GM, this is the Milk Road. We tell you things about crypto that you tell your friends about crypto and they think you’re a genius.
Today’s estimated read time: 4 minutes and 32 seconds
Let’s get a quick update on the Fear & Greed Index. After 3 straight days of greed and price movement stagnating, we’re back in the Neutral zone.
Let’s get into the good stuff:
- 🤑 Lessons learned from a Crypto degen
- 🎮 A crypto game growing like a weed
- 😎 The coolest DAOs in town
LESSONS LEARNED FROM A CRYPTO DEGEN WHO MADE MILLIONS IN DEFI (IN 12 MONTHS)
My buddy Jason has a crazy crypto story.
Jason and I worked together at our last startup, Bebo. We had like 12 engineers + Jason (he was the only non-engineer who we could send out into the real world to talk to humans).
Jason’s life took a crazy turn when his friend asked him a question: “What are you doing with your ETH?”
Jason didn’t understand the question. He had invested in some Bitcoin (BTC) and Ether (ETH) but was just holding it. Doing nothing.
His friend explained there’s a part of crypto called DeFi (decentralized finance, aka crypto’s version of borrowing & lending) and you could earn interest on your ETH.
That triggered a 1.5 year journey deep into DeFi. During that time, Jason 10X’d his net worth. Hell yea Jason! Sushi’s on you for life, buddy!
Now Jason works at a hedge fund doing DeFi for institutional investors.
Here are some of Jason’s core DeFi frameworks:
1/ Create your war room
Your war room is a group chat of ~5-6 peers that are equally obsessed with crypto as you.
It’s like copying your friends homework, but you don’t get in trouble.
Everyday, you trade ideas, debate strategies, and help each other on the emotional rollercoaster of crypto investing.
Get a war room.
2/ Figure out a goal
He had two goals. First, replace his salary ($115K/year). That’s milestone 1.
Milestone 2 was a comfy retirement ($10M).
Once you know what you want, you can figure out what strategy you need to get there.
3/ Keep Your Mind Right
There’s a ton going at all times. By sleeping, you miss things. And that’s okay.
This is a game and you gotta know how to not let the game get you.
Don’t get emotional, don’t get lost in charts, and don’t chase things you don’t understand.
4/ Take Advantage of Airdrops
The coolest part about crypto is that just by using products, you have the potential to make money through “airdrops.”
Basically, they pay you for trying their product.
But the key is…they don’t tell you there’s gonna be an airdrop. So Jason uses tools (like DeFi Llama) to keep tabs on upcoming airdrops. In one year, he made $600k just from airdrops alone (3X the highest salary he had ever made at a job)
Tokens are marketing. This is how crypto projects pay for you to use them!
5/ Be Weary of Hype
Crypto projects have very fast hype cycles. But crypto is like eating dinner at a gas station: Fast pumps lead to fast dumps.
Look at projects like Wonderland or LooksRare, they had quick hype, but quick decays.
6/ If you’re going to invest in tokens, measure yourself in “alpha above eth”
If you are investing in crypto, you can just buy blue chips (Bitcoin, ETH) and chill.
If you’re going to buy other tokens, you need to measure your performance against BTC or ETH instead of dollars. That shows you if all your active investing is providing any incremental gains compared to just holding blue chips and chilling.
That’s all for now. If you like Jason’s stuff, you can watch the whole talk here (it’s very entertaining, he’s a funny dude).
A NEW GAME WE'RE TRACKING
We just noticed a new game growing like a weed - 50,000 people are playing it daily…so let’s dive in.
It’s called Stepn.
CURRENT HYPE: HIGH
LONGEVITY: BELOW AVG
The idea: A game that pays you to walk
HOW IT WORKS:
- You buy an NFT pair of “sneakers” for ~10 SOL ($1,000)
- You walk around, the app tracks your steps
- Everyday, you have a 100 minute window to earn points for walking/running (“Move-to-Earn”)
Rule #33 of the Milk Road: “watching is for wussies, go play”.
So, let’s play.
I downloaded the app, and bought an NFT of sneakers. Yep, these babies are the most expensive shoes I’ve ever bought for myself:
High in luck & efficiency. Just like me.
From what I can tell, the payback period for the game is pretty quick right now (~2-3 weeks), but we’ll see if that holds true as more players join the game. Typically, we've seen "X to Earn" games payback period lengthen with more players and adoption, which is why we think the longevity could be below average here.
I’m already itching to go for a run to earn my points. This is better than any gym membership I’ve ever bought 🤣
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WANT TO CHECK OUT THE NEWEST DAO'S?
Seed Club is a DAO factory. They take early ideas, put em through the factory, and turn them into big, popular DAOs.
Case in point: PoolSuite (a cult digital pool party) joined to build out their DAO and they've done over $5m of secondary NFT sales since.
And tomorrow, they’re hosting a Demo Day aka get a front row seat to see the most interesting DAOs in one 90-minute session.
It’s free for all Milk Road readers and a great way to see what’s happening in and around DAOs. You can sign up here.
A MILKY JOKE
CHART OF THE DAY
Wow. Sam Bankman-Fried (founder of FTX) is now richer than Ray Dalio and Dan Gilbert. He's worth $24B, and is only 30 years old.
The next youngest on the list is 41 years old.
Source: Visual Capitalist
Alright, that's all we got for this fine Thursday!
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