Investment Lessons on "Hundredfold Coin"

In the comment section of the article "The Path to a Thousandfold Growth of Base Chain Degen" on April 2, some readers asked if I could recommend a few potential coins.

Regarding this expectation, I clearly responded to the audience in my last Twitter interaction: apart from Bitcoin and Ethereum, I never recommend any coins.

I have mentioned the coins I invest in and the ones I buy, but the purpose of sharing them is to convey my thoughts and reasons for buying these coins, not to recommend everyone to buy them.

I hope everyone can summarize and organize their own set of ideas and methods from my experiences and lessons.

Many times, even if a true "hundredfold coin" is right in front of you, many people still cannot achieve a hundredfold return from it.

This is because everyone's understanding is different, and their investment sizes vary. For the same coin, people will have different perceptions of at what price to buy and at what price to sell, which leads to different behaviors and results.

The saying "What is good medicine for one is poison for another" illustrates this principle.

Additionally, I wrote a dedicated article on May 8, 2023, titled "Why Are There No Clear Hundredfold Coins?" This article comprehensively expresses my thoughts, and I recommend everyone to read it if they have time.

I have lessons learned regarding hundredfold coins. Today, I want to share a regretful story about my experience with LINK.

LINK (Chainlink) is an old coin from the 2017 ICO. During the bear market that began in 2018, it was relatively lucky, as it did not fade away like other once-popular projects, but instead managed to survive, occasionally making headlines in the market.

During that period, all former ICO projects either died or struggled. People were filled with doubts about the future of the crypto ecosystem.

Although Ethereum was slightly better off, there was still no clear roadmap for what the future ecosystem of Ethereum would look like.

Some people occasionally mentioned projects that would later be known as DeFi, such as MakerDAO and Kyber, but at that time, they looked nothing like what they would become later.

At that time, I was very focused on "on-chain" activities, so I was particularly optimistic about projects in the DAO space and less so about DeFi. Besides DAO, I looked around and thought that maybe oracles could also be worth a shot, albeit more as a wild guess.

So, I bought LINK with a nonchalant and distracted attitude, at a price between $0.4 and $0.5.

After buying, I completely ignored it.

Around July 2020, LINK started a significant rally, with continuous positive news pushing its price up to $8.

By this time, the significance and importance of the oracle space had become "common knowledge," and its value was publicly recognized.

Despite this, I thought that LINK's price had surged too high in such a short time, creating a huge bubble; coupled with the fact that the crypto market had not yet entered a full bull market, I believed that it was problematic for a single coin to rise like this when the overall market had not yet started to rise.

Thus, I unhesitatingly sold LINK.

Later, during the subsequent bull market, LINK not only surpassed $8 but also peaked at nearly $50.

After this regret with LINK, I reviewed the coins I had actively bought during that bear market but sold off before the bull market arrived, and I found that as long as the projects themselves had no major issues, they generally performed better in the bull market, often exceeding the so-called "peak" they reached at the end of the bear market and the beginning of the bull market.

So at that time, I decided to strictly restrain myself in this regard and learn this lesson for the next bear market: for coins I actively buy and believe in, as long as the team has no major issues, regardless of how much they have risen before the bull market, I would ignore those small profits and hold them until later in the bull market to realize gains.

In this bear market, apart from ETHS, which I sold because I subjectively thought it had risen too much, I have not repeated this mistake with other coins.

Even with ETHS, after selling, I realized I had violated my discipline and felt very regretful. This has made me adhere to this principle ever since.