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Source: Mint Ventures
Host: Alex Mint Ventures Research Partner
Guest: Louie Professional on-chain Investor, Stakeholder Professional Individual Investor & On-chain Studio Manager, Lawrence Mint Ventures Researcher
Program recording time: 2024.10.28
Hello everyone, welcome to WEB3 Mint To Be initiated by Mint Ventures.Here, we continue to ask questions and think deeply, clarify the facts, explore the reality, and find consensus in the WEB3 world.I am Alex, a research partner at Mint Ventures. Today we specially invited three teachers to talk about how to deal with this meme cycle.
Statement: The content we discussed in this podcast does not represent the views of the institution where the guests are located, and the projects mentioned do not constitute any investment advice.
Alex: We invited three senior investors in this podcast, who all have very long-term investment experience, especially rich and cutting-edge front-line experience in on-chain crypto asset investment.The first one is our Stakeholder, who is not only an investor, but also the head of an on-chain studio.The other is Louie, a full-time on-chain investor.The two guests can say hello to everyone first and briefly introduce themselves.
Stakeholder: Hello everyone, I am Stakeholder.I first met Alex before, and was a group that worked as a Curve, and I studied DeFi as soon as I entered the circle.Later, because DeFi mainly operates on the chain, I came to Web3 and on the chain.Later, I studied some on-chain strategies. Last year, I started to do some memes and do some fucking hair, helping one or two private equity institutions introduced by friends to do on-chain revenue strategies.
Louie: Hello everyone, I am Louie.I’m not an old player in web3. I joined this circle at the beginning of last year, starting with the inscription, and basically all in the meme track.The inscription from the beginning of last year, and I have been paying attention to the BTC ecology until now.After the meme on Sol became popular this year, most of the attention was transferred to the Sol chain.Basically, the main energy is also focusing on memes on Sol now.I learned about this circle, and after joining this circle, I basically played meme full-time.This is a roughly personal experience of mine.
Alex: Welcome two.The third guest is our old friend, Lawrence, a researcher at Mint Ventures. He is also one of our Mint Ventures who plays more memes.Please introduce yourself, Lawrence.
Lawrence: I am Lawrence from Mint Ventures. Like Stakeholder, I also entered the market in the previous cycle, which was 20 years after entering DeFi.Because I have always been interested in new things on the chain, I have been investing in meme since then.
Understanding and explanation of meme
Alex: Then let’s get to the point.Today is the first time we have formally put together a podcast program to talk about the topic of meme.I may have been involved before, but I didn’t talk very deeply.The three guests we selected today have been focusing on playing meme. Recently, it may have been studying this track for a long time for more than half a year, or even about a year.However, there may be a lot of newcomers in the audience who don’t know much about crypto, and they may not know much about Web3, and they may not know much about meme.Suppose that the three of you want to introduce to a Web3 novices what meme is, and what kind of easy-to-understand language will you explain this concept to him?
Louie: OK.I think to explain it to everyone in one sentence, meme is the monetization of attention and hot spots on the blockchain.This is how I understand meme.For example, for example, some hot spots have occurred in our Web2 world. Whether it is Musk or Trump, the hippo that was a hippo a while ago, or some other hot spots, it has created a certain degree of discussion in Web2, and it has producedA certain amount of attention attracting is then mapped to Web3, mapped to the blockchain, and then corresponding to a token, which monetizes these attention and hot spots.This is how I understand these memes.
Stakeholder: Okay, if you are a novice, you will definitely not be a person in the currency circle. I will often encounter such situations in real life. Of course, he doesn’t know the word meme.Suppose someone suddenly asks what meme is, first of all, you must make a transition.He said he had never traded coins, so he must be interested in some stories of getting rich.I remember one time offline, I was having a meal in Shijiazhuang and I heard the person at the table next door say how much money Dogecoin earned and how many times it had increased.When they heard that they were not in the circle, but they were still very lively.Then I think if I explain it to a novice, he will actually understand that this is the essence of currency speculation.Participating in making money is inseparable from cryptocurrency speculation. If you know nothing about the technology and background of the blockchain world, then the easiest thing you can get started is actually buying and selling Bitcoin.Many people already know that Bitcoin exists and is no longer a strange noun.The other one is meme.In fact, it is a carrier of values and emotions.You replace it with a coin, and you can claim your values and express your emotions by buying and selling it, holding it.The more people you spread and the more people you buy, you can make money.And in this process, you can find these people with consistent values and a sense of belonging.As for this token, it has no functions and is very easy to lose everything.Therefore, you must use the money you can afford to play, and use it as the thinking of buying lottery tickets.
Lawrence: If I were to be a complete newcomer, I would ask him if he knew Doge first?Because I feel that explaining something to a newcomer that he doesn’t know much about it is best to find some of the most widely circulated ones.If I know Doge, I will tell him that Doge is a typical meme.meme is a culture with certain ridiculous and popular factors, and it can be transmitted virally.It can be understood as a concept similar to our “meme”, because there are also many popular memes that are actually some memes or emoticons.
Observation on newcomers of meme
Alex: I know that many of you may be in various groups, especially Teacher Louie, who is in various currency speculation groups and community groups.According to your observation, is the proportion of newcomers entering this round of playing meme?
Louie: Let me answer this question first.Let me give you an example. A very intuitive data presentation is the transaction volume on the Solana chain.About one or two months ago, I can’t remember the specific time. At that time, I remember the 24-hour transaction volume on the chain was 60m, and the unit behind 60 should be million, with 60 million.Now let’s look at the 24-hour trading volume on Solana’s chain, which is basically 4 times, 240 million.So during this period, I feel that a lot of new money has poured in.Just talking about the data on the chain, this is my intuitive experience.Of course, in terms of the target, when we buy meme coins, this feeling is also very obvious.In the past, there might have been a hot spot, which would quickly suck blood on other targets, just like a seesaw. When this target rises, other targets will fall.But recently, especially during this period, you can feel that the money on the chain has become more.The effect of this seesaw is not so obvious. It will support the chain at the same time, with several hundred million new targets, and even more tens of millions of new targets.This is an intuitive feeling, above.
Stakeholder: I haven’t entered some new groups, and everyone around me who should enter the circle has entered.There are no new users around you now, and they are still in some old communities.First of all, I feel that some people who are doing level 2 are now coming to speculate on memes, and some people who are focusing on exchanges have also begun to move to the chain.Some people were transferred this time.The other is my observation in the last round. At that time, I was a novice, and many novices came in at the same time.Some friends come in and do Shib, babydoge.I think meme is very friendly for new users, and it is easy for people to accept and play.And it’s cheap, it gives people the feeling of being cheap, although this is not the case in mathematics.Everyone feels that you can play with 10 yuan, but Bitcoin costs tens of thousands of dollars. Everyone is still buying integers. They think they have to buy one. It seems that it is very small to buy 0.01.
Alex: Lawrence actually entered the circle at a relatively early stage of the previous cycle. He has experienced a relatively complete cycle of value investment currencies in the secondary market, including Defi, and many public chain coins like layer1.There are also some layer 2 coins like layer 2, which have basically been experienced.But he has actually been following meme before.What is the difference between this round of meme and the previous round of meme?
Lawrence: Did the last round refer to the meme compared to that round in 2021?
Alex: Yes.In the last round, there were actually quite a lot of pigs, dogs, cattle, sheep and animal coins, but this round was not as popular as this round.
Lawrence: First of all, my own feeling is that from the perspective of money, Teacher Louie just said that everyone’s enthusiasm for this matter is definitely higher than the previous round.I can’t say that it has reached its peak now. I feel that overall the popularity of this round is higher than the previous round.Because the last round was actually meme as a subdivision, if it was considered a track, it was actually a stage of establishment.Because in the previous cycle, there was actually only Doge, so in the last round, there were Shib and more meme coins with relatively lower market value.In terms of the difference, I think that in this round, the Chinese community I have observed, or among the Chinese people who speculate on memes, are basically old faces, and some people who have been working on the chain for a long time.Like the transaction volume data mentioned by Louie just now, including some memes represented by some portraits of the middle and lower classes in the United States, from my observations, including the recent popularity of Moonshot, I feel that it is especially true.It is the United States, and not entirely the West, and the penetration rate in these places is much higher, including the Middle East and Europe.meme actually had only a very short stage in the previous cycle, in April and May 2021, and then November. Basically, these two very short time points attracted more attention.The core reason is that just now, Mr. Stakeholder talked about the money-making effect, and the money-making effect of Doge and Shiba Inu is too popular.It was relatively simple at that time, and it was also a zoo, namely Shib, Dogecoin, and pigs and snakes. The same is true for each small currency. Overall, it was still relatively single.In this round, the entire meme track has actually developed relatively well.With relatively complete infrastructure, such as various meme bots, including transaction tools that are very good on the web, as well as on-chain tracking and analysis tools, as well as many anti-chain address orders and anti-subscription orders.I think the strategy is very mature.The way you play in the last round of cycles is relatively simple. You can buy which one you like, and your understanding of this thing is similar.In this cycle, I think there are already many people, including many institutions, doing this in depth and doing a lot of different things.Like Murad, who was very popular some time ago, his list is more inclined to some memes with cultural attributes and culture attributes, which have never appeared in the previous cycle.So, I feel that this is also related to the background of the entire industry.I have talked to Mr. Alex many times before that there are too few new things in the entire market, and there are no new things like Defi, NFT, and gamefi in the previous cycle.But with a lot of hot money coming in, everyone can only chase the direction with the most attention and flow the money to the direction with the most attention.
Opportunities to invest in meme
Alex: Understand.I feel that the targets of the entire meme, including players, tools and infrastructure, have indeed been greatly upgraded compared to the previous round.The cultural connotation of many projects in this round is also rich, and it is very close to hot events in the real world. I think the quality of players has also improved a lot.As a person who doesn’t play meme on a daily basis, I feel that the gap between meme and players like these skilled and professional Louie is particularly big.In the last round, everyone might be novice and rely entirely on luck and courage to rush.In this round, I feel that my professionalism in the use of tools, project judgment, data analysis, and emotional grasp is much higher than the previous round.So what is the background of your first contact with meme and starting to try to invest in meme?
Louie: I concluded that I was lucky at the beginning.At that time, I chose two tracks, one was GPT and the other was Web3.Web3 starts to get in touch with inscriptions when it comes in.At that time, the price I came into contact with Ordi was still 70 US dollars per piece, and each one was 1,000. That 70 US dollars was very cheap at that time.In this context, I quickly got feedback on Web3, and then I all in on Web3.By about May, I quit my job in Web2 and worked full-time on Web3.Then I got very good results in the inscription ecology.It’s really a novice halo sometimes.When you came into contact with this thing, the texture was pretty good and it was fine. At that time, this belief received positive feedback, which was a relatively lucky result.Then, relying on such a novice halo and the blessing of positive feedback, our belief in this ecosystem has been continuously amplified.When this belief continues to magnify, you can often be more able to keep it with some targets.Of course, in the end, I also experienced roller coasters, retreats, and selling flying, but overall, I still accumulated my first pot of gold in this ecosystem.The background of my investment in meme is probably like this. The timing may be a little special, which accounts for a very lucky element.
Alex: Then, let’s look at Louie. Actually, you start with the inscription. In your opinion, the inscription is actually similar to the meme coins on the Sol chain and the Base chain now, right?
Louie: I think it’s completely different.If I had come into contact with the Web3 ecosystem at this time this year, it might be much more difficult, not as simple as inscriptions.Because sometimes the dividends of this ecosystem are still very huge.In the early stages of the ecology, you could make money no matter what you buy, it was nothing more than the difference between how much you earn.But on Solana you can clearly feel that you have to accumulate some of your own trading logic, including the advantages of technology, or the advantages of your own information, in order to achieve certain good returns.I think this is a difference.
Alex: Let’s talk about this part in detail later.Stakeholder How did you start playing meme?Because after all, you, Lawrence, and me, start from Defi and start from fundamentals.How did you switch to saying that I am willing to play meme and spend a lot of energy on playing meme?What is the background?
Stakeholder: At the beginning, I was actually biased against meme, and I thought it was air.Before I entered the currency circle, I was engaged in financial IT, and I had technical reserves in finance and IT, so I went to study Defi and got started quickly.Then meme is just an avatar and a slogan. What can I do to study?There is nothing to study.But at that time of the last bull market, Dogecoin rose a lot, so I also traded it.But at that time, my understanding of meme was just saying that Musk brought orders, which was influential.In addition, I also think of a story myself, Musk colonizes Mars, and then the base currency between our interstellar stars may have Dogecoin to take on this role, giving myself a reason to convince myself to invest, but I do not agree with the others.So I didn’t feel moved when I saw that shib coin rise so much, just watching it perform.After the bear market ends, in 22 years, I think what is the bear market doing? There must be some money to make.I don’t like the simple band speculation, so I started to study it, mainly the strategy of making Uni V3.In this process, I found that Bone, that bone coin, is a sub-project of Shib, which is equivalent to saying that I will build another public chain in the future. The transaction volume of this Bone is very large, and then the LP of Uni V3 is very good.I started trying to do this.Moreover, the price fluctuations may not have such large fluctuations and declines, so I felt that it was relatively safe, so I started to try it.Later, the LP industry made a good return. I spent about 9 months, and finally I calculated that it had an annualized rate of return of more than 100%.From this process, I found that meme has the characteristics of a large transaction volume, so I started to make short-term LPs of these memes to earn handling fees, even if I had contacted it.During the process of doing it, I found that I was actually biased against this.Moreover, although these memes fluctuate greatly, they are not as big as they imagined. They are actually similar to some of our altcoins.If you look at these Dogecoin and Shib now, the decline is actually similar to our current AAVE and UNI.These AAVE and UNI are already well recognized as good altcoins. They have absolutely leading products and fundamentals, and are almost the same as Shib.Therefore, the meme that is deeply rooted in people’s hearts has investment value.At that time, I started to try it, and the first one was to hype some called Harry Potter. Its ticker is Bitcoin, which now has a market value of about 200 million yuan.At that time, I rebuilt the LP when its market value was 8 million. Later, the market value fell to 1 million and fell below. I thought to myself that this trend was about to return to zero, so I quickly cut it off. At that time, I cut it off and sold it.Out of an ether.Now it has a market value of several million, and there are also some like Pepe in the middle. I saw it on the day it was launched, but I was not sure about these fruits. They all have LPs, but I only earned a little processing fee.A waste of opportunity.Why pass by?It’s still a cognitive issue.So later I wanted to polish my investment strategies in meme, a set of strategies that suit me, and then I participated one after another, but I haven’t mentioned the particularly big results yet.At the end of last year, there were many waves of Bonk and Wif coins, and Solana, especially when Wif broke through the market value of 1 billion, I was stimulated.Because Wif is also very low, I have played it when the market value is several million.Just when Wif broke through one dollar, I thought it must be a trend.Then at that time I went to a larger position, and then I chased Pepe at a large position. Later, as Louie said, I got the result and received the reward.Then I felt that this thing needs to be configured more and more time to study it.
Lawrence: I have also said before that I have been paying attention to new things on the chain since the second half of 20 years.In the first half of 2011, because I was still playing with algorithmic stablecoins at that time, I studied some addresses on the chain all day long and analyzed the addresses on the chain.Then I found that there were some addresses to buy a meme coin that you may not have heard of now. It was called Hoge, which is also a coin with a dog avatar. It was called Hoge.finance. At that time, many memes still had to be covered with finance, includingLike Shib.At that time, out of curiosity about new things on the chain, I bought a little bit of them. Later, I found that this thing had increased a lot from March, April to May.The reason why I can continue to pay attention is because I gave positive feedback at the beginning.I started to think deeply about this because Shib sold it quickly at that time, and the multiple of the sell it was very high, which was very painful at that time.Then I began to find a way to explain this matter, and saw whether I was wrong or the market was wrong.So I read books like attention economy, including articles written by some investment institutions or some KOLs.Since then, I may have been paying attention to memes on the chain, and some newer projects are also involved.
Alex: Speaking of this, I remember that there was another thing that I was deeply impressed by in the last cycle. At that time, you seemed to have received a domestic meme called loser coin for free, right? What is the Chinese name?
Lawrence: Yes, it’s called Lowb.
Alex: I remember you received it for free and didn’t sell it at the beginning.At that time, everyone thought this was a performance art, because at that time, everyone still had a great prejudice against domestic memes, and felt that domestic projects, especially culturally-related projects, could not be compared with the West.As a result, this project is distributed for free, and the operation method is also very strange and down-to-earth. The later coin has increased from a zero-cost project to a market value of tens of thousands of U?
Lawrence: I can’t remember it very clearly, it seems that there are hundreds of thousands of Us at the highest.
Alex: Yes, it seems that you took it at first, then sold part of it, and then the part you sold rose higher and higher.This is a very impressive impression.
The essential qualities of excellent meme players
Alex: We just talked about the difference between this round and the meme in the previous round.When we invest in meme in this round, we often see a keyword called PVP. It was originally a noun in computer games that refers to everyone fighting, not human-computer fighting.But here PVP is mainly used to describe a zero-sum game situation where funds are very tragic. Either you cut me or I cut you.In this environment, in your opinion, what comprehensive qualities should a powerful meme player who can win?
Louie: I have summarized four dimensions. First of all, I think the most important thing is also the premise. Before entering the venue, you must choose a rich place to play.For example, at this stage, you must choose the Solana chain, right?You can’t choose the Ethereum chain.Then last year, you must choose the BTC ecosystem, and you cannot choose other ecosystems to play.Just like the logic of everyone choosing Defi, everyone also wants to choose a rich ecosystem to get certain benefits in it.The logic of playing meme is the same. First of all, you have to choose a rich place.The second is to have enough time to play meme, and you can constantly accumulate experience in this process, because time is a hard condition.If you don’t have time to pay attention to the information of this target and have no time to understand the direction of emotions in the market, I don’t think it’s any difference between simply buying meme coins and gambling.Then in this practice, as you continue to invest in research, understand this information, and constantly feel the changes in the market, you will continue to accumulate experience.This is actually very important. No one can teach you experience. Only by feeling and sedimenting yourself can you experience what belongs to you in the process.The third is a more pragmatic level – the continuous iteration of your tools and the continuous iteration of your trading logic.The market changes very, very fast, and the only thing that may remain unchanged is change.Maybe a play style this month will not take effect next month.Many memes on the market now actually have a strong reaction to this problem.Maybe when people played meme, they would pay more attention to a level of irony in meme, their cultural attributes, and even some foreign cultural points.But now looking at these memes is a microcosm of attention and hot spots.If there are hot topics in places and hot topics in topics, then this coin will definitely rise.Whether it is the hippo in the zoo some time ago, or the wind direction has changed again in the past two days, such as the end of A16Z, everyone feels that meme has begun to be combined with VC again.Therefore, the market changes very quickly, and your tool iteration and trading logic must also keep pace with the times.I think the fourth dimension is that meme. In fact, everyone’s way of making profits in this ecosystem is different. You need to find a comfortable zone that suits your own money.For example, some people are born suitable for being diamond hands and don’t move after buying a coin.Some people like to make waves due to their personality or other reasons after buying.So no matter which method it is, you must find a comfortable range.A target, some people can eat fish heads, some people can eat fish body, and some people can eat fish tails.Your traits or resources can support you in which range you can get a better sense of money-making, then unswervingly find your own comfort zone and don’t think about eating a target from beginning to end. I think this is unrealistic.
Lawrence: First of all, I personally feel that PVP is very difficult, because I was at the stage where the market was not very good this year. From May to July, I had made many meme transactions on the chain, and I felt that it was very difficult at that time.Then I basically gave up this very high frequency meme trading strategy.My feelings still need to find ways to find opportunities to PVE.Because PVP basically means that there is no incremental capital, just these people in the market get from your pocket to my pocket, or from my pocket to your pocket.So I think for my recent feelings, we still need to find ways to find opportunities that are either PVP or PVE, and to find opportunities that are still increasing in the entire market.For example, AI a week ago, or AI fund from A16Z three days ago.I can only say that you should do better in timing and find ways to judge whether this small trend may become a trend.So this is the most important quality I think, which is to judge whether new things can attract more people’s attention in the future based on some personal comprehensive feelings.Then there are some cultural and cultural memes.I feel like this might be easier lately.Because the problem of chasing hot spots is that hot spots will pass soon.I’ve been more interested in things that have a more Lindy effect lately.That is to say, the longer this thing survives in the past, the longer it will survive in the future.Of course, this may be a difference in individual body sensations.So the qualities that a good meme player should possess are actually very comprehensive.I think familiarity and mastery of tools, as well as a lot of time, are very necessary.At the same time, on this basis, you may also need to judge culture or some popular small trends.
Stakeholder: Actually, I just heard what Teacher Louie said, and my feeling is that there are ten thousand ways to fail, but the ways to succeed are the same.In fact, I found that everyone’s methods are similar to those that are good at playing, and our methodology is also relatively close.I think the quality here must first have a macro management, which is still at the cognitive level.There are actually two types of macro management. One is mentality management. It is not uncomfortable to sell it away. You can cut your losses and you can go there after leaving.Another one is fund management.It is also very important to invest in a fixed investment, or what kind of investment is a target, and how much it costs.How big is its capacity and how big the pool is, it determines how much you pay.Another point is that in fact, if we subdivided meme, we can divide it into many types, including early stages, those who have grown up, and some have temporary hot spots.I think this is a raffle.For example, if you like a concept, you think it is OK, and if you evaluate the narrative, you can make a fixed investment, such as 0.1 Ethereum, or a Solana, and then you will draw.Then I accept its zeroing, throw it in and ignore it, and come back to see it in a month, or how long it takes to come back to see it in.Another thing you need is actually technical reserves, which are also mentioned by the two above.You need to have tools, and now there are many very mature tools to use.Then you have to find these tools first and use them proficiently. Whether it is a lot of technical indicators or other tools, the key is to be easy on your own, and they must be suitable for individuals.There is also circle, circle is actually your source of information.How many dog-beating friends are you around you?Do you stay in the same room and fight together, or do you stay in the same room and fight together?I think the two must be combined.I can do it alone in the room, but I have to be with a group of people regularly and communicate so that I can hear other people’s views from different angles and provide more perspectives.Another one is time, which depends on quantity, and you will feel when you see too much.This is a part of deliberate practice in it and it takes a lot of time.I remember a dog-beating expert said this: “You don’t have to say anything. If you see enough 10,000 pools, you can see it very accurately.” In fact, that’s it.When a newcomer comes in, he says he can catch the golden dog. That is luck, but it can increase the probability of this luck, which is based on accumulation and summary.Of course, there are many changes in the middle, and we must constantly adapt to new changes.
Alex: I understand that I actually have some observations about meme and professional investors who insist on not playing meme or ordinary retail investors.I feel that their personality backgrounds are different.Generally, people who are willing to play meme have a particularly big characteristic, which is that they are young. Youngness represents many derivative elements, including their energy, they have better physical strength and keener thinking.In addition, their mentality is often relatively open, and they are very sensitive to some cutting-edge ones, such as what hot topics you just mentioned.Another one is his attitude towards trading.Because some people like trading very much, they wish they had 100 opportunities to trade every day, so they could watch and track.Some people hate trading. They don’t like to see more short-term information every day. They like to see longer-term things, and they don’t like to see K-line for technical analysis.That must be the investors who are more enthusiastic about trading and can get more pure pleasure and fun from it. They are more suitable to participate in meme trading.These are some basic observations of the people around me.
meme’s investment strategy
Alex: We just talked about what qualities do you think are what a meme player should possess.So from the perspective of investment strategy, one of the points we just talked about is that the trend of meme is constantly changing, and their target characteristics are constantly changing.So what changes have your investment strategies experienced since investing in meme?What is the content and background of these changes?And in the current market, what strategy do you use to end up participating in buying various memes?
Stakeholder: Change is really changing.As Alex said, I am no longer a young man, which means that I will not be completely independent in time. All time is devoted to this matter, and there will be many things to take into account.In terms of time management, I have time these days, so I can take it out specifically.In addition, local dogs also have seasons.Before the market is about to start, I think there will be a wave ahead. At this time, I feel that it will come, so I have to take out time and leave time to watch and participate.Also, how to do it in the middle of the period?I will no longer participate in those particularly short-term hot spots, but will look for longer-term ones, and then look for the so-called waves that are waves every time. Who is the leader of the wave? What position does it have? Can I goParticipate in it.For example, this hippopotamus, I think there are waves of marine animal frenzys in front of it, and I just want to wait for it.The front is also sold out, and if you want to wait for it to fall to what position it will fall and then take it back, I think it will definitely have a second wave.There is not so much time to participate in this way.If you beat a dog, Teacher Louie should be more professional, and my strategy is mainly to draw.I was actually not willing to go to Solana at first, but it was not until recently that I felt that Solana was completely ahead of Ethereum, on these memes.So I gave up on Ethereum.Before, I thought that Solana was a master of PVP, and I was a little unsuccessful, and my own advantages would be weakened, so I would go back to Ethereum to do it.Using this lottery idea, I buy a fixed amount of money, and I don’t have to stare at it all the time, and I also accept the zeroing.Until recently, what prompted you to change was that you found that you were not making money anymore and that the past methods were not making money. There might be problems with the method and you had to change it.The flow of money is changing, and all the money goes to Solana.Ethereum now feels like an empty city. The meme at the top has no trading volume at all. It is not as good as the new ones on Solana. It may not be considered as Dragon 3 and Dragon 4. There are already many imitation trading, and there are severalA transaction volume of millions or tens of millions is normal for millions to tens of millions or tens of millions.And those very mature old memes on Ethereum are very popular, and those with large market value do not have this amount, and they are completely one-sided.So I had to go to Solana and re-adapt to the gameplay above Solana.I mainly focus on these new ones.In addition, there are some other things, since I am a DeFi person, I have advantages in this regard. Many people who do meme may not be very good at studying things on DeFi and do not pay much attention to it.Now I also help one or two institutions to make hedging tools to make some profits.For example, Wif, and then PePe, do LP on the chain, and then add some exchange hedging orders to capture the returns of its large trading volume, and find that it is not bad.Now these are the main ones.And I think meme does not mean small funds. I think big funds can also participate. I think the order of 10 million US dollars is completely fine.
Alex: What you meant that big funds can participate in is the market making strategy of meme’s LP that you finally mentioned?
Stakeholder: Right.Look at Wif, including PopCat, there are tens of millions of transactions every day, and then there are tens of millions of pools on the chain.So if you put ten such targets, each target invests 1 million US dollars, which will not have much impact at all.
Alex: Can you explain the specific strategies of your market-making LP?For example, how are the bilateral funds allocated for market making, and how are the range considered?
Stakeholder: OK, this one has been tried many times before it stabilized.At the beginning, I wanted to do fully automatic hedging and make it a tool without using people, so that it can automatically run quantitative strategies.Later I found out that it is better to manage manually, and the interval should be slightly faster.At first, it was a plus or minus 50%. The previous fluctuations of meme are mainly not a non-stable currency, but USDC.The positive and negative ranges are generally three levels: 50%, 40%, and 35%.I will split one into three gears, and a narrower range can be rebalanced at high frequency, and a wider one can make it run for a long time.In terms of fund allocation, 2/3 is on the chain, 1/3 of the funds hedge short orders on the exchange, and at the same time, they cannot make full hedging, because the full amount must be balanced at any time and the positions on both ends are the same.Since we invest in meme, we are definitely optimistic about its long-term rising target. If you know that if you do LP, your risk will mainly occur if it keeps falling.If it rises, it is just a matter of making less money.So it is not enough to do a 70% or 80% hedge. When it rises, if you balance it again, you will not easily lead to extreme imbalance between the two ends.That is to say, your net position has decreased and you have become a net short position, which is very dangerous.In fact, we are not afraid of the plunge in the process of doing this kind of LP, but we are afraid of the plunge. I am more worried about this situation.Recently, I have tried to make a meme with two non-stable coins, two large transaction volumes at the same time.If they do this kind of LP, first of all, APR is that its yield will not be low and it will be better controlled.Why?Because they are relatively in the same frequency, when they rise, they basically rise at the same time because they belong to the same sector.Then the same is basically the case when the decline is, but the amplitude is different, but relatively speaking, it is relatively the same frequency.In this way, you can also improve your capital use efficiency.Because there was USDC on one end, it was equivalent to the APR that became higher.I have been running for about three weeks recently, and now I think this strategy seems to be a little higher.And on Solana, we can build various new combination pools ourselves and create them ourselves.You can find it yourself. For example, if there is a new one suddenly coming up today, the transaction volume is very large, and then there is a leader. Then hurry up and create another product that you are familiar with and confident, and then try it alone for a period of time.OK.
Louie: I am also very interested in the LP that the teacher just mentioned, but I am not very proficient in this skill. Anyway, I think this LP is also an indispensable skill for first-level players.My own trading strategy is like this, and some phased changes have also occurred.It must be a pure faith at the beginning, a belief player.Because I was playing with inscriptions at that time, I had very, very grand beliefs.At that time, many people thought that ordi could reach 10 billion, Bitcoin pie, ordi pie, and the market value of that 10 billion must be pinched with hand.But later the market poured us cold water, telling us that hot spots are constantly changing.From such a stage of faith, we gradually transition to PVP, which means that as the hot spots change, the market hot spots are, and we have a rough prediction of the market value, and then we may eat the profits we expect, so we can eat dry smear.Just slap your butt and leave, switch to the next battlefield.At this stage, my current strategy is probably like this.First of all, I think the benefits that meme brings to us ordinary people. I have always believed that it can transition from 10,000 to 100 million. meme is a track that can support you from A3 and then become A9 players.But meme’s ecosystem may be a more exaggerated market than the 28th rule.It may not be 20% to 80%, it is 1% to 99%.What really makes your assets significantly better is often that 1% chance.But how do you seize this 1% chance?This requires you to spend 99% of the time on tokens that don’t look so sexy and have not expected to be so powerful.It requires you to maintain daily attention in this market and on this chain.It is my current state, which I call it the jungler in daily life.What is jungler?It is because I ask myself to pay attention to this market in my daily life, and then maintain my state and feel in my daily life, and make some small transactions.But I won’t be in a heavy position, if I don’t find a particularly good opportunity.Through this small transaction, daily junglers can maintain their feel and state.When you find a good opportunity and when you find an opportunity worth a heavy position, you need to see it and place a heavy bet.For example, the Neiro some time ago, right? Like the hippos some time ago, and the Goat some time ago, its window period is relatively long. It can accommodate a lot of funds and its yield is also very good.Now it is probably in such a rhythm and state.
Lawrence: At the beginning, I was about the end of 23 years, before the beginning of this year. At that time, there were actually not many memes on the market.Every day you want to find a new meme and scan the link to see new things, but it won’t take too long.So before, my strategy was to basically scan the new things on the chain at least every two or three days, and I would take a look at each.But since pumpfun appeared, this meme coin began to explode, and this strategy has no way to support it.There are more and more things happening in the family, and I just mentioned that in April and May, after losing some money during the period on-chain, the strategy basically moved to its current state.This is also related to personal situations. You may not have so much time to pursue every hot topic, so I can only say that you pay more attention to opportunities that are not hot topics.From the perspective of investment strategy, we will look for memes with relatively good fundamentals.If I believe it will not die, I will buy some low-price purchases and buy some low-price purchases.After it has risen a lot, if it can fall again, I will buy some at a lower level.Because I don’t think it’s dead.For example, like Bitcoin mentioned by Stakeholder just now, I think it won’t die if it’s like this meme.It may not be a hot spot in the current market, but its characteristic is that it will not die because it is not a hot spot.For example, after I lost a lot of money on the chain in April and May, I simply bought Mog on the chain and PopCat on Solana.In fact, looking back, this strategy is much better than my previous strategy.So my strategy at this stage is more about some memes with relatively large market value, at least on some projects that can be seen that will not die within this cycle. Some may have market value at least tens of millions.Go to make a bet on the project.
Long-term configuration
Alex: The problem Lawrence just mentioned is related to the previous problem.Let’s talk about what are the conditions for a good meme trader? Everyone mentioned time.For various reasons, including personal, family, professional, or when you are old and don’t have that much energy or desire to trade, we will consider it fromTurning to a long-term in the short term.So just now Lawrence mentioned that he may now allocate some memes that he thinks are good for a long time and make a cyclical investment.So when you choose this type of meme token that has been configured for a long time, what are the logic and thinking behind it, or what are your criteria for filtering them?You mentioned the market value just now, for example, the market value may be tens of millions.Of course, we now find that there are often on the chain, and there may be a meme with a market value of more than 10 million, 20 to 30 million or even 40 to 50 million in a day.How do you identify it?In your opinion, what conditions it meets can be put into your long-term asset allocation choice.How did you think about this question?
Lawrence: I just mentioned that one is market value and the other is time.For example, if it can maintain a market value of more than 50 million for more than one month, I will think that this thing will not die at this stage.For example, this round of AI craze, of course, from the concept I just mentioned, it is definitely not particularly suitable to buy, because it is still relatively short and the quality is still mixed at the moment. Many projects may not be of very good quality.good.But I am looking for it personally, for example, in 10 days, if the market did not rebound sharply and the entire market did not experience a very strong surge, in this case, if some AI tokens can be comparedIf the market value level and the data of its holders are pretty good in all aspects, I might invest in some.The long-term configuration of meme depends more on the logic of transactions.I started in February and March this year and have a certain proportion of positions in Doge for a long time. Although the returns are not particularly good, compared with other memes, my entire trading logic still believes that if I choose a coinTo represent meme, that’s still Doge.Then of course there is another logic recently, because everyone will go to bite Musk through Doge, and then bite Trump.Then this logic has a time cycle. I think it is possible, for example, if Trump comes to power and Musk really does department of government efficiency, from the perspective of narrative, including promotion, of course, for a long time.Some dogges on the chain are also very good, but the capital capacity is larger and easier, which is definitely more beneficial to dogge.And for example, I just mentioned logic like Mog and PopCat. I would prefer the logic that may be able to explain this thing clearly within 10 seconds.For example, Mog and PopCat can be both good at dogs, why can’t cats?I think if I talk about this logic to anyone, I can explain to him clearly why I bought this thing within one or two sentences.So there are probably a few logics like this.The first is market value, the second is time, and the third is whether there is any special thing behind it, some long-term logic driven by time.Actually, there are still many tokens in my political meme, including Harris, Vance, and Tim Walz, who is the vice president of the Democratic Party.The logic I was thinking at the time was that this concept might be constantly hyped before the election.It may have been almost half a year since now, and I have been holding it.
Alex: According to the logic you just saw, it is a long-term narrative.This narrative is prone to appear repeatedly in the public’s view and is repeatedly discussed. For example, the City of Mars mentioned by Musk was also quite popular for a while.Does this track’s meme also belong to this concept and this category?
Lawrence: Right, but this is specifically about Mars City. The case problem that Mars City was more popular some time ago.Another problem is that Mars City’s market value in Solana is not very high. The two on the Ethereum chain are still fighting very hard.
Alex: I’ll add a message here, because some listeners may not know much about the US election, including some relationship between Musk and Trump, and the relationship between them and Doge.Let me talk about it briefly.Because I just mentioned that Doge is a relatively long-lived currency and is closely related to current political hotspots and popular political figures Musk.Doge, the Chinese name is Dogecoin, has a connection with this election. The first one is of course Musk often calls for orders.Another part is a political outline of Trump, which refers to his desire to cut the government’s budget and improve the operational efficiency of the entire federal government.He also mentioned two days ago that he wanted to cut the federal budget of about two trillion US dollars. The organizational department that cuts the budget and improves efficiency is the Efficiency Committee, and then he hopes that Musk will lead the Efficiency Committee.Musk also accepted it happily, so if Trump comes to power, Musk is likely to be a member of Trump’s cabinet, then he will dominate the government’s reforms and do things like reducing costs and increasing efficiency.Things must be a long-term job. The word doge he said to Musk is the abbreviation of the department of government efficiency, so from this narrative, he seems to be a person who will be mentioned repeatedly for a long time.a vital narrative.Here are some relevant information.
Louie: I don’t have much faith in meme. I may only take Bitcoin often, and then other memes like Ethereum and sol, I will only keep a new position.This is how I configure my position myself, because I prefer level one, and the teacher just now might be better at level 1 meme configuration.I am used to buying a token enough to buy 1% of the chips in some early days. As it rises, I go to spend some costs and profits, and then leave 0.2%, which is a thousand-eight position.I call it a “dream position”.When this target rises to 500 million, the 0.2% chip is worth 1 million U.S.Of course, you have to look at the changes in this target. Whether it is a market sentiment or a fundamental change, it may also be sold out, but even if it is sold out, it is a profit outside of your own perception, and it is a profit.Not available.Through such configuration, I can not only meet my short-term profit needs, but also meet my need to get long-term profits by earning some targets.But I won’t have a very long-term expectation for some meme tokens, and I may not have it for a few months.Because through the market reaction during this period, a narrative, like a zoo or AI narrative, probably has a survival cycle, such as a S-level, very high-quality narrative, which is about 10 days in the market.Survival period, after 10 days, it will basically change to the next narrative.So I prefer this configuration, and I will not have a very heavy position in some meme tokens.
Stakeholder: I’m a long-term match, mainly because I think meme is a separate section.If Web3 is regarded as a large investment ecosystem, it assumes an important function in it, which is to attract traffic.It accounts for a certain proportion of the total market value of Crypto.Like the popular Murad in recent days, its proportion still has a lot of room for growth in the future, because those VC coins are still relatively rich.In general, from an investment perspective, since it is a sector, we also have this “28”.Because in the first few years, it may have occupied a share of the market value of the entire sector.From this perspective, we can actually calculate the account, so we can well reflect on how much market value it can have, how much it has accounted for in the past few years, how much money it is now, and how much potential returns are. So IWill match it.If it matches it, my strategy is not just waiting for it to rise, but I still have to do things that can make profits on the chain.If you have been playing for a long time, I will throw it into the V2 pool to ensure that you will not collect more goods when it falls, and can continue to increase your position on the currency standard.In addition, I think there are so-called rookies or upstarts in every bull market, so I find them out and take them for a long time.For example, at the end of last year, there was a wave of Wif and PopCat, and they were very prominent at that time.If I had such a perception at that time, looking back, if I had a part of it for a long time, today would be very good.Since we use this kind of time machine rule, today we have a small cycle, which means that the market in the first and second quarters is different from the third and fourth quarters, or there is a market in the first and fourth quarters, and there is no market in the second and third quarters..These upstarts are likely to arise at the end of the year. If the Golden Dog falls to a very low point, you can build a basket.Why do I do so many?Because I don’t know which one will come out. My best way is to buy some of them since I have finished sifting them, throw them there, and wait for a miracle to happen.The main thing behind this is to do it based on such a thought.This is pure alpha returns, such as Bitcoin and Solana. Now I think the returns of Beta, including Ethereum, are relatively certain. For example, Ethereum and Solana are unlikely to buy them now, and I am worried about the future.You will lose money, or you will never be able to get out of the trap.I don’t really worry about this issue because we are generally optimistic about this industry.However, for these memes, a target may increase by dozens of times. Obviously, the few mentioned above do not have such potential benefits.
Alex: You just talked about the selected targets, and you may buy them. What are the criteria for your screening?After all, there are so many on the market now, and the market value may be the same, and there may be dozens of people with a small amount of tens of millions.What are your standards?
Stakeholder: There are some categories, such as meme, which also needs to be divided into sectors, such as the animal sector, AI sector, and narratives like the space sector mentioned recently, such as Mars City, which is also a sector.The ground push plate must also be configured.I think I need to find them out and filter them out with other dimensions.On the one hand, the market value is more than 5 million, and between 5 million and 200 million, which is suitable for small funds to gain big returns.It also depends on how long its survival period is, and the transaction volume and pool ratio should be searched online.If some trading volumes continue to fail, then it will definitely not work.In addition, although it is an attention economy, it also depends on the so-called “long-term builder”. In fact, this small group of people, not to mention faith, may be because they prefer it or their interests are at stake, and they will do a lot of thingsCome to develop.Because of interest-driven, these people may suddenly explode one day, and their attention has turned to this, and the token will increase a lot, so they will take some time to see it.I will also go to see Erchuang’s things. I think good things are empathetic. Some of the Erchuang he made, do you see whether they are shoddy or high-quality, and whether they have ornamental value, which makes people understand them, and you can smile when you see them.The same mind.I think this is very important.If I have these mass bases, I will definitely be able to match and make comprehensive considerations to configure.It will also be different from the large amount of small amounts. Maybe if you invest 100 yuan, I can invest 200 yuan in it. This way.
meme player daily routine
Alex: As veteran meme players, how did you spend your day?Let newcomers who may want to play meme or try more time to trade meme experience it, how can you spend your day?
Louie: Actually, I don’t spend so much time, because now, basically 95% of my positions are big cakes, and my main profit comes from changes in the market.But the overall rhythm is still very boring, because the market is better now. I won’t stay up late to keep an eye on the market. I basically turn off the computer at 11 o’clock in the evening.Because I slept around 1 o’clock, I couldn’t go to bed too early and it wasn’t good to be too late.If you turn off the computer at 12 o’clock, you will have to wait at least two o’clock to fall asleep, because the brain needs to have a buffering and distraction process.So I usually turn off the computer before 11 o’clock, and there will be a certain exercise time in the afternoon. I have a treadmill at home, which has a fixed exercise time of half an hour to one hour every day.At this pace, the rest of the time is basically just a chain-focusing.
Alex: Do you keep watching the chain and scan some activities on the chain, or are you communicating with other friends in the community? What things may be included?
Louie: This is more.First of all, we need to watch these real-time disks on the chain, and then there are probably two communities that are mainly heavily involved. One is a 24-hour conference room all day. You can talk about your views on meme or some new hot topics.Another possibility is that we focus on data and some discussions above cognition. We may conduct an in-depth analysis of some targets.There are also some on-chain surveillance of Twitter and KOLs, and information needs to be filtered and absorbed.There are probably these three parts, on-chain, in-depth participation groups, and information sources that you monitor, probably these three parts.
Alex: Are your eating and getting up regular?
Louie: regular.Because it is irregular, it must be regular.I think playing meme is essentially an anti-human and very boring. The K-line and letters that are dealing with are K-lines and letters. Without communication, why wouldn’t it be called a dry sitting?Without external communication, it is not a normal human life.The life of normal humans is to eat, drink, play and chat.Although the returns are considerable, when the market is good, players who are not the top first-level players can earn a small amount of tens of thousands of yuan a day, sometimes you may want to watch TV, play games, and don’t want to go back to watch the market. It’s a very anti-epidemic.The work process of human nature.
Lawrence: This problem actually bothered me a while ago.When I spent a lot of time on the chain in April and May, I had to spend some time with my family, especially with my daughter, but her sleep time is usually the transaction time in the United States. In fact, new projects appeared on memeAt most, it is a time period with relatively large fluctuations.I’ve done some reflection since then, if I have time, I’ll be before bed, maybe 11pm, 12pm or 1pm, and I’ll go and see more of the new ones on the Solana chainProject, because the Ethereum chain is indeed not active enough.Then go to see some addresses you are following, including some newly launched projects by KOL.For those very new projects, which may have just been born within one day, I will scan them.In your spare time without work tasks, go see some memes that you put in the observation cabin before you put them in your leisure time.For example, whether its holder data has changed, try to analyze the reasons behind the changes.That seems to be the time to trade for meme alone.The others are like what Louie mentioned just now, paying attention to the information flow of each Twitter, as well as the channels that TG follows, and the news from WeChat channels.
Stakeholder: I’m probably half of my time at home and half of my time at home.When I was at home, because I picked up and dropped off my children every day, he had to get up at 7 o’clock in the morning, so I got up at about 6:30.I will go through all the lists and develop my sensitivity to data.At the same time, some news emerged and those with large transaction volumes would be added to their observation list again.The group that mainly stir-fry memes, go through it quickly and it basically ends in just 20 or 30 minutes.Maybe there is still some time, just look at twitter.As for trading, because I no longer have the opportunity to participate in those short-term and very early stages, so I will go with the flow.If I happen to have free time these few days, then focus on it.If I rest, I must be regular at home. Normally, I go to bed at 12 o’clock.If I’m not at home, for example, Lawrence talks about the time in the United States, I think it’s about 4:00 to 7:00 am, which is the time when I’m very sleepy. Sometimes I’ll play cards all night with people and watch them until the middle of the night.Let’s check the link to see if you have the chance to meet the Golden Dog today. Maybe this will not be done deliberately.One day I felt guilty and felt that great time was wasted on doing such things.Life will become meaningless. We are originally just making money. To put it more directly, it is a speculative behavior, which itself does not have much significance.If that’s the case, why don’t I let it be a little fun, casual.For example, I accidentally met a golden dog today and was very happy to make money. I could share it with my friends and wife.Probably that’s it.
Alex: After listening to meme, you will basically find a more balanced life rhythm with life and is more conducive to physical and mental health. In this way, you can invest more for a longer and healthy life.Thank you, three guests, and I hope there are more opportunities to communicate with you later.
