Part 1: The Investor
ShibInformer was able to reach one of the top $SHIB whales, and got some interesting views about how some holders view the project and crypto markets in general. We wanted to start by getting a better understanding of how large investors approach prospective ventures such as $SHIB, and then we wanted to zoom in and focus on some $SHIB-specific questions. This is what we learned.
(The following conversation was published made under the condition of anonymity)
Perspectives on Investing
Who are you?
Someone that has been into crypto trading since 2013, and I am now one of the top 10 $SHIB holders.
What are the top three things you look for in a crypto you want to invest in?
Honestly, it depends on the market at the time. The main three in order are:
A. Does the concept make logical sense if you take it to its short term, mid term, and ultimate conclusion? Is there a need for this product? What sort of competition does it have? How big of a problem is it trying to solve?
B. What is the development team’s aptitude and their passion toward the project?
C. What are the current market dynamics? That answer can be somewhat vague, but it is on purpose.
Bull markets favor the birth and death of speculative coins and tokens on an almost daily basis, whereas bear markets refuse to give any share to what lacks a rock solid fundamentals.
From the perspective of an experienced investor, how important is community building? Do you think it’s an indication of how strong a cryptocurrency will be?
Community building serves two vital roles, specifically in the early life of a volatile token. First and most importantly, it’s an effective marker to gauge interest. Even if the idea is sound, developers are frequently discouraged from projects without strong community support. It’s especially prevalent with the cut-throat nature of new ERC-20 tokens. The second consideration is exposure and marketing. Anyone with a background in marketing can tell you that each new person you reach with a positive experience becomes another point of exposure for their friends, family and social groups. The more you grow this metric, the more exponential your exposure becomes.
The community themselves creates content organically just by having fun and the whole thing snowballs. On a personal note, I feel a fun community creates engagement in a platform which otherwise may not have caught attention, leading people -including myself- to feeling more invested in the ecosystem.
What has been your biggest success and your biggest failure in the crypto world?
My biggest success is trusting in my intuition that crypto as a whole is as big of a deal as I believed it would be back in 2013.
I can ramble for hours about the cultural implications of blockchain technology as a whole, but for those that believe that this is the start of a new age, I believe they are right. Anyone reading this right now is already ahead of the curve. If you’re worried that you’re too late, no matter what project, you are a long, long way from it.
My biggest failure has been, ironically, what decentralization is intending to correct. It was my naïve belief that if I was careful about trading on centralized exchanges I’d never get burned. I have lost what would be valued today something near $800,000 USD worth of crypto because of it. Remember to secure your wallets, kids! The days coming are going to be full of thieves and traitors as more money flows into crypto as a whole.
Do you only invest in projects which feel like a “sure thing”? If not, what do you consider acceptable risk?
No, doing so just slows down your potential gain as an investor. Portfolio management and how much risk you are willing to take is entirely dependent on the investor. Things like age, responsibilities, debt, income, assets, and how much you are willing to stake on your choices all come into play. With that being said, I do firmly believe if you play around only with low caps forever you’ll lose all your money.
As you build your net worth, pivoting to strategies that involve a good portion of your holdings in “safer” bets is wise, but your mileage may vary.
As for acceptable risk, anything I have in crypto I can live without. That may be a lot of money to some, but living humbly on little should always be the goal. This also allows me to break the fear of failure from affecting my trading decisions, so the emotional distance from my investments strengthens my ability to trade well.