Source: Daoshu Blockchain

In an article a few days ago, I once quoted a technology blogger to comment on an investor in the encryption ecosystem. The general idea is: He believes that most players in the encryption ecosystem do not even have some common sense, and are purely gamblers.

The common sense emphasized by this blogger refers to some basic elements that must be considered in business investment, such as projects must have business models, in other words, they must be able to provide value, continuously make money, and generate profits.

Applying this cognition to the crypto ecosystem means that other projects except those considered as Bitcoin-like assets should consider their business models.

The first time I heard this sentence, I felt a little resistant.

Because in the past few years, at least I have not seen much about the "business model" of the projects I participated in. What I mainly look at is the so-called "grand narrative".

I have made money in the past few years using this method. Why?

Recalling now, I think most of it is luck.

Duan Yongping once commented on a case.

In that case, a player played things with all kinds of fancy things, and ran away with all kinds of glamorous nouns. Duan Yongping said that this player must have made a lot of money using this method before.

After reading this comment, a hint of chill appeared on my back.

If you continue to participate in the investment market, it is impossible to rely on fancy things and talk about the term for a long time. You should return to the common sense of investment and the origin of investment.

Duan Yongping has made a very intuitive statement about Buffett's investment and venture capital in my opinion:

Buffett's capital is very large, so his targets are large companies. For small-scale companies, even if they find them, they often cannot buy such companies because these companies cannot accommodate the amount of funds they hope to hold heavily.

For small-capital investors, they can look for opportunities in the market with more small companies, and their returns will be much better than those of large companies. This is venture capital.

Although these two investment methods are different, the companies they are looking for are essentially the same, both to find a company that can continuously generate value, with a good business model, a good corporate culture and a good price.

Coincidentally, I read an interview with Zhu Xiaohu these two days. When talking about his criteria for selecting companies in the venture capital process, I also emphasized that the companies he invests in must be commercialized and whether commercialization can be sustained.

These are the essence of business.

In his interview, he talked about a very popular "little dragon" at the moment, believing that this "little dragon" is likely to be on the Science and Technology Innovation Board in the current environment and will perform very well.

But he still prefers companies with good fundamentals.

In the crypto ecosystem, there are countless "little dragons" like this. They haveWith a grand narrative, it caters to the hot topics that people are sought after and is in line with the trend of people's talk. We know that once it is listed, the price of its currency will be in a wave of enthusiasm. We know whoever can grab the chips first will make money by taking advantage of this wave of craze.

Around this idea, guessing market sentiment, reading on-chain data, exploring insider information, and going long and short naturally became a series of operations later.

However, no one has talked about their business model and whether they can continue, let alone in-depth discussions.

Grand narratives can be imagined, and great stories can also be told, but narratives and stories ultimately depend on whether they can be transformed into practical business models. Otherwise, the storytelling model alone is destined to be impossible to last, and it is destined to be a mess after a bustle.