Author: 1912212.eth, Foresight News
'I lost over a million last year,' Xiao Su told Foresight News.
As an old player in the crypto space, he bought a lot of VC coins during the last bull market cycle. In 2021, Bitcoin once broke $67,000, setting a historical high, with many VC coins also rising sharply, even outperforming Bitcoin, allowing Xiao Su to make his first bucket of gold.
However, the market is unpredictable. In this cycle, Xiao Su stumbled, as many of the VC coins he heavily invested in since 2024 performed poorly, continuously declining, and as a diamond hand, he could not bear it, having to cut losses at the lows. After several rounds of this, his accumulated profits had already retreated by more than half.
'Why is it so hard to make money this time? Who exactly is making money in the market?' Xiao Su is quite puzzled. In his view, during previous bull market cycles, one could simply buy coins with eyes closed and make money by just lying down or sleeping. Now, it has become a stage where one must 'run fast' to earn money. Market participants like VC, market makers, exchanges, project parties, retail investors, and profit-seeking studios all face their own significant new challenges.
Xiao Su's experience is not an isolated case; not only he but also some well-known crypto VC institutions have recently announced transformations, admitting that the returns on primary investments in this cycle have been very disappointing.
However, from the history of cryptocurrencies, 2024 to 2025 will be a spectacular year. The approval of Bitcoin spot ETFs has led traditional financial institutions to flock in, and with Trump likely to return to power, the crypto policy will enter an unprecedented relaxed environment. A series of positive factors has caused Bitcoin's price to rise from the bottom of $15,000 to over $100,000, setting a new historical high.
Investors' anticipation for a frenzied bull market has reached its peak.
However, Ethereum, another major player in the market, shattered investors' dreams. Ethereum has not even set a historical high in this cycle, and the previous two major price boosters, DeFi and NFT, have not seen a resurgence. Its founder Vitalik and the Ethereum Foundation have faced significant criticism. With ETH languishing, narratives around layer 2, re-staking, ZK, etc., have collapsed, and many related ecosystem tokens have underperformed disappointingly.
However, the only hot spot—the wave of meme coins—somewhat reflects retail investors' dissatisfaction with the overvaluation of VC coins. The profit margins of VC coins had already been largely divided by VCs before, leaving only retail investors to take over and endless declines.
However, in this more brutal 'casino', only a very small number of shrewd traders, insider traders, and coin issuance groups have made substantial profits, while most retail investors rushing into meme coins have suffered increasing losses in a series of lottery-like campaigns, ultimately realizing that the so-called wealth effect ultimately belongs to others' 'profit showcases'.
So who exactly is the winner? Foresight News interviewed several crypto practitioners from various sectors, and they provided their answers.
Bitcoin Holders: Winning Big
Bitcoin buyers have undoubtedly reaped substantial rewards in this cycle. On May 10, Bitcoin Magazine Pro data showed that after Bitcoin broke $100,000, only 0.55% of addresses remained in a state of loss, indicating that most Bitcoin players in the market are profitable. As of the time of writing, Bitcoin has surpassed $110,000, setting a new historical high, and no one has lost money from buying Bitcoin; all buyers have achieved profits.
The NDV (NextGen Digital Venture) fund, established in 2022, is one of them. Its founder Jason (@jhy256) told Foresight News that the first phase of NDV had been fully liquidated by February this year, achieving a total return of 3.75 times, and recently launched fundraising for the second phase.
Jason has rich experience in the venture capital field, having worked at Huaxing Capital, Qiming Venture Partners, and other institutions. In 2023, 34-year-old Jason chose to leave the family office Blue Pool Capital, co-founded by Jack Ma and Cai Chongxin, to establish NextGen Digital Venture.
Jason stated, 'In a broader world, there are still plenty of external buyers; many institutions have not even allocated 0.1% and might just buy 0.1% first, which is not sensitive to price fluctuations. If traditional large funds allocate 1% of their capital to Bitcoin, that is quite substantial for this asset class.' He placed most of his fund's positions in GBTC in the first year and switched strategies last year to focus on cryptocurrency-related stocks like Coinbase and Strategy. These moves undoubtedly aligned with market trends.
He analyzed the rise of Bitcoin and stated that the introduction of spot ETFs has played a significant role. 'Traditional financial money can flow directly from ETFs to BTC, which is also an important reason why BTC can continue to outperform many altcoins. Perhaps Trump's election and currency issuance could provide new opportunities for other cryptocurrencies.'
In January 2024, the approval of Bitcoin spot ETFs became a milestone event in this cycle. So far, the total net inflow into Bitcoin spot ETFs has exceeded $42.7 billion. Institutions represented by BlackRock, Fidelity, and others have aggressively purchased Bitcoin spot ETFs, becoming the big winners in the market due to early entry, low costs, and steady holding. These funds mainly come from hedge funds, pension funds, and family offices, marking a shift in the crypto market from retail speculation to institutional investment.
Moreover, various listed companies have also joined the ranks of Bitcoin buyers and reaped substantial profits.
The U.S. publicly traded company Strategy has gained astonishing profits through its aggressive buying style, not only seeing a significant rise in its stock price but also achieving impressive unrealized gains. As of May 18, 2025, Strategy held 576,230 Bitcoins, with a total purchase price of about $40.18 billion, averaging approximately $69,726 per Bitcoin. After Bitcoin broke $109,700, its unrealized gains once exceeded $23.039 billion. The Japanese listed company Metaplanet cumulatively holds 7,800 Bitcoins, with a historical average purchase price of 13.51 million yen per coin (approximately $94,165.7). Based on a Bitcoin price of $109,000, the Bitcoins held by Metaplanet have unrealized gains of $12.1 million.
Since its inception, Bitcoin has not disappointed any diamond-handed players, with the floating profits of Bitcoin held by the island nation of El Salvador exceeding $357 million.
The mining machines, crypto infrastructure companies, and financial derivatives derived from BTC have also reaped significant rewards. Taking Canaan Creative as an example, its financial report shows an 80.9% increase in revenue and a 312.5% increase in mining revenue in the fourth quarter of 2024, with the company mentioning that customer orders for the first quarter of 2025 have already been scheduled for the second quarter, indicating a continued momentum in mining machine sales.
Meme Big Winner: Earning Millions on a Single Coin
'Currently, the total profit has reached a hundred times, mainly including earnings from last year's AI, deSci, and TRUMP,' Yuyue told Foresight News.
The well-known on-chain KOL Yuyue seized the opportunity with TRUMP and made millions, rising to fame. According to community images circulating, she spent $158,000 to purchase TRUMP and once had floating profits exceeding $2 million.
She entered the crypto space in March 2022, initially just looking for an internship, but later got to know more people through airdrops and communities, reviewing market opportunities. Ultimately, when the opportunity arose, she dared to take positions and achieved significant results.
In the past year of the crypto world, the most wealth-generating sector has undoubtedly been 'Meme'. Since the beginning of 2024, meme coins have triggered an unprecedented frenzy in the crypto market. From WIF and BONK on the Solana chain to PEPE and TURBO on Ethereum, and to the rapidly rising DEGEN and MOCHI on the Base chain, even meme assets within the Bitcoin ecosystem, each hot spot's emergence has quickly attracted tens of thousands of retail investors and speculators.
Meme is no longer just entertainment; it has become a new experimental ground for wealth distribution mechanisms. According to statistics from CoinGecko and Dune Analytics, throughout 2024, the total market capitalization of meme coins skyrocketed from less than $2 billion to over $60 billion, with an annual increase of over 2900%. Among them, the market capitalization of meme coins on the Solana chain accounted for over 1/3. WIF surged from an initial market cap of less than $1 million to over $3 billion, with early holders even achieving returns of over 100,000 times. Some users purchased a new meme coin BOME for less than $200 in April 2024, and within just 72 hours, their account value skyrocketed to over $2 million.
These meme coins often have no traditional technical background, and even do not rely on complete project white papers, only relying on a slogan or a simple dog avatar to ignite millions of dollars in trading volume.
The most insane wealth effect of meme coins belongs to the meme coin TRUMP before Trump officially took office in the White House. Traders like 0xSun, Da Yu, Leng Jing, CryptoD, etc., made tens of millions of dollars in profits on a single coin, igniting the entire crypto space, with countless people exclaiming in surprise. However, the players who made such enormous profits on a single coin are ultimately just a small minority. Position management and risk preference are also a significant subject.
Yuyue admitted that she is quite flexible in position management. Apart from Bitcoin, she does not hold any other long-term positions. In terms of trading style, 'there are currently two distinct styles: the chain sweeping style and the secondary phase style, but I lean more towards the secondary phase style, which emphasizes narrative.'
She stated that market participants must have their own judgments about the underlying assets, for instance, if focusing on the secondary phase, one needs to pay attention to narratives and market cap estimation ranges, and trade based on these foundations. The narratives here are not fabricated but can be supported by candlesticks and market data.
On-chain OG player 'Bitcoin Factory Chief' has also profited immensely from the meme coin gold rush. He told Foresight News, 'During the last cycle, I made tens of times returns with SHIB in just a few weeks and began my on-chain trading journey. In the last year or two of meme trading, I've made profits of around several million, seizing opportunities with ORDI, GOAT, TRUMP, and other assets.'
However, obtaining high returns is not easy. 'Those around me who have achieved significant returns often invest considerable effort in on-chain research and time; they deserve it, which is something the average person may not be able to do,' he lamented.
Trading meme coins tests players' skills more than mainstream coins. Bitcoin Factory Chief stated that meme trading must grasp the big players, big trends, and big narratives, with major hot topics being crucial. Searching for keywords or contract addresses on Twitter can also be used to observe short-term popularity.
His profits from meme coins would also be used to buy Bitcoin. 'Currently, 85% of my position is in Bitcoin, around 13% in Ethereum and BNB, with some remaining in altcoins and meme coins.'
The wealth myth of meme coins temporarily fizzled under a sluggish market, and even large amounts of sharing on social media became rare. Many players dreaming of sudden wealth repeatedly faced setbacks in various lottery campaigns, anxiously oscillating between zero value and panic selling. Some chose to return to mainstream altcoins, while others ventured into different fields to seek profits.
Perhaps every reluctant meme player is waiting for the moment when the altcoin market fully recovers. Some market players have obtained substantial results through effective strategies and perseverance; they are the airdrop players.
Airdrops: From National Celebration to Competitive Gaming
'In 2023, the Arbitrum airdrop became my most rewarding project, approximately 30 million RMB,' famous airdrop player Feng Mi told Foresight News.
He has over a decade of experience in traditional finance, having worked in hedge trading and investment banking. He entered the crypto space in 2017 due to ICOs and discovered profit-seeking opportunities through DeFi in 2020, which led to an unstoppable momentum. His speed of wealth acquisition even far exceeds mining or trading coins.
Later, 'In 2024, Wormhole brought higher unrealized gains, and its corresponding value during TGE even exceeded ARB. Unfortunately, the timing for claiming and selling was not well grasped, resulting in only a brilliant surface, with limited actual gains.'
The golden age of airdrops is not far from us. During the crypto bull market from 2020 to 2021, the surge of DeFi, NFTs, and Layer 1/Layer 2 projects provided fertile ground for profit-seeking. Airdrop activities from DeFi protocols like Uniswap, 1inch, dYdX often brought in thousands of dollars in profits, attracting a large number of retail investors and early studios. During this period, the threshold for profit-seeking was relatively low, allowing ordinary users to participate through simple wallet operations or social tasks. That was indeed the golden age of profit-seeking. In peak times, top profit-seeking player Feng Mi told Foresight News, 'The single account reward for the ENS token airdrop exceeded 100,000 RMB, and multiple accounts made people rich directly. During the PSP (Paraswap) airdrop, one account started from $10,000.'
Subsequently, the profit-seeking industry gradually shifted from barbaric growth to specialization. Studios improved efficiency through bulk account creation and automated scripts. However, even so, the industry still experiences significant airdrop wealth effects.
Airdrops from testnet projects like Aptos and Sui have further fueled the trend of profit-seeking, with some studios earning millions of dollars through 'multi-account strategies'. To prevent 'Sybil attacks', project teams have generally raised the thresholds for airdrops, such as introducing identity verification, on-chain behavior analysis, or community contribution requirements. This has made it more difficult for retail investors to profit, while studios with technological advantages and resources have gradually taken the lead.
Feng Mi admitted when discussing his insights that first and foremost, choosing the right projects is crucial. 'Airdrops that can truly change one's destiny must come from projects with products, innovations, capital, and vision. It's not something that can be compensated by completing 100 low-quality activities. It’s better to heavily invest in three promising projects than to spread thin over thirty uncertain ones.' Secondly, participants must learn to understand what kind of people they hope to filter out, understand the protocol logic, and understand the characteristics of the protocol, with a very clear overall judgment. The more they resemble 'real users' and adopt the 'developer’s perspective', the easier it will be for them to be counted in the high-quality weighting distribution rules and reward models in the future. Additionally, just like a professional trader's sensitivity, one must be decisive when it's time to cut losses, and letting go should also be clean and decisive.
In his view, profit-seeking is not an isolated behavior, but a typical structural arbitrage method. Participants can regard profit-seeking as a 'left hand' for stable returns: low cost, high odds, exchanging time for opportunities. At the same time, the 'right hand' allocates positions in the secondary market, holding basic assets like BTC/ETH or boldly betting on some long-term speculative projects like meme. The left side gains certainty, while the right side gambles on uncertainty. 'Currently, this is the more stable and more capable way to traverse cycles in my eyes.'
The airdrop sector remained hot in 2024. Projects like Starknet, Hyperliquid, Magic Eden, and Pudgy Penguins distributed hundreds of millions of dollars worth of tokens through airdrops. Subsequently, the market experienced dramatic fluctuations, turning from a peak to a trough. Those who initially chose to sell maintained significant profits, while those who held on as diamond hands became the liquidity exit for 'fast players'.
In response, Feng Mi reflected, 'Profit-seeking has never been a mechanical operation on an assembly line. Every account, every TX, and every project token behind it is a result of my careful interaction, documentation, waiting, and even losses. They are not just numbers, but a series of strategies and luck games, infused with intense emotional investment. I poured a lot of effort and time into each project, with gas and capital; that’s why this is an emotional investment. But it was this 'emotion' that became my biggest mistake this time: I was reluctant to sell when I should have, and hesitated when I should have walked away. As a result, I handed over the profits that were already in hand to the market; I merely walked a short distance with it.'
Market players experience both wins and losses, and the winners are always a minority. Subsequently, whether individuals or studios faced repeated setbacks; when airdrops like zkSync and LayerZero were released, the market was filled with cries of despair, with retail airdrops being pitifully few. Profit-seeking studios suffered heavy losses, and some were even forced to close. The project teams were heavily criticized, but they maintained a firm stance. From then on, most projects in the market began to imitate this, issuing fewer airdrops or not issuing them at all.
Feng Mi told Foresight News, 'The grassroots era of profit-seeking has long ended. The window of opportunity for everyone to make their first bucket of gold from the blockchain has closed. It is no longer a stage where one can simply interact with a few buttons to earn rewards.'
When profit-seeking players generally feel that it is difficult, persisting becomes even more challenging. Many players miss wealth opportunities due to a lack of patience. Feng Mi analyzed that the root cause of many players' inability to persist lies in 'the airdrops are delayed, gas is continually invested, interactions are dull and boring, tasks are becoming increasingly formalized, and points are becoming more and more rampant. When returns are long overdue, doubts gradually erode execution power, and complaints naturally follow. But the real big results are often hidden in the moments you almost want to give up or think are ineffective after sticking through. You have to believe—results don't happen first; they are believed first, and then they will be realized.'
Feng Mi also shared a failure case from his profit-seeking process, 'I engaged in a large number of BTC staking interactions on Babylon, investing a considerable amount of funds and attention. As a result, the airdrop distribution was extremely limited, and the returns were pitiful.' In addition, he heavily invested in the entire Move ecosystem, which included Aptos, with an investment exceeding $4 million at its peak market value, but the ecosystem projects collectively underperformed, lacking effective direction and top-level operational capability.
Airdrops also come with various ups and downs.
However, compared to buying coins, profit-seeking through airdrops may still be one of the few avenues where one can make big money from an initial small capital. Multi-account strategies and premium account strategies remain practical means, but they also require more careful methods. The game of outsmarting project parties continues to test profit-seeking players' cognition and execution.
Conclusion
The only constant in the crypto market is change. A day in the crypto space equates to a year in reality. While this may seem exaggerated, it also reflects the rapid pace of change. If you can't predict or grasp it, the opportunity is lost, which is undoubtedly the most torturous situation for those continually seeking more wealth in the industry.
However, the most captivating aspect of the crypto space is that every time market participants believe they have reached the end of the wealth effect, there will always be something thriving in some unremarkable corner or field, nurturing the rise for the future, attracting curious young people to flock in for gold mining through another astonishing wealth effect.
