#土狗冲锋
What is a 'local dog'?
The so-called on-chain 'local dog' usually refers to early projects that lack a white paper and have very shallow token trading depth. The decentralization and low barriers of DeFi have allowed many quality grassroots projects to develop rapidly, while also providing a convenient environment for ill-intentioned individuals to harvest. 'Local dog' projects mostly have a short lifespan, typically lasting 1-3 days. This means that among these, only a few 'local dogs' can achieve hundredfold or thousandfold gains, and it is these few 'local dogs' that create survivor bias, leading many to believe that investing in 'local dogs' is a shortcut.
Even so, there are still many who can consistently profit by hundredfold from 'local dogs' each year, indicating that specialization exists. Investing in 'local dogs' is essentially a probability game. In my view, investing in 'local dogs' means finding the strategy with the highest win rate and odds simultaneously. For 'local dog' projects, even a 1% win rate is hard to come by. Once successful, it can yield tenfold returns. Observations show that when the market cap of a meme reaches two to three million dollars, the win rate and odds reach a balanced state.
However, it is important to distinguish between 'local dogs' and memes; they are not the same.
Specifically, 'local dogs' are mainly small-cap and have short lifespans, while memes have cultural attributes and consensus, possess sufficient liquidity, and are relatively easier to gain traction.
As an individual, how can one invest in 'local dogs'?
Controlling position size is the most important. On average, there are 1,000 'local dogs' daily, but only 10 are worthy of short-term speculation. One should treat it like a casino, placing the same amount in multiple bets over time.
Utilizing market rules to improve trading win rates and risk-reward ratios is key. Investing in 'local dogs' is often a game where one loses money in most cases and makes money in few; it is somewhat similar to venture capital.
A successful project will attract numerous imitators, with the first and second waves likely making profits, while later imitators often start to exit the market. For example, after PEPE became popular, PEPE2.0 also surged a hundredfold. After the rise of Harry Potter Bitcoin, Harry Potter XRP also increased a hundredfold.
Remember these three points; perhaps in the 'local dog' market, you can achieve some gains.
