Is meme coin suitable for regular investment? | Q&A

1. Is there still hope for Polkadot?

Although Polkadot and COSMOS describe different visions and purposes in their respective white papers, I believe their functional differences are not that significant: both are focused on "one-click chain deployment."

However, after years of exploration, the early blockchains built with their tools have not been particularly impressive. But now, the modular blockchains customized using the COSMOS toolkit have played a role in collaboration with the Ethereum ecosystem, giving COSMOS a highlight in a brand new track.

Stimulated by this news, it was said that Polkadot was also preparing to boldly try in this field recently, but so far, it seems that no project has emerged.

So whether Polkadot still has hope depends on whether it can find new paths and application scenarios like COSMOS.

2. How about DYDX?

I used to hold this project, but I sold all my holdings during the last bull market.

The main reasons are as follows:

First, I was initially optimistic about the decentralized derivatives track because, based on conventional thinking: if spot DEX can explode, derivatives DEX surely can too. But later, I began to increasingly doubt whether the current decentralized derivatives exchanges truly address users' pain points.

Second, I personally never engage in derivatives trading, so my understanding of this track and user needs is likely very superficial; additionally, I am not very interested in this track. Therefore, I feel there is no need to spend too much time and energy on a track that I am not particularly interested in and do not fully understand.

Later, the next news I heard related to this project was that it was preparing to build its own chain. I believe that separating from the Ethereum DeFi ecosystem and building independently makes the future even harder to predict.

As a result, my interest in this project has waned, and my understanding has diminished.

3. Should we consider dollar-cost averaging for meme coins like PEPE?

I treat meme coins as a game; I only buy some when I feel interested, check out the community operations, evaluate the price, and think it’s appropriate, but I won’t dollar-cost average.

Specifically regarding PEPE, I have sold all my holdings because I do not appreciate the actions taken by its team midway.

4. Can you join our team?

After the recent article's comments, several readers left messages asking if we have a team and expressed a desire to join us. I sincerely appreciate the readers' affection. If we need suitable talents, I will publicly issue an invitation! In fact, at the end of each article, we can see many readers' sincere comments and candid opinions. This kind of ideological interaction and communication, in my view, is akin to joining us. Moreover, from many readers' comments, I can see their ideological changes and believe that these readers must have made good profits in crypto asset investments.

5. Recently, the BTC L2 and assets have been thriving, and I heard that it is mainly the Chinese community participating and making noise, while the overseas mainstream has not participated. I wonder why?

I am not particularly concerned about whether the project team is Chinese or foreign; I am more focused on how the project itself is and the capabilities of the project team.

If there are frequent issues with the project team, regardless of their nationality, I will immediately distance myself; if the project team is dedicated to building, regardless of their nationality, I will pay close attention and actively participate.

In the crypto ecosystem, some investors may view teams with Chinese backgrounds differently because, in the early stages of ecosystem development, some teams or individuals left quite a bad reputation in this ecosystem.

I think there are several reasons for this:

One is that the crypto ecosystem is inherently open, which inevitably leads to a mix of good and bad, with some people having ulterior motives. Given such a large population base, the absolute number of people with different motives in the Chinese community may appear slightly higher.

Another more important reason is that the institutional environment in which Chinese people operate has significant room for improvement in terms of friendliness towards innovation. This leads to the situation where, since innovation is laborious, time-consuming, and unappreciated, it might be better to make a quick deal and walk away.

Additionally, after 1994, many ecosystem practitioners were forced to wander the world and fight alone, and we can only face such an environment.

Yet even in such an environment, the Chinese community has still created a series of brilliant achievements in the crypto ecosystem, both in the early days and now.

The most typical early examples include the research and production of mining machines, the layout of mining farms, and crypto exchanges;

Now, typical examples include the Bitcoin ecosystem, such as Unisat, BRC-420, and OK Wallet, which many users are currently using.

These products play important roles in the entire crypto ecosystem. How these projects perform and the user experience should be objectively felt by readers who have tried them; users' actual actions are the best votes.

Speaking of this, I am reminded of a song by Luo Dayou called "Orphan of Asia."

Using this song to describe Chinese entrepreneurs in this ecosystem who are without support, floating like duckweed, marginalized yet still working hard and fighting fiercely seems most appropriate.

6. Do traditional enterprises (like social and video decentralization) have prospects?

I have always believed that not every scenario or application is suitable for decentralization.

Decentralized technology aims to solve the monopoly of trust and create a neutral, permissionless environment/platform. There are trade-offs; this technology removes the monopoly of trust, but the cost is a sacrifice of efficiency to some extent.

However, other scenarios require more efficiency and speed. In those scenarios, centralized technology is definitely better, more practical, and can provide a better experience for customers.

Therefore, I do not believe that blockchain technology should be used to transform every scenario.

As for the connection between traditional enterprises and blockchain (here I refer to decentralized blockchains like Bitcoin and Ethereum, not consortium chains), it will certainly happen in the future. But right now, I believe we are still in the early stages, and many scenarios still need exploration and experimentation. It may take some time before we can see some signs.

Specifically regarding social and video applications, the biggest problem currently is that platforms find it very difficult to be neutral, which is something blockchain technology can solve. However, extreme neutrality, in my view, means permissionless. But for applications like video and social, is it really appropriate to allow content to be posted without permission?

I am not very sure about this.

So I also have some doubts about whether blockchain technology is really suitable for these two types of applications. If it is suitable, how can we strike a balance between neutrality and filtering out spam content?