This bull market, most retail investors are trading meme coins and futures contracts, with very few examples of making money. Besides these methods, what other ways are there to accumulate wealth in a bull market? This article is based on an article by Waterdrip, compiled, translated, and written by PANews.
Who has made money in this bull market so far? First of all, it is definitely not VCs, as most of the projects they invested in have not even started issuing coins yet. Even those coins with high FDV and low circulation that have been criticized by the community may appear to have increased several times on paper, but if there is no incoming bull market, when VCs unlock, a 90% drop is not uncommon.
Secondly, it’s not retail investors either. Most retail investors are trading memes, playing with altcoins, trading futures contracts, and while there are a few who have made money, they are very few, similar to the probability of playing the lottery.
Observing closely, those who have made money fall into these categories:
1. Bitcoin holders. Holding Bitcoin means the world works for you. Last year at this time, it was at 25,000, now at 65,000, a huge profit. Rising to 100,000 within a year is also very likely, but most people do not pay attention to this increase, so they do not profit from BTC, which is reasonable.
2. Centralized exchanges. Exchanges have always been at the top of the crypto food chain, with the entire crypto world essentially working for exchanges. Of course, running an exchange also comes with significant risks, but the risk and reward are proportional, which is reasonable.
3. CeFi platforms like Tether. Tether made $4.7 billion in the first quarter, more than most exchanges. Strictly speaking, this money is not earned from the crypto world. In addition, some crypto financial service providers have quietly made a lot of money, such as custody platforms. They provide good services to the crypto world and make money reasonably.
4. Operation teams of some public chains/DeFi products. DeFi products like Uniswap have significant traffic, and the transaction fees and governance token holders have no connection, most of which go to the team, making this income substantial.
These projects do not rely on drawing cakes to sell coins to retail investors but earn money by developing businesses, similar to traditional internet businesses. They are the hope of the crypto world and worth learning from for all projects. Especially with the example of MakerDAO and Uni preparing for dividends, these are the Alpha of this bull market.
5. Projects with high market value whose main purpose is to sell coins. If they have been listed on CEX, they have already made a lot of money this round. They don’t need any income, for example, some ZK projects, even after airdrops, the daily active users on the chain are only in the two to three digits, but it does not affect their market value of tens to hundreds of billions, and liquidity providers are happy to help the team sell coins.
In addition, some DeFi coins with high control, GameFi coins with a studio but few active users, are in a similar situation. These crypto tumors continue to feed on the crypto world. The manipulation teams behind these tumors are also accomplices in making money. It’s ridiculous that some time ago, there were people boasting on Twitter about how much money they made from these manipulated projects, a spectacle unique to the crypto world.
There are also some quantitative teams, and so on, who work hard to earn money, but they are not listed one by one. However, through the analysis above, it may be worth considering building a crypto portfolio that will always make money, mainly selecting targets from 1-4 and avoiding 5.