Guest message: Web3 is decentralized, open and fair, and is an industry with both opportunities and risks. OKX has always been one of the best exchanges in the industry, and the OKX wallet is my favorite multi-chain wallet. It is really rare that OKX can develop such a wallet product while doing a good job in centralized exchange business, bringing convenience to users!
0xSun , a veteran player on the blockchain, an Alpha trader, and a 100x Golden Dog discoverer. He first came into contact with blockchain during his graduate studies, and the opportunity to enter the circle came from the meme craze. During the last bull market, he quickly earned several times the profit by trading memes. Not only that, he also earned nearly 200e on the Monkey Land project.
In 0xSun s view, these representative achievements are mainly due to two advantages: First, he has a computer science background, which gives him a unique acumen and technical foundation when operating smart contracts and analyzing project functions. Second, he improved his ability to retrieve information, summarize and quickly judge the value of projects by reading a lot of English literature during his graduate studies. These skills help him to quickly understand the project and make accurate judgments in the time-sensitive track of the chain. In addition, he also emphasized that interest is his driving force for continuous progress, helping him to form a set of his own methodology on the road to gold mining on the chain.
In view of his rich experience and the wide range of player groups he represents, OKX specially invited him to be a sharing guest in the Friends of OKX series of special topics, hoping that his sharing can provide reference for many on-chain players.
Friends of OKX Series is a special column produced by OKX and hosted by Mercy (@Mercy_okx), the official community ambassador of OKX. It aims to explore the work stories, industry thinking and lessons learned of KOLs from different backgrounds for novice users to learn and refer to.
1. Alpha Mining Methodology
1. Mercy @Mercy_okx: How do you dig out effective and valuable information?
0xSun @0xSunNFT : I mainly get information about early projects and profit opportunities through the following three channels: Twitter, on-chain monitoring, and tracing the source.
Twitter: Most projects will post the latest information on Twitter. I follow some valuable bloggers, especially those with fewer followers but focusing on a certain field. By following these information sources, Twitters recommendation algorithm will gradually recommend more similar content, becoming an important source of information.
On-chain monitoring: For example, using Dexscreener, you can view new coins on the hot list based on trading volume, number of transactions and other indicators, and then further dig into relevant information to evaluate the quality of the project through Twitter or the official website. You can also combine it with wallet monitoring tools to find out what projects the active smart money on the chain is participating in at the first time.
Tracing the source: Monitor newly deployed contracts and check project information. This method is information-intensive and time-consuming. For ordinary players, using Dexscreener and on-chain monitoring is sufficient. Tracing the source is suitable for players with higher requirements.
In general, these three methods have their own advantages and disadvantages, and a reasonable combination can effectively discover early projects and profit opportunities.
2. Mercy @Mercy_okx: How to judge the potential value of a project?
0xSun @ 0xSunNFT : I evaluate projects based on five key factors:
Project Narrative: Evaluate the project’s core philosophy and value proposition.
Market heat: Analyze the teams investment and efforts in promotion, as well as the projects own heat. Overheated projects are prone to collapse, while overcooled projects are prone to lack of momentum at the start.
Chip distribution: Use on-chain data analysis tools to view the proportion of chips controlled by the team and their changes.
Degree of innovation: Determine whether the project is innovative and what level of narrative this innovation belongs to.
Team operations: Pay attention to whether the team is controlling or pulling the market, whether it is continuously operating and doing things, etc.
Although on-chain projects are highly transparent and can provide clearer information, this does not necessarily mean they are safe. The team may still manipulate the market in various ways. We should consider factors such as the projects narrative, promotion efforts, and chip control, and use on-chain data tools to make judgments. However, even so, 100% accuracy cannot be guaranteed. The direction of the crypto market is often determined by a few people, and we can only try to improve the accuracy of our judgments rather than fully predict the market trend.
In addition, here is a feeling that even if you have a high influence in the crypto circle, it is difficult to obtain real insider information. There is no situation in the market where someone will privately tell you that the token is about to soar. The only ones who can really grasp the core information may be a few foreign big Vs who have close ties with the project party. Therefore, the so-called insider information often has risks, which may come from bad people or information used by the project party. Such information may lead players to have too high expectations, resulting in operational errors. It is recommended that you do not over-rely on or exaggerate the role of insider information.
3. Mercy @Mercy_okx, do you have any experience to share on-chain risk control?
0xSun @ 0xSunNFT : The chain is a place where high risks and high returns coexist, and it is very normal to suffer losses. Take myself as an example. This year, the staking projects Zkasino and Fomo pre-sale have suffered the most losses. Zkasino invested $25,000 and 30 eth, but was directly Rug, and lost all my money. Fomo token pre-sale, I first invested 15 eth, and then saw the price drop after the opening, so I added 15 eth, and finally 30 eth also returned to zero. The most difficult thing for me to accept during the NFT period was the Mint of KPR NFT. My friend and I prepared 300 whitelists, but in order to save gas fees, I gave insufficient gas, which caused the Mint to fail and lost 35 eth in gas fees. The opportunity to earn 150 eth was lost due to operational errors. These experiences made me realize the importance of risk control on the chain.
First of all, you must fully understand the high-risk nature of the cryptocurrency market when playing on-chain. Compared with traditional investment fields, the cryptocurrency market is more volatile and riskier. Especially in on-chain transactions, you will face more potential risks, such as encountering bad project parties directly taking away pre-sale funds, or withdrawing unlocked liquidity pools, etc. Secondly, dont be blinded by the temptation of high returns. Although on-chain transactions have the possibility of obtaining high returns, not everyone can make money easily. Especially for novices, there are many traps and they need to be extra vigilant.
In order to better avoid risks, here are some specific suggestions:
1. Use contract detection tools: For projects involving smart contracts, players should use relevant tools to conduct risk assessments.
2. Do a good job in risk management and position control: Do not blindly invest all your funds just because you expect high returns. Even for promising projects, you should moderately control the scale of funds.
3. Always be vigilant: In on-chain transactions, even seemingly reliable projects may encounter unexpected situations. Players should always be prepared for the worst.
Finally, it is important to protect your principal. There are many opportunities in the cryptocurrency market, and only by protecting your principal can you continue to participate. Compared with obtaining high returns in the short term, ensuring the safety of funds is more critical.
2. Meme development in the new cycle
4. Mercy @Mercy_okx: How do you view the development of MeMe in this cycle? Can you please disclose your current largest holding?
0xSun @ 0xSunNFT : The diversion phenomenon in the current cycle is very obvious. Compared with the previous cycle, the number of coins in this cycle has increased significantly, whether it is meme coins or VC coins. In the previous cycle, when people mentioned animal coins, the first thing they thought of was Doge promoted by Musk, followed by Shib, which has many connections with Ethereum founder Vitalik Buterin. These coins are relatively concentrated.
In this cycle, the situation has changed. On the one hand, players are generally more experienced; on the other hand, the diversion phenomenon in the meme coin track is particularly serious. For example, the recent capitalization dispute, and PumpFuns issuance of hundreds, thousands, or even tens of thousands of new coins every day, have made it difficult for a single coin to reach the highest level of the previous cycle. Take Pepe, the leading coin in this round, as an example. Although its performance is very strong, its market value is still several times that of Shib. This is largely due to the diversion phenomenon of meme coins and the diversion of overall token transactions.
A few days ago, I saw a piece of data that the total value of stablecoins in the current cycle has not increased significantly compared to the peak of the previous round, but the number of tokens has increased dozens of times. This makes it difficult for a single token to reach the highest market value of the tokens in the previous round.
As for my current holdings, I have shared them publicly before. At present, they are mainly stablecoins. Since I am uncertain about the future market trend, I will wait and see for the time being.
5. Mercy @Mercy_okx: In the case of USDT, I recommend that you use OKX’s Tunbibao series. I would like to ask 0xSun , how do you currently configure your USDT?
0xSun @ 0xSunNFT : I personally think that you should first select a track and then allocate assets within that track. For example, if you plan to participate in airdrops or on-chain projects, you may need to buy some Ethereum as principal. Then, based on the investment in this ecosystem, you can achieve Ethereum-based growth, which may be relatively stable. At the same time, you can also convert assets into stablecoins, Bitcoin, or continue to hoard local currencies according to market conditions. If you focus on the secondary market, you may need to consider the cycle issue.
3. Advice for newcomers
6. Mercy @Mercy_okx, if you start from scratch and have only U in your hands, how would you allocate your assets in the Crypto field?
0xSun @ 0xSunNFT : First of all, you need to choose the track you like the most, are most interested in, or are best at. It is good to choose one track to be proficient in, such as playing on the chain, airdrops, playing chain games, or doing spot trading and contracts in the secondary market. You don’t need to know all of them.
When choosing a track, I suggest paying attention to the top bloggers in each track or reading a few more investment research reports to stimulate your interest, locate your own ability area, and then constantly correct it in practice. After selecting a track, it is time to allocate assets according to that track. For example, if you plan to participate in airdrops or on-chain projects, you may need to buy some Ethereum as principal. For most novices, this step may be enough. Because, for novices, the primary goal is to increase the accumulation of currency standard and achieve a positive cycle. For example, focusing on the Solana ecosystem and using the Sol standard for operations, when the cycle is good, a positive cycle of income will be achieved.
However, in the downturn phase of the market, novices may need to consider converting some of their currencies into stablecoins and repurchasing them when the market reaches a more suitable position. Or use the proceeds to hoard Bitcoin, which are relatively stable strategies. As for the secondary market altcoin trading, it is recommended to follow the market trends and hot spots and choose the popular leading coins to participate.
7. Mercy @Mercy_okx: With the development of the industry and the expansion of the industry scale, peoples understanding or threshold of the wealth effect will also be raised. For novices, how can they quickly accumulate wealth?
0xSun @ 0xSunNFT : On the one hand, it is about choice and cognition. First of all, it is about the choice of track. For example, if two completely identical people are put in the cryptocurrency circle, one plays NFT and the other plays inscription, the income of the person who plays inscription is likely to be more than 10 times that of the person who plays NFT. This is not a question of personal ability, but a difference in track.
Secondly, the volatility on the chain is very high, and you need to have enough psychological tolerance. Even if you buy all the currencies on the exchange, it will take some time for them to fall by half. It may only take a few seconds for a project on the chain to go from taking off to zero. For those who have not been exposed to it, it is easy to doubt whether it is a scam.
Therefore, you must first have enough knowledge of this track and be mentally prepared. Secondly, you must consider whether you have enough time and energy to invest, and whether your overall trading style is suitable for this track. I know some friends who are very good at secondary market trading. They have also tried on-chain trading, but finally found that they cant keep up with the pace. On the one hand, they dont have so much time and energy to watch the market, and on the other hand, their trading style is more inclined to hold a target for a long time.
In addition, the current cycle has a serious diversion phenomenon, and few targets can be held from beginning to end and make a lot of money. More often, new projects are constantly discovered, the first wave of dividends are harvested, and then profits are taken at appropriate positions, and the cycle repeats. The second aspect is to follow the market trend, find market hot spots, and find areas where more funds and people are gradually joining in, so as to truly reap the industry dividends.
4. Talk about the OKX wallet and product experience
8. Mercy @Mercy_okx: As a veteran on-chain player, when did you start using our OKX wallet and how do you feel about it?
0xSun @ 0xSunNFT : I started using the OKX wallet when I was playing Inscription, and the user experience is very good. First of all, the chains supported by the OKX wallet are very comprehensive. For example, in the Bitcoin ecosystem, the EVM chain, or the SUI chain, different wallets usually need to be installed separately, which is a cumbersome and time-consuming process for users. However, the wide range of chain support of the OKX wallet saves these troubles.
Secondly, another advantage of the OKX wallet is its self-built nodes. For example, when trading on SOL or other unpopular chains, using other wallets or self-built nodes may cause transaction delays or failures. However, the nodes that come with the OKX wallet can ensure smooth transactions.
The most impressive experience for me was when Cupidon was launched last year. I tried multiple wallets but failed to buy it. Finally, I completed the transaction quickly on OKX wallet at a price of 0.6. This performance was very satisfactory. In addition, OKX wallet is also very convenient in managing multi-chain assets and multiple wallets.
Risk Warning and Disclaimer
This article is for reference only. This article only represents the authors views and does not represent the position of OKX. This article is not intended to provide (i) investment advice or investment recommendations; (ii) an offer or solicitation to buy, sell or hold digital assets; (iii) financial, accounting, legal or tax advice. We do not guarantee the accuracy, completeness or usefulness of such information. Holding digital assets (including stablecoins and NFTs) involves high risks and may fluctuate significantly. You should carefully consider whether trading or holding digital assets is suitable for you based on your financial situation. Please consult your legal/tax/investment professionals for your specific situation. Please be responsible for understanding and complying with local applicable laws and regulations.
