2024 Cryptocurrency Investment Strategy: Balancing Technological Innovation and Community Value

In investment in the encryption market, diversified allocation and flexible adjustment are key to success. Drawing on the all-weather investment principles, I will allocate assets across various cycles that influence the market, including seasonal trends within the year, 4-year bull and bear markets, technological innovations, and economic cycles. At the same time, I will employ a barbell strategy, focusing on high Beta sectors for Alpha projects and high Alpha sectors for Beta projects.

Currently, my investment portfolio focuses on innovative projects such as chain abstraction, AI Agent, and PayFi. These Alpha assets have significantly outperformed the market in December. While adjusting my portfolio in preparation for Q1 2025, I realized that I was overly focused on the single logic of "disruptive innovation" in technology.

In fact, there are two main logics in encryption investment: technological determinism and community supremacy. As a rational investor, I often regard the community atmosphere and cult of personality as noise and ignore them. However, after recently participating in a certain NFT project, I experienced the charm of community belonging for the first time. This has prompted me to start paying attention to projects with strong community consensus, such as Monad and certain L2 projects.

Taking an L2 project aimed at social platform users as an example, it is dedicated to building a Web3 version of the TikTok ecosystem. Through account abstraction technology, this project allows users to experience on-chain interactions and receive airdrops directly within the app without the need for additional configuration of a Web3 wallet. Currently, the project has attracted over 2 million users to participate in games, challenges, and live streaming activities, creating a seamless experience similar to Web2.

Compared to L2 projects that have cutting-edge technology but lack a user base, consumer-facing Web3 applications show significant advantages in product implementation and user growth. TikTok's large user base and its monetization potential provide ample development space for related Web3 projects.

As an industry veteran once said, the key to value investing lies in "entering the big market". In the current situation where the supply of blockchain infrastructure is abundant, those who can reach consumers faster and occupy their minds are likely to become the leaders of the next generation of Web3 infrastructure.

Therefore, in future investment strategies, I will focus more on community building and user base while paying attention to technological innovation, striving to find a balance between technology and community in order to achieve more comprehensive investment returns.