How to view the "hot projects" in the currency circle
In the past two days, two small hotspots have emerged, one is the DeFi project DFS on EOS, and the other is the cross-chain project IRIS.
DFS is a DeFi project on EOS, commonly known as Dafengshou in the circle. The project itself does not have much to watch in terms of technology and model, but it adopts a very popular transaction mining model. This model has been very attractive recently, so DFS became very popular for a few days when it went online, but it was suddenly officially announced on July 22 to suspend trading and mining. The reason is said to be that many players in the circle have too much ability to squeeze wool, which makes the project party unable to continue.
Many players posted their income: the highest one-day income can be more than 100,000 yuan, and there are usually a lot of tens of thousands a day. But not everyone is so lucky, some people are happy while others are worried. A group of players who took over at high positions suddenly got caught before they had time to enjoy the expected bonus.
IRIS is an old face in the cross-chain field. It is said that it is always because it was listed in April last year. After it went online, the price once rushed to $0.15, and then entered a bear market state of endless decline, hovering below $0.03 for a long time , down 80% from its peak.
The recent fire of the project was caused by a piece of news: On July 22, the international version of the blockchain service network (BSN) announced that it had integrated its data center with the six major decentralized blockchains (Nervos, Tezos, NEO, IRISnet, Ethereum and EOS) integrated together. Developers on these public chains can use the data storage, bandwidth and other resources provided by BSN to run nodes and applications.
The IRISnet mentioned in the news is IRIS.
As soon as the news came out, the currency price of IRIS skyrocketed immediately. As of writing, it has risen to $0.068, which is more than twice the price of $0.031 before the news came out.
Such a surge has also aroused heated discussions and discussions on the Internet.
Although these two projects are both recently popular projects, there are still certain differences between the two.
The first project obviously has a model that is difficult to sustain for a long time. Therefore, this kind of project is destined to attract popularity and traffic through gameplay.
The only important thing for such a project is to grasp the information early and participate early. As long as players can be found later, the early participants will be able to profit. In fact, this is not much different from most speculation in the circle. Its risk is that no one knows if there is anyone to take over from behind. If not, you will be the takeover on the top of the mountain.
The second project is an old tree sprouting new shoots. Purely in terms of the performance of the currency price and the fundamentals of the project since its launch, there has not been a particularly big change, but the currency price has been boosted by the impact of this good news. As for whether this effect can last, I am more skeptical, and can only say that it needs further observation.
Therefore, for such a popular project,We must see why it became popular.
If its popularity is due to the model, and this model cannot be maintained for a long time, then no matter how attractive it is, I will not participate, because I have no ability to know whether there will be a successor behind me. Without the receiver, I might fall into a deep trap and never have a chance to stand up. That's it for the first project.
If its popularity is due to the stimulation of short-term benefits, and this short-term benefit cannot be converted into long-term motivation, I will not be optimistic, because without internal motivation, the currency price will eventually return to calm in the long run. The same is true for the second project at present, at least I don't see any qualitative changes in IRIS in the short term. I will not invest in such projects. If I have a position, I will sell some of it after such news comes out and the currency price skyrockets.
If its popularity is due to major changes in the fundamentals that lead to a great increase in future development space, then this may be the early stage of the bull market, and it is worth getting on the car and trying.
Although some of these projects are unsustainable, some investors may be envious when they see how much money someone has earned from these projects, but in my opinion, other people’s experience may not be suitable for them, and we should invest according to our own Ideas, find a way that suits you, and don't be disturbed by too much noise.
