Original title: “Prejudgment and Analysis of the DeFi Field”
On December 3rd, I had the honor to participate in an offline DeFi exchange meeting held by He Taiji, a deep DeFi player, in Shenzhen. He Taiji shared his various insights and opinions on DeFi with everyone. His understanding and cognition of the DeFi field is worth learning.
Today I will share with you some views and my own views on this:
1. DeFi is still in its early stages.
This year is undoubtedly the year that DeFi shines. The “sudden” wave of DeFi from June to October, like all the new things that have emerged in the circle, is the most impressive is that a batch of new projects have brought extremely high returns to early participants: 10 times, 100 times or even ten thousand times.
However, this feast seems to come and go fast. In November, the entire DeFi seems to have not set off a new climax as before. So we often hear someone say “DeFi is cold”.
However, in terms of transaction volume, user volume, and market value, the entire DeFi field is still in a very early stage of development. I believe that in this round of DeFi explosion, a number of projects will surely stand out, take root and sprout in this ecology, and become the bottom infrastructure of this ecology. Once they become infrastructures, they will capture the value brought by a large number of new projects based on their development in the future, and will make long-term profits.
Therefore, the future development of DeFi still has great imagination.
He Taiji believes that some projects have already risen ten times or even tens of times now, but in the future it may be able to rise ten times or even tens of times. I also agree with this view.
Therefore, as far as investors are concerned, don’t use these highly potential long-term chips as short-term arbitrage tools, and fall into the whirlpool of short-term swings, because it is easy for investors to be ruthlessly left behind.
At the exchange meeting, several enthusiasts shared their regrets that once they had thrown out their chips, they never looked back and never received them again. Let us not make this mistake again.
2. The analysis of DeFi projects depends on data.
At present, a number of front-runners have emerged in each track of DeFi, but DeFi itself has not been developed for a long time, and these front-runners have appeared for a shorter time, so their advantages in various fields are not irreplaceable. , It is entirely possible for latecomers to overtake in a curve.
Therefore, we must pay close attention to the development of the industry and projects. Once we find that new projects have the momentum to catch up with old projects, we must adjust our investment layout at any time, replace old projects that are gradually declining, and buy new projects that are catching up.
So how do we judge the ebb and flow of new and old projects?
The key is to look at the data. We should always pay attention to the development data of the project, such as the number of active wallets, transaction volume, etc. These are real data, the most direct reflection of the market and users, and any publicity and momentum cannot compare to the convincing power of real data.
3. To deeply understand and recognize DeFi projects, you must experience it yourself.
Many users involved in this field will have such doubts: For a new project, how should I judge its investment value?
The only information that can be relied on before the project goes live is probably the investigation team and reading the white paper, but the more important thing is after the project goes live. After the project is launched, whether it can survive and thrive in the market, it is important to see whether it can meet the needs of users.
Only users have a say, so for every investor, the best way to judge the quality of a project is to experience these projects in person, play and try. If you have played more projects and tried more scenes, you can have an intuitive feeling, you can compare the differences between the projects, and see things that others cannot see.
In the DeFi field, most investors and even some former senior players probably only know about many projects and only have the experience of trading and making price differences, but have never personally tried the products of these projects and feel their user experience.
It is certainly impossible to deeply understand and recognize this industry, it is impossible to discover the advantages and potentials of the product, and it is impossible to make far-sighted investment decisions.
So if you want to get extraordinary insights and insights, let’s try these products in person.
The atmosphere of this exchange meeting was very warm. Many fans shared their experiences, experiences and lessons. This sharing also deepened everyone’s understanding of the project and the industry.
In the future, we will communicate with more senior players in the industry and share their valuable experience and knowledge with you in time.
