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Crypto: Difference between revisions
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== Current Assessment of Crypto (Jan 2023) == | == Current Assessment of Crypto (Jan 2023) == | ||
After inflation spiked and central bankers around started to adjust the crypto bubble | After inflation spiked and central bankers around started to adjust, the crypto bubble, which has been inflated by cheap money collapsed. | ||
Now we are in a deep winter in which treasure hunters are leaving the space. I didn't see statistics yet but i would guess that 90% of both users and projects are leaving. | Now we are in a deep winter in which treasure hunters are leaving the space. I didn't see statistics yet but i would guess that 90% of both users and projects are leaving. | ||
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The sweetspot is | The sweetspot is | ||
* When the dust settles and most people capitulated and left the space | * When the dust settles and most people capitulated and left the space - Valuation will be lowest | ||
* Monetary policy is still restrictive but about to change soon | * Monetary policy is still restrictive but about to change soon (Ideally shortly before central banks "need" to pivot for some reason e.g. something in the system breaking) | ||
==== Has the time to enter already arrived? ==== | ==== Has the time to enter already arrived? ==== | ||
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==== How to prepare? ==== | ==== How to prepare? ==== | ||
In the hunt for great investment opportunities preparation is everything. Therefore it is imperative to start building a crypto community right away so that we can position ourselves ideally shortly before the next wave arrives and immediately jump into the best opportunities we identified after certain triggers (e.g. change in central bank policy) hit. | In the hunt for great investment opportunities preparation is everything. Therefore it is imperative to start building a crypto community right away so that we can position ourselves ideally shortly before the next wave arrives and immediately jump into the best opportunities we identified after certain triggers (e.g. change in central bank policy) hit. Judging by patterns of the past doing that right can be enormously profitable. | ||
==== Do you have any crypto investment ideas? ==== | ==== Do you have any crypto investment ideas? ==== | ||
There are some projects that | There are some projects that looked interesting at first glance a while ago into which i like to look into more details. | ||
Those are | Those are | ||
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The process of analyzing crypto projects is similar to analyzing stocks with the differences that | The process of analyzing crypto projects is similar to analyzing stocks with the differences that | ||
* You need to be | * You need to be even more critical | ||
* You need to get closer to the team. Get in contact, try to join their dao | * You need to get closer to the team. Get in contact, try to join their dao | ||
* Learn some basic concepts about smart contracts, see if they are audited and make sure there are no exploits. (Article to be written on exploits) | * Learn some basic concepts about smart contracts, see if they are audited and make sure there are no exploits. (Article to be written on exploits) | ||
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* Understand that there are a lot of bad actors | * Understand that there are a lot of bad actors | ||
* Understand the stage of a project. A lot of "projects" are mere concepts. Did the team actually develop something that is working or are they selling promises? | * Understand the stage of a project. A lot of "projects" are mere concepts. Did the team actually develop something that is working or are they selling promises? | ||
* Understand tokenomics (Who is getting rich, lockups etc.) | |||
* Understand the utility of a token | |||
* Understand supply and demand | |||
* Understand how you can track money flows onchain (Article to be written on that topic) | * Understand how you can track money flows onchain (Article to be written on that topic) | ||
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* Look for great real life use-cases with large markets. There are indeed revolutionary and brilliant technologies. Try to understand which technology has the potential to make a real impact. Focus on technologies which are easily adopted and make things simpler opposed to more complicated/impractical. | * Look for great real life use-cases with large markets. There are indeed revolutionary and brilliant technologies. Try to understand which technology has the potential to make a real impact. Focus on technologies which are easily adopted and make things simpler opposed to more complicated/impractical. | ||
* Look for great teams. Those are people who are in the game due to passion, not for the quick buck and proved their | * Look for great teams. Those are people who are in the game due to passion, not for the quick buck and proved their capabilities, are open and transparent and work well together. | ||
* Look for moats. Why is one team/project winning over the other? | * Look for moats. Why is one team/project winning over the other? How can a certain market be defend? | ||
* Look for sustainable finances and | * Look for sustainable finances and ways a token might generate money (e.g. utility/burn mechanisms) | ||