jakiro
Author: Jocy, Partner at IOSG Ventures; Source: @jocyiosg
Binance Life, Ouyi LifeTwitter is filled with countless wealth-making myths that make community users excited, and the industry has entered a quick-money model.
Behind the success of Alpha is that less than 10% of the 326 online projects and only 32 projects were online for Spot, which means that 90% of the projects that were launched in Alpha this year ended up becoming platform fuel.In unregulated industries, exchanges have a strong voice and are highly dominant. The failure of the project does not seem to have any inevitable connection with the exchange. However, in an industry that lacks supervision, if the platform cannot better self-regulate, it is equivalent to giving strong medicine to the entire industry. The success and collapse of liquidity are all in an instant. The myth of wealth creation flashes and falls quickly.
Hyperliquid has achieved great success with the concept of Binance on the chain, and Aster has gained share of the Perpdex market by rebuilding transaction volume. It seems that the entire industry is moving towards decentralization and a more promising direction.But in fact, futures and derivatives have always been the most profitable tools for exchanges in this industry. Countless exchanges have used various methods to get platform users to start using their Perp products, but futures derivatives are actually a zero-sum game.In this market, retail investors can use dozens to hundreds of times leverage to amplify their profits and losses. Therefore, the crazy subsidies of Hyperliquid and Aster have allowed users who have never played derivatives and futures in the past to start using futures. With the help of airdrops, a large number of people who have never done leverage trading have entered the market crazily. Even if the final user conversion rate is only 10%, these users are likely to become addicted to futures gambling in the next six months of this cycle.PerpDex is particularly good, but excessive incentives and intervention to make more people become futures gamblers will lose the original intention, and it will easily be backlashed in the future.
What values should be promoted in the crypto industry, especially competition and gaming among exchanges?Many exchanges control liquidity and platform traffic, so starting the myth of meme wealth creation can help you get a better ranking and make countless people flock to it.Competition must be cruel, but in an industry that lacks regulation, as an industry leader, should we seriously consider rethinking what kind of horse racing mechanism we should establish for the industry and lead a wave of retail investment in what direction?As crypto practitioners, we have witnessed the ups and downs of bubbles in the past few cycles, and have also seen the maturity of DeFi/stablecoins/infrastructure. If the leading players can find ways to develop some long-term value tracks and do more difficult, correct and long-term things, many years later countless industry practitioners will regard it as a driving force and a person to be remembered..
We’re in Trump’s cycleThe crypto industry has numerous benefits and regulations are infinitely looser, but that’s itThe unregulated era requires more industry responsibility from some top entrepreneurs, helping the industry achieve more breakthroughs in this cycle, attracting more and stronger entrepreneurs to join, and allowing countless companies like ByteDance/Pinduoduo to appear in the encryption industry..I call on exchanges to be more restrained in their competition in terms of internal project innovation and traffic liquidity, and to ask themselves one more question: Will what we are doing now still have any value in the industry in three to five years?The best entrepreneurs often focus on more than just the immediate future. Together, they create a broader future for the crypto industry.
Tips: Of course, it is difficult for many people to refuse such an opportunity to make money, and countless myths about getting rich quickly make everyone yearn for it, but please remember that there are three principles of investment:Preserve your immortality, participate as little as possible and lose as little money as possible in countless opportunities, make big bets and make big money in your own professional field or direction of expertise.(Feelings from communicating with Wizard Singapore)
