Chain News Exclusive Interview with CryptoD: How On-Chain Traders Decide When to Enter and Exit

Author Neo Chain News

In the cycle of the decline of VC coins, the on-chain earth dog has become a new battlefield in the currency circle. CryptoD, the founder of 1000X GEM, which focuses on on-chain transactions, became famous with a single coin income of $17 million at the time of Trump's coin. The research of the 1000X GEM community ranges from AI agent research that requires technical background to meme coins that tell the story of a transaction. How do these on-chain traders decide to sell and exit, how to screen targets, and what is the daily routine of sitting and scanning the chain? Chain News interviewed CryptoD and asked him to share his experiences along the way. What is a dry sitting? Peel back the cocoons in the massive amount of information and find out the really useful parts Q: Would you like to ask Devin to share the general schedule of the day? For non-on-chain dirt dog players, it may be difficult to imagine what life is like for dog beaters, approximate working hours and time periods, etc. I often hear people say that they sit and sweep the chain, what does it mean? CryptoD: First of all, I'm a full-time on-chain trader and don't have a web2 job, which allows me to focus all my attention on the on-chain and community, usually around 15 hours a day in front of my computer. I have always believed that "where attention is, there is gain". I tend to be a night owl in my routine, I usually go to bed at dawn and don't wake up until the afternoon. When I wake up, I start by opening GMGN's popular page and taking a quick look at whether there is a new narrative or golden dog appearing during my sleep. Then I'll look at my community, see what my friends are talking about, and finally go to Twitter to swipe the information. From the macro environment ( such as what policies Trump announced and what the FOMC said ) to the micro hours, which new CAs with high market capitalization appeared, what the narrative was, and whether anyone was discussing it on Twitter. As for "chain sweeping", the definition of the word is actually getting wider and wider. In the early days, it might have been just staring at the new CA, but for me, it now includes filtering chats in the community, swiping Twitter feeds, and even building and maintaining a smart wallet database of your own. The integration and analysis of this information is all about "scanning the chain", that is, peeling back the cocoon in the massive amount of information to find out the really useful parts. Focus on the potential to get out of the circle and the narrative that triggers emotions, and the size of the position varies depending on the market value at the time of buying Q: Can you share the general workflow? There may be hundreds or even thousands of meme coins released in a day, how does CryptoD choose the coins and decide the position size? CryptoD: As I mentioned, the so-called "sitting" is not really sitting in a daze, but focusing on filtering social chats, browsing Twitter feeds, and even organizing and maintaining a smart wallet database of your own. The integration and analysis of this information is part of the chain sweeping, that is, to peel back the cocoon in a large amount of information to find out the truly valuable information. Although it is true that tens of thousands of new coins are born every day, there are very few that are really worth selling. Sometimes there isn't even one a day. As for what currency I will choose, I will mainly rely on the information screening method mentioned above to find a narrative that has the potential to "get out of the circle" or can arouse emotional resonance. Out of the circle, for me, is defined as a narrative that can attract the attention of web2 players and enter the arena. The classic example of this is Elon's DOGE. With his influence in web2, he has made many people buy $DOGE because of their belief in Elon. A more recent example is $MOODENG, when Hippo was almost the top traffic, and the number of views on major web2 social platforms may exceed billions; In the recent $TRUMP, the issuance of meme coins by the President of the United States is arguably the most influential out-of-the-circle narrative to date. The narrative of "eliciting emotions" is more broad, because emotions are inherently subjective, and not everyone will feel the same way. A classic example is UFD, a foreign blogger who makes gold and precious metals publicly mocks memes, which are instead used by others to issue meme coins. I think most of the people who speculate on coins are a bit anti-bone, and the more they are looked down upon, the more they want to prove it to others. UFD managed to capture this "fight against Old Money" sentiment at the time, and it did well. As for position allocation, I will determine the amount of money I invest based on the market value of the coin at the time of discovery. Normally, I would take around 0.2% to 1% of the total supply. For example, if the market value at the time of discovery was $1 million, I would invest about $2,000 to $10,000; If the market capitalization is $10 million, the investment amount may range from $20,000 to $100,000. How can newbies develop a memetic worldview? Join multiple communities and learn by doing Q: When you first noticed CryptoD before Trump, you knew that 1000 GEM was very famous in AI Agent research. I would like to ask Devin how he analyzes the project when doing AI agent research? What are the entry points that are relatively low but necessary for newbies? CryptoD: AI Meta was also the time when my community grew the fastest. I don't have an engineering background myself, but I happen to have some old friends who are engaged in related technical work in web2, and they can understand the code and even judge the technical content behind each AI agent. This saves us a lot of effort when selecting targets. So for me, I just need to trust the research results of the group friends, and then evaluate the market value gap between the market value of Longyi in the current AI narrative and the other AI projects we follow, so as to judge whether it is worth entering the market and how many positions to buy. For newbies, it can take a long time to get started from scratch. I think the quicker and more effective way to do this is to "join multiple communities" and try to understand the attributes of each community, the culture, and the strengths and strengths of each person within it. Some CAs can be ignored without even looking at them; But there are also some people, as long as he sends a certain CA, there must be a logic and judgment basis behind it, which is worth in-depth study. So, instead of starting from scratch to develop a meme worldview, I recommend that newcomers join a few more communities, observe and learn from experienced players, and learn from the practice, which is a faster and more efficient way. Q: At present, I want to ask CryptoD what I pay more attention to? As far as I know, the so-called smart money, insider address, and other data seem to be fake, but is it quite talented to find an angle? CryptoD: I'm more of a storyteller. As for information such as data or insider addresses, there are actually a lot of tools nowadays, such as gmgn, which can be seen at a glance, and basically no one will be easily fooled. Some CAs click in and take a look, and they know that they are designed to cut people. As for the definition of "smart money", I think it depends on how you look at it. Broadly speaking, smart money is wallets that have made a lot of money in the past. But the point is, you want to take a closer look at the properties of each smart wallet. Some are high-frequency PVP players, and some are even copied themselves. The most suitable reference is the kind of "diamond hand" type smart wallet, which they can hold firmly after seeing a narrative and finally get a huge return. So when I build my smart wallet database, I categorize each address for each address, which helps me to judge the authenticity and potential of the narrative more quickly when scanning the chain. As for "finding narrative angles", I agree that part of it is talent. Some people are naturally humorous and observant, and can always see which targets in the market have potential first. But I think it can also be nurtured. As long as you stay in the market long enough, go back every day to review why those golden dogs became golden dogs, and what are the reasons behind them? Is it a simple narrative? Or is it because there is a specific person on the platform? Over time, this information will accumulate into a part of your subconscious and become the basis for you to judge whether a CA has a chance to become a golden dog. How to choose the coin of the same name? Follow the Matthew effect, the strong will always be strong Q: There is often a problem with celebrity coins/animal coins, there are too many coins with the same name, how to choose? Or that the liquidity is too scattered to be on this coin. Celebrity coins usually don't have too many issues with the same name, as only the CA posted by the celebrity through official social media will be considered a real dragon one. The criteria for identifying this type of currency are very clear, and the market is not easy to confuse. As for animal coins, multi-currency coexistence is a common phenomenon in the early stages, but as time goes by and the community gradually takes shape, funds will usually naturally flow to the tokens that OG established earlier, have the highest market capitalization, the largest liquidity pool, and the strongest community activity, so that such projects have a chance to stand out and become Longyi. Which one to buy in the (BROCCOLI chaos! After CZ announced the name of the new pet, there were hundreds of meme coins contending, and 99.9% of the CAs who were expected to be listed on the stock exchange ) 99.9% of the meme coins will eventually go to zero, and the novice is recommended to double the cost Q: It is often said that it is more difficult to sell than to buy, I would like to ask how Devin usually decides to sell? After all, many coins may be 20~40 M is the apex, and it is definitely a minority to get a pattern close to 1B. CryptoD: Take profit is definitely a university question. For beginners, I always recommend "doubling the cost", because the earth dog market is extremely volatile, and 99.9% of meme coins will eventually go to zero. We have no control over the market, only our own positions and risks. As for when you will choose to exit most of your positions, I think it depends on the current market environment. If the market does not have a coin that can only break through 10M for several weeks, then it is time to adjust psychological expectations, even if you are very optimistic about a certain narrative, you must act conservatively according to the environment. In this case, I will judge whether to gradually reduce my position by observing the trend of the K-line, the changes in the community atmosphere, and whether the growth rate of the number of holder addresses is slowing down after the capital is released. When Web3 loses its new narrative, meme coins become the result of emotional accumulation Q: Since last year's WIF and BOME, the meme season seems to have passed for a year, and it can even be said that meme coins are the theme material of this cycle. Does Devin think this meme season is over for now? And how do you think the future cycle will run? CryptoD: I think the reason why meme coins are so hot in this round is because it is the result of the accumulation of sentiment over the past decade or so. Except for BTC and a few L1 smart contracts, there has been no new narrative in the cryptocurrency circle for a long time. Many VC coins that seem to be tall end up just coming to Web3 to harvest liquidity. Because of this, memecoin has naturally gained a lot of attention in the market as a more grassroots and fairer launch option. When people started to realize that Web3 wasn't really changing the world, memecoin became the main outlet for money and emotions. Of course, if a truly innovative or persuasive new narrative emerges in Web3 in the future, then the market's attention may be withdrawn from meme coins. After the emotion, does the meme coin leave the culture Q: Is it a narrative that "a target is shouted by a specific KOL"? How it's different from other perspectives CryptoD: I think it's more accurate, it's just an emotional detonation. A meme that is mentioned, replied to, or retweeted by a key person can indeed trigger a short-lived FOMO mood. But what really matters is: after the emotion, whether the meme has left behind the culture, and how many people are willing to choose to continue to hold after the FOMO emotion has subsided, because of the emotion conveyed by the meme and the centripetal force cohesive by the community. Not because of anything else, but because it's a collective memory worth participating in. Innovation and first principles are always at the core of the market Q: With the recent rise of DeFi-focused chains, such as Berachain and Sonic, is Devin optimistic about the combination of meme coins and DeFi? CryptoD: I've noticed that a lot of people in my community have been very enthusiastic about Sonic's DeFi lately, but because I participated in the DeFi Summer of 2021, if I'm still playing the same old-fashioned gameplay from the previous round, it won't appeal to me. However, I will continue to monitor the development of these projects, and if there are really new ideas or creative ways to play, I will still consider allocating some funds to enter the market, after all, innovation and first principles will always be at the core of this market.