Trader's Confession: Airdrops, altcoins, governance tokens, and cartoon NFTs are all paper wealth; make sure to cash out

In 20 years, many young people in the crypto market will look back on these years of speculation, still finding it hard to believe the wealth they missed out on. Help yourself by cashing out continuously as your unrealized gains grow due to various airdrops, meme coins, governance tokens, and cartoon NFT pumps.

The author of this article is crypto trader and NFT investor Bob Loukas. Please refer to the original text for any doubts.

Original link: https://twitter.com/BobLoukas/status/1512447070787051520

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Accumulating "Value Assets"

When I talk about cashing out, I mean cashing out, and continuing to accumulate Bitcoin, Ethereum, but of course also investing in some hard assets, such as real estate, stocks.

If you invest $1 in a speculative target, then the aforementioned value assets should be worth $3; if you make a windfall profit, you should invest another $1 in value assets, and then deposit $3 in the bank.

NFT

If your cartoon pfp avatar-style NFT is worth less than 1 ETH, you can call it great art; if it's worth 5 ETH, don't be silly.

If your cartoon pfp NFT is worth 5 ETH and is born out of a great community, that's great; if it's worth 30 ETH, don't be silly.

Truly practical applications won't airdrop NFT derivatives or other tokens to you, that's just MLM garbage designed to absorb more funds through related tokens, it's a Ponzi scheme.

Note: The author suggests that the value of a regular pfp NFT should be far below 1 ETH, and an NFT based on a strong community consensus should not exceed 5 ETH.

Governance Tokens

If the token you invested in has a market value of $500 billion, but it's a governance token under a great company, don't be like other fools thinking that this is equivalent to owning part of the company. Someone is cashing out from it, and that person isn't you! Eventually, you will understand the true definition of equity securities.

If the founders and developers got rich at the launch of the project, run. I'm not saying these house of cards are about to collapse, they may not, maybe I just want to give a warning.

The duration of a trend is always longer than everyone imagines, but a trend is still just a trend, don't get confused. Retail investors always like to perpetuate the narrative of the trend because they are unwilling to burst the bubble.

Note: The author implies that NFTs and governance tokens are bubbles, and although the trend may continue for a while, it will eventually fade away.

Bursting Bubble

When the paper wealth in everyone's hands grows rapidly, rationality quickly disappears, and the narrative of being caught in a pyramid scheme will actually happen, but it won't happen in the short term.

By that time, the original dreams, namely early-stage crypto applications, are usually worthless, but there are exceptions.

If you haven't found this exception, then go find it; if you find it and really appreciate the project, don't think you can easily switch targets. When the trend fades, the market where investors flee frantically is brutal.

Note: The author suggests that even value assets are difficult to hold firmly when entering a bear market.

Continuously Cashing Out

I'm not a hater of technology or some cultural element, I only focus on opportunities.

Every grand development, new invention is engulfed by a craze, and is worth being engulfed, but as more and more cryptocurrency marketing ads emerge, it also indicates that the bubble is getting closer.

How do I know? This is the oldest game in the book, although the narrative changes each time, human nature remains the same, I have experienced enough to see these things, so keep cashing out.

Of course, I will be hated, unfollowed, considered the old man talking about coins, while the X generation is the correct one. That's okay, I don't need your approval, continue playing the game, but also understand this game, use it well, don't be a tool, stay rational, it will change your life.

It may seem like you missed out on some profits, but your future self will thank you, so keep cashing out.