The cryptocurrency market has been experiencing some fluctuations in the past few months, leading many investors to wonder about the future of the market. Eugene Shilov of Founders Club sat down with Anndy Lian to discuss the crypto market cycle and his insights on cryptocurrency investments.
Crypto Cycle
Anndy first touched on where we currently stand in the crypto cycle. He emphasized that he looks at the numbers and believes that Bitcoin is in a good position right now. He sees Q3 and Q4 as being a good time to see how far Bitcoin can go this year. While he doesn’t think we are going into a super bull cycle in the next one or two quarters, he does believe that there will be a gradual signal that it’s going to come soon. He believes that after the FTX incident, the three arrows incident, and the bank crisis, it will take some time to clean up the market. Therefore, he sees Q4 as being a good time for the market to pick up.
When it comes to investing in cryptocurrency, Anndy offered some advice for retail investors. He believes that people should know their finances well and not go beyond their limit. Many people are willing to bet more money than they can manage, which is a big mistake. He encourages people to invest in cryptocurrency to get a proper return, but not to gamble.
Lian also suggested that people should look at the projects they are investing in and consider the long-term potential. He advised people to look at the team behind the project and what they are working on to determine if it’s a good investment. he also highlighted the importance of diversification. People should not put all of their money into one coin or project, as it could be risky. Instead, it’s important to have a diversified portfolio that includes multiple coins and projects.
He emphasized the importance of understanding the product and the project before investing in it. Many retail investors panic when the price of a coin fluctuates, causing them to criticize the project or even search for the founders. He explained that this behavior is a result of investors not understanding the investment cycle, the product, or the project.
The second point that Anndy stressed is the need for thorough research. He advised investors not to only research the project but also to understand when they can expect their return on investment. Many investors fail to realize their investment on paper, resulting in zero returns. Therefore, it is crucial to know oneself, the risk profile, the portfolio, and the timeline of investment.
3 Hot Topics to Look Out for in the Web 3.0 Era
Centralization vs. Decentralization
One of the most pressing issues in the crypto world is the debate between centralization and decentralization. Anndy pointed out, the trend seems to be shifting towards centralization, which is a cause for concern. Decentralization is a core principle of cryptocurrency, and it is what makes it unique. It allows for transparency, security, and a level playing field for all participants. Anndy went on to speak about the potential of decentralization and the need to redefine the term. He emphasized that decentralized products, apps, and economies are still missing in the market, and investors should keep an eye out for these opportunities. He encouraged investors to create their own ecosystems within a metaverse that is decentralized, sustainable, and can support the investors’ needs.
He explained that decentralization is not only about getting rid of banks and governments but also about creating a new and sustainable economy that can exist on its own. He emphasized that investors should look at re-centralizing decentralized products and apps and redefine the value of what is already being done in the decentralized world.
NFTs
NFTs, or non-fungible tokens, have been a hot topic in the crypto world for some time now. They are digital assets that are unique and cannot be replicated. Anndy predicts that NFTs will continue to gain momentum, and we will see more use cases in the future. Brands are already collaborating with artists and creators to launch NFTs, and this is just the beginning. The potential for NFTs is enormous, and we are likely to see more innovation and creativity in this space.
AI and Decentralized AI
Artificial intelligence (AI) is another hot topic in the crypto world. Anndy believe that AI can play a significant role in the decentralization of the industry. With AI-powered decision-making processes, there is a new layer of trust that can be established, which is critical in a decentralized ecosystem. Furthermore, decentralized AI can be a step towards a new economy. It is a win-win situation for everyone involved as AI can make smarter decisions and enhance the blockchain technology’s capabilities.
Gaming and Metaverse
The gaming and metaverse industry is another area that is likely to see growth in the coming years. The metaverse is a virtual world where people can interact with each other in a shared digital space. The gaming industry has been a fast adopter of blockchain technology, and it is likely that this trend will continue. Decentralization is crucial in this space as it allows for the creation of a sustainable economy. A good game with a strong community can lead to a more sustainable metaverse.
Raising funds
When it comes to raising funds for your project, timing is everything. If your product is ready and the market is ready, then it’s the right time to start fundraising. You don’t want to invest when the market is going to do badly and your product is going to launch only in Q3. Investors are usually impatient, and they are not looking at something that is 10 years down the road. They want to see the return on their investment as soon as possible.
Investors have different strategies when it comes to investment, and some may ask for a vesting period of five years. However, if your product is good, there’s no need to wait for five years. For instance, if your project is good, by the start of the first year, the valuation could be $10 million, and by the end of five years, it could be $1 billion. Therefore, it’s crucial to give them tokens in the beginning when the valuation is low, rather than waiting for five years and giving them everything when the valuation is high. It’s a win-win situation, and they don’t need to dump the market.
Investing in the right product is essential, and not all venture capitalists (VCs) are looking at it from the same perspective. Anndy suggests that timing is crucial, and not all VCs are looking at it from the same perspective. They are using LPs’ money, and as long as they can build a nice return, they have done their job. Therefore, it’s crucial to find the right investor who likes your niche and what you do.
Investment is all about investing in value, and it’s crucial to invest in something that you like. Investing in people is a serious thing to do because people change faster than the code. However, that should not be the case when we talk about investment. You cannot invest in the person because your debt is Bill Gates, for example. It’s essential to invest in value, and that’s something that you need experience. Invest in something that you like, and you will definitely grow.
When it comes to raising funds for your project, it’s crucial to find the right investor who likes your niche and what you do. Timing is everything, and it’s essential to fundraise at the right time when your product is ready, and the market is ready. Lastly, invest in value, not in the person, and invest in something that you like, and you will definitely grow.
The Importance of Timing in the Cryptocurrency Market
Cryptocurrencies have revolutionized the financial industry, and with the advent of Web3, the industry is expected to become even more innovative. But with the market still a bit bumpy, investors are uncertain and it’s not advisable to go for something that’s too out of the box. Timing is crucial when investing in cryptocurrencies.
According to Anndy, if you want to be listed on exchanges like Binance or Coinbase, now is the best time. The market is not at its best, and you have the money to pay for marketing. Building your project’s narrative is key to getting listed as soon as possible. While some may argue that you need your product up and running before you can list, there are blockchain projects worth hundreds of millions that are still in the testing phase.
The most defining word in Web3 space is community. Building a community is key to marketing your project in Web3. The CEO must interact with the community, and Twitter is an excellent platform to do so. Connecting with people, whether through a heart shape or a thumbs up, is how you build a community.
Timing is everything in the cryptocurrency market. Knowing when to invest and when to build is crucial. Building a narrative for your project is key to getting listed on exchanges. The CEO must interact with the community, and building a community is how you market your project. With these in mind, you’re ready to tackle the cryptocurrency market.
Ending
Investing in cryptocurrency can be a daunting task for beginners, but it doesn’t have to be. In fact, investing in crypto can be easy and accessible to anyone who is willing to try. The secret is to start small and try it out. Don’t wait for the perfect opportunity, just take the plunge and see what happens.
One common question beginners ask is how much they should invest in crypto. The answer is simple: invest what you can afford to lose. You don’t need to put in a large sum of money to start investing in crypto. You can start with a tiny bit of investment and see how it goes. The goal is to try it out and learn from the experience.
The key to successful investing in crypto is to be consistent and not rely on luck. You have to understand the fundamentals and realize your profit. Once you have made a profit, you can reinvest it in other things that give you a higher return.
It’s important to note that you have to know yourself before investing in crypto. You have to determine how much you can afford to lose and what your goals are. Investing in crypto is not about luck, it’s about understanding the market and being consistent.
If you’re a hard-working person, you can get involved in crypto projects by checking out some of the trends on Twitter. This will help you understand the market better and determine when the right time is to invest.
It’s important to rebalance your investments and not hold on to them forever. This is something that many crypto investors forget. Realizing your profit and reinvesting it elsewhere will give you a higher return.
Anndy ended the interview with his famous quote- “Not financial advice.”
Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.
