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Trader Eugene: Long-term investment practicality / DeFi tokens need to be considered from three factors

ChainCatcher message, trader Eugene shares investment insights on his personal channel:"There's been some debate about which utility/DeFi tokens are worth buying from a long-term value investment (HTF value) perspective. From a value investment standpoint, three key elements need to be present before I would invest:It is absolutely essential that token holders are the primary consideration for the team (or at least on equal footing with equity holders). As long as equity holders enjoy benefits that token holders cannot access, I will not blindly chase tokens for their value. This does not necessarily mean that token holders need to receive immediate direct utility from the tokens (such as buybacks, dividends, etc.), but it is absolutely necessary to receive clear and consistent signals from the team indicating that token holders are the ultimate beneficiaries.The business model does not directly rely on the speculative 'Ouroboros cycle' that cryptocurrencies are known for. This is where many so-called 'fundamental investors' fall into traps, as trading volumes can drop by 90% in a bear market, and then drop another 90%, rendering any price-to-earnings (PE) or price-to-sales (PS) valuations meaningless. Furthermore, calculating annualized figures based solely on a protocol's 'good' revenue data for one month when its market share and momentum are at their peak is the most foolish behavior.Trust in the management's execution capability. Like any business, you need to conduct due diligence and believe that the team behind the protocol has the ability to realize its vision, defeating competitors through technological barriers or excellent execution.So far, I believe only a handful of protocols meet these criteria, and I will buy these tokens at the right time. But for the other 99.9% of tokens, they can only be classified as 'concentration camps'."
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