Exploring the Essence and Risks of Virtual Staking for New Projects

Recently, many new users have started participating in staking and new project launches on Virtual.

Among these new users, I have noticed a popular viewpoint:

Virtual is currently a guaranteed profit model, and you can just follow along without thinking.

I find this idea quite speculative.

Indeed, most of the projects successfully launched on the Virtual platform in recent times have brought substantial profits to participants, and the more popular (especially those with strong team backgrounds) projects currently appear to offer even higher returns.

The reason for this success is mainly related to Virtual's cleverly designed points mechanism. It restricts participants from selling their tokens after obtaining them in various ways, thereby guiding token locking. This objectively reduces token circulation, making it easier to drive up prices.

This mechanism is clearly designed by the team to avoid drastic fluctuations in token prices that could impact their subsequent development work, which is commendable.

Additionally, the AI Agent in the Virtual community, such as Vader, continuously holds various Twitter spaces, inviting project teams to openly accept questions from the audience. This objectively increases the transparency of the projects, allowing participants to better evaluate the teams and feel the projects.

These combined factors have led to a steady upward trend in the prices of projects that have successfully launched.

However, the Virtual launch platform has been established for a very short time. The reason these projects can stabilize in the short term is that currently, people mainly focus on the project teams and their visions, without paying too much attention to the actual implementation and revenue of the projects.

Implementation and revenue are ultimately the key factors that can determine whether a project's token can stabilize. The market can only provide limited time to verify this, and I estimate that in as short as three months, or at most in six months, these projects will have to face market challenges.

Among the currently successful projects, some have iterated and progressed very quickly, and have also gained a good reputation among users, such as WINT. This project is similar to a dashboard, as it can display various data from the launch platform in detail for users to reference when participating in new projects.

The reason for the high efficiency of this project's iteration is that it is anchored in the Virtual launch ecosystem, where the technical development difficulty is relatively limited, and there are existing experiences in the market to draw from.

However, I believe that the projects that can truly impress the market are those that can achieve implementation and revenue in entirely new fields. I look forward to seeing substantial progress from such projects in the coming months.

Therefore, the real test for the Virtual ecosystem is still ahead. Currently, this mechanism only temporarily gives these projects a chance to breathe, allowing them some time to accelerate their development.

Moreover, among the currently successful projects, the vast majority are basically related to information acquisition, on-chain transactions, and on-chain financial management, which, according to current trends, fall under InfoFi or DeFAI.

Both of these are popular tracks that have been booming since last year, and there are still many teams rushing in. However, these projects are highly homogeneous, showing no obvious distinctions. It remains to be seen whether any of these new projects can emerge as truly competitive.

If, three months from now, some of the highly anticipated hot projects fail to deliver satisfactory progress to the market, the staking mechanism will no longer be effective, and participants will not care much about points but will instead think about cashing out quickly. Once a large amount of staked tokens is withdrawn and sold, a market crash will become inevitable.

After a market crash, projects with poor fundamentals will not be able to resurrect. Therefore, I will not blindly rush into these projects; I will remain very cautious. For projects that I do not have a good understanding of or do not feel confident about, I will just observe. I will not blindly rush in just because they are popular or have a high success rate. I will only participate in the tracks and projects that I believe in and understand. Instead of participating in projects that I do not have confidence in or do not understand, it is safer to hold onto Virtual.