer can help you stand out in the cryptocurrency industry. 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 mentioned 'game' and 'play' 15 times! His advice is:
Ignore those status game players who gain status by attacking wealth creation players.
Choose an industry where you can collaborate long-term with others.
Play iterative games. All returns in life, whether wealth, relationships, or knowledge, come from compounding.
One of my favorite phrases is:
Accumulating specific knowledge feels like playing a game for you, but for others, it feels like work.
So, what game are you playing in the crypto industry?
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 industry have exploded: DeFi, L2, NFTs, RWAs, Runes, meme coins, and more.
How do you keep up?
Are you specializing in a certain industry or trying to 'cast a wide net'?
In MMPORG games, you first choose a race, then a profession. In Lineage 2, I decided to choose the least popular option because I wanted to stand out and increase my chances of becoming a 'hero'.
I chose to be a human summoner, leveling up, then specializing in warlocks, and then in archmages. It’s the least popular profession because its specialty is using pets to defeat enemies.
Similarly, you can start by learning the basic skills of cryptocurrency and then focus on active trading, DeFi yield, meme coins, DAOs, etc.
Many lack the determination to learn specific skills, often jumping between various narratives without truly understanding them. They miss out on the knowledge required to master the complex mechanisms behind specific industry game theory. They become liquidity exits.
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, for instance:
Crypto Koryo excels at Dune dashboard creation and monetization;
USD Denominated focuses on the stablecoin market, navigating market complexities to achieve the highest yields;
Andy is fully immersed in the modular industry;
wale.moca focuses on NFTs;
Bold Leonidas releases crypto comics every day.
But be sure to pay attention to what influential people say, as their motivations are often different from what you imagine. The game they play is different from the game they promote. You don’t want to play games where the rules are against you. For example, Ansem recruits celebrities and finds ways to profit.
Why do you think I post on X?
My purpose in posting on X is:
Stay informed about the market,
Attract customers to my DeFi creator space Pink Brains, recently
Build my influence and gain token delegated votes.
This strategy allows me to explore multiple topics, even when I am not an expert in any of them.
However, when you start growing your followers on X, you will choose an industry you are passionate about. As your followers increase, your topics should diversify too. Posting can enhance your influence, so everyone should do it.
Becoming a KOL is like becoming a hero in Lineage 2. Your character gains a special aura that not only enhances your attributes but also allows you to broadcast your information to the entire server. I chose the least popular character because it faced less competition to become a hero.
Many of you work in cryptocurrency companies, which forces you to focus on roles such as 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 where the real alpha is hidden now.
While holding Bitcoin or Ethereum can guarantee steady profits, achieving a 100x return requires deeper digging, much like mining for gold in a developed industry. As Naval said, find work that makes you feel like you are having fun.
Whether it's DeFi, on-chain wallet tracking, or DAO forum alpha hunting, let curiosity lead you. By accumulating specific knowledge, you will discover opportunities that others miss. This niche market is small enough to escape the radar of big players but large enough to allow you to reap significant rewards; crypto gaming may be your gold mine.
[Disclaimer] Markets are risky, and investment should be done cautiously. This article does not constitute investment advice, and users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Invest at your own risk.
This article is authorized for reproduction from: (Foresight News)
Original author: Ignas
