late night rant

_posts/2024-06-16-late-night-rant.md

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+layout: post
+title: Late-night Rant On The Recent Crypto Market
+subtitle:
+cover-img: /assets/img/late-night-rant.jpg
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+tags: [crypto]
+author: Linfeng (Daniel) Zhou
+---
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+I entered and invested the crypto space with a simple goal: to make money. Especially in the secondary market, technical analysis methods and K-lines are the same everywhere; I go where the money is. I believe most people are also here to make money. After securing basic needs, I hope crypto can grow larger, allowing more people to participate. It should become a long-term, valuable market like forex or commodities, something that can be operated as a business rather than a short-lived speculative arena.
+
+Looking at the current market, it's hard to make money in the secondary market. VC coins are operated for a few years, then sold to secondary market buyers. Some even set up temporary projects when the bull market arrives. Everyone assumes that if the project can get listed on Binance, it's 80% successful. They chase whatever concept is hot, sometimes chasing multiple concepts, with no long-term plans. Once listed on Binance, they maintain the project for six months to a year, then dump it and move on. OKEx is even worse; new coins can drop 90+% after listing without rebounding. They know the project's fundamentals are all fluff, and every penny made after listing is profit, regardless of price. The cost of launching a project is minimal compared to the amount that can be sold on major exchanges. Many so-called well-known VC investments are just talk; as long as they recover most of their investment in the first phase, they're satisfied.
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+Then there are those like L0 who make money by reporting competitors, zkSync teams openly mocking the market while insider trading via airdrop, and IO.NET ATH running nodes only to get 66% slashed. These are all amateur operations, unable to distinguish between multi-signature and virtual cards. These projects have FDVs of tens or hundreds of billions, becoming straws that break the market's back. Massive fraud, aggressive dumping, and cutting newcomers in the secondary market enrich a few while making most people lose money. The market loses its profit potential, no newcomers join, and it becomes a PVP arena. Eventually, the losing effect will spread to all sectors, leaving nothing for anyone.
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+It's been four years since DeFi in 2020, and there are still no new projects creating real value. What's the use of creating a bunch of L2s? People use Ethereum to make money. If there's no value creation, who cares about zero gas fees? It's putting the cart before the horse. Project teams have raised so much money, but besides issuing coins to cut newcomers, what positive contributions have they made to the industry? Not a single breakout application, just a lot of repetitive infrastructure. After the first project in a track, everyone else just copies. It seems trading crypto is less profitable than trading US stocks. At least US companies produce real value with familiar names and products that benefit the world.
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+Last year's Inscriptions and this year's Meme coins all tout fairness and full circulation. We can accept losing money in PVP, but when project teams and VCs treat us like fools, using manipulative tactics and selling worthless tokens for our hard-earned money, it’s intolerable. From now on, I'll vote with my feet and avoid holding low-circulation, high-FDV, concept-chasing garbage projects. Let worthless projects stay worthless!
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+We need more projects that genuinely contribute to the industry and fewer with the sole intention of quick setups and exploiting newcomers. Only then can crypto go far and last long!