Is it reliable to follow the “Big V” to invest in projects?


YFI is a star project in this round of DeFi tide, and YFI founder Andre Cronje (hereinafter referred to as AC) is a star in the DeFi world. Because of the creation of the ten thousand times coin in this round of tide, his words and deeds have attracted much attention in the circle. Every project he participates in is also the focus of attention in the circle. As long as the projects he mentions on social media will be Many fans immediately rushed in to experience it.

Recently, however, AC has been “unfavorable for the past few years.” The two projects he participated in consecutively encountered “Waterloo” for various reasons.

At the end of September, he announced a project Eminence (hereinafter referred to as EMN) on Twitter. This project is being tested as a new project that has not yet been made public. He is also the developer of this project. Because of his aura, after the project was released, a large number of users poured in, and the contract was instantly deposited with about 15 million US dollars.

However, due to a loophole in the contract, ENM suffered a “Flash loan” attack, resulting in the hackers stealing 15 million US dollars. Although the hacker returned 8 million US dollars after the incident, this accident caused huge losses to many early users. For this reason, AC Even received death threats.

As the saying goes, “Blessings come and misfortunes never come singly.” Not long after this incident, AC announced a new project LBI on social media the day before yesterday. The tokens of this project are used to offset the impermanent loss faced by AMM through liquidity governance.

As soon as the project was announced, a large number of investors also flocked in. However, due to design problems, the token price dropped from $1344 to $0.3 within a few seconds. Finally, in just 14 hours, LBI was in Uniswap. The trading price on the Internet has fallen to $0.0045, plummeting more than 99.9% within one day.

The accident of the two projects undoubtedly caused a great impact on AC’s reputation. But frankly speaking, AC did not call for orders in these two matters, nor did he let anyone invest, so he has no subjective obligation and responsibility to bear the consequences. But the success of YFI has pushed him to the forefront. He has become a public figure. His words and deeds will definitely be monitored by everyone with a high-powered magnifying glass. He can no longer appear as a commenter as before.

“If you want to wear the crown, you must bear the weight.” He has already taken this position involuntarily and will have to wear this hat to move forward in the industry.

For ordinary investors, this is also a lesson. No one is a god, and there will be times when mistakes, even serious mistakes, are made. We pay attention to the words and deeds of big Vs. It is a good practice to see their investment projects, but we can only use their practices as a reference. In the end, should we act according to their operations and why we should act according to their operations are still based on Our own judgment.

When the big V makes a mistake, our blind follow without thinking will make us step on the pit; and when the big V catches a high-quality variety, even if we buy this variety, if we don’t understand it, we may end up with this good variety.

I often meet such investors who have invested in a very good project with long-term value. But whenever the market is not good and the price of a project drops sharply, he panics and asks whether the price can rise to the previous level or will it be stuck?

When I asked him why he wanted to buy the coin, he said that he bought it when he saw a big V. Then I asked him what the value of the coin was? What are your expectations for his future? He just didn’t know it.

If an investor invests in this way, even if he buys “ten thousand times currency”, he will not be able to get ten thousand times of income. Because his cognition cannot understand the value of this currency, cannot estimate the long-term potential of this currency, and cannot have a clear judgment on the future development of the currency price.

In the process of market advancement, the price of any currency cannot keep rising, there will always be ups and downs. But valuable coins will rise all the way up and down. However, if investors do not recognize the upward trend of this value currency, they will be dumped in the market fluctuations, especially when the currency price drops. As a result, the investor in the previous example clearly got a good hand, but because he did not understand the value of the hand, he was disturbed by market fluctuations in his judgment, and instead worried about the value of the hand.

Therefore, the most important thing for investors in investment is to deepen their own understanding and improve their knowledge. This is the ultimate kingly way to avoid stepping on pits.


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