practicality

Trader Eugene: Long-term investment practicality / DeFi tokens need to be considered from three factors

ChainCatcher message, trader Eugene shares investment insights on his personal channel:"There's been some debate about which utility/DeFi tokens are worth buying from a long-term value investment (HTF value) perspective. From a value investment standpoint, three key elements need to be present before I would invest:It is absolutely essential that token holders are the primary consideration for the team (or at least on equal footing with equity holders). As long as equity holders enjoy benefits that token holders cannot access, I will not blindly chase tokens for their value. This does not necessarily mean that token holders need to receive immediate direct utility from the tokens (such as buybacks, dividends, etc.), but it is absolutely necessary to receive clear and consistent signals from the team indicating that token holders are the ultimate beneficiaries.The business model does not directly rely on the speculative 'Ouroboros cycle' that cryptocurrencies are known for. This is where many so-called 'fundamental investors' fall into traps, as trading volumes can drop by 90% in a bear market, and then drop another 90%, rendering any price-to-earnings (PE) or price-to-sales (PS) valuations meaningless. Furthermore, calculating annualized figures based solely on a protocol's 'good' revenue data for one month when its market share and momentum are at their peak is the most foolish behavior.Trust in the management's execution capability. Like any business, you need to conduct due diligence and believe that the team behind the protocol has the ability to realize its vision, defeating competitors through technological barriers or excellent execution.So far, I believe only a handful of protocols meet these criteria, and I will buy these tokens at the right time. But for the other 99.9% of tokens, they can only be classified as 'concentration camps'."

Analyst: The practicality of cryptocurrencies has become evident, with stablecoins, payment, and communication applications becoming the main scenarios

ChainCatcher news, according to Coindesk, K33 Research analyst David Zimmerman pointed out that despite the skepticism surrounding the MEME coin craze, the actual applications of cryptocurrency have begun to emerge. The market capitalization of stablecoins has reached $175 billion, becoming an important financial tool in emerging markets. In the payment sector, Mastercard has partnered with Mercuryo to enable over 100 million merchants to accept crypto payments; PayPal and Venmo have integrated Ethereum Name Service to simplify the transfer process.In the communication field, the DePIN project Helium has attracted 113,000 users to its mobile services. In social applications, Telegram, with nearly 1 billion monthly active users, has integrated the Open Network (TON), while LINE, with 230 million monthly active users, has also partnered with Kaia to promote the use of cryptocurrency in instant messaging. The major ride-hailing app in Southeast Asia, TADA, has launched "TADA Mini," allowing users to pay for rides using TON or USDT through Telegram.Zimmerman emphasized that these developments indicate that cryptocurrency is gradually integrating into daily life, providing real value to users. Although MEME coins still hold a significant market share, the serious aspects of the crypto industry are steadily progressing, offering innovative solutions to real-world problems.
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