Binance co-founder He Yi has entered the cryptocurrency market in 2014 and co-founded Binance with CZ in 2017. As of today, he has more than 10 years of experience in the industry. Today, she published an article on Binance Plaza, summarizing the methods of making money since 2017, and pointed out that today’s market environment can no longer rely on past methods to make profits.
In the ICO/IEO era, making money depends on grabbing shares and running fast
He Yi first pointed out that in the 2017 ICO era, public fundraising directly replaced venture capital (VC) and private equity (PE). The bull market in 2017-2018 was supported by early influential investors (OG). The investment projects of these OG platforms can make money as long as they can grab a share.
By 2021, the rise of DeFi has made the market more diversified, and investors can make money by running fast.
During the IEO (Initial Exchange Offering) period, investors can also negotiate with project parties to win some shares for users. Therefore, online projects are generally priced at lower prices. The investment strategy during this period is "buy new rather than old."
However, He Yi immediately said that IEO is now considered to have legal risks in most countries, so it can only be conducted through airdrops, which means that market pricing will depend on supply and demand. If the circulation volume is large, the opening price will be lower and the performance of the project will be relatively stable, such as BB and Lista. However, compared with 2021, the current market lacks a sufficient washing process, prices rise too fast, and lacks stability.
King Project and Lumao Studio teamed up to create beautiful data
He Yi further explained the market phenomenon this year. She mentioned that this wave of market rise was mainly initiated by the launch of Bitcoin ETF, and was jointly promoted by some king-level projects and hair-raising studios. Together, they created beautiful data to attract more VC funding.
Yesterday, KOL @Aunt_ww tweeted, criticizing Binance for violating the spirit of fairness in cryptocurrency by frequently listing VC project coins with inflated currency prices and overvalued prices, which led to the dilution of market liquidity and retail investors eventually becoming VC dumpers. The receiver.
Extended reading: Binance goes against its original intention and goes crazy on VC coins? He Yi: If not, market funds will also be diverted by meme coins, local dogs...
He Yi also responded to this point in today's article. She first admitted that if we look at the market's leading VCs, their scale is more than one billion US dollars, which will indeed push up the pricing of good projects. But she said that these projects with money and users are very confident. Even if they are not listed on a specific platform, there are still many centralized exchanges (CEX) rushing to be listed, or decentralized exchanges (DEX) willing to be listed on it. , and can even be launched on the DEX on its own chain. Therefore she emphasized:
The trading platform does not have pricing power. For projects with high valuations, investors should pay more attention to fundamental analysis, instead of just looking at market value, they should also pay attention to circulation.
He Yi: The era of hair-raising may be coming to an end
He Yi went on to point out that today, the market has indeed changed again. She said:
The internecine fight between the hair-raising studio and the L2 project has turned into a farce, which means that the era of hair-raising may be coming to an end. Nowadays, more professional players have emerged in both the primary market and the secondary market. They use various tools to achieve risk hedging. Although this has expanded the market size, for ordinary investors, ICO, The IEOs, nesting dolls, and even the hair-raising strategies of 2023 in 2021 may no longer be applicable to today’s market.
He Yi questions whether the market lacking VC investment and project parties will be healthier? She pointed out that in every market cycle there will be some projects that can ride through the bulls and bears, but there are more king-level projects that fall on the road. Whether it is web2 or web3, there are very few successful entrepreneurial projects, and even fewer projects that can cross the chasm and cycle. Therefore, she finally reminded that investment is risky and you need to be cautious when entering the market.
