Experience summary of 2024 investment from encryption KOL

Author: NingNing

In summary, my 24 years of investment experience is to copy Dalio's all-weather investment principles, diversify the investment portfolio to bet on every cycle affecting the cryptocurrency market (seasonal cycles within the year, 4-year bull and bear cycles, Gartner's technology innovation cycle, Merrill Lynch's clock cycle), and follow Taleb's barbell strategy, focusing on allocating assets in the Beta track of the Alpha asset and the Alpha track of the Beta asset.

So, now in my investment portfolio, the main assets are Chain Abstract, AI Agent, and PayFi projects. The inclusion of these assets has helped my investment portfolio easily outperform the market in December. At the end of the year, when rebalancing the investment portfolio to capture 25-year Q1 Alpha returns, I suddenly realized that my Alpha asset allocation logic is relatively simple, purely focusing on the main logic of 'disruptive innovation' centered around technology.

After hearing MegaETH's comments on the Vibe community from the co-founder of Space recently, I lay in bed and reflected deeply in the quiet night.

In the field of cryptocurrency investment, there are actually two investment logics, one is the so-called technological determinism, and the other is community-oriented.

Generally speaking, as a non-assuming rational person, I generally regard community vibes, cult culture, and other such things as noise created by big scammers and small fools for mutual interests, and I don't really care about them.

But recently, due to my optimism about the consumer chain Abstract in the chain abstraction race, I started with the fat penguin NFT, which allowed me to experience the community Vibe for the first time as a participant rather than a bystander. This experience made me feel the long-lost sense of social belonging and community acceptance. Inspired by Brother Bing's perspective, I began to deliberately break through the original cognitive cocoon and try to understand projects with a strong community Vibe, such as Monad, Sonic SVM, MegaETH, BeraChain, etc.

Sonic SVM is the first instance of Sonic's Solana L2 Stack architecture HyperGrid. Its positioning is Web3 TikTok Chain, targeting Z generation game consumers with millions of users on TikTok.

Previously, I wrote a research article for Sonic (see retweet), and the theory of the 'splitting plate' by the main plate has always been in my mind when I was writing. To be honest, at that time, I did not realize the true value of consumer chains/community Vibe and other narratives, and from a technical perspective, Sonic's HyperGrid makes sense, but it is far less sexy than new L2 technical primitives such as Preconf, Based Rollup, parallel EVM, etc.

However, after half a year, when comparing the operation status and community maturity of Sonic SVM with those L2s with sexy technical primitives, it will be found that there is a huge difference in products and results between building for consumers and abstract Web3 Mass adoption.

The current Sonic SVM is building a TikTok App Layer - SonicX, which will airdrop its native token $SONIC to all users who register through TikTok. With the support of Account Abstraction, TikTok users can directly experience on-chain interaction within the application without the need to separately configure a Web3 wallet, and can complete the airdrop collection on the TikTok end.

SonicX has attracted over 2 million users to participate in games, challenges, and live broadcasts within the app through advanced advertising and creator partnerships on TikTok, creating a seamless experience similar to Web2. In addition, Sonic SVM plans to integrate more games on TikTok Chain, and eligible users can receive token rewards during the airdrop period.

TikTok has 1.5 billion + global users, Telegram has 900 million global users, but the lifetime value of TikTok users is far higher than that of Telegram. ChillGuy's crazy speculation a while back showed us the monetization potential of TikTok users. It seems that we don't need to worry about the chaos like the Telegram mini-program before, and in the end, we only exchanged precious encrypted market liquidity for a bunch of low-value junk users.

When I was working at a small crypto fund 23 years ago, a predecessor told me that a key principle of value investment is to "go to big market". After completing the 0-1 innovation, the ultimate winner will be the one who can better occupy a larger market through rapid replication and reinforced growth flywheel. Now, when even Vitalik feels that there is an oversupply of blockchain infra, the one who can reach consumers faster and occupy more consumer mindshare will be the next era's Web3 Infra.