Overall, this is a very enthusiastic community with no competitors, and the market is absolutely not saturated.
Author: Zoomer Oracle
Compiled by: Deep Tide TechFlow
Cult-like Tech Coins
The term "cult" is perhaps one of the most commonly used words on CT to describe the memecoin craze. During the bear market of 2023, I posted a thread that became my most popular tweet titled "The Art of Cults."
I explored the desire for cults and the essential differences with tech coins. Nowadays, the market is catching up with this trend, and every memecoin with a large following is rapidly appreciating in value. It's gratifying to see that this theory is essentially valid. However, within "cult coins," there is another category of coins that has been scarcely mentioned. When we think of "cult coins," we usually think of memecoins.
However, there are also tech-focused coins (without venture capital) that have a large following. The reason is that these projects initially had almost no venture capital, attracting early loyal supporters. Typically, these individuals are early miners who are devoted to their belief that the project can change the world.
The performance of these coins far exceeds that of tech coins with venture capital, and it can almost be said that their investment returns are comparable to those of memecoins. Here are some representatives:
Established Tech Cult Coins:
HEX
Cardano (ADA)
Raiblocks (NANO)
If you have been following these coins since 2017, you will find that they attracted a large following early on. Many believed these coins would become the next Bitcoin. However, most people do not take these cult-like tech coins seriously, generally considering them to be "bubbles," and only "fools" would buy these "useless coins."
In fact, the performance of these coins often far exceeds that of so-called "legitimate" coins. This is because their communities possess strong cult characteristics. They are a unique presence in the cryptocurrency space, as most people in your Telegram group or crypto Twitter do not have significant investments in these coins.
Of course, coins like Cardano, Hex, and Nano suffered losses when the market bubble burst, and the once-enthusiastic followers gradually quieted down.
However, new coins are emerging in the same way. A new market cycle brings new coins, which also means new tech cult coins are rising.
In the past 1-2 years, we have witnessed the rise of a new generation of "cult tech coins." Here are a few representative examples:
Bittensor (TAO) - Circulating market cap of $4.7 billion, fully diluted valuation of $13 billion
Kaspa (KAS) - Fully diluted valuation of $3.4 billion
Both of these coins have a large number of supporters. People started mining early on and firmly believe these coins can change the world. Whether you agree or not, as someone pursuing maximum profit, you should learn from the past. Let's look at the data:
The lowest trading price of TAO was below $35, and it is now trading at $642, yielding an 18x return.
The lowest trading price of Kaspa was below $0.0004, and it is now trading at $0.1358, yielding a 339x return.
Despite the differing returns, it is certain that these two coins are not held by most crypto Twitter users, and their performance greatly exceeds that of venture-backed tech coins newly launched on major centralized exchanges. At this point, the only conclusion I can draw is that this is an independent category that is rarely discussed. Most people refer to these coins as "the Cardano of this cycle," but in reality, they belong to an independent category, which means there are more coins with this potential.
On my current watchlist, there are two coins that may fall into this category:
Many early investors in Bittensor also invested early in QUIL. You can look into the tags for QUIL and find that many users use both TAO and QUIL logos in their profiles. The crowd promoting QUIL is very similar to the one promoting Bittensor. Cyberpunk culture and community spirit are fully reflected in both projects.
One project focuses on decentralized AI, while the other focuses on decentralized internet infrastructure.
Of course, AI itself is a hot topic, so many people are buying TAO due to the combination of AI and cryptocurrency. I believe discussions about decentralized internet will eventually emerge, especially when projects like Nillon launch in the fourth quarter, leading to discussions about the differences between QUIL (community-driven) and Nillon (venture-backed). I do not intend to argue which technology is better, but this attention may be enough to drive the market upward.
It is worth noting that today or this week, a large number of QUIL tokens will be unlocked. I do not want miners to have the opportunity to sell at a high price to you, so I recommend waiting until the market stabilizes before making a decision. Keep this in mind. I have invested in QUIL (also at higher prices) and plan to increase my position when miners are willing to sell.
In this category, I also have high hopes for META DAO. META has a very smart community that genuinely believes they can change how DAOs operate in cryptocurrency.
Overall, I think DAOs are one of the most boring parts of cryptocurrency. But the attempts META is making may be one of the most interesting experiments currently in the crypto space. Their perspective is as follows:
We humans sometimes cannot make the right decisions. For example, in terms of predicting outcomes, participants in prediction markets often perform better than professional pollsters. Google even studied using prediction markets internally to make better decisions. I suggest reading the founder's article first to get a comprehensive understanding of this concept.
You might wonder: what does this have to do with anything? But in reality, prediction markets have proven to be a good product-market fit in the cryptocurrency space (like Polymarket and Drift). This is a huge opportunity. Introducing prediction markets into DAO proposals will make them interesting again. We are moving towards an era of "future governance" driven by prediction markets, rather than solely relying on humans holding the majority of tokens to control governance.
Currently, "future governance" is applied in less than 5% of Solana projects. Since this is a brand new concept, I speculate that some veterans are watching the developments before deciding whether to invest further. The charts show a continuous price increase, which makes me feel that the earliest observers have started buying in because they believe this concept might work. I have already seen some discussions on social media about "enterprise version of Polymarket."
Overall, this is a very enthusiastic community with no competitors, and the market is absolutely not saturated. All supplies are circulating in the market. Currently, there is not much discussion on crypto Twitter, and the charts look very good. At the time of writing, its fully diluted market cap is $70 million. It is important to note that liquidity is not very good, so be cautious if you decide to invest.
I will end this article now, as it has become too long. I enjoy recording my thoughts because it can spark discussions about perspectives I had not noticed before.
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