Recent statements: Question the inscription - ridicule the inscription - understand the inscription - All In the inscription - collapse the inscription - die in the inscription. Although it sounds funny, it is indeed the case.
When inscriptions were the most popular, all major communities were talking about inscriptions, which one to type today and which type to type tomorrow. But what about now? Rights defenders are everywhere. Especially friends with hands full of inscriptions, if they didn’t cash out in time, they would definitely be full of regrets now.
The birth of Ordi is an innovative result of Bitcoin after the technology upgrade, and its leading effect is extremely strong; the MEME attribute of Sats is also very strong, but it is more advanced when it is used as the transaction gas of Unisat, which thus turns to practical value. This is quite representative.
Although Ethscriptions is an inscription, it is quite exploratory in terms of value. It is expected to propose a new expansion plan for Ethereum from the perspective of inscriptions. As for the inscription hype of other public chains, more can be classified as MEME hype.
- The core behind the inscription – mobility
The Inscription market is wailing now. The core is the liquidity problem . At first, it was because a lot of assets were traded out through interactive methods. The cost was to pay the Bitcoin network fees and protocol fees. One was market value management or bookmaker logic. At that time, someone spent a lot of money to mint these assets. This was a real cost.
This cost eventually becomes a silent casting cost at level two.
In other words, if an inscription is printed, its price will at least be higher than the network fee paid at the time of casting. For BTC20 assets, this cost is still relatively high. As little as hundreds of thousands of dollars, spread evenly across unit assets that can be traded, becomes the lowest cost.
Broadly speaking, there is nothing wrong with this pricing and valuation logic. Just like the ICO back then, when raising funds, ETH was paid, including main chain assets such as AVAX, so many assets were released.
But until this paradigm is suddenly broken, as so many assets are released, many people will think about getting back their capital after investing costs, and they don’t want to make money, they just want to get back their capital. At this time, there will be low prices. Selling based on the so-called silent cost method, once this spiral is started, it will not be fun.
Moreover, with the leading assets, the overall secondary market prices have retreated sharply, and the liquidity of inscription assets that have no practical utility and value support has reached a state of exhaustion.
The liquidity of sub-new assets continues to lack liquidity on the basis of falling below the so-called issue price. Even for assets with a market value of more than 5,000 BTC on the chain, the daily trading volume is only 2 BTC. Of course, more liquidity is actually transferred to CEX.
Most of the so-called community teams of certain inscription projects only call orders, but do not understand the liquidity issue at all. I thought that by placing orders, I could improve liquidity and increase market value, but the reality is that after placing so many orders, the price was still not good in the end.
- How to look at liquidity issues
1. When going online, we will pay attention to the liquidity issues on the chain and CEX as soon as possible. When the popularity is reached, we need to transfer part of the asset trading method to CEX to reduce the trading activity in the community and reduce the number of counterparties on the chain.
2. Pay attention to liquidity issues in a timely manner, including the amount of pending orders for the inscription spread and the market situation on CEX, so that problems like yesterday's OKB will not occur.
3. When choosing an opportunity, you can ask the community and project team to communicate about the possibility of small leverage or contract trading. If the liquidity is good enough, this will definitely promote the trading of assets.
Many people wonder whether Inscription is a sustainable track?
At first we regarded it as an alternative meme, because its application form has not yet appeared, but the old leeks in the circle who have experienced previous bubbles have dismissed this short-term hype and just stayed silent. Wait until the bubble bursts.
Some people may ask why Bitcoin can grow from a meme to the present, but others cannot? You may feel that this is wrong, but it is difficult to refute it, right?
The problem can be simplified if we think of it as a group game.
Turn this limited game into a long-term or even sustainable game. In a sustainable game scenario (3 versus 3) is the optimal solution.
And how can players believe that this game is a sustainable game? This is a process of game between the two parties.
The most critical point of this gaming system is that it must be a decentralized system, eliminating single points of risk in the system, ensuring openness, and anyone can participate. Only in this way can we ensure that the exit and switching of participants in this game (including players and builders) will not affect the continuation of the game.
The inscription game has reached the second stage: infrastructure construction. Building infrastructure around an ecosystem is a method of pledging to gain trust. If this game cannot be sustained, all investment in infrastructure will be wasted.
When a group game system enters the second stage, it will generate positive externalities, so it has the potential to become a long-term sustainable track.
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