From Legendary Investors to Leaders in the Secondary Market

In the cryptocurrency field, there is an investor who stands out with his exceptional investment vision and outstanding performance. He achieved a 100-fold return in less than 3 years, and his performance remains impressive as he transitions to the Secondary Market. This investor is the founder of a well-known cryptocurrency investment fund.

This investor entered the cryptocurrency field in 2017 at the age of just 20. He majored in economics and minored in entrepreneurship while actively participating in campus activities as the vice president of the investment club. After graduation, he joined a large oil company as a trader, taking turns responsible for shipping, analysis, and trading functions.

As interest in blockchain technology continues to grow, he decided to resign from his job at the oil company and fully devote himself to the cryptocurrency field. His experience in commodity trading allowed him to establish a strict set of standards for his crypto investments, which helped him minimize losses during the subsequent market turbulence.

He gradually became a fundamental investor, focusing on exploring the potential uses of cryptocurrencies beyond speculation. In early 2019, he delved into decentralized finance (DeFi) and seized the opportunities brought by the DeFi summer.

Talking about the formation of investment philosophy, he said: "Every investor has their own investment philosophy. Once your investment philosophy is formed, you will start looking for investment strategies that suit you. These strategies will be adjusted according to changes in market conditions, but the core philosophy usually does not change easily."

Evolution of Investment Strategies

In the process of becoming an investor, he found that everyone has similarities in their exploration of investment philosophies. He observed that over the past 10-15 years, the importance of the US stock market has been continuously increasing, becoming the only market in the world to have experienced a long-term significant rise. In contrast, other markets, such as Europe and Asia, have not seen similar surges.

He noticed that traditional value investment strategies have performed poorly in recent years, while investing in projects with growth potential, especially tech stocks, often yields better returns. He believes that to achieve returns that exceed the market, the key is to identify projects with above-market growth potential earlier than the market.

He believes that cryptocurrencies are very suitable for global investment strategies because they are a global asset. If a crypto project finds the right market positioning, its growth potential can be realized on a global scale.

Investment Fund Strategy Revealed

The investment fund he founded has a scale between eight and nine digits, mainly adopting a fundamental-based coin selection investment strategy. They primarily focus on mid-cap and small-cap cryptocurrencies, rather than mainstream coins like Bitcoin and Ethereum, as their goal is to outperform the market.

The fund initially focused on the DeFi sector and later expanded into other growth potential areas, including artificial intelligence and gaming.

To quickly understand a new track, he proposed a three-step method:

1. Assess the integration of this track with cryptocurrency.
2. Determine whether there is a possibility of rapid growth.
3. Collect and analyze data to support judgments.

Investment Lessons and Risk Management

During its operation, the fund also encountered some challenges, but through reflection and adjustments, the most recent fund performed quite well. He pointed out that in the cryptocurrency investment industry, "surviving" is already a form of success.

He emphasized two main risks that need attention:

1. Custody risk: He suggests using the top custody services in the industry to address this issue.
2. Counterparty Risk: This includes the risks associated with the exchange and the investment project itself. Investors are reminded to conduct thorough risk assessments and not to easily trust the promises made by the project parties.

Market Changes and Retail Investor Responses

Speaking about the current market changes, he believes that the industry is becoming increasingly mature. Some landmark events, such as the collapse of a major exchange and another exchange reaching a settlement with the U.S. government, are milestones in the development of the industry.

He pointed out that although there are still some unconventional operations in the market, this practice will become increasingly difficult. The market is moving towards a more institutionalized direction, and major exchanges are beginning to cooperate with regulatory agencies, which may impose some restrictions on their operations.

Judging Entry and Exit Timing

Regarding how to determine the timing for entering and exiting specific projects, he believes this is the most difficult part to grasp. He emphasizes the need to constantly adjust strategies based on market conditions.

In the current market cycle, he suggests actively taking profits on well-performing projects. He pointed out that the best profit-taking opportunities in this cycle may only last a short one to two months.

He suggested considering market liquidity, trading volume, market sentiment, and other factors from a macro perspective, while also paying attention to on-chain transaction data and the fundamental growth of projects.

Successful Cases and Experience Summary

He shared some successful investment cases, among which the project with the highest return rate peaked at nearly 2000 times. He emphasized that although the return rate is very high, the initial investment is usually quite small.

From the perspective of the track, he believes that DeFi is the most successful area of their investments. They entered this track early and invested in many DeFi projects that have now become blue-chip.

After experiencing some significant market events, he places greater importance on the team's ethical standards. He believes that if a person's character is problematic, no matter how successful the project is, it may collapse in a short period of time.

Finally, he emphasized the importance of risk control, which is also a key factor in their ability to maintain stability amidst market fluctuations.