Encrypted world in flow economy: BAYC, People for SOS

From digital scarcity due to NFT to the phrase “55 million millionaires in the world, but 21 million bitcoins,” people are still talking about the cryptocurrency shortage.

But in fact, "care" is the only investment in the cryptocurrency space.

First, venture capital is clearly not an understatement. Recipients involved in crypto in the summer of 2021 plan to raise millions of dollars in funds to create a "meta-world" and differentiated use of the internet. A billion dollars in this comparison doesn't matter.

Second, cryptographic tools are scarce. This decision may seem a bit arbitrary. Bitcoin and Ethereum are rare because of their hard cap setup and symbolic standard deflation design, and why cryptopunks are rare if their products are restricted and fixed. As with cryptocurrencies, the total number of listings may increase from the first 5,200. But from another point of view, the total amount of money we can estimate in cryptocurrencies has been increasing steadily and endlessly. . Notably, millions of dollars in private equity have not been fully spent on purchasing OG crypto plans.

In other words, American investments can be diluted by a number of business plans. This especially happens during bull markets, especially turbulent levels, and for the foreseeable future, self-proclaimed genius fund managers will disagree with the notion of long-term value of cryptocurrencies.

Photo source: Pexels

It is true that there are only 10,000 cryptopunks in the world, but there are also 10,000 BAYC, MAYC, MAKC, cool ArtBlocks, CoolCats, Meebits and Hashmasks. Due to the EIP1559 mechanism used by ETHereum, thousands of ETH have been burned and destroyed, and ETH is unlikely to increase over time. But if people think it's too late to start ETH, they can choose AVAX, SOL, LUNA, ONE, NEAR, and even ADA.

After a while, real crypto assets will become scarce. Most tokens will disappear completely, due to the small number of crypto assets that can outperform Bitcoin in one or more bull markets. Looks like there may be some experience in the middle, but that's not bullshit. When the carnival ebbs, the naked people finally regain consciousness. Everyone makes their own wishes, knows the truth, and reflects on the decisions they have made in the "soul" experience. The capital can be reused for the cost. However, the “price of the pool” at the time would have promised investors who now look like dreams.

But recently the $ 1 billion fund managed by the former Citibank "Innovation Manager" (now wagmi-punk-2383) is wasted by various companies in the market. LP pays you daily and the project has no end. Hundreds of developers have created DeFi Channel Tour and Cross-Channel Meta-Universe projects.

Care is a small investment.

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Surveillance is a boon to modern websites, and businesses in the Web 2.0 era saw it early on. They know that important consumers are using their care to pay for services, and they want to attract and sell products to consumers at some point. Usually, these companies do not sell their products, but act only as “middlemen” between consumers and sellers, and agents sell products according to consumer preference.

In the case of a symbolic economy, the monetary nature of the interest is simple. Over 50 Defi Initial Offers (DeFi Initial Offer or DEX Initial Offer, IDO) are held daily, competing to raise funds and encourage users to engage with their community. There have been regular airdrop operations over the past 12 months. Businesses use airdrop media models to reward consumers and promote their products.

In the age of Web 2.0, incumbents typically invest between $ 5 and $ 10 to get users to their products. For example Uber, when people create an account, they can get a $ 10 discount on their first visit. In the age of Web 3.0, the battle for listening has become more intense, support for 9-digit numbers has become obsolete, and 5-digit airdrops have become obsolete. The reporting costs for each KOL video in the pipeline encryption area reach 5-6 digits. You can see that the state's resources are very low and very demanding.

Condition-based asset valuation

As I wrote in my last article, bull trading is more of a movie than an investment. While the cryptocurrency market compares to many online players earning US dollars, interest is a deciding factor in many "short games".

In so many crypto games, most players cannot measure all the skill and importance of the job. In other words, an entrepreneur relies heavily on brand identity and community sentiment when making decisions.

Assuming that the value of a cryptocurrency equals the time difference between goods (sales) and demand (buyers), the result of dissatisfaction comes from the source.

An increase in demand or a decrease in the number of sellers can increase the value of profits, but the cycle of capital changes affects supply and demand. bull market crypto video game.

In particular, while the costs of developing and producing the protocol typically take many simple cycle years, the market cycle for investors in the crypto bull market is less than weeks or weeks.

Therefore, care is only affected by changes in supply and demand. It changes at the same time as the player because it is completely under the control of the player.

Traders like to choose

During the turmoil of the bull market, good players will not buy the “best” asset. Instead, they'll buy treasures that are meant to appeal to people who are more attractive or who know their investment.

Reprint of first link

Good investors want to buy "winning" jobs to maximize their profits. There is no doubt about it. They also want to buy projects that need to be upgraded from “niche” projects to “winners”. They are willing to buy a project that needs to be upgraded from a "rekt" project to a "retailer" knowing that there is a very high risk that a failed project will become popular. The least. By adapting products to focus on technological change or cultural change, a project can still go from a 'failure' to a 'niche'. Buyers are assured that any updates (eg moving left to right or bottom to top in the image above) can be provided to them.

For entrepreneurs and long-time entrepreneurs, “winning” campaigns are the best asset because of their visibility. However, for players involved in the modern cryptocurrency industry, the market provided by “running” activities is limited. This is because when it seems like you are slowly reaching the middle of the market, good investors tend to invest more than the market. Medium horizontal entry. Ethereum is a representative of "running" projects. At the same time, “winning” jobs are also less risky. At the same time, the models of the cryptocurrency industry continue to change and these "winning" positions will gradually shift to "niche" or "lost" projects.

“Keeping Trap” plans also present similar problems to “Winner” projects and present a higher risk than “Winner” projects because the technology or the team will have bottlenecks and will not be able to last long. Sure, it can be tailored for a good project, but even completed it doesn't seem to take much time. The best scenario is to adapt and continue towards the middle of the market. At worst, the project goes from a "business trap" to a "loss-making" project because the company recognizes and eliminates the gaps.

As the project grows in popularity and popularity, it will appeal to buyers. This “preferred” period is when asset prices fluctuate the most.

As the project has become a more viable option for investors, the number of business participants with assets has reached saturation point. Once saturation is reached, stable growth can be achieved in two ways: Continuously optimized. This may explain why die-hard crypto traders are unwilling to invest in "winning" or "stock" trades during a stock market crisis. Both of the above methods are too slow for them. There are a lot of options in the cryptocurrency market, but the costs are huge as well.

Good crypto gambling players usually invest in jobs that are significantly less than their investment value and sell when they get closer to their investment. They are invited into the "winning" project, but at the same time looking for something better.

Long-term investors are less interested in these sports. They are willing to invest and bet on “on-going” projects, hoping that they will grow with the business or gain in importance.

SOS, Booty, BAYC

There are many examples of interest investments paid into the market in an instant.

The recent SOS token drop event is a good example of this. In this company, the third party will perform SOS airdrops based on the previous NFT purchase history of the Opensea users. It is very interesting, it can be seen that giving all cryptocurrency players free exchange of rewards can lead to the enjoyment of trading products for all crypto players.

The SOS tokens here do not contain any merchandise or content. It is a business that is driven by demand from players for OpenSea tokens or other competing tokens.

When players turn their attention to SOS tokens, they are often faced with three options.

(1) Sell Airdrop tokens in exchange for Ether or US Dollars.

(2) Store the airdrop tokens and check the changes.

(3) Contact the airdrop supplier to purchase more SOS tokens.

Once the interest capital is injected into this new market, cryptocurrency investors will start to think about how they can make money from this innovation. This is the final theme of the video game. If enough clients choose method (2) or (3), the buy price of (3) will be higher than the sell price of (1), the price of the SOS token will show an increase, and the curve of the curve . will show the model, the price card will show the model.

If the price curve is true, more people will talk about SOS tokens and more newcomers will join the market, choose one of the three ways above. Entrepreneurs who have never used OpenSea or who have not contributed to the benefits of the airdrop must choose between two options:

(1) Purchase of SOS tokens and affiliate trading

(2) Waiting on time or not paying full attention to the business.

Some people will choose (1) to further increase the value of the token. As the prices go up one by one, people can earn money and talk more about this new product.

However, in the meantime, the impact of membership will go beyond the realm of interest, and the popularity and popularity of the project will soon materialize. . .

As the prices go up, more and more people are willing to sell airdrop tokens. At the same time, the number of new entrants who decide to buy SOS tokens may also decrease due to the slowness of the price curve and the loss of interest capital. As a result, the differences between SOS tokens are not clear, the concept is not new, and without the rare interface, it suddenly becomes a token, and the k-factor of the device is also immediately reduced. Of course, the first level of interest cannot last long, and most of the additional interest comes from existing holdings.

After so many players interact with the treasure, it looks like players will reconsider their decision after some time. At this point, if the property does not have the blessing of the product and its users, it will be difficult to get good care.

It can be said that the Loot pattern overlaps slightly with the above formula. This could explain why BAYC has become the most successful PFP project in the NFT industry this year, which is faster than the cost of storing Punks and removing all other competing tokens on offer at the same time.The reason why BAYC focuses on building a productive community and community partners to become a lifelong advocate of increased security or resilience.

Dogecoin

Dogecoin is another interesting example of a growing investment in the market in 2021.

In the long run, Dogecoin trades more than Bitcoin. However, from the initial Dogecoin announcement until the end of 2020, the transition has been consistent. The figure below shows the transformation of Dogecoin from 2014 to the end of 2020. Basically it has been controlling the zig-zag transition for over 7 years.

Reprint of first link

When people find out about Dogecoin, they have two options.

(1) Purchases

(2) Ignore.

From this, we deduce that the decision with respect to the last 7 years has never changed. 90 out of 100 options are ignored and the other 10 options are bought.

Then, in 2021, a new state catalytic mechanism was introduced. Elon Musk has become a huge fan of Dogecoin, contributing to two things:

(1) Many cryptocurrency users are persuaded to buy Dogecoin.

(2) Ask new market participants to buy Dogecoin as a gateway to cryptocurrency.

When Elon Musk started raising the price of Dogecoin, it was a booming market. You might want to ask yourself: if Musk continues to attract people's attention to Dogecoin, which audience can he reach the most? How will the buyer / neglect ratio be affected?

Thinking about it, it is very easy to bet on Dogecoin. If it continues to increase in value, the interest investments it wants to change the relationship between supply and demand in the near future, and Dogecoin holders will have a good business relationship with the 5-10 prep. times the capacity on the rise. If it does not increase the prices, the holders will lose 33% of its capital. In this way, the capital investment and the return are not equal.

Photo source: Pexels

But eventually people all over the world who love to buy Dogecoin will understand this fact. At the node level, those who know Dogecoin are already saturated and those who can persuade them to buy it already, so your investment in security is the best. Currently, monitoring resources have been focused on the majority of dissatisfied viewers and those who bought the highest expectations. As the exchange of care decreases, newcomers may refuse to buy more and the holders will end up becoming one of the listeners.

As the power of membership and investing began to shift through interest capital, smart traders began to sell their tokens.

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Finally, let's talk about an interesting example, Cardano (after ADA). The main points of the ADA are the same as the Avalanche, Solana, Luna, but the performance is completely different throughout the year 2021.

At the beginning of the market store, ADA liked a lot of care. It becomes the most of the most common things in the tube, and all the well-bloggers are listed in one of our big treasure. The Founder Charles is also a funny pipe! Its video playback is more than 50,000.

However, since early 2021, the value of ADA has dropped 93% compared to SOL.

Reprint of first link

This can be explained by the reasons for the SOS or BAYC scan.

When the impact of the project on the resources of interest exceeds the impact of membership, the cost usually increases. At the end of 2020 and early 2021, the ADA rises to the top of the "Ethereum killer", attracting many entrepreneurs. Additionally, the bull market was just starting to take off and more and more newcomers were starting to join the market, giving it more ADA.

Throughout 2021, Series 1 public companies like Avalanche and Solana have developed well-established ecosystems with user engagement similar to BAYC. They continue to attract and educate users, developers and potential customers. New campaigns and revenues were quickly launched on these L1s.

Members of this community are constant supporters, and since crypto players dislike work, financial insecurity, gambling, and other activities create a vicious cycle of good returns that make a positive difference. Due to the lack of interest, all of the L1 tokens were competing for sharing at the same time. Solana and Avalanche's success in sharing user experience also means the downfall of other L1s.

ADA is popular, but what users can do now is only limited, and there is nowhere for crypto players using ADA to earn points through games. In a sense, ADA is more of a “commodity” than a “winning” project.

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Consideration is the only investment in the cryptocurrency space.

When measuring crypto assets or playing "a lot of crypto gamers playing video games," the rate of change in state capital and ownership saturation are two good measures.

The best traders look for pure assets, and when they complete the view of the difference between "anonymous" and "trustworthy," their prices go up. We will sell these assets due to the interest of members gradually.

In the turbulent phase of a beef business, most of those who choose "winning" projects are calm and balanced in their way of life. Someday I'll be one of them.

Oh, by the way, don't listen to the lies of the Crypto Circle tube bloggers. They just want to use your interest to pay for their advertising activity.