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1/ # 2.2 Narratives
Gains happen because of narratives of future price increase. Not reality. A token can be junk, no adoption, but with a strong shill narrative it can get gains. This is why $ADA has the MC it does. It doesn't matter what the reality is.
Gains happen because of narratives of future price increase. Not reality. A token can be junk, no adoption, but with a strong shill narrative it can get gains. This is why $ADA has the MC it does. It doesn't matter what the reality is.
2/ It matters what people will believe. This happens because the majority of crypto investors are clueless. They know nothing of how the tech works or why it’s good/bad. They are sold on narratives of price increase.
3/ Any "reality" or solid fundamentals such as being a legit business, big connections, partnerships, yes they help. But not because of the substance, but instead because they help the narrative. They make it more believable to investors.
4/ You often see people saying: “I don’t get it!!, Our project just dropped news, but the price hasn’t gone up yet scam project LobsterCoin has just done 10x?!
5/ WHY” or “Why are we only XX MC but that other project is X bil?!” This comes from not understand that most people don't understand or care about the tech, how good it is, what it’s going to do. The majority care only about 2 things: 1.
6/ “If I buy this, will it go up in price?” 2. “Whats the risk of me losing my money” People buying the token in the hope of selling it for more. The perception is worth more to price action than the reality.
7/ This is why you can have what on paper should be a "great" project, but the price is way under where it should be.
When you "research" a project what you are doing is trying to find the narrative for price increase.
When you "research" a project what you are doing is trying to find the narrative for price increase.
8/ Research isn't reading a bunch of BS from a project, believing it, and buying. Its working out whether other fools will believe that BS and buy it.
9/ You need to look at everything, the team, the metrics, distribution schedule and not just the project itself, but the type of thing it is, whether thats a current trend and take into account the current market.
10/ All together does it have a narrative for price action in this market?
You need to understand that "Good project" does not directly mean "Good investment".
You need to understand that "Good project" does not directly mean "Good investment".
