Venture capital firm 1confirmation co-founder Nick Tomaino recently shared a series of concepts and ideas related to cryptocurrency investment on X, and this article summarizes some of the more interesting discussions for investors' reference.

Ten 'entry-level' cryptocurrencies

1) BTC: The progenitor of digital gold, with an increasingly institutional investment narrative.

2) ETH: The progenitor of the innovation hub, creating all new crypto application scenarios (DeFi, NFT, stablecoins, etc.), and its tokens are widely used as a medium of exchange.

3) XRP: The progenitor of enterprise tokens, with a good marketing strategy to attract Wall Street-type investors.

4) BNB: The progenitor of exchange tokens, with excellent marketing capabilities to attract speculators.

5) Solana (SOL): The progenitor of the rapidly rising venture capital token, beloved by Silicon Valley-type investors.

6) Doge: The progenitor of meme coins.

7) ADA: A meme coin packaged as a technology platform.

8) TRON: The progenitor of the rapidly rising innovation hub, with a strong marketing strategy to attract the Asian market.

9) Sui (SUI): The progenitor of the rapidly rising venture capital token.

10) Avalanche (AVAX): The progenitor of the rapidly rising venture capital token.

Jumping between ecosystems is just short-term speculation

An interesting psychological warfare is when a project "leaves" Ethereum to "join" Solana, or vice versa. This can be used as a marketing gimmick, but serious application developers don't really care which chain they use, they just want to build something that people will actually use. And if it really gets used, they'll eventually launch their own application chain. Stop playing those boring middle games.

Ethereum being hated is predictable

ETH is used as the currency in new application scenarios pushing the internet forward, including decentralized finance (DeFi), NFTs, prediction markets, stablecoins, games, DAOs, etc. It can also generate about 2.5% annualized returns, and its economic model is deflationary, and benefits from the development of the most robust blockchain scaling strategies (L2 and L3).

No wonder it is attacked so much by BTC maximalists who feel threatened; at the same time, VCs and KOLs are also hostile to it because their existence is completely dependent on the "challenge ETH" narrative.

How to view 'AI x Cryptocurrency'

When a new trend is heavily hyped, it usually means the trend is real in the long run, but most of the projects that appear in the short term may disappear within one or two years. In other words, those who are selling "every" AI agent are wrong, but those who completely deny AI agents are also wrong.

The approach I like is to identify the narratives and realities by finding the products and smart developers I really like. That's what I'm doing right now.

Short-term speculation is very difficult to succeed

I understand if you're trading shit coins, chasing hot narratives, or playing those short-term games in crypto. 12 years ago, I was broke and just wanted to make some money too.

But chasing short-term money and attention is a game you're destined to lose. Some people learn and adapt through practice, but many can't break through and miss the life-changing opportunities that crypto can bring - provided you believe in the greater possibilities.

More and more countries will emulate the micro-strategy model

We're likely to see countries start to competitively adopt micro-strategy strategies soon:

• Issue government bonds of different maturities (5 years, 7 years, 10 years, etc.)
• Use the funds raised from bonds to purchase cryptocurrencies
• Repay the loans in fiat currency upon maturity

The question is not whether countries will do this, but which coins they will buy?

They may start with BTC, but then it will be ETH, and any sufficiently decentralized coin has a chance of being selected. By the way, the government bond market is larger than the stock market.