Guest message: Web3 has the characteristics of decentralization, openness, and fairness, and is an industry where opportunities and risks coexist. OKX has always been a leading exchange in the industry, and the OKX wallet is currently my favorite multi-chain wallet. It is truly rare for OKX to develop such a wallet product while doing well in the centralized exchange business, bringing convenience to users!
0xSun, a senior on-chain player, Alpha trader, and discoverer of hundredfold golden dogs. During his postgraduate studies, he first came into contact with blockchain, and his entry into the industry was sparked by the meme craze. During the last bull market, he quickly gained multiple returns by trading Meme. Not only that, he also earned nearly 200e on the Monkey project.
In 0xSun's view, the ability to achieve these representative achievements is mainly attributed to two advantages: first, he has a background in computer science, which gives him a unique acumen and technical foundation when operating smart contracts and analyzing project functions. Secondly, during his postgraduate studies, he improved his ability to retrieve information, summarize and quickly assess project value through extensive reading of English literature. These skills helped him to quickly understand projects and make accurate judgments in the time-sensitive race on the chain. In addition, he also emphasized that interest is the driving force that helps him form his own methodology for mining on the chain.
Given his rich experience and the wide representation of the player community he represents, OKX has specially invited him to be a sharing guest for the "Friends of OKX" series, hoping that his sharing can provide reference for many on-chain players.
The "Friends of OKX Series" is a special column produced by OKX, hosted by OKX official community ambassador Mercy (@Mercy_okx), aiming to provide learning and reference for novice users by exploring the industry stories, thoughts, and experiences of KOLs from different backgrounds.
I. Alpha Mining Methodology
1. Mercy @Mercy_okx: How do you mine for effective and valuable information?
0xSun@0xSunNFT: I mainly obtain early project and profit opportunities information through the following three methods: Twitter, on-chain monitoring, and tracing the origin.
Twitter: Most projects will release the latest information on Twitter. I follow some valuable bloggers, especially those with fewer followers but focusing on a specific field. By following these information sources, Twitter's recommendation algorithm will gradually recommend more similar content, becoming an important source of information.
On-chain monitoring: For example, using Dexscreener, check new coins on the hot list based on trading volume, number of transactions, and other indicators, and then further explore related information, evaluate project quality through Twitter or official websites. It can also be combined with wallet monitoring tools to understand the projects that smart money is actively participating in for the first time.
Tracing the origin: Monitor newly deployed contracts and check project information. This method has a large amount of information and is time-consuming. For ordinary players, using Dexscreener and on-chain monitoring is sufficient. Tracing the origin is suitable for players with higher demands.
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 do you judge the potential value of a project?
0xSun @0xSunNFT: I mainly evaluate projects based on 5 key factors:
Project narrative: Evaluate the core concept and value proposition of the project.
Market heat: Analyze the team's efforts in promotion and the project's own popularity. Overheated projects are prone to collapse, while cold projects are prone to weak starts.
Chip distribution: Use on-chain data analysis tools to view the proportion and changes of chips controlled by the team.
Degree of innovation: Judge whether the project has innovative points and the level of innovation in the narrative.
Team operations: Pay attention to whether the team is controlling or boosting the market, and whether it continues to operate.
Although on-chain projects have high transparency and can see relevant information more clearly, this does not mean that they are completely safe. Teams may still manipulate the market in various ways. We should consider the project's narrative, promotional efforts, chip control, and other factors comprehensively, and make judgments using on-chain data tools. However, even so, it is not possible to guarantee 100% accuracy. The direction of the crypto market is often decided by a few people, and we can only try to improve the accuracy of our judgments, rather than predict the market direction completely.
In addition, here is a realization to share, even with a high influence in the crypto circle, it is difficult to obtain real "insider information." There are no individuals in the market who will privately inform you that a token is about to skyrocket. The few foreign big Vs who may truly grasp core information are possibly closely related to the project. Therefore, so-called insider information often carries risks, possibly coming from unscrupulous individuals or information used by the project. This information may lead to overly high expectations for players, resulting in operational errors. It is recommended that everyone should not overly rely on or exaggerate the role of insider information.
3. Mercy @Mercy_okx, do you have any experience to share regarding on-chain risk control?
0xSun @0xSunNFT: On-chain is inherently a place where high risk and high returns coexist, and encountering losses is very normal. For example, I suffered more losses this year in staking projects Zkasino and Fomo presale. I invested $25,000 and 30eth in Zkasino, only to be directly rug pulled, leaving me with nothing. In the Fomo token presale, I initially invested 15 eth, and later, after seeing the price drop after the opening, I added another 15 eth, and eventually all 30 eth went to zero. The most unacceptable experience for me during the NFT period was the Mint of KPR NFT. I and my friends prepared 300 whitelist spots, but due to insufficient gas fees, I caused the Mint to fail, resulting in a loss of 35 eth in gas fees. What could have been an opportunity to earn 150 eth, turned into a complete loss due to operational errors. These experiences made me realize the importance of on-chain risk control.
First, players must fully recognize the high-risk nature of the cryptocurrency market. Compared to traditional investment fields, the cryptocurrency market has greater fluctuations and higher risks. Especially in on-chain trading, you will face more potential risks, such as encountering unscrupulous project parties directly taking away presale funds, or withdrawing unsecured liquidity pools, and so on. Secondly, do not be blinded by the lure of high returns. Although on-chain trading offers the possibility of high returns, not everyone can easily make money. Especially for beginners, there are many traps, and extra vigilance is needed.
In order to better avoid risks, here are some specific suggestions:
Use contract detection tools: For projects involving smart contracts, players should use relevant tools for risk assessment.
Manage risks and control positions: Do not blindly invest all funds due to the expectation of high returns. Even for promising projects, the scale of funds should be controlled appropriately.
Always stay vigilant: In on-chain trading, even seemingly reliable projects may encounter unexpected situations. Players should always be prepared to deal with the worst-case scenario.
Finally, preserving the principal is important. There are many opportunities in the cryptocurrency market, and only by preserving the principal can there be opportunities to continue participating. Compared to obtaining high returns in the short term, ensuring the safety of funds is more critical.
II. Meme Development in the New Cycle
4. Mercy @Mercy_okx: How do you view the development of MeMe in this cycle, and can you reveal your current largest holding?
0xSun @0xSunNFT: The phenomenon of diversion in the current cycle is very obvious. Compared to the previous cycle, both the number of meme coins and VC coins in this cycle has significantly increased. In the previous cycle, when it came to animal coins, people first thought of Doge promoted by Musk, followed by Shib, which has many connections with Ethereum founder Vitalik Buterin.
And in this current cycle, the situation has changed. On the one hand, players generally have more experience; on the other hand, the diversion phenomenon in the meme coin race is particularly severe. For example, the recent battle between lowercase and uppercase, as well as PumpFun issuing hundreds, thousands, or even tens of thousands of new coins every day, have made it difficult for individual coins to reach the highest levels of the previous cycle. Taking the current leading coin Pepe as an example, although its performance is very strong, its market value still has several times the gap compared to Shib. This is largely due to the diversion of meme coins and the overall diversion of token trading.
A few days ago, I saw some data showing that the total value of stablecoins in this cycle has not significantly increased compared to the peak of the previous cycle, but the number of tokens has increased by tens of times. This makes it difficult for individual tokens to reach the highest market value of the previous cycle.
As for my current holdings, I have also shared publicly before. Currently, it is mainly stablecoins because I have an uncertain attitude towards the future market trend and am currently observing.
5. Mercy @Mercy_okx: In the case of USDT, it is recommended for everyone to use the OKX Staking series. Here, I would like to ask 0xSun, how are you currently allocating your USDT?
0xSun @0xSunNFT: Personally, I believe that you should first choose a race track and then allocate assets within that race track. For example, if you plan to participate in airdrops or on-chain projects, you may need to purchase some Ethereum as capital. 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 accumulate the base currency based on market conditions. If you focus on the secondary market, you may need to consider the issue of cycles.
III. Advice for Beginners
6. Mercy @Mercy_okx: If you were starting from scratch and all you had was USDT, how would you allocate your assets in the crypto field?
0xSun @0xSunNFT: First, you need to choose the race track that you like the most, are most interested in, or are best at. Whether it's on-chain, airdrops, blockchain games, or spot trading and contracts in the secondary market, it's great to choose one to master, you don't need to be good at all of them.
When choosing a race track, I suggest paying attention to the top bloggers in each race track or reading several investment research reports to stimulate your interest, position your ability zone, and then continuously correct in practice. Once you have chosen a race track, you can allocate assets within that race track. For example, if you plan to participate in airdrops or on-chain projects, you may need to purchase some Ethereum as capital. For most beginners, this step may already be sufficient. Because for beginners, the primary goal is to increase the accumulation of coin-based assets and achieve a positive cycle. For example, focusing on the Solana ecosystem and using Sol as the base for operations, when the cycle is favorable, it will achieve a positive cycle of returns.
However, in a market downturn, beginners may need to consider converting some tokens into stablecoins and repurchasing at a more suitable position when the market reaches that point. Or use the profits to accumulate Bitcoin, these are relatively stable strategies. As for trading in the secondary market for altcoins, it is recommended to follow the market trend and hotspots, and choose the leading coins that are popular at the time.
7. Mercy @Mercy_okx: With the development of the industry and the expansion of the industry scale, people's understanding or threshold for wealth effects will also be raised. For beginners, how can they quickly accumulate wealth? 0xSun @0xSunNFT: On the one hand, it's about choice and understanding. First is the choice of the race track. As an example, in the wave of inscriptions last year, if you put two completely identical people in the crypto circle, one playing NFT and the other playing inscriptions, the person playing inscriptions is likely to earn more than 10 times the income of the person playing NFT. This is not a matter of personal ability, but a difference in race tracks.
Secondly, the volatility on-chain is very strong, and you need to have enough psychological resilience. Even if you go all-in on a coin on an exchange, it will take some time for it to halve in value. On-chain projects can go from takeoff to zero in just a few seconds. For people who have not been in contact with this, it is easy to have doubts about whether it is a scam.
Therefore, you need to have enough understanding of this race track and be mentally prepared. Secondly, consider whether you have enough time and energy to invest, and whether your overall trading style is suitable for this race track. I know some friends who are very good at trading in the secondary market, and they have also tried on-chain trading, but they eventually found that they couldn't keep up. On the one hand, they don't have as much time and energy to watch the market, and on the other hand, their trading style tends to be more about holding a target for the long term if they believe in it.
In addition, with the severe diversion phenomenon in the current cycle, there are few targets that can be held from start to finish and make big money. More often, it's about constantly discovering new projects, reaping the first wave of dividends, and then taking profits at the right position, and repeating this cycle. The second aspect is to adapt to market trends, find market hotspots, and find areas where more funds and people are gradually joining in order to truly reap the industry dividends.
IV. Talking about the OKX Wallet and Product Experience
8. Mercy @Mercy_okx: As a senior on-chain player, when did you start using our OKX Wallet, and what is your experience?
0xSun @0xSunNFT: I started using the OKX Wallet when I was playing inscriptions, and the user experience is very good. First of all, the OKX Wallet supports a wide range of chains. For example, in the Bitcoin ecosystem, EVM chains, or SUI chains, you usually need to install different wallets separately, which is cumbersome and time-consuming for users. However, the extensive chain support of the OKX Wallet eliminates these troubles.
Secondly, another advantage of the OKX Wallet is its self-built nodes. For example, when trading on SOL or other niche chains, using other wallets or self-built nodes may result in transaction delays or failures. However, the nodes built into the OKX Wallet can ensure smooth transactions.
One of the most impressive experiences for me was during the opening of the Cupidon token last year. I tried multiple wallets, but none of them were successful in making a purchase. In the end, I quickly completed the transaction at a price of 0.6 on the OKX Wallet. This performance was very satisfying. In addition, the OKX Wallet is also very convenient for managing multi-chain assets and multiple wallets.
Risk Warning and Disclaimer
This article is for reference only. The views expressed in this article are those of the author and do not represent the position of OKX. This article does not intend to provide (i) investment advice or recommendations; (ii) offers or solicitations 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 experience significant fluctuations. You should carefully consider whether trading or holding digital assets is suitable for your financial situation. For your specific situation, please consult your legal/tax/investment professionals. Please be responsible for understanding and complying with applicable local laws and regulations.
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