2017 is the era of ICO, public fundraising has directly replaced venture capital and private equity, so the bull market in 2017-2018 belongs to OG platform and proxy investing. As long as you get a stake, you can make money.
With the advent of DeFi in 2021, the actual market has started to diversify and diverge. As long as you act quickly, you can make money.
At that time, IEOs could also negotiate with the project team to release a portion of the shares to users, so launch prices were generally low, and buying new instead of old was also a typical feature of this period.
But now IEO compliance in most countries is generally considered to involve legal risks, so it can only be dropped and priced on the market, which means that if the trading is large and the opening price is low, the project performance is relatively stable, such as $BB and $LISTA , but compared to 21 years, it is still rising too fast and lacks sufficient washing process.
This rally started in 2024 by BTC$BTC ETF, this wave of smart money belongs to projects at the king level and Lumao Studio. They love each other and create a wave of beautiful data together, on the one hand, the project can raise more money coming from venture capital firms There is a lot of money (if you look at the leading venture capital firms in the market, they are worth more than $1 billion, which will really drive up the price of good projects), on the other hand, projects. With money and users are full of confidence, there are millions of users on the chain, it doesn't matter if a certain platform is not available, if there is no CEX, there will still be Dex. If not, there will be Dex on the chain.
The trading platform does not have pricing power, so for projects with high valuations, it is better to look at the fundamentals, not only the market cap, but also the trading volume.
Today, the market has already changed again. The fight between Lumao Studio and L2 Project has turned into a farce, and the Lumao era may be coming to an end. There are currently more professional players in both the primary and secondary markets, and they have various tools to hedge risks, but they have also expanded the market size. Currently, as ordinary investors, they use ICO in 2017, IEO in 2021, and Matryoshka dolls. I am even afraid that the hair care strategy in 2023 is not suitable for today's market.
Is it because the lack of venture capital investment and the small number of project stakeholders will lead to a healthier market? In each cycle, there will be some projects that go through bulls and bears, and there are countless king-level projects that fall on the way, whether web2 or web3, entrepreneurial success is very rare, and projects that cross the gap and cross the cycle are even rarer.
Investing is risky, so be careful when entering the market.
