Written by: Ignas
Compiled by: Luffy, Foresight News
Cryptocurrency is like a game: trading tokens, making (and losing) money, and gaining followers on X.
Do you feel the same way? But unlike real games, failure in cryptocurrency games can have serious consequences.
After the Terra crash, a South Korean father wrote online that a family of three, including a 10-year-old daughter, committed suicide due to financial losses. I would feel guilty if I publicly admitted that cryptocurrency is a game. Too many people have been scammed and lost their life savings.
But the mentality of viewing cryptocurrency as a game helps me stay sane and motivated to keep playing. Because the craziness we are experiencing in this industry is only one level, and its biggest advantage is: it allows ordinary people to realize the dream of financial freedom.
As DegenSpartan puts it:
“After you graduate, you have a short period of time where you can become addicted to gambling, then become an elite, or live paycheck to paycheck for the rest of your life.”
In this post, I want to share the crypto game playbook, my mental framework, and tips on how to win the crypto game.
The rules of the crypto game
Once you see the similarities between cryptocurrencies and (especially MMORPG) gaming, you can’t ignore it.
In bad economic times, when there is no new capital coming in, the PvP (Player vs. Player) model prevails. In a bull market, as new money comes in, we switch to the PvE (Player vs. Environment) model.
If you don’t like KOLs exerting influence on you, we think of the phrase “Don’t hate the players, hate the game.”
We even designed the token economics to prevent people from dumping tokens through various game theories.
Just like game upgrades, crypto games are constantly evolving, with new stories constantly appearing and disappearing.
For example, Pranksy, once a top NFT player, is now completely out of step with memecoin. The gameplay has changed, but he still insists on playing a game that few people are interested in.
Sure, memecoin may be terrible, but the same thing was said about NFTs a few years ago by people who had no idea how to play the NFT minting and trading game.
You face two choices in the game: adapt and participate, or wait for new ways to play the game. There is a third, more difficult choice, which is to change the rules of the game itself.
For example, Cobie launched the Echo platform, which allows retail investors to participate in venture capital and buy tokens just like in the ICO era. The story of memecoin will be overturned bit by bit by those players who decide to change the rules of the game.
However, Memecoins also deserve credit because they actually managed to change the rules of the game.
For the past year or so, we’ve played the “points” game. You deposit assets into the protocol, accumulate points, and pray for a lucrative airdrop. I know you like this game because “DeFi degen bull run script” is still my most popular post.
Regardless, it turns out that a lot of people were deceived.
Since a higher TVL means a higher valuation, the FDV of token issuance is ridiculously high. The only beneficiaries are the VCs and teams that entered at a low valuation, and of course the wool-gathering parties who sold the airdrops.
As a result, many people turned to memecoin and stood against VC tokens.
While Pranksy is losing, memecoin protagonists Ansem, Murad, and the players who join their tribe are winning.
"Don't hate the players, hate the game"
We are constantly introducing new mini-games into the overall gameplay. You have to decide whether to participate. If you do, make sure you understand the rules, because there will always be opponents.
For example, daos.fun allows trading of tokenized funds. However, confusingly, the most popular “fund”, ai16z, is trading at 52 times NAV (net asset value). It trades similarly to memecoin.
Players are trying to understand it. Squiggly likened the fund to a "Grayscale structure" or the Friend.tech transaction fee Ponzi scheme. BREAD disagrees with the Friend.tech part.
Squiggly vs. BREAD, who is right?
Although it is the same product, players have very different understandings of it. Players need to find their own advantages in the game and profit from it.
This could be simple. After the team announced plans to whitelist the new “fund” on the site, I expected that degens holding other “fund tokens” might sell some of their old fund tokens to invest in the new fund. In fact, once the new fund was added, the price of all old fund tokens dropped by about 50%.
Generally speaking, the more confusing the gameplay, the more room you can take to profit from knowledge asymmetry.
The beauty of cryptocurrency is that there are always people who jump on new trends without fully investigating, and there are opportunities to gain if you do a little basic research.
That being said, I will often try new things with a small amount of money first, then research and see how it works in practice. Learn by doing, and when you know if you can win the game, invest more money.
Ton’s click-to-earn game thrives because it’s the opposite of complicated DeFi games: you earn money simply by clicking a button on the screen.
However, the game is too simple and the rewards are low; unless you game the system and tap hundreds of phones with your human fingers.
This is where crypto becomes even more interesting and complex: there are multiple levels, characters, and strategies to choose from. You can also take on side quests if you wish.
Let me give you an example.
Lately, I’ve been working on becoming an active representative on several DAOs, specifically Lido, Arbitrum, and Uniswap.
DAOs promote the vision of decentralized organizations, but it is an open secret that most DAOs are far from decentralized. For example, in Arbitrum DAO, 14 addresses control more than 50% of the voting rights, and the same is true for other DAOs.
The Uniswap DAO had no idea Unichain was going to launch UNI staking. This explains why the fee switch hadn’t been turned on for months. Insiders knew that once UNI staking was implemented, the fee switch wouldn’t be necessary, and the DAO was kept in the dark.
The DAO recognized that voting centralization was a big problem. To address this, they launched an incentive campaign to attract new participants. By becoming an active governance representative of a DAO, you can earn between $3,000 and $10,000.
But it’s not easy. You have to actively follow forum discussions, post comments, and vote on proposals. The hardest part is getting token holders to delegate their tokens to you, which touches on the political game.
After I tweeted about aligning token holders and protocol incentives, an anonymous whale delegated 2.5 million LDO to me. Frankly, I received this delegation only because I am a bit famous for posting frequently on X. Playing the popularity game well on X will bring more opportunities in the crypto space that few people know about.
I am now contacted by multiple protocols to thank me for voting for their proposals or to request my support for future proposals. There is a significant relationship building process going on with every DAO that is not on the Xf feed or even the DAO forum.
Honestly, I love this game. I firmly believe in a decentralized future and want to make an impact.
Player mentality
Did you know that Vitalik Buterin founded Ethereum shortly after Blizzard removed the damage component from the Warlock’s Siphon Life spell?
“I cried myself to sleep. That day, I realized how terrible centralized services would be. I quickly decided to quit.” — Vitalik Buterin
Vitalik decided to quit World of Warcraft because he felt he had no influence on the rules of the game.
The wonderful thing about cryptocurrency is that each of us has a role to play and can influence the rules of the game.
Like blockchain, crypto games are decentralized. Venture capitalists, retail investors, builders, KOLs: we all have our roles, and some are more influential than others.
Ansem, Murad and other memecoin KOLs drive the memecoin cycle, but you can decide not to join their game.
Slightly off topic, but I’m actually surprised at how little influence VCs have in shaping the narrative. Crypto VCs are supposed to advocate for their investments, but they pay very little attention to X.
Do they really not care or are they playing another game?
A notable example is Kyle from Multicoin, who is working hard to earn money. More venture capitalists should share their views on the industry, advocate for their portfolio protocols, and provide in-depth research to shed light on current developments.
From my interviews with cryptocurrency venture capitalists, one possible explanation is that they are essentially just retail investors with more money.
While Vitalik was playing World of Warcraft (2007-2010), I was playing another MMORP game, Lineage 2.
In Lineage II, you choose a race (human, elf, orc, etc.) and class (warrior, mystic).
You level up by earning experience (XP) by completing quests and defeating enemies, which unlocks new abilities, better gear, and access to more challenging content.
I spent two years studying very hard, sleeping only a few hours a day. These memories are etched in my mind and have shaped my perspective on cryptocurrency trading.
Just like you gain XP in games, in crypto you gain XP by learning about blockchain, learning about DeFi, studying token economics, etc. The more you grind, the better you’ll get.
But you have to watch your HP(health points) and MP(mana points).
HP and MP are like your health, financial stability, and emotional resilience. Both cryptocurrencies and gaming require relentless effort, and it’s inevitable that you’ll get burned out. In crypto, the pressure to stay ahead, constantly monitor the market, and not miss out on trends creates a high-pressure environment, like being in an endless game where you can’t opt out.
I burned myself out during the last bull cycle, so now I manage my “HP” by taking a break every three months.
Am I weird for looking at crypto in this light?
They are also similar demographically: crypto games are dominated by men, while only about 35% of MMORPG players are women.
South Koreans are as obsessed with cryptocurrencies as they are with e-sports like League of Legends, and even more so than “real sports.”
What I am trying to say is that a gamer’s mentality can help you excel in the crypto space. Just pick the right game and understand your role in the game.
In Naval’s famous short post “How to Get Rich Without Luck”, he mentioned “game” and “play” 15 times! His advice is:
- Ignore the status game players who gain status by attacking those who play the wealth creation game.
- Choose an industry where you can collaborate with others over the long term.
- Play the iterative game. All rewards in life, whether it’s wealth, relationships, or knowledge, come from compound interest.
My favorite quote is:
- Acquiring specific knowledge may seem like a game to you, but may seem like work to others.
So, what game are you playing in crypto?
What is your role in cryptocurrency?
Cryptocurrency has become increasingly complex in recent years. Before 2020, success was as simple as investing in an ICO and trading on a CEX. Since then, there has been an explosion of new games in the crypto space: DeFi, L2, NFT, RWA, Runes, Memecoins, and more.
How do you keep up?
Do you specialize in one area or try to “do it all”?
In MMPORG games, you first choose your race and then your class. In Lineage 2, I decided to choose the least popular option because I wanted to stand out and increase my chances of becoming a "hero."
I chose Human Summoner, and as experience points accumulated, I then specialized in Warlock, and then Arcane Lord. This is the least popular class because its specialty is using pets to defeat enemies.
Similarly, you can start by learning the basic skills of cryptocurrency and then you can focus on active trading, DeFi yields, memecoins, DAOs, etc.
Many lack the commitment to learn specific skills, often jumping between narratives without real understanding. They miss out on the knowledge needed to master the complex mechanics behind the game theory of a specific industry. They become exit liquidity.
In fact, jumping from one narrative to another while making money can be a special skill. You realize the money rotation game and try to sell at the top before the money moves to another narrative. But, are you good at it?
However, I believe that in the current market, specialization can bring rich results.
Specialization can be anything, such as:
- Crypto Koryo excels at creating and monetizing Dune dashboards;
- USD Denominated focuses on the stablecoin market, navigating the complexity of the market and obtaining the highest returns;
- Andy went all-in on modularity;
- wale.moca focuses on NFTs;
- Bold Leonidas publishes crypto comics every day.
But be sure to pay attention to what influencers say, because their motivations are often different than you think. They play a different game than the one they promote. You don’t want to play a game where the rules are stacked against you. For example, Ansem recruits celebrities and makes money in a certain way.
Why do you think I posted on X?
My goals for posting on X are to: 1) stay informed about the market, 2) attract customers to my DeFi creator space Pink Brains, and most recently 3) build my influence and get token delegate votes.
This strategy allowed me to explore multiple topics even though I was not an expert in any of them.
But when you start growing your following on X, you pick an area you are passionate about. As you grow your following, your topics should also diversify. Posting increases your influence, so everyone should do it.
Becoming an influencer is like becoming a hero in Lineage 2. Your character gains a special aura that not only improves your attributes, but also allows you to broadcast your message to the entire server. I chose the least popular character because it has less competition to become a hero.
Many of you work at cryptocurrency companies, where your job forces you to specialize in roles like marketing, market making, or sales. This gives you an advantage over those who are into cryptocurrency as a hobby: you can leverage industry relationships, gain insights, and even influence the rules of the game.
Specialization is now where the real alpha is hiding.
While holding BTC or ETH is a sure win, to achieve a 100x return you need to dig deeper, like mining for gold in an already developed field. As Naval said, find a job that makes you feel like you are having fun.
Whether it’s DeFi, on-chain wallet tracking, or DAO forum alpha hunting, let curiosity lead you. By accumulating specific knowledge, you will discover opportunities that others miss. This niche market is small enough to escape the radar of big players, but large enough to make you rich. Cryptocurrency games may be your gold mine.
