Friends of OKX 01: Alpha mining journey of veteran on-chain player 0xSun

0xSun, a senior player on the chain, an Alpha trader, and a discoverer of the 100-fold golden dog. He first came into contact with blockchain during his graduate studies, and the opportunity to enter the circle came from the meme craze. During the last bull market, he quickly earned several times the profit by trading Meme. Not only that, he also earned nearly 200e on the Monkey Land project.

In 0xSun's view, these representative achievements are mainly due to two advantages: First, he has a computer professional background, which gives him a unique acumen and technical foundation when operating smart contracts and analyzing project functions. Secondly, he improved his ability to retrieve information, summarize and quickly judge the value of projects by reading a lot of English literature during his graduate studies. These skills help him to quickly understand the project and make accurate judgments in this time-sensitive track on the chain. In addition, he also emphasized that interest is his driving force for continuous progress, helping him to form a set of self-developed methodologies on the road to gold mining on the chain.

In view of his rich experience and the breadth of the player group he represents, OKX specially invited him to be a sharing guest in the "Friends of OKX" series of special topics, hoping that his sharing can provide reference for many players on the chain.

"Friends of OKX Series" is a special column specially produced by OKX, hosted by Mercy (@Mercy_okx), the official community ambassador of OKX. It aims to provide reference for novice users by excavating the working stories, industry thinking and lessons of KOLs from different backgrounds.

1. Alpha Mining Methodology

1. Mercy @Mercy_okx: How do you mine effective and valuable information?
0xSun @0xSunNFT： I mainly get information about early projects and profit opportunities through the following three channels: Twitter, on-chain monitoring, and tracing back to the source.

1. Twitter: Most projects will release the latest information on Twitter. I follow some valuable bloggers, especially those who have fewer followers but focus on a certain field. By following these information sources, Twitter's recommendation algorithm will gradually recommend more similar content and become an important source of information.

2. 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 dig out relevant information, evaluate the quality of the project through Twitter or the official website, and you can also combine wallet monitoring tools to know what projects the active smart money on the chain is participating in at the first time.

3. Tracing back to the source: Monitor newly deployed contracts and check the project party information. This method is information-intensive and time-consuming. For ordinary players, using Dexscreener and on-chain monitoring is enough. Tracing back to the source is suitable for players with higher requirements.

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 to judge the potential value of a project?

0xSun @0xSunNFT: I evaluate projects based on five key factors:

- Project narrative: Evaluate the core concept and value proposition of the project.
- Market heat: Analyze the team's investment and efforts in promotion, as well as the heat of the project itself. Overheated projects are easy to roll, and overcooled projects are easy to start weak.
- Chip distribution: Use on-chain data analysis tools to view the proportion and changes of chips controlled by the team.
- Degree of innovation: Determine whether the project has innovations, and what level of narrative this innovation belongs to.
- Team operation: Pay attention to whether the team controls or pulls the market, whether it continues to operate and do things, etc.  

Although the on-chain projects are highly transparent and can see relevant information more clearly, this does not mean that they are necessarily safe. The team may still manipulate the market in various ways. We should comprehensively consider factors such as the project's narrative, promotion efforts, and chip control, and use on-chain data tools to make judgments. However, even so, 100% accuracy cannot be guaranteed. The direction of the crypto market is often determined by a few people. We can only try to improve the accuracy of our judgments, rather than fully predict the market trend.

In addition, here is a feeling that even if you have a high influence in the crypto circle, it is difficult to obtain real "insider information". There is no situation in the market where someone will privately tell you that the token is about to soar. The only ones who can really grasp the core information may be a few foreign big Vs who are closely related to the project party. Therefore, the so-called insider information often has risks, which may come from bad people or information used by the project party. These messages may cause players to have too high expectations, resulting in operational errors. It is recommended that you do not over-rely on or exaggerate the role of insider information.  

3、Mercy @Mercy_okx, do you have any experience to share about on-chain risk control?
0xSun @0xSunNFT：On-chain is a place where high risks and high returns coexist, and it is very normal to suffer losses. For example, I have suffered more losses this year in the staking projects Zkasino and Fomo pre-sale. I invested $25,000 and 30 eth in Zkasino, but it was directly Rug and I lost all my money. In the Fomo token pre-sale, I first invested 15 eth, and then saw the price drop after the opening, so I added another 15 eth, and finally the 30 eth also returned to zero. What I find most difficult to accept during the NFT period is the Mint of KPR NFT. My friend and I prepared 300 whitelists, but in order to save gas fees, I did not provide enough gas, which led to the failure of Mint and the loss of 35 eth gas fees. I could have earned 150 ETH, but I lost everything because of my operational errors. These experiences made me realize the importance of on-chain risk control.

First of all, you must fully realize the high-risk characteristics of the cryptocurrency market when playing on-chain. Compared with traditional investment fields, the cryptocurrency market is more volatile and riskier. Especially in on-chain transactions, you will face more potential risks, such as encountering bad project parties directly taking away pre-sale funds, or withdrawing unlocked liquidity pools, etc. Secondly, don't be blinded by the temptation of high returns. Although on-chain transactions have the possibility of obtaining high returns, not everyone can make money easily. Especially for novices, there are many traps and they need to be extra vigilant.  

In order to better avoid risks, here are some specific suggestions:

1. Use contract detection tools: For projects involving smart contracts, players should use relevant tools to conduct risk assessments.

2. Do a good job of risk management and position control: Don't blindly invest all your funds because of the expectation of high returns. Even for promising projects, you should moderately control the scale of funds.

3. Always be vigilant: In on-chain transactions, even seemingly reliable projects may encounter unexpected situations. Players should always be prepared for the worst.

Finally, it is important to protect the principal. There are many opportunities in the cryptocurrency market. Only by protecting the principal can you continue to participate. Compared with obtaining high returns in the short term, ensuring the safety of funds is more critical.

2. Meme development in the new cycle

4. Mercy @Mercy_okx: How do you view the development of MeMe in this cycle? Can you disclose your current largest holdings?
0xSun @0xSunNFT: The diversion phenomenon in the current cycle is very obvious. Compared with the previous cycle, the number of currencies in this cycle has increased significantly, whether it is meme coins or VC coins. In the last cycle, when people mentioned animal coins, the first thing that came to mind was Doge, which was promoted by Musk, followed by Shib, which has many connections with Ethereum founder Vitalik Buterin. These currencies are relatively concentrated.

In this cycle, the situation has changed. On the one hand, players are generally more experienced; on the other hand, the diversion phenomenon in the meme coin track is particularly serious. For example, the recent capitalization dispute, and the fact that PumpFun issues hundreds, thousands, or even tens of thousands of new coins every day, all these factors have made it difficult for a single coin to reach the highest level of the last cycle. Take Pepe, the leading coin in this round, as an example. Although its performance is very strong, its market value is still several times that of Shib. This is largely due to the diversion phenomenon of meme coins and the diversion of overall token transactions.

A few days ago, I saw a data that the total value of stablecoins in the current cycle has not increased significantly compared with the peak of the previous round, but the number of tokens has increased dozens of times. This makes it difficult for a single token to reach the highest market value of tokens in the previous round.

As for my current holdings, I have shared them publicly before. Currently, they are mainly stablecoins, because I am uncertain about the future market trend and will wait and see for the time being.

5,Mercy @Mercy_okx:For USDTstandard, I recommend that you useOKX's Tunbibao series. Here I would like to ask0xSun, how do you currently configureUSDT?
0xSun @0xSunNFT:Personally, I think you should first select a track and then allocate assets within that track. For example, if you plan to participate in airdrops or on-chain projects, you may need to buy some Ethereum as the principal. Then, based on the investment in this ecosystem, the growth of Ethereum standard can be achieved, which may be relatively stable. At the same time, you can also convert assets into stablecoins, Bitcoin or continue to hoard local currency according to market conditions. If you focus on the secondary market, you may need to consider the cycle issue.

3. Advice for newcomers

6, Mercy @Mercy_okx, if you start from scratch and have all u in your hands, how would you allocate assets in the Crypto field?
0xSun @0xSunNFT: First of all, choose the track you like the most, are most interested in, or are best at. Playing on the chain, airdrops, playing chain games, or doing spot trading, contracts in the secondary market, etc., it is very good to choose one to be proficient in a lot of tracks, and you don’t need to know all of them.

When choosing a track, I suggest paying attention to the top bloggers in each track or reading a few more investment research reports to stimulate your interest, locate your own ability area, and then constantly correct it in practice. After selecting a track, it is to allocate assets according to the track. For example, if you plan to participate in airdrops or on-chain projects, you may need to buy some Ethereum as principal. For most novices, this step may be enough. Because, for novices, the primary goal is to increase the accumulation of currency standards and achieve a positive cycle. For example, focusing on the Solana ecosystem and using the Sol standard for operations, when the cycle is good, a positive cycle of income will be achieved.

However, in the downward phase of the market, novices may need to consider converting some currencies into stablecoins and repurchasing them when the market reaches a more suitable position. Or use the proceeds to hoard Bitcoin, which are relatively stable strategies. As for the secondary market's altcoin transactions, it is recommended to follow the market's major trends and hot spots and choose the popular leading coins at the time to participate.

7、Mercy @Mercy_okx：With the development of the industry and the expansion of the industry scale, everyone's cognition or threshold of the wealth effect will also be raised. For novices, how can they quickly accumulate wealth?
0xSun @0xSunNFT：On the one hand, it is choice and cognition. The first is the choice of track. An example is often given. Taking the inscription market last year as an example, if two completely identical people are put in the currency circle, one plays NFT and the other plays inscription, the income of the person playing inscription is likely to be more than 10 times that of the person playing NFT. This is not a problem of personal ability, but a difference in the track.

Secondly, the volatility on the chain is very strong, and you need to have enough psychological tolerance. Even if you buy the currency of the exchange with a full position, it will take some time for it to fall to half. It may only take a few seconds for a project on the chain to go from takeoff to zero. For those who have not been exposed to it, it is easy to doubt whether it is a scam.

Therefore, you must first have enough knowledge of this track and be mentally prepared. Secondly, you must consider whether you have enough time and energy to invest, and whether your overall trading style is suitable for this track. I know some friends who are very good at secondary market trading. They have also tried on-chain trading, but in the end they found that they could not keep up with the pace. On the one hand, they do not have so much time and energy to watch the market, and on the other hand, their trading style is more inclined to hold a target for a long time if they are optimistic about it.

In addition, the diversion phenomenon is serious in the current cycle, and few targets can be held from beginning to end and make a lot of money. It is more about constantly discovering new projects, getting the first wave of dividends, and then stopping profits at the appropriate position, and so on. The second aspect is to follow the market trend, find market hotspots, and find areas where more funds and people are gradually joining in order to truly get industry dividends.

Fourth, Talk about the connectionOKXWallet and product experience

8、Mercy @Mercy_okx：As a senior player on the chain, when did you start using ourOKXWallet, and how did you feel
0xSun @0xSunNFT：I started using the OKX wallet when I was playing Inscription, and the user experience was very good. First of all, the chains supported by the OKX wallet are very comprehensive. For example, in the Bitcoin ecosystem, the EVM chain, or the SUI chain, different wallets are usually required to be installed separately, which is a cumbersome and time-consuming process for users. However, the wide chain support of the OKX wallet saves these troubles.

Secondly, another advantage of the OKX wallet is its self-built nodes. For example, when trading on SOL or other unpopular chains, using other wallets or self-built nodes may result in transaction delays or failures. However, the node that comes with the OKX wallet ensures smooth transaction issuance.

My most impressive experience was when Cupidon was launched last year. I tried multiple wallets but failed to purchase it successfully. In the end, the transaction was completed quickly on the OKX wallet at a price of 0.6. This performance was very satisfactory. In addition, the OKX wallet is also very convenient in managing multi-chain assets and multiple wallets.

Risk Warning and Disclaimer 

This article is for reference only. This article only represents the author's views and does not represent the position of OKX. This article is not intended to provide (i) investment advice or investment recommendations; (ii) an offer or solicitation 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 fluctuate significantly. You should carefully consider whether trading or holding digital assets is suitable for you based on your financial situation. Please consult your legal/tax/investment professionals for your specific situation. Please be responsible for understanding and complying with local applicable laws and regulations.