2024 Investment Strategy: Balancing Technology and Community Value

While reflecting on my investment strategy, I realized that relying too heavily on the technology-driven logic of "disruptive innovation" may have its limitations. Although this approach helped me achieve decent results in my portfolio in December 2023, I began to explore a more comprehensive investment perspective in order to achieve better returns in the first quarter of 2025.

Traditionally, there are two main approaches in the field of cryptocurrency investment: technological determinism and community supremacy. As a rational investor, I often tend to ignore the community atmosphere and cultural factors, viewing them as noise. However, my recent experience participating in a chain abstraction project has made me re-evaluate this perspective.

By joining an NFT community, I felt a strong sense of belonging and identity for the first time. This prompted me to start paying attention to projects with active communities, such as Monad, Sonic SVM, and BeraChain. In particular, the Sonic SVM project caught my attention.

Sonic SVM is a Layer 2 solution based on Solana, aimed at creating a "Web3 version of TikTok." Its target user group is Gen Z gamers and content creators on the TikTok platform. Although, from a technical perspective, Sonic's HyperGrid architecture may not be as impressive as some emerging Layer 2 technologies, its achievements in user experience and community building are noteworthy.

Currently, Sonic SVM is developing an application layer called SonicX, which plans to airdrop its native tokens to all users registered through TikTok. By leveraging account abstraction technology, TikTok users can interact on-chain directly within the app without the need to set up an additional Web3 wallet. SonicX has attracted over 2 million users to participate in games, challenges, and live activities through its collaboration with TikTok, creating a seamless experience akin to Web2.

Considering that TikTok has over 1.5 billion global users, its user lifetime value far exceeds that of platforms like Telegram. The success of the ChillGuy project also proves the enormous potential of the TikTok user base. This gives us reason to believe that Sonic SVM will not repeat the mistakes of Telegram's mini-programs and will avoid attracting a large number of low-value users.

Recalling the experiences learned while working at a crypto fund: the key to value investing lies in "entering the large market." After completing initial innovations, the one who can expand market share more quickly is more likely to become the ultimate winner. In the current context where blockchain infrastructure may be in oversupply, projects that can attract consumers and occupy users' minds more rapidly are likely to become the leaders of the next generation of Web3 infrastructure.

These insights prompted me to reassess my portfolio and start focusing more on projects that not only have technological innovation but also effectively attract and retain users. Balancing technology with community value may be the key to success in future crypto investments.