Will public chain projects continue to shine?

Author: Exploring the trend of blockchain

Since the myth of blockchain getting rich quickly became popular, new people have been joining the melting pot of blockchain. When many people first came into contact with various projects, their views on them were still based on the concept of "capital disk". This type of project is simply a game of passing the parcel, entering the market in the early stage, frantically pulling people in, and then cashing out.

Although from the perspective of the attributes of financial products themselves, this is not wrong, because whether it is popular financial products such as stocks or real estate, they all need a large amount of funds to enter the market, prompting the elderly to profit and leave the market, and the bottom price gradually rises, and finally drives the price higher and higher.

However, this part of people's investment actually made a fundamental mistake, which is also the main reason for most people in the currency circle to lose money.

The starting point of their investment projects is gambling, not investment. They expect to get rich overnight, not asset upgrades.

Today, we use a few simple examples to analyze how to invest in projects correctly, rather than how to find opportunities to get rich overnight.

First, before investing in any project, we need to understand the three important factors that affect the development of projects in the currency market:

1. Internet technology and popularity are changing with each passing day. The development of any technology is like a tree branching out. The closer the technology is to the origin, the longer the life cycle, and the closer it is to the flowering branch, the higher the popularity.

For example, the public chain project is the trunk of blockchain technology, and Dogecoin is the most brilliant fruit of a certain trunk.

2. The scale of funds that the market can accommodate determines the upper limit of the price. In the 21-year bull market, the top ten market capitalizations were basically around 100 billion, but now they have shrunk to less than 10 billion.

3. The origin of the project's success comes from the project party. No matter how good the track is, if it does not have the ability to develop further, it cannot achieve its due value.

Any successful project can find the reasons for its success in the above three points.

Below, I will list two representative projects, one is a relatively mature project that can be included in the ranks of success, and the other is still in a state of low market value development. Compare the various situations of the projects horizontally and analyze how to find investment projects with potential:

1. First, let's look at the success factors of SOL, which can be summarized into two points: one is the epoch-making public chain technology, and the other is the investment of large institutions.

When SOL was launched, the two most troublesome problems of the public chain were speed and handling fees. Therefore, SOL specifically improved these two aspects, which greatly increased the practicality of the public chain technology. As a result, the ecosystem that can be carried has increased significantly, the number of potential users has increased, and the value assessment has risen, attracting institutions to settle in.

The investment of large institutions is very important for any financial product. It not only provides sufficient development funds for the project team and accelerates the development of technology and ecology, but also increases the trust of projects and products in the hearts of retail investors in the market, attracting more capital and retail investors to enter the market, and then as long as the project develops smoothly, the superposition of various factors will push the project to a new high.

However, there are too many tokens held by institutions, which caused SOL to be affected when FTX exploded, which is another problem.

Next, it is the focus of this article. Based on the experience of successful projects, how can we find the next successful project?

Let's take AlveyChain as an example:

First of all, the first step to invest in any project is to investigate its security, or reliability. There are many projects in the blockchain that have disappeared with the money. For small projects with low market value, there is actually no 100% reliable way to judge this. You need to deeply participate in the project community and see and listen for yourself before you can make your own judgment.

As for the AlveyChain project, it has been operating steadily for more than a year, and the project party is extremely active at all times and has made many moves. Recently, it participated in the Smartcon blockchain conference held by Chanlink, and will host the VR conference in December. It is obvious that the project party is working hard to improve the value of the project, so you can rest assured to invest.

1: Technical direction, commonly known as the track, SOL belongs to the category of public chain, and public chain technology is the foundation of blockchain technology, with a long life cycle and great development prospects.

AlveyChain is also a public chain technology direction, and its main ecological products are VR exchanges and metaverses. As we all know, Apple just unveiled its VR glasses this year, which means that large companies recognize that the metaverse will definitely succeed as an important part of the Internet. Therefore, for AlveyChain, the technical direction is absolutely impeccable.

Other tracks, such as chain games, memes, platforms, AI, etc., are very dependent on popularity and marketing and are not suitable for long-term investment.

2: AlveyChain has no public institutional investment. This can be good or bad depending on personal opinions. If there is institutional investment, the market value of this project is similar to CORE or ARB. It is a homogeneous project and is not suitable for small investment and high returns.

Then, since there is no institutional investment, it is necessary to investigate the financial strength of the project party, because the development of the project requires a lot of funds. Although the AlveyChain project has not disclosed its funding scale, judging from its performance in more than a year of operation, the personal funding capacity of the project party should be enough for the project to develop well.

3: The last and most important thing is the project party. Its financial capacity has been mentioned in the previous point. This is a very important assessment indicator. The second is personal ability, technical foresight, market sensitivity and other aspects. To understand these, you need to contact as many projects as possible, follow the progress of the project, and understand the ideas of the project party.

AlveyChain project party Naur is very active in its Telegram community and holds many community meetings, so ordinary people can quickly evaluate its specific capabilities. Then, when investigating the subsequent development plan of the project, for example, in AlveyChain's roadmap, it has been determined to develop Web6, Layer3 and other public chain cutting-edge technologies. In addition, it is originally positioned in the basic ecology of the VR metaverse, which shows that the project party's ability is indeed outstanding.

Finally, let's summarize that projects worthy of long-term investment need to have several elements:

The technical direction will not be outdated in a few years, or even in the entire blockchain life cycle. It is best to be a little forward-looking and strive to be a leading project.