The Block Chain Trend Seeker
Since the myth of getting rich quick through blockchain became popular, more and more people have joined the blockchain industry. Many newcomers still have the concept of “financial disk” when they first come into contact with various projects. These projects are simply a game of passing the buck, with early entry, aggressive recruitment, and then cashing out.
Although from the perspective of financial products, this is not wrong because whether it is stocks or real estate, these popular financial products require a large amount of capital to enter, enabling early investors to profit and gradually raise the bottom price, ultimately driving the price higher.
However, those who invest in such projects are actually making a fundamental mistake, which is also the main reason for the losses of most people in the currency circle.
Their investment in projects is based on gambling, not investment. They expect to get rich overnight, not upgrade their assets.
Today, we will use a few simple examples to analyze how to invest in projects correctly, rather than how to find opportunities for overnight wealth.
First, before investing in any project, we need to understand three important factors that affect the development of projects in the currency market:
1. Internet technology and popularity are changing rapidly. The development of any technology is like a tree growing branches and leaves. The closer it is to the source of the technology, the longer its lifecycle, and the more popular it becomes.
2. The scale of funds that the market can accommodate determines the upper limit of the price. In the bull market of 2021, the market value of the top ten projects was basically around one trillion, but now it has shrunk to less than one hundred billion.
3. The origin of the project’s success comes from the project party. No matter how good the track is, without the ability to develop, it cannot achieve its expected value.
Any successful project can be found in the above three points.
Next, I will list two representative projects, one is a relatively mature project that can be included in the successful category, and the other is still in the low market value development. By comparing the various situations of the projects horizontally, we can analyze how to find potential investment projects:
First, let’s take a look at the success factors of SOL, which can be summarized mainly in two points: revolutionary public chain technology and investment from large institutions.
When SOL was launched, the two most troublesome problems for public chains were speed and transaction fees. Therefore, SOL targeted and improved these two aspects, greatly increasing the practicality of public chain technology. As a result, the ecology that can be supported has increased significantly, the potential user base has increased, the value evaluation has risen, and it has attracted institutional settlements.
The investment of large institutions is very important for any financial product, not only providing sufficient development funds for the project team, accelerating technological and ecological development, but also increasing the trust of the project and products in the minds of retail investors in the market. This can attract more capital and retail investors. Then, as long as the project develops smoothly, with the various factors combined, it will push the project to new highs.
However, when institutions hold too many tokens, it led to the collapse of FTX affecting SOL, which is another problem.
Next is the focus of this article. According to the experience of successful projects, how can we find the next successful project?
We take AlveyChain as an example:
First of all, the first step in investing in any project is to research its security or reliability. There are many projects in the blockchain that have disappeared with the money raised. For low market value small projects, there is actually no 100% reliable way to judge this, and it requires deep involvement in the project community to make one’s own judgment.
As for the AlveyChain project, it has been running steadily for over a year, and the project party is always very active, with many actions. Recently, it participated in the Smartcon blockchain conference hosted by Chanlink, and will host a VR conference in December. It is obvious that the project party is making efforts to increase the value of the project, so it can be invested in with confidence.
1: The technical direction, commonly known as the track. SOL belongs to the public chain category, and public chain technology is the foundation of blockchain technology, with a long life cycle and great development prospects. And AlveyChain is also in the direction of public chain technology, and its main ecological product is the VR exchange, metaverse. Everyone knows that Apple has just publicly released its own VR glasses this year, which means that large companies recognize that the metaverse will definitely become an important part of the Internet. Therefore, for AlveyChain, the technical direction is impeccable.
2: AlveyChain has no public institutional investment. This point can be good or bad depending on personal opinion. If there is institutional investment, the market value of this project is already similar to CORE or ARB, which belongs to homogenized projects and is not suitable for small investments with high returns.
Therefore, since there is no institutional investment, it is necessary to research the financial strength of the project party, because the capital required for the development of the project is very large. Although the AlveyChain project has not disclosed its financial scale, from its performance of running for over a year, the personal financial capabilities of the project party should be enough to develop the project well.
3: Finally, the most important thing is the financial strength of the project party, as mentioned in the previous point, this is a very important assessment indicator. Secondly, it is personal ability, technical forward-looking, market sensitivity, and other aspects. To understand these, it is necessary to contact the project as much as possible, follow the progress of the project, and understand the thoughts of the project party.
AlveyChain’s project party Naur is very active in its Telegram community, and there are many community meetings, so the ability of the project party can be evaluated quickly by ordinary people. Then, research the follow-up development plan of the project. For example, in the AlveyChain roadmap, it has set the development of Web6, Layer3 and other cutting-edge public chain technologies. Combined with its original positioning in the basic ecology of VR metaverse, it can be seen that the project party’s ability is indeed outstanding.
In conclusion, projects worth long-term investment need to have several elements:
The technical direction will not be outdated in a few years, or even in the entire life cycle of blockchain. It is best to have some forward-looking vision and strive to be a leading project.