Lessons from investing in “100x Coins”

In the comment section of the article "Base Chain Degen's Path to Thousand-fold Growth" on April 2, some readers left messages asking if I could recommend a few potential coins.

Regarding this expectation, I clearly responded to the audience in my last Twitter exchange: I never recommend any currency other than Bitcoin and Ethereum.

I have talked about the coins I have invested in and the coins I have bought, but the purpose of sharing them is to share with you my thoughts and reasons for buying these coins, rather than recommending that you buy them.

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

Many times, even if a real "100x coin" is right in front of you, it is impossible for many people to get a hundredfold return from it.

Because everyone has different cognition and size, they will have different cognitions on what price to buy and what price to sell the same coin, which will lead to different behaviors and different results.

This is the truth behind the saying "One medicine may be another's poison".

In addition, I also wrote an article on May 8, 2023 titled "Why is there no clear 100x coin?" This article expresses my thoughts more comprehensively, and I recommend that you read it when you have time.

I have learned a lesson about 100x coins. Today I want to share with you a regrettable experience I had with LINK.

LINK (Chainlink) is an old coin from the 2017 ICO. In the bear market that began in 2018, it was lucky that it did not disappear silently like other once popular projects, but survived with difficulty, and occasionally some news was spread in the market.

During that period, all the ICO projects were either dead or struggling. People were full of doubts about the future of the crypto ecosystem.

Although Ethereum is slightly better, we still cannot see a clear path for what the future ecosystem of Ethereum will be like.

Some people occasionally mention some projects that were later called DeFi, such as MakerDAO, Kyber, etc., but at that time, neither their "appearance" nor "shape" looked like what they would later become.

At that time, because I was always very persistent in "all-chain" activities, I was particularly optimistic about the DAO track, but not DeFi. Apart from DAO, I looked around and felt that there might be some hope, but I was more of a blind guess and thought that maybe I could buy an oracle?

So, I bought LINK with an indifferent and absent-minded attitude, and the price was probably between $0.4 and $0.5.

After I bought it, I never cared about it again.

Around July 2020, LINK started a surge, during which time good news continued to push its price up to US$8.

At this time, the significance and importance of the oracle track has become a "prominent subject", and its value has been publicly recognized.

Despite this, I thought at the time that the price of LINK had surged so high in a short period of time that a huge bubble had appeared; plus, the crypto market as a whole had not yet entered a bull market at the time, and I thought that when the market had not yet risen as a whole, the rise of a single coin to this extent was obviously problematic.

So, I dumped LINK without hesitation.

Later, in the following bull run, LINK not only exceeded $8, but also rose to nearly $50.

After the regret about LINK, I reviewed the coins that I actively bought in that round of bear market but then sold them all before the bull market arrived. I found that basically as long as there are no major problems with the projects themselves, they will have better performance in the bull market later, and basically exceed 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 in the next round of bear market: for the coins that I actively buy and are optimistic about, as long as the team does not have major problems, no matter how much they have risen before the bull market, ignore those small profits and carry them into the middle and late stages of the bull market to cash them out.

In this round of bear market, except for ETHS, which I sold because I believed it had risen too high, I never made the same mistake with other coins.

Even for ETHS, after selling it, I realized that I had violated the rules and I regretted it very much. This also made me stick to this principle ever since.