Straight to Goblin Town - The Daily Gwei #476

Most tokens are on a 1 way trip to Goblin Town.

Anthony Sassano

May 6, 2022

Hello readers - today I’ve got something exciting to announce - the very first Daily Gwei merch drop is happening right now in collaboration with MetaFactory. You can head here to purchase the t-shirt and head here for the hoodie. And, in typical Daily Gwei fashion, all proceeds from the drop will be donated to public goods! Special thanks to KOFE and Crypt0xWife for designing and helping to organize this merch drop - without them it wouldn’t of been possible!

Crypto markets are notorious for giving people a false sense of security during bull markets and fooling them into thinking that investing is easy. In reality, investing is really, really hard and most people would be better off just sticking money in some index fund rather than trying to be an active investor. Of course, this fact doesn’t stop people from speculating in all sorts of ways!

sassal.eth 🦇🔊🐼 @sassal0x

I hate to break this to many of you but just because ETH came back from a 94% dump doesn't mean your favorite token will do the same. In fact, 99% of tokens will probably never go back to their all time high again. You'll either learn this lesson the easy way or the hard way.

The easy way to learn the lesson above is to cut your losses in a token early on, take the profits to cash, and then maybe buy back into something less volatile/risky like ETH. The hard way is to hold a losing investment down 90%+ and wait years for it to recover - only for it to fade into obscurity and maybe go up a bit during the tail-end of the next bull market. Having personally gone through both the easy way and the hard way multiple times, I would have to say that I was able to learn more lessons from the hard way and think that everyone should experience it at least once (it will make you a much better investor).

When I reflect back on how and why ETH was able to recover from a 94% drop in price and go on to new all time highs I’m still in awe. I don’t think many people realise just how brutal 2018, 2019 and parts of 2020 were for ETH - literally everyone except a small community of people had written Ethereum off as completely dead. To be fair, Ethereum as a network didn’t have much going for it during that time - PoS was still years away, the ICO mania had subsided, DeFi was still very very early and the biggest NFT was CryptoKitties. Of course, that all changed in DeFi summer of mid-late 2020 and Ethereum & ETH have been on a very nice uptrend since then.

Lastly, the problem with most tokens is that they are actually fundamentally worthless because they are tied to projects that have no traction and no product/market fit. Though because crypto is dominated by retail investors, people think that a token is “destined to recover” because it’s “already down so much” which in reality this couldn’t be further from the truth. If a token has no demand side then it will just naturally be “down only” forever - I mean, why would anyone buy a token if the product is dead, the project has no attention and the token is already down something like 95%+? It’s only “value investing” when there’s actual value to be had!

I hope that your main takeaway from this piece isn’t that I think every token is worthless - moreso that investing is an infinite game with infinite lessons and learning as many of those lessons as you can will be key to your success. And don’t get down if you lose on 90% of your investments - simply take those losses as learning experiences and keep going - you’ll thank yourself for it later.

Have a great day everyone,
Anthony Sassano

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All information presented above is for educational purposes only and should not be taken as investment advice.