Why do some projects rise dozens or hundreds of times, but we always miss out? Some people either took advantage of the market or rushed to the top of the mountain to stand guard. Some even rushed to the Pixiu plate. Why do some people always miss out on the big meat in front of us in such a market? Perhaps there is a lack of investment logic for discovering potential projects.
Today, I will analyze your own investment framework from a series of aspects, including tool utilization, discovery of cyclical dividends, and unearthing track leaders, as well as researching the qualifications of the project itself. This will give you some inspiration. Let us improve ourselves together and unearth 100x projects in the market.
In the first part, let's talk about tools. As the saying goes, if you want to do your work well, you must first sharpen your tools. The same is true in the field of encryption. We collect a lot of information every day for screening and execution, and we need to use a variety of tools, such as information sources, data queries, and some detection tools. I usually use dexnav, which has a relatively complete set of functions. If you are interested, you can refer to it. Of course, different people have different opinions.
How to use the tool? You can learn how to use it by yourself. I think people of our age can figure it out after a few tries. But I still have a habitual suggestion. The industry we are in is developing very rapidly. We may not be able to capture this information in time every day, but what we must do is review, that is, we need to see what happened every day. Some people are more accustomed to relying on some information websites for review, or you like to check social media, check Twitter, etc. In any case, as long as you check it, you will not fall behind in this industry.
In addition, you must be rigorous. For example, when you query data or buy coins on the chain, the contract address must be tested and verified. It is also best not to use your main wallet directly when using new tools. Get a few test wallets and try them out. You can of course operate your main wallet with the tools you are familiar with.
Okay, now that I've finished talking about tools, let's get back to the topic of how to discover a project with great potential. The first point is called the birth of new opportunities in cycles. What does it mean? First of all, I think we should capture this cycle, because each cycle will give birth to new sectors, and each sector will give birth to new leaders, and these leading projects are good opportunities for people to achieve financial freedom. For example, in the bull market that started in the second half of 2020, what sector moved at that time? That was defi. Defi was born, followed by NFT, and then game fi and other new sectors appeared. These sectors have never appeared before, so they are very popular as soon as they appear. #ETH
The second point is that new opportunities will lead the way, that is, these newly-emerged sectors will produce leaders and runner-ups that lead this sector. For example, the Defi sector we mentioned earlier gave birth to uniswap, compund, and AAVE, a series of projects that have increased by 100 times. The NFT sector also has leaders. These blue-chip projects, the Bayc series, include the gamefi sector. Are there crabs, spaceships, and even stepn? These are all very powerful leading projects, so catching the leader is also one of the necessary skills. What should be the thinking behind this? You said that once this sector becomes popular, the birth of so many projects must have the ability to carry it, right? Therefore, the public chain that carries these projects has become the track we must develop.
When we see this DeFi and various fi are crazy, Ethereum's gas fee congestion can't be solved for a while. So Binance and Huobi have launched their own public chains, that is, the BSC chain and the heco chain, and they also come to seize the market. Not only that, the market has actually smelled the business opportunities in this area, and public chains such as Solana and Avax have also kept up with this rhythm, and they have performed very well. In addition to market seizure, Ethereum, as the big brother of the dragon, has a very large market share, and if he wants to save himself, he must expand the capacity, so the next thing to be popular is expansion, but this expansion is not something that can be completed at once, so the second-layer network was launched, which is the layer 2 that is very popular this year. This is essentially the business that Ethereum does, and the volume is naturally not bad, so new opportunities are born in this area. Do you see it? This is a big opportunity, and after it comes out, small opportunities will be born, one ring after another, because a, so b, this is a series.
After talking about the first round of opportunities, let's talk about the second round. If the first round is a portal competition, then the second round is the specific product development. For example, after the development of major public chains, you need to run out of star products and leaders on the public chains. For example, cake on the Bsc chain, MDX on the heco chain, and ray on the solona chain at that time, these are all very good wealth opportunities. Do you think the series is coming? This is the sector rotation under the cycle. The dividends brought by the cycle can be said to be very considerable, but just by observing the cycle, it is difficult for us to taste the details. If we grasp the general direction of each cycle, how should we select the projects in it next? This is called returning to the project itself. What is a good project? Generally speaking, one or two leading projects will be born in a major direction, and these leading projects have one thing in common, either they have excellent backgrounds and have obtained large capital investment early, or like Binance itself to Cake, there is a large institution behind them that continues to support them.
Let's take arb, which has been very popular this year, as an Ethereum layer 2 project that solves the problem of Ethereum network congestion. The track demand and potential are very large, which is in line with industry development and user needs. Well, let's take a look at the project itself. The background of arb is that it has raised a total of 143 million US dollars. Its investors are a series of heavyweight and excellent investors such as Coinbase and Pantera. In addition, the founder of the team behind arb is even more amazing. ED Felten, who first proposed the concept of arb, was appointed as the chief technology officer of the White House. He provided technical security for the Obama administration and was used by the president. So let's push it according to the timeline. In general, the members of the project establishment team in 2018 were also very excellent. In 2020, when the DeFi Sunmer DeFi was rampant, they made a test network and deployed their contracts. In 2021, they started to raise funds and raised a large sum of money. Then in 2022, when the market was in a deep bear market, they started an Odyssey event, as we all know. Then in 2023, just before the big hotspot of Shanghai upgrade this year, the airdrop was launched, which completely ignited the market.
From the above simple descriptions, we can find that arb is a typical project that combines good tracks, good cars, and good drivers. It is the darling of the times, and everything is so exquisitely designed. From the perspective of data at this time, after the arb one network launched in September 21 completed a round B financing of 120 million, the number of users of arb began to increase, and it quickly took the lead in the track. Let's do a review. At this point in time, we all know that the concept of Ethereum layer 2 has actually been hyped up. Everyone thinks that this is a rigid demand, and this arb is a project developed by an excellent team. You are in a leading advantage in this data, and you have something to say about the investors. So he will definitely be added to the observation list by all parties, which meets the conditions of potential projects in the current market situation. If he has not issued a coin, then he will be rubbed. If it has issued a coin, then we will ambush it, waiting for it to explode in this sector in 2023. As long as the market conditions are good, this sector will definitely be the leader in driving the bull market.
Well, since it is a series, what should we pay attention to next? As a leader of the second-layer network, we should pay attention to other applications in its ecosystem. When the project is full of noise, the Dex lending derivatives of this ecosystem will definitely produce high-quality projects. At this time, we can use this small tool Defi Llama to pay attention to the changes in the locked amount. When we find abnormal traffic or data, the top ecological locked amount must be worth our attention. This is the next small leader of the series. For example, GMX and RDNT, which have very good arb ecological data this year, have performed very strongly.
Of course, when we investigate the market cycle and projects within the cycle, we must consider an objective condition, that is, it must be in line with the current market conditions. We cannot sell luxury goods to ordinary people in the old society when they can't even afford food and clothing. When you serve a glass of red wine while grilling at this food stall, it's like what the market conditions are at this moment? Ethereum's primary task is to expand capacity, so when we combine this market situation, we must look for opportunities based on expansion. When the expansion is completed, the series will move on to the next episode, and we will pay attention to these rich ecological opportunities. Therefore, the opportunities we focus on must be based on the current market's objective problems and solutions to solutions and development. Finding opportunities from these solutions and thinking will be more conducive to our capturing value. Then wait for the market noise, the east wind, to come, and the pigs will take off. #BTC
Let's summarize. A potential project must meet the requirements of a good track, a good driver, and a good team. Then we will ambush when it meets the logic of market demand. When the noise appears and reaches a certain peak, it is the end of our cycle, in other words, the peak of the stage. In this process, we need to understand the market situation through news software, social media and other tools, and always maintain sensitivity. Well, that's all for this article. If you like my content, please like and follow me. Finally, how do you ambush potential project parties? Tell me in the comment area and let's discuss it together.