2024 Investment Strategy: Balancing Technological Innovation and Community Value

In formulating the investment strategy for 2024, I incorporated various investment philosophies, including the All-Weather Investment Rule and the Barbell Strategy. This approach aims to diversify investments across various cycles that impact the crypto market, while focusing on Alpha assets in the Beta track and Beta assets in the Alpha track.

Currently, my portfolio mainly focuses on Alpha assets such as chain abstraction, AI Agent, and PayFi projects. This allocation has significantly outperformed the market in terms of overall returns in December. However, while adjusting my portfolio for the first quarter of 2025, I realized that my logic for Alpha asset allocation is too singular, primarily revolving around "disruptive innovation" in technology.

Recently, I began to reflect on two main investment logics in the field of cryptocurrency: technological determinism and community value. As a rational investor, I used to often overlook the community atmosphere and cultural factors, viewing them as market noise. However, a recent NFT project I participated in allowed me to personally experience the importance of community atmosphere, prompting me to reassess projects with strong community cohesion, such as Monad, Sonic SVM, and BeraChain.

Particularly noteworthy is the Sonic SVM project. It is a Web3 platform aimed at TikTok users, designed to attract millions of Generation Z users. Through account abstraction technology, TikTok users can participate in on-chain interactions without the need for additional Web3 wallet setup. The project has attracted over 2 million users to engage in games, challenges, and live events, providing a nearly Web2 seamless experience.

Considering TikTok's vast user base (over 1.5 billion global users) and its high user lifetime value, Sonic SVM demonstrates enormous potential. This aligns with the value investment principle of "entering a large market." In a scenario where there may be an oversupply of blockchain infrastructure, projects that can reach consumers faster and capture their minds may become the leaders of the next generation of Web3 infrastructure.

These observations have led me to rethink my investment strategies. While technological innovation remains crucial, the value of the community and user adoption should not be overlooked either. In future investment decisions, I will consider these two aspects more balanced, in hopes of achieving better returns in the ever-changing cryptocurrency market.