Babbitt column | 10 years of grinding a sword: how to better sustainable development of blockchain projects?

1. Sustainable development projects with the highest long-term income

I estimate that many people will not open this article when they hear the word "sustainable development", because sustainable development means that it takes a long time to see the effect, which means that it takes a long time for your investment to be rewarded. This is not in line with their pursuit. They hope that today's investment is best to see the return tonight, and there is no patience to wait until tomorrow.

However, Bitcoin has developed to the present day after 10 years. In the past three years, there was no price or liquidity. Ethereum still solves many technical problems and still contributes to the whole industry. New ideas. The development of a great company must be a long-term process, a sustainable process. Looking at it for a long time, this long-term sustainable project is the most profitable project.

Traditional commercial companies understand this truth, so many companies are pursuing a long-term foundation. As Alibaba said, they hope that the company can exist for 102 years. However, many companies in the currency circle do not seem to understand this truth. They may also be too close to capital. The vocabulary in their minds is “upper”, “surge”, “cash out”, no matter what they do, they are I hope that you will see results in a few months, which is definitely not right.

Then, in the currency circle, what kind of adjustments do you need to make in order to achieve better sustainable development?

Second, the team values ​​are very important

The founder is the soul of the project. To be sustainable, at least ensure that the company's founders and executive teams are people who are doing things steadily, rather than cutting the leeks. This is the key. If the founder himself is holding the purpose of cutting the leek, then the whole project will not be discussed.

In the early stage of the project, you should have a complete plan for the project, to figure out where your target customers are, and to solve what real market needs are; to figure out the coins and certificates issued by you. The role of the economic ecosystem; to clarify what rights are represented behind this pass.

I am more pleased that I have recently seen several blockchain projects, all of which have announced their own 10-year plan or even more than 10 years of planning. This is a very valuable phenomenon . This kind of planning itself is actually a statement of values. Those who pursue short-term speculation will not like this long-term and effective project. Those who have strong speculative ideas will not choose such a company for a long time.

But people who are truly like-minded, everyone will look at each other and get a signal to get there. At that time, Berkshire Hathaway Company used the same method. Buffett’s investment viewpoint was unique in the whole market. It is reasonable to say that there should be many conflicts with his investors, but on the one hand Thanks to his superb investment technology, he always keeps his values ​​on every occasion, including the annual report, so that most shareholders can agree with their own values. This is not a family. Do not enter a door."

Third, when financing, the initial pricing can not be too high, leaving enough space for the secondary market

In the previous work experience, I have participated in the IPO distribution work. Generally, in the IPO's issuance pricing process, experienced brokers will require the project party to make a 20% discount on the normal valuation. For example, if the normal valuation of the project is 10, then 8 blocks will be set in the IPO pricing stage, leaving 20% ​​of the profit to the secondary market. On the one hand, the listing will not break on the day, and on the other hand, it will not break. It is a small matter. The key is that the image of the whole project to the capital market is an image that gives people the ability to cut the leeks, or gives people the image of common development and long-term development.

The ICO project should also draw on this model. If the pricing for itself is 10 yuan, then it is better to set aside 8 yuan in the process of issuance. The reason is the same. On the one hand, the profit is given to the secondary market, and the other is The aspect also makes the image of itself more excellent.

In fact, as a whole, the funds that the project party can obtain have not decreased. Although the funds that can be integrated in the primary market seem to have decreased by 20%, the price of the secondary market has increased by 20%. it's the same.

And at the beginning, you get less money in your hand. You will be more cautious when using funds. You will always keep awe. If a project suddenly gets a lot of money, he will probably Lost in the rich.

Fourth, try to reduce the skyrocketing

In addition to giving as much as possible to the secondary market, on the other hand, we must minimize the sharp rise and fall.

The damage caused by the skyrocketing and plunging is actually quite big. As long as it is a sharp rise and fall, then a certain number of investors will hang at the highest point, or sell at the lowest point, they will suffer heavy losses, thus losing confidence in the project.

If it is the overall market situation, then it is okay, if only this one project has skyrocketed, then the market will be more obvious.

In the case of a stable market, if a normal business project has a separate plunge, this situation is generally because the project encounters something special, which makes the market rumors, which makes the market sentiment affected. The best way to do this is to solve the problem so that the crux of the problem can be opened, and whether it can be solved or not, it should be disclosed as soon as possible and the public should be explained.

When necessary, the project side also needs to come up with a certain amount of real money to buy back in the market, and use actual actions to express confidence in the long-term development of the project. Such a signal is very important to the market.

The plunge is hard to bear, but it is not difficult to cope with. It is really difficult to cope with the skyrocketing . The skyrocketing is not as direct and bloody as the plunging, but it is often highly deceptive, and the risks are all caused by the skyrocketing . Most of the plunging is basically due to the previous surge .

In the process of skyrocketing, on the one hand, many employees will realize the freedom of wealth in advance, thus generating the feeling of leaving the company, which will affect the normal development of the company; even if there is no freedom of wealth, watching the increase in book income, it may be floating. There is no way to concentrate all your energy on your work.

At the same time, the skyrocketing will attract a lot of attention from the secondary market, which will bring a lot of “chives” to the project. The higher the price, the more “chives”, these people are in the high point of the skyrocketing, if future generations The price of the coins has dropped. These people may have a strong negative sentiment to the company due to the loss, which is what we usually call "powder turning black."

At this time, the project party is required to actively present the risk, although most people will not listen, but the prompt is still prompted.

There are also many project parties who choose to sell some tokens at the high point and pull the price down. However, I don’t comment on this method, because in the traditional stock market, the project side cashing needs to be reported. If it is not reported, it will be cut. Suspect of leeks.

Fifth, always put the real market demand in the first place

What we talked about is related to market and financing. A project can truly achieve sustainable development. It must have real business support and support from real market demand. Like projects that are funded or purely speculative, they may be on fire for a while, but they can't live for a long time.

Management says that all the company's resources should be brought together to solve the company's most important problems. So what is the most important thing for blockchain projects? The most important demand! And it is the real market demand, not the artificial demand, the pseudo demand.

Even from an investment perspective, a project that really makes you earn a hundred times a thousand times is definitely not a conceptual project. It is definitely not a crazy project. It must be able to span at least 3, 5 or even 10 years. As the business grows bigger and bigger, more and more people use it, and the market consensus is getting stronger.

As I said in the previous article, most of the current certificates represent the right to use. On behalf of the right to use, that is, how much the price of the currency can rise is determined by the market supply and demand, not by the intrinsic value.

For example, when you buy Ethereum to pay for the cost of gas, you are actually paying a “toll fee” in Taifangfang;

If the market is increasingly demanding for the financing of the Ethereum, then the demand for ETH as a fuel for Ethereum will naturally become higher and higher, and the price of the corresponding ETH will become higher and higher.

At present, ETH has experienced several rounds of bull market, and it still maintains a rising trend for a long time. Not only has it not broken, but it has also increased by several hundred times compared with the issue price of ICO. Like BTC, ETH has a lot in common. They all have real business, have real market needs, and are long-term sustainable projects.

The more demanding the project is for the market, the more rigid the demand, the more sustainable the project can be; if the project can't solve the market demand, or solve the market's pseudo-demand, soft demand, lack of real market demand support The project will come up the road of speculation sooner or later.

As an investor, if you encounter a quality project that is truly sustainable, the best way is to be friends with time, hold it for a long time, and wait patiently. If you encounter such a project and still use short-term thinking to speculate on speculation, then it is very likely that you will end up losing more.