This is an announcement from Hong Kong, Yunfeng Financial Group spent 44 million US dollars (over 300 million RMB) in the open market to purchase 10,000 Ethereum as the company's strategic reserve asset. Yunfeng is a listed company in Hong Kong, and Yunfeng's Yun refers to Jack Ma.
Big players buying Ethereum is an inevitable trend, as Ethereum is one of the most important assets of the future. Since the US Genius Act, it is only a matter of time before US dollar stablecoins enter the global public's portfolio. What will happen next? Many countries' fiat currencies will become practically useless, and foreign exchange controls will become nominal. The vast majority of the global public will gradually hold US dollars and US dollar assets. Therefore, it can be inferred that the United States will only increase its control over the world in the next 10 to 20 years, not decrease. And where will these stablecoins be? The vast majority will be on the Ethereum system.
The next step is RWA; everything going on-chain is also an inevitable trend. Real estate, stocks, artworks, company equity, funds, insurance, energy, etc., will all operate on the blockchain. But where will this on-chain take place? Still on Ethereum. And what is the 'thing' that goes on-chain? It is all our current economic activities. So, as Ethereum is a system that carries the entire land, shouldn’t we occupy a little 'share' of this system, which is the Ethereum token?
Bitcoin and Ethereum are already two entities that are almost impossible to be overturned. Now, not to mention a large group, even something created with the strength of a nation cannot surpass these two in credibility and scale because these two are global consensus, not a consensus of one country. Therefore, the best approach is, of course, to occupy the position in advance and embrace it early. For individuals, it is asset allocation; for big players, it is a small way to occupy a place for future potential business, and a larger way to occupy a place for the countries they belong to. Because things like Ethereum and Bitcoin may be more scarce than past non-renewable resources like oil, they are not only non-renewable (the inflation rate of Ethereum can almost be ignored) but also irreplaceable. Therefore, the number of them held may represent 'the size of power', 'the share of the world occupied', and 'the threshold of what can be done' 20 years later.
I mentioned before that Bitcoin in 2024 is a node; the node event is the approval of the Bitcoin spot ETF, which means the crypto world is accelerating its entry into the traditional world. In the following year or more, the Ethereum spot ETF will be approved, multi-cryptocurrency allocation ETFs will be approved, the Genius stablecoin bill will be approved, and a large number of publicly listed companies will emerge that hold large amounts of cryptocurrencies to replace their own business assets—this speed of integration into the traditional world is an 8x acceleration compared to the previous 15 years.
The logic before and after the accelerated version is different. Before the accelerated version, all encrypted assets were a game among retail investors; after the accelerated version, retail investors must seize enough assets during the limited window period of 'legislative promotion' in the future, before institutions or even the state enter the market on a large scale, because this will be the most you can have in your lifetime, and it will become increasingly scarce afterwards—retail assets will inevitably flow to institutions and the government, which is 100% certain, because retail investors will one day sell to improve their lives, and no matter how they earn money, they will never be able to buy back the same quantity.
Facing the surge of institutional coin hoarding, think carefully about what advantages you have as a retail investor against them? Isn’t it just owning chips at a lower price by taking on greater risks earlier before they enter the market in large quantities? If you ask me to hoard Ethereum like Yunfeng with 300 million now, I wouldn't be able to do it, but I could do it before; I just took on greater risks than he did—retail investors are all the same; Yunfeng can buy 10,000 today and another 50,000 or 100,000 tomorrow, but what about you? Many people in investing often say that big players haven't entered the market yet; do you think big players don't see things as clearly as you do? You're wrong; they can enter the market whenever they want; why should they take on risks that might not pay off in the early stages? They can enter later just as well.
And what about you? Besides bearing risks in the early stage, do you have any other options? Unequal sizes should not have equal strategies.
We are on the brink of a super storm, with both a technological revolution and a financial revolution, although many people are still not aware of it.
