"After graduation, you will have a brief period of time to indulge in gambling, and then you may become an elite, or you may have to live on your salary for the rest of your life."
Written by: Ignas
Compiled by: Luffy, Foresight News
Cryptocurrencies are like a game: trading tokens, making money (and losing money), and gaining fans on X.
Do you have the same feeling? But unlike a real game, the failure of the cryptocurrency game can have serious consequences.
After the Terra collapse, according to an online record by a Korean father, a family of three (including a 10-year-old daughter) committed suicide due to financial losses. If I openly admit that cryptocurrencies are a game, I would feel guilty. Too many people have been deceived and lost their lifetime savings.
But the mindset of treating cryptocurrencies as a game helps me stay rational and motivated to keep playing. Because the craziness we experience in this industry is just one aspect, its biggest advantage is: allowing ordinary people to realize their dream of financial freedom.
As DegenSpartan said:
"After you graduate, you will have a brief period of time to indulge in gambling, and then you may become an elite, or you may have to live on your salary for the rest of your life."
In this article, I want to share the script of the crypto game, my mindset, and how to win the crypto game.
The Rules of the Crypto Game
Once you discover the similarities between cryptocurrencies and (especially MMORPG) games, you can't ignore it.
In times of economic difficulty, when there is no new capital inflow, the PvP (player-vs-player) mode will prevail. In bull markets, as new funds enter, we switch to the PvE (player-vs-environment) mode.
If you don't like the influence of KOLs on you, we'll come up with the idea of "don't hate the players, hate the game".
We even designed token economics, using various game theory to prevent people from selling tokens.
Just like game upgrades, the crypto game is constantly evolving, with new stories appearing and disappearing.
For example, Pranksy, who was once a top NFT player, is now completely out of sync with the pace of memecoins. The gameplay has changed, but he still insists on playing a game that few people are interested in.
Of course, memecoins may be terrible, but those who didn't know how to play the NFT minting and trading game a few years ago also said the same thing about NFTs.
In the game, you face two choices: either adapt and participate, or wait for the game's new gameplay. There is a third, more difficult choice, which is to change the rules of the game itself.
For example, Cobie launched the Echo platform, allowing retail investors to participate in venture capital and buy tokens like in the ICO era. The story of memecoins will be gradually overthrown by those players who decide to change the rules of the game.
However, Memecoins are also worth praising, as they have actually succeeded in changing the rules of the game.
Over the past year or so, we've been playing the "points" game. You deposit assets into the protocol, accumulate points, and pray for a generous airdrop. I know you like this game, because the "DeFi degen bull market script" is still my most popular post.
Anyway, it turns out that many people have been deceived.
Since a higher TVL means a higher valuation, the token issuance FDV is ridiculously high, with the beneficiaries being the VCs, the teams, and the airdrop farmers who sold at low valuations.
So, many people turned to memecoins, standing in opposition to VC tokens.
While Pranksy is failing, the memecoins protagonists Ansem, Murad, and the players joining their tribe are succeeding.
"Don't hate the players, hate the game"
Within the overall gameplay, we are constantly introducing new mini-games. You have to decide whether to participate. If you do, you must understand the rules, as there will always be opponents.
For example, daos.fun allows the trading of tokenized funds. However, the confusing part is that the most popular "fund" ai16z is trading at 52 times its NAV (net asset value). Its trading mode is similar to memecoins.
Players are all trying to understand it. Squiggly compared the fund to a "Grayscale structure" or a Friend.tech trading fee Ponzi scheme. BREAD has a different opinion on Friend.tech.
Squiggly and BREAD's views, who is right?
Although it's the same product, players' understanding differs greatly. Players need to find their own advantages in the game and profit from them.
This may be simple. After the team announces plans to whitelist a new "fund" on the website, I expect degens holding other "fund tokens" may sell some of their old fund tokens to invest in the new fund. In fact, once the new fund is added, the prices of all old fund tokens will likely drop by about 50%.
Generally, the more confusing the gameplay, the greater the opportunity to profit from information asymmetry.
The beauty of cryptocurrencies is that there are always people who join new trends without thorough investigation, and as long as you do a little basic research, you have a chance to profit.
That said, I often try new things with a small amount of money first, then research how they work in practice. Learn as you go, and only invest more when you know if you can win the game.
The reason why Ton's click-to-earn games are thriving is that they are the opposite of complex DeFi games: you just need to click the buttons on the screen to earn money.
However, since the game is too simple, the rewards are also very low; unless you exploit the system by using artificial fingers to click hundreds of phones.
Crypto gets more interesting and complex here: there are multiple levels, roles, and strategies to choose from. You can also choose side quests if you wish.
Let me give you an example.
Recently, I've been working hard to become an active representative in multiple DAOs, especially Lido, Arbitrum, and Uniswap.
DAOs advocate the vision of decentralized organizations, but now most DAOs are far from decentralized, which is an open secret. For example, in the Arbitrum DAO, 14 addresses control more than 50% of the voting power, and other DAOs are the same.
The Uniswap DAO didn't know that Unichain would launch the UNI staking feature. This also explains why the fee switch has not been turned on for months. Insiders know that once UNI staking is implemented, the fee switch will no longer be necessary, and the DAO has been kept in the dark.
DAOs recognize that voting concentration is a big problem. To solve this, they have launched incentive programs to attract new participants. By becoming an active governance representative of a DAO, you can earn $3,000 to $10,000.
But it's not easy. You have to actively follow forum discussions, post comments, and vote on proposals. The most difficult part is getting token holders to delegate their tokens to you, which touches on the political game.
After I posted a tweet about coordinating token holders and protocol incentives, an anonymous whale delegated 2.5 million LDO to me. To be honest, I received this delegation simply because I post frequently on X and have a bit of a reputation. Playing the popularity game well on X can bring more opportunities in the crypto space, and these opportunities are unknown to many.
Now, multiple protocols are reaching out to me, thanking me for voting in support of their proposals, or requesting my support for future proposals. Every DAO that does not appear in the X f information stream or even the DAO forum has an important relationship-building process.
To be honest, I enjoy this game. I firmly believe in the decentralized future and hope to wield influence.
Player Mentality
Did you know that Vitalik Buterin founded Ethereum shortly after Blizzard removed the damage component from the Warlock's "Life Tap" spell?
"I cried myself to sleep that day, realizing the horrors that centralized services can bring. I quickly decided to quit." - Vitalik Buterin
Vitalik decided to quit World of Warcraft because he felt he could not influence the game rules.
The beauty of cryptocurrencies is that we can all play a role and influence the rules of the game.
Like blockchains, crypto games are decentralized. Venture capitalists, retail investors, builders, KOLs: we all have our roles, and some are more influential than others.
Ansem, Murad, and other memecoin KOLs drive the memecoin cycle, but you can choose not to join their game.
I've digressed a bit, but the fact is, I'm surprised by how little influence venture capitalists have in shaping the narrative. Crypto VCs should be advocating for their investments, but their focus on X is negligible.
Do they really not care? Or are they playing a different game?
A notable example is Kyle of Multicoin, who is focused on making money. More VCs should share their views on the industry, advocate for their portfolio protocols, and provide in-depth research to elucidate current developments.
From my interviews with crypto VCs, one possible explanation is that they are essentially just wealthier retail.
While Vitalik was playing World of Warcraft (2007-2010), I was playing another MMORPG - Lineage 2.
In Lineage 2, you could choose a race (human, elf, orc, etc.) and a class (warrior, mystic, etc.).
You could gain experience (XP) by completing quests and defeating enemies, and leveling up would unlock new abilities, better gear, and access to more challenging content.
I spent two years grinding relentlessly, sleeping just a few hours a day. These memories are deeply etched in my mind and have shaped my approach to crypto trading.
Just as you gain XP in a game, in crypto, you can gain XP by learning about blockchains, learning DeFi, researching token economics, and so on. The more you grind, the better you'll perform.
But you must be mindful of your HP (health) and MP (mana).
HP and MP are like your health, financial stability, and emotional resilience. Crypto and games both require relentless effort, and you will inevitably feel burnout. In the crypto space, the pressure to stay ahead, constantly monitor the market, and not miss trends creates a high-pressure environment, like an endless game you can't quit.
In the last bull market cycle, I was exhausted, so now I manage my "HP" by taking breaks every three months.
Does this perspective on crypto make me seem strange?
There are also demographic similarities: crypto games are male-dominated, just as MMORPG players are about 35% female.
Koreans are as obsessed with cryptocurrencies as they are with esports (like League of Legends), even more so than "real sports".
What I'm trying to say is that the gamer mentality can help you stand out in the crypto space. You just need to choose the right game and understand your role in it.
In Naval's famous short post "How to Get Rich (without getting lucky)", he mentions "game" and "play" 15 times! His advice is:
- Don't listen to status game players who gain status by attacking wealth-creating game players.
- Choose an industry where you can have long-term cooperation with others.
- Play iterative games. All returns in life, whether wealth, relationships, or knowledge, come from compound interest.
My favorite line is:
- Acquiring specific knowledge is like playing a game to you, but like work to others.
So, what game are you playing in the crypto space?
What role are you playing in crypto?
Cryptocurrencies have become increasingly complex in recent years. Before 2020, success was as simple as investing in ICOs and trading on CEXs. Since then, the new crypto games have exploded: DeFi, L2, Non-Fungible Tokens, Real-World Assets, Runes, Memecoins, and more.
How do you keep up?
Do you specialize in a particular area or try to "do it all"?
In MMORPG games, you first choose a race, then a class. In Lineage 2, I decided to choose the least popular option, as I wanted to stand out and increase my chances of becoming a "hero".
I chose a human summoner, and as I gained experience, I specialized in sorcerer, then archmage. This was the least popular class, as its expertise was in using pets to defeat enemies.
Similarly, you can start by learning the basic skills of cryptocurrencies, and then you can focus on active trading, DeFi yields, memecoins, DAOs, and so on.
Many lack the determination to learn specific skills and often jump between narratives without truly understanding them. They miss the knowledge required to master the complex mechanics behind the game theory of specific industries. They become exit liquidity.
In fact, being able to jump from one narrative to another while making money may be a special skill. You realize the money rotation game and manage to sell at the top before the money shifts to another narrative. But are you good at this?
However, I believe that specialization can yield bountiful results in the current market stage.
Specialization can be anything, such as:
- Crypto Koryo excelling at Dune dashboard creation and monetizing it;
- USD Denominated focusing on the stablecoin market, navigating its complexities, and capturing the highest yields;
- Andy fully immersed in the modular space;
- wale.moca focused on NFTs;
- Bold Leonidas publishing a daily crypto comic.
But be wary of what influential people say, as their motives often differ from what you might imagine. The game they are playing is different from the one they are promoting. You don't want to play games where the rules are stacked against you. For example, Ansem recruits celebrities and makes money in some way.
Why do you think I'm posting on X?
My purpose in posting on X is: 1) to stay up-to-date on the market, 2) to attract clients to my DeFi creator space Pink Brains, and recently 3) to build my influence and secure token delegation votes.
This strategy allows me to explore multiple topics, even if I'm not an expert in any of them.
However, as you start to grow your following on X, you should choose a topic you are passionate about. As your followers increase, your topics should diversify. Posting can increase your influence, so everyone should do it.
Becoming an influencer is like becoming a hero in Lineage 2. Your character will gain a special aura that not only boosts your attributes but also allows you to broadcast your message to the entire server. I chose the least popular role because the competition to become a hero was smaller.
Many of you work in cryptocurrency companies, which forces you to focus on roles such as marketing, market making, or sales. This gives you an advantage over those who treat cryptocurrency as a hobby: leveraging industry connections, gaining insights, and even influencing the rules of the game.
Specialization is now the true alpha hidden away.
While holding BTC or ETH can provide steady returns, to achieve 100x returns, you need to dig deeper, just like mining for gold in a developed field. As Naval says, find work that feels like entertainment.
Whether it's DeFi, on-chain wallet tracking, or hunting for alpha in DAO forums, curiosity leads the way. By accumulating specific knowledge, you will discover opportunities that others have missed. This niche market is small enough to evade the radar of big players, but large enough to make you wealthy - the cryptocurrency game may be your gold mine.
