Foresight Ventures：烹饪一场群鸦的盛宴

1. Dining rules

You may find that assets are driving the wild growth of Web3, which is full of various asset standards for users to trade, and it can even be said that most of the current Web3 applications are based on them.

The most common is the token standard.

For example, ERC-20, you can use ERC-20 to issue a variety of coins, and these coins can have a variety of narratives and utilities, such as equity, bondization, playing Defi, DAO governance, etc. It is also possible to trade these tokens to complete speculation by following the curve of the AMM.

Or ERC-721, you can use this standard to issue NFTs, and what carries the value of NFTs is what everyone calls consensus, speculation, and utility that has not yet been developed.

For example friend.tech each user is a key-based Ponzi plate that follows the bonding curve to trade. Including the recently popular ordinals ecosystem, BRC-20 and various inscriptions, as well as Web3 game engines for publishing various gold mining games...... On the surface, it is to provide new utility, but in essence, it is a new asset standard with different carriers.

It's like a person who designs a casino game, and the rules are set by him, and he can open his own casino, and other people can open their own casinos by taking his rules, and he can provide this rule to other casinos for free as a public good, such as ERC-20 and ERC-721 standards. Rakes can also be conducted, such as Opensea for various series of NFT transaction fees, or Uniswap for protocol fees for trading and liquidity pools.

We don’t trust people，we trust code

The advantage of Web3 over Web2 is that once the model is conceived, the permissionless nature of the blockchain allows the model to be quickly deployed to the market in the form of smart contracts, and the effectiveness of the model is verified by the feedback from the market, and the transparency of smart contracts allows participants to identify risks for themselves. Issuing assets is often a simple pump and dump, but sometimes it is also a way to quickly get the product running, starting, expanding, foaming, and converging, and the cycle length can be greatly shortened. Many project parties relied on control and attractive models to quickly complete cold starts, attracting a large number of users and liquidity, and at the same time building infrastructure and networks with them. Filecoin and Polkadot are classic examples.

Degens are like crows, smart and greedy, attracted to assets, fed on them, and fighting over them. The Web3 world is like a feast for crows, where the projects are like plates of dishes, made up of various ingredients, the smart and strong crows can feast on their mouths, the sluggish and weak crows will be defeated in the fight for food and starve, or they may be in danger of eating poisonous dishes (such as rug pull). The project team plays the role of chef, making projects through asset standards to manipulate the crows to achieve their own goals.

2. Use narrative/utility as a kitchenware

We humans are not born to understand the world in terms of facts and figures, but in terms of narratives

Narrative refers to stories and information that are conveyed through language, words, visuals, or other forms. It is an expression that is used to describe an event, experience, or concept with the aim of delivering a specific message, opinion, or values to the audience. BTC is a very fascinating narrative: decentralized digital gold, alternative ways to pay and transfer, financial inclusion, and a tool to rebel against the system. BTC has the potential to transform the modern financial system, and the breadth and depth of the impact of this narrative is enormous. AI, BTC ecology, modularization, etc. are the current hot narratives of Web3, and while we are looking for opportunities in these popular narratives, we are also looking for non-consensus narratives, and the alpha of non-consensus is often greater than the consensus.

Narrative is the carrier of assets, like a pot, which determines the upper limit of value, as long as the logic cannot be falsified, a narrative that is sexy enough can theoretically make the cake of the market very big. Just like going to a temple to buy incense or a shaman's practice to bring good luck to oneself, people will pay for some unproven vision. Not only is it a way for a project to communicate its vision, values, and goals, but it is also an important means of attracting and sustaining the interest of the community, investors, and users. The following explores the importance of storytelling in building assets from several dimensions:

1. Affect participants' mood

• Emotion-driven: In the money market, the mood of the participants is an important factor. An engaging narrative can inspire excitement, confidence, or fear, which can influence participants' behavior.
• The Appeal of Stories: Humans naturally love stories. A good narrative can make complex concepts more understandable and engaging, which is especially important for engaging participants.

2. Promote understanding and communication

• Simplifying complexity: Web3 gameplay and strategies are often complex and difficult to understand. An effective narrative can simplify complex information into an easy-to-understand story, helping participants grasp key information quickly.
• Enhance communication: A compelling story is more likely to be remembered and spread by people. In the age of social media and the internet, the speed and scope of a story can greatly affect the popularity and attractiveness of a money market.

3. Build trust and brand

• Trust Building: Through storytelling, money can build a sense of trust. Historical data in a story, a success story, or a leader's vision can all increase the trust of participants.
• Brand Identity: Stories help fund projects build a unique brand identity. This not only attracts players but also helps to stand out in a competitive market.

4. Affect market expectations

• Market dynamics: Markets are not only driven by data and facts, but are also influenced by expectations and forecasts. A strong narrative can shape market expectations, which in turn can influence money flows and prices.
• Self-fulfilling prophecy: In some cases, a strong narrative can even lead to a self-fulfilling prophecy in which the market acts because it believes in a certain narrative, thus making that narrative a reality.

3. Take the market as firewood

Standing on the tuyere, pigs can fly

If the flame is too small, the dish may be raw, or the feast may have been dispersed before the dish is cooked.

Narrative and market need to be matched in time and space. The key to choosing a market is to meet the needs of existing potential participants, how many people are willing to participate, who are the participants, how much money is available, how the product meets their needs, and what their participation behavior can in turn bring to the project.

Product-Market Fit is the key to the success of the project, which not only determines whether the product will survive in the market, but also the basis for sustainable growth and development:

1. Requirement Confirmation: Product-Market Fit ensures that your product or service meets the actual demand in the market. If the product does not match the market demand, then it may fail even if the product itself is of high quality.
2. User retention and word-of-mouth: When a product is closely aligned with market demand, user satisfaction is higher and word-of-mouth is more likely to occur. Satisfied users are the best marketers.
3. More effective marketing: Having product-market fit can make marketing campaigns more efficient because you'll be targeting those consumers who are most likely to benefit from your product.
4. The foundation for growth and expansion: Product-Market Fit is the foundation for sustainable growth. Only when the product is adapted to the market can the project party expand and grow effectively.
5. Resource optimization: Understanding market demand can help businesses better allocate resources and avoid wasting time and money on features that don't meet market demand.
6. Competitive advantage: In a competitive market, products that accurately meet consumer needs are more likely to gain a competitive advantage.
7. Risk reduction: Understanding and meeting market needs reduces the risk of business failure. Product-market fit means that the product is accepted by the market, which reduces the uncertainty of launching a new product in the market.
8. Attracting investment: For startups seeking funding, being able to demonstrate that they have achieved or are approaching product-market fit greatly increases the likelihood of attracting investors.

In the Web3 space, an example of a good product-market fit (PMF) is what we are familiar with as Uniswap:

1. Addressing the need for decentralized trading: Uniswap creates a decentralized trading platform that allows users to exchange cryptocurrencies directly with each other without the need for traditional intermediaries such as banks or exchanges, and the ability to issue assets permissionlessly.
2. Streamlining the trading process: Uniswap uses a model called an automated market maker (AMM) to simplify the trading process. Instead of matching transactions with specific buyers or sellers, users interact directly with the smart contract, increasing efficiency.
3. Provide liquidity incentives: Uniswap encourages users to lock their assets on the platform to provide liquidity and give rewards through transaction fee sharing. This mechanism attracts a large number of liquidity providers to provide liquidity for newly issued tokens (earth dogs).
4. Trustless environment: Because it is blockchain-based, Uniswap allows users to trade without having to trust the other party or a third-party intermediary, reducing transaction risk.
5. Promoting the development of the DeFi ecosystem: The emergence of Uniswap has promoted the development of the entire decentralized finance ecosystem, providing a foundation for the development of other DeFi projects and services.

Fourth, use desire as an ingredient

Okay, there's a pot and a fire, it's time to put in our ingredients.

The Seven Deadly Sins are a group of sins considered particularly serious in the Christian tradition, and they stem from early Christian thinking and teaching about human behavior. The concept of the seven deadly sins was first developed by early Christian thinkers, notably the 4th-century monk Evagrius of Pontus of Egypt. He listed eight of humanity's main evils, known as the "Eight Evil Thoughts." In the 6th century, Pope Gregory I revised and streamlined this list, reducing it to seven, forming what is known today as the "Seven Deadly Sins." The seven deadly sins that have now been identified include pride, envy, wrath, sloth, greed, gluttony, and lust. These crimes are considered to be the root of other evils. The Seven Deadly Sins occupy an important place in Christian moral and spiritual teaching, and are used to teach believers to recognize and avoid these sins in order to promote the health and salvation of the soul.

Avoid? No, we have to take advantage of people's desires. The wealth code is clearly written in the ancient dossier. The essence of business is to discover or create needs and meet needs, needs are hidden behind desires, often a good business will eventually lead to two results, or two results exist at the same time: amplify or satisfy the user's desires.

The narrative and the direction of the market may change due to the passage of time, but in the thousands of years of civilization evolution and technological progress, people have gone through countless cycles, but their desires have always been the same. Smart people are often able to manipulate the group through the laws of human nature, meet the needs of the group, and incorporate it into a part of their own system to achieve their own goals. Here are some of the mechanisms (business models) and examples that can make crows flock to each other, regardless of whether they are Web2 or Web3, they can all play the role of ingredients that stimulate the crows' appetite. It's just that under the permissionless conditions of Web3, their composability and deployment efficiency have been improved, opening up more possibilities.

4.1 Provision of Trading Markets

The existence of trading means speculative properties, the possibility of buying low and selling high, and the uncertainty and high return potential combine to form the vision of getting rich quick, attracting people to pursue immediate and huge wealth growth. Liquidity and volatility are especially important in trading, where every chip change means a banker's margin. A large part of the reason why the fundamentals of tokens are better than NFTs is that tokens have better liquidity, tokens can be divided into countless parts, and everyone can participate in them, regardless of the amount of funds, and the transaction is more flexible. However, NFT is mostly traded as a single entity, even if an NFT can be divided into many parts through fragmentation, it only corresponds to a value, and the threshold for transaction is higher and the flexibility is lower. Volatility means the possibility of high profits, providing a sense of excitement and instant gratification.

Successful trading brings not only financial rewards, but also the psychological satisfaction of victory and achievement. Even though there is actually more of an element of luck, successful trading is often seen as a manifestation of intelligence, analytical ability, and predictive ability.

Keywords: greed, arrogance

4.2 Endorsements

Gaining the endorsement of leading investment institutions or KOLs can also stimulate the desire of followers to participate, but in turn, these investment institutions or KOLs can also use their authority and influence to cut their leeks, DYOR:

1. Trust and trustworthiness

• Brand trust: Large institutions often have a good reputation and brand awareness, which adds trust and credibility to their recommendations or endorsements.
• Professional Recognition: Large institutions are seen as experts and authorities in the market, and their decisions are often considered to be well-thought-out and well-informed.

2. Security and risk reduction

• Reduced perceived risk: Followers tend to believe that if a project or asset is backed by a large institution, then the risk of investing in that project or asset is likely to be lower.
• Follow the Professionals: Followers tend to emulate the behavior of investors they perceive to be more knowledgeable and experienced.

3. Social proof and herd mentality

• Social Proof: The investment decisions of large institutions are seen as a form of social proof that "if these professional and successful institutions are investing, then this must be a good opportunity".
• Group dynamics: Humans have an innate tendency to conform to the herd, especially when faced with complex decisions, and tend to follow the group's choices.

4. Market influence

• Market leadership: The investment behavior of large institutions often has a market leadership role, which can influence the overall trend of a certain area or asset.
• Demonstration effect: The decisions of these institutions may trigger a demonstration effect that attracts more investors to follow.

Keyword: laziness

4.3 Controls

Controlling refers to the act of manipulating the price and trading volume of an asset through a series of means and strategies. On the news side, pulling the plate, smashing the plate, doing the bank, and convincing people to rise are all talking about control. Here are a few of the key reasons why controls attract participants:

1. The lure of quick profits

• High return commitments: Holding activities are often accompanied by rapid increases in asset prices, creating the illusion of quick and high returns for retail investors.
• Greed: Humans have an innate tendency to pursue wealth growth, especially when it seems readily available.

2. 害怕错过(FOMO)

• Follow-the-herd mentality: When seeing others who seem to be making huge profits in a short period of time, retail investors are often afraid of missing out on similar opportunities.
• Social proof: The investment behavior of others is seen as a kind of "proof" that implies the correctness of the investment decision.

3. Market sentiment and group behavior

• Market booms: During market booms or bubbles, retail investors are easily attracted to general optimism.
• Herd mentality: People tend to imitate the behavior of the majority of people around them, especially when there is information asymmetry.

One of the most common examples is the well-known pump and dump

1. Pump:

• Creation phenomenon: Investors or groups artificially speculate on an asset (usually with low liquidity) through various means (news, statements, social media, community orders) to create the illusion that the asset is about to rise, or to enrich early participants by pulling the market, creating a wealth effect and attracting people who have not entered the market.
• Raise the price: This hype attracts the attention and interest of other investors, leading them to buy the asset. As demand increases, asset prices rise.

1. Dump:

• High selling: When the price of an asset reaches a relatively high level, the investors or groups that initially engaged in speculation sell their assets at the high price.
• Price crash: With a large number of selling, the price of an asset begins to fall sharply, and later investors face losses, especially those who bought at a high price.

Whether it's to make money from shipments, gain attention, or quickly attract participants to provide liquidity or build infrastructure, control is an effective way to achieve its own goals through user behavior.

Keywords: greed, arrogance

4.4 Incentive

Incentives are the most direct way to attract users: airdrops, invitation rebates, interest-earning, mining rewards and discounts after the trading volume threshold is reached are all low-risk and reward-based methods, all of which provide obvious value propositions, users can directly see the potential benefits from them, incentives increase user participation in the platform or project, promote the growth of the platform or project and the expansion of the user base, and with the participation of more users, the platform or project itself gains value-added and further attracts more users。 Essentially, it's a mismatch between futures and spots.

These incentives are often tied to user engagement, and there may be some exit penalties to build up the sunk cost of the user and tie the user to the project.

Tip: Strong immediacy and short and low incentives have a strong addiction, which is what we know as nipple music.

1. Airdrops

• Low risk: Users usually don't need to invest money or simply hold a specific asset to have the opportunity to get free tokens or assets.
• Direct Returns: Airdrops provide direct financial incentives where users can earn valuable tokens instantly.

2. Invitation rebates

• Network effect: By inviting new users, existing users can receive certain rebates or rewards, this model takes advantage of network effects to encourage users to promote products or services.
• Win-win situation: Both the inviter and the invitee often benefit from it, creating a win-win dynamic.

3. Habitat

• Passive income: By staking or investing in a specific asset, users can earn passive income, such as interest or other forms of return.
• Relatively low risk: Earning income through interest is often seen as a less risky strategy than trading the market outright.

4. Discounts after volume thresholds

• Encourage active trading: Offer discounts when users' trading volume reaches a certain threshold to incentivize users to trade more often.
• Increase user stickiness: Discounts attract users to continue trading on the same platform, which enhances the platform's user loyalty.

5. Mining Rewards

• Accelerated construction: Whether it is liquidity mining or node mining, the incentive of tokens will attract people to participate in it, accelerating the construction of liquidity and node networks.
• Value binding: mining activities often come with staking and slashing mechanisms, which bind the interests of the node to the value of the network, and the withdrawal or evil of the node will cause the node to suffer economic losses to maintain the safe operation and stability of the network, Bitcoin's 51% attack and Optimistic's fraud proof are good examples: if the node wants to be evil, its cost is often much greater than the benefit.

The recent Blast airdrop directly attracted a large amount of liquidity, gaining more than 800 million liquidity in just a few weeks, and the logic was very simple and crude, which was to smash money in the faces of participants, while inviting points with the network effect of Ponzi flywheel. Although cross-chain with L1 will increase risk exposure, participants are concerned about whether this model will make them profitable, and these security issues are reduced in the face of a large amount of money, and the number of people who come to participate is still flowing.

Keywords: gluttony

4.5 杠杆

Leverage can be leveraged to gamble, and it can significantly increase the risk and potential return of an investment, thereby exacerbating psychological and behavioral patterns similar to gambling:

1. Increased potential returns

• Amplify returns: Leverage allows investors to control a larger investment with less capital, so the potential profits are magnified accordingly.
• Attractiveness: This amplification effect attracts investors who are looking for quick, high returns, similar to the pursuit of big wins in gambling.

2. Increased risk

• Amplify losses: Leverage magnifies not only gains, but also losses. A small adverse movement in the market can lead to significant capital losses.
• Stress and impulsive decision-making: Faced with higher risk, investors may experience more stress and make impulsive, irrational decisions.

3. Psychological effects

• Overconfidence: The use of leverage can lead investors to become overconfident and mistakenly believe that they are able to control market risk.
• Chasing losses: After losses, investors may increase leverage in an attempt to recoup their capital quickly.

4. Invisible "bets"

• Invisibility of funds: Unlike brick-and-mortar casinos, in the crypto market, the use of funds is digital and intangible, which can lead to a lack of awareness of the money actually invested and the risks involved.

5. Accessibility and Convenience

• Ease of use: Many Web3 products make it very easy to use leverage, similar to the universal accessibility of gambling.

The 100-fold leverage of perpetual contracts, the 1000-fold leverage of Rollbit, and the Defi lending stack of Rari capital have attracted a large number of users through the stimulation of high leverage, which has become an indispensable charm of these projects.

Keyword: greed

4.6 Sweepstakes

The mechanism of the lottery is likewise a gambling amplifier that stimulates and exploits a strong reaction to random returns, like going to a temple to buy incense or people paying for wishes. ：

1. Uncertainty and incentives

• Incentive effect: The incentive effect of uncertainty is very powerful. The randomness and potential jackpots in the draw inspire excitement and anticipation.
• Dopamine release: When participating in a lottery and anticipating a possible win, the human brain releases dopamine, a neurotransmitter associated with feelings of pleasure and reward.

2. Imbalance between risk and reward

• The lure of high returns: Even if the odds of winning are low, the huge potential rewards can entice people to participate, ignoring the actual risks.
• Cost underestimation: Participants tend to underestimate the actual cost of small investments over a long period of time.

3. Chase losses

• Chasing the big prize: Participants may be consistently invested in the hope of winning the jackpot in the end, similar to the "chasing losses" mentality in gambling.
• Sunk Cost Fallacy: Long-term participants may stay engaged because of the time and money they have already invested, hoping to recoup their investment or make a profit.

4. Hallucinatory sense of control

• False sense of control: Participants may mistakenly believe that they can improve their odds of winning through certain strategies or intuition.
• Pattern recognition tendencies: People tend to look for patterns or patterns in random events, even if those patterns don't exist.

Pooltogether is a well-known Web3 sweepstakes program that allows users to deposit funds into a common prize pool in order to earn interest. This interest is then used as a prize money that is distributed to randomly selected participants through regular draws. All users' stakes remain safe, and they won't lose their deposits even if they don't win a prize. This mechanism combines the security of savings with the excitement of the lottery, providing a risk-free opportunity to win additional gains

Keyword: greed

4.7 Flywheel(3,3)

The logic of Ponzi, which we are familiar with, is very simple, that is, the input of latecomers to compensate for the benefits of early participants, and at the same time has a network multiplier effect.

Projects like Olympus DAO and Anchor Protocol are able to attract large numbers of participants, although they have been criticized by some as being Ponzi-like due to their combination of innovative financial mechanisms, the promise of high yields, and a general interest in the decentralized finance (DeFi) space. Here are a few of the main reasons why these programs are appealing:

1. High yield commitment

• Attractiveness: These projects often promise higher returns than traditional financial markets, which is very attractive to investors looking for high yields.
• Yield Farming: Participants can earn seemingly significant interest or token rewards through staking, lending, or other means.

2. Innovative financial mechanisms

• Unique models: These projects often operate on unique and complex financial models, such as algorithmic stablecoins, liquidity mining, bonds, etc., which attract people interested in financial innovation.
• Technological fascination: Interest in blockchain and decentralized financial technology is also an important factor in attracting participants.

Keyword: greed

4.8 Agents

The crypto world is like a gold mine, there are countless gold and other people to mine, but the complex mechanisms and operations make the mining process difficult.

Human nature is lazy, which gave birth to shovels. There are all kinds of shovels on the market, including wooden shovels, iron shovels, stainless steel shovels, and excavators. Efficiency, cost, and use cases vary, and users want nothing more than to use the least cost: maximize the benefit on a certain risk, or minimize the risk within a certain return expectation. Each shovel is a bet, and the shovel itself can make a profit through the commission or profit sharing of the bet. There are two types of brokers, one is to provide a variety of betting strategies for users to choose according to their preferences, such as copy trading, liquidity mining pool aggregators, and the other is to directly help users directly manage resources.

For example, the recently popular Clore .ai, Clore has a very convenient mechanism for miners, that is, to help miners find the highest yield in the network to mine, when there is a specific computing service demand, complete the task assigned by the network; if there is no computing power service demand, the network finds the cryptocurrency with the highest mining yield at that time and participates in mining. In this way, GPU miners can directly throw the mining rig into the network and automatically maximize the income.

Various trading bots, ERC-4337, intent-centric applications, AI agents are such shovels, they help users save complicated steps and achieve their goals quickly and easily, which is the key point of enhancing the user experience (UX).

Directly give you a mine, compare to give you a shovel after giving you a mine, and help you set up a sales channel, and then build a fully automatic assembly line, which one do you choose?

Keyword: laziness

4.9 Arbitrage

Although arbitrage sounds like a speculator's game, the existence of arbitrage mechanisms is actually sometimes a way to ensure the health of the system, arbitrage of the same asset in different trading markets can make the price of the asset between each market tend to be stable, and the cost of the user's purchase will be closer to the actual market price, which reduces the user's risk. Or if the project wants to anchor a certain asset, setting up spread arbitrage is a good method, taking the perpetual contract and Luna/UST as an example:

Perpetual Contracts

When the price of the perpetual contract is higher than the spot price (i.e. the contract is overvalued), the long pays the funding fee to the short, and vice versa, the short pays the long. The funding rate is usually adjusted at regular intervals (e.g. every 8 hours). The adjustment of the funding rate reflects the market's expectations and sentiment regarding the future price of the asset. Through this payment mechanism, traders are incentivized to trade in the direction of bringing the price of the perpetual contract closer to the spot market price, helping the market to regulate itself so that the price of the perpetual contract does not deviate from the spot price for a long time.

Luna/UST

Basic concepts

• UST: TerraUSD (UST) is an algorithmic stablecoin designed to maintain a 1:1 value against the U.S. dollar.
• Luna: Luna is the native token of the Terra ecosystem and is used to govern and maintain the stablecoin system.

Anchoring mechanism

• Algorithmic adjustment: When the market value of UST deviates from the 1:1 ratio of the US dollar, the system restores the balance through an algorithmic adjustment mechanism.
• Two-way conversion: Users are free to convert between UST and Luna at a fixed value of $1.

Price stable operation

1. When UST > $1:

• Mechanism: Users are incentivized to mint UST with $1 worth of Luna, as the value of UST in the market is more than $1.
• The result: This increases the supply of UST, which lowers its market price.

1. When UST:

• Mechanic: Users can buy UST for less than $1 and convert it to Luna for $1.
• The result: This reduces the amount of UST in circulation, which increases its market price.

Arbitrageurs unwittingly become a tool for the project side while obtaining profits, arbitrageurs play with the market while maximizing risk-free returns, but in turn maintain the stability of the market, MEV is another interesting example in the crypto world.

Keyword: greed

4.10 Competition and Gaming

Let users gamble by themselves, coax and let the funds naturally swell.

Commonly known as involution, the establishment of wins, defeats, levels and rankings makes people in the same scene compete with each other, the people at the top want to keep their positions, and the people at the bottom want to kick off the people at the top to climb up, invisibly achieving the purpose of the rule builder.

There are many examples in Web2, there are many games with ladder rankings or rank rankings, and often many players will go crazy to increase their strength or keep playing games for the sake of improving their ranks. The money of krypton gold unconsciously flows into the pockets of game companies, and when players are divided day and night, they unconsciously contribute loyal activity and game time to the game.

Douyin has a PK tipping function, two bloggers pk within a limited time, see who gets more tips in this time, bloggers want their tips to be better than each other, then they will do their best to let their fans reward, fans will also hope that their favorite bloggers will win, generally before the time deadline Tipping activities will be very frequent, without Douyin's own publicity, the amount of tips will be raised by bloggers and fans themselves, and a large part of the tips have become Douyin's profits.

There's a project called Alpha Club that uses a similar logic:

A successful KOL wants to share the wealth code, so he decides to open a space. Information is valuable, space is limited, so space has a price. How is the price determined? Using the bonding curve, it increases in turn.

What happens when the space is full? With Sliding Bids, the latecomer pays a high price to the first person in the current seat according to the bonding curve, and so on.

The first comer automatically profits, and the latter continues to increase in value. Everyone has become the liquidity of the market itself.

Users have two motivations to participate in the auction: the need for alpha information and knowledge, and the need for speculation. Serious crypto investors, together with speculative degen, have become participants in market pricing under such a pricing model. Alpha Club's Slogan: You either earn or learn is a true reflection of the first principles of the market.

Keyword: jealousy

5. Summary

Under the desire, a variety of ways to play can be invented, and these modes can be combined and extended to different narratives and market scenarios, and countless capital models can be born. When a sufficiently far-reaching narrative, a matching market, and an attractive model reach a state that complements each other, a delicious dish is born, and it does not necessarily require strict matching of supply and demand segments and application scenarios.

Human nature drives prices, and prices return to value—the game between consumers and speculators—which together constitute the essence of the economic world. In the product mechanism, we may be able to get a glimpse of the truth of the game, price and market.

In Web3, where chaos and order coexist, you and I are both chefs and crows.

P.S. Thanks to Forest Bai for his advice and guidance on this article