You're going to get wrecked if you don't understand Tokenomics.

But what IS Tokenomics and what should you watch out for?

Here's everything you need to know about Tokenomics:

(+ a free Tokenomics checklist)

What I'll be covering today:

• What is Tokenomics?
• Evaluating through Supply, Demand, and Incentives
• Tokenomics examples
• Free Tokenomics Checklist

Let's level up!

What IS Tokenomics?

Tokenomics studies the factors that drive the demand for tokens.

It includes:

• math
• supply vs. demand
• incentives
• value accrual
• Human behavior & game theory

Tokenomics = Tokens + Econonmics

Some of my worst investments were because I didn't understand Tokenomics.

• The tokens were inflationary without enough utility.

• Concentration of tokens by VCs & whales led to retail getting dumped on.

Studying Tokenomics will help improve your crypto investments.

The easiest lens to start with Tokenomics is understanding Supply and Demand.

There are 10k @BoredApeYC out there with a floor price of 111 ETH.

What would happen if the supply DOUBLED and there are now 20k apes?

The price would crash due to more supply.

Scarcity is good.

I've studied hundreds of cognitive biases to become a better Crypto investor.

Here are the 14 most important ones:

Have you ever:

• Fomo'ed into a COIN at all time highs?
• Sell your bluechips for shitcoins?
• Lose 50% on a coin, and lose another 45% bc you didn't cut your losses?

That's cognitive biases working against ya.

They're "thinking" errors aka bugs in your brain.

/1 Unit bias

People prefer to buy a “whole unit” of a token, rather than a fraction of it.

It's why meme coins exploded.

Don't overweigh the value of a token because it's "cheap."

Understanding how market caps work.

/2 Anchoring bias

Over-reliance on the 1st piece of information you have.

You heard about Bitcoin at $1,000.
You missed out.
Then it GOES UP to $5,000.

You don't want to buy it anymore. It's "too expensive" in your head.

Evaluate it based on its POTENTIAL not its PAST.

/3 Confirmation bias

You only seek out information that tells you what you want to hear.

You only follow people that say good things about X coin.

You unfollow and block anyone that spreads “FUD.”

When you invest, seek and research the FUD to see if it's valid.

Playing Poker will give you an unfair advantage in Crypto.

But you don't have to play thousands of hands to reap the rewards.

Here are 17 most important lessons:

The Whales have an Edge

Whoever has the most chips at the table can bully everyone.

Crypto:

🐳 can bully you w/o you realizing it.

• Early access to deals.
• Easier access to insider info.
• They can move the markets of small caps.

This is NOT an equal game.

The Whales have an Edge pt. 2

You might've seen this first hand a few weeks ago.

Whales were playing games /w @Wonderland_fi and caused liquidation cascades.

The whales made out with 💰

Everyone else got fucked.
Even the people who didn't use leverage.

Ulterior Motives

You'll hear a lot of advice at the Poker table:

"I'd fold if I were you bro"

Do they have your best interest at ❤️?

Crypto:

Be careful who you're taking advice from.
What's their incentive?

"This coin will 100x 😱 🤯"
*Proceeds to dump on you later*

PVP Mentality

Poker is player vs. player. Someone has to lose for you to win.

Crypto:

You're underestimating how PVP Crypto can be.
It's NOT WAGMI.

Sometimes...

By the time you've heard about a protocol, the early players are dumping.

And you're left holding the bags.

Real wealth is created during bear markets.

But no one shares practical advice other than "buy the dip".

Here's your playbook to make the most out of a bear market:

(+ a few sample portfolios)

Your job is to survive.

You can't reap the rewards of the next bull cycle if you fuck it up during this bear market.

Defense wins championships.

Crypto will break ATHs again, but not all projects will make it. That's why it's important to position yourself correctly.

A few Sample portfolios for the bear market:

• Figure out your balance: stables, low risk, medium risk, & high-risk plays.

• Then decide on Projects.

I created a few sample portfolios for you to look at.

(education, not financial advice 😏)

I recommend Alt Layer 1's - they are the best risk vs reward ratios now.

• 🔥: ETH / AVAX / TERRA / FTM / COSMOS

• 👍: CRO / SCRT / NEAR / METIS

• 👎: ADA / SOL / BNB / DOT

Don't get salty if I don't like your coin - Invest in whatever you want.

Stay away from higher-risk plays for now.

I love ape'ing into shitcoins but now's NOT the time.

My 2017 classmates remember why.

These smaller-cap plays might be dead by the time the market recovers.

Blue chips have more funding & adoption.

Safe now - Ape later.

So...today's my 1 month anniversary on Twitter.

I never imagined that the account would grow this fast.
(I'm around ~54k)

A few people have asked me what my plans are:

I don't have any plans yet.

Everything happened so fast. I haven't had a chance to step back and think.


I'm already getting some interesting offers:

• jobs
• advising
• farming projects
• funding
• consulting
• promoting shitcoins 😅
• etc.

I'm saying no to everything.

I'm happy with my life now.
The last thing I want is more responsibilities or commitments.

I want to research, help you, and grow my own portfolio.

I'm going to keep focusing on the process and we'll see what happens.

Some of you want to work in Crypto.

My advice? Put yourself out there.

I was a NOBODY a month ago. (still kinda am)

Write.
Create.
Solve problems.
Add value.

"Be so good they can't ignore you"

Work on your craft relentlessly.
There's always room for quality.

My Principles:

• Think long-term. The space is full of short-term thinkers.

• Transparency. If I talk about something, I'll be honest if I own it.

• Work hard. I spend 12+ hrs to create a thread. If someone invests off of what I say, then it deserves my best effort

The most valuable thing you need do for 2023:

The Yearly Crypto Reflection.

It’s how you can turn this year’s pain into life-changing lessons.

I've made it simple for you.

Answer these 14 questions to become a better Crypto investor:

What Happened This Year?

Time works strangely in Crypto. It feels like we went through a decade worth of events in a single year.

Catch up by:

1) Creating a spreadsheet

2) Listing 3 major events that happened each month

This will get you up to speed on 2022.

What Went Well This Year?

Let's celebrate your wins.

• What disasters did you avoid?

• Which of your trades did well?

• What new skills did you develop?

Figure out what worked well this year and do more of it.

Here are a Few of My Wins from This Year

1) I grew from 0 → 222k in 11 months and built a brand.

2) I made money from the real yield narrative this summer

3) I took profits & transitioned to a bear portfolio end of January

Pretty solid year.

What Didn't Go So Well this Year?

This is the ugly part.

• What were your biggest mistakes this year?

• What assumptions and information lead you to make these decisions?

You have to be honest with yourself.