OKX Friends Session 7 | In Conversation with Wind, Trader Turned Meme Lord: Revealing the "Mining Secrets" of Generating Millions in Monthly Revenue

Source: OKX

From Airdrops to Memecoin Racing, Achieving Multi-Million Dollar Gains with Single Projects Every Step of the Way

Fengshen says, to be successful, one must persistently engage in doing the right "ev" thing.

The most trade-savvy in airdrop farming and the most airdrop-savvy in trading, all-around player @0x0xfeng tells you how to farm airdrops while trading?

This is a conversation series for friends of #OKX, interviewer @mia_okx, welcome to follow along~

How to Make Your First Million?

I once served as the VP of Marketing Operations at an e-commerce company. By chance in 21, I got involved in the cryptocurrency field's "initial offering" business. I then resigned from the e-commerce company and focused on cryptocurrency initial offerings. With the increasing popularity of Bitcoin and blockchain at the time, I retrospected past projects, calculated costs and returns, found significant profits among them, and believed it was an opportunity not to be missed.

The first million was earned through Coinlist's initial offerings. The initial offering studio was not large; it initially set up a table in the living room and hired two college students to work, and it started like that. The initial investment included two computers, with a total investment of about more than $10,000; hiring two recent college graduates, each with a monthly salary of about $4,000, and so on. Through these investments, each account could invest $500, with a single project investing $10,000 - $20,000 U.

Although the initial offering at the time had a winning rate of only 3%-5%, those IDO projects rarely lost money back then. MX initially invested over $25,000, earned seven to eight hundred thousand dollars, then bought People to achieve a million. After experiencing the collapse of Luna and FTX, there was also a withdrawal of over two years, before returning to the peak of that year.

How to Transition Smoothly from the Airdrop Track to the Memecoin Track

In fact, many airdrop enthusiasts do not trade coins. In the P Junior's group, there may be 100 CAs in a day, and if you don’t look at the messages for a while, it becomes 999, while in the airdrop community, there may be only a few dozen sentences in a day, with most of the time spent on project work, so these are two different types of people. I was able to quickly transition from airdrop farming to MEME because I had friends playing, and I also enjoyed playing MEME myself. Personally, I feel that playing MEME requires positive feedback; otherwise, one can fall into anxiety and self-cannibalization, making it unsustainable. MEME has an impossibility triangle—volume, multiple, and certainty.

· Capacity means being able to take a large position

· Leverage means being able to achieve several times or even tens of times the returns

· Certainty, as the name suggests, means being certain to make money once you enter

However, currently, this kind of MEME has only been seen in TRUMP coin. It has both capacity (the official team added tens of millions of dollars to the pool), leverage (from the beginning, taking a large position allows you to enjoy several times or even a dozen times the gains), and certainty (a MEME personally issued by Trump)

The Road to MEME Mining

I prefer to play with coins that have a two-stage process or a larger capacity. P Xiaojun basically sleeps for 6-8 hours and spends all the remaining time on the chain, often needing to adjust to the time difference. Firstly, this is very detrimental to health, which I cannot endure. Secondly, the hundredfold returns we see are usually from very early entry, and it's very challenging to get in on the pre-sale. Those quick pump coins usually fill up the pre-sale by themselves, so retail investors rarely have the opportunity to participate. Therefore, personally, I prefer to play with coins that have a two-stage process. Generally, for coins with tens of millions or even hundreds of millions in market cap, as long as the narrative is understandable, and you roughly assess the market valuation yourself, it's easy to achieve a 50% return or even double your investment. It's very challenging for exchange platform coins to double in value, whereas in the MEME market, achieving double or multiple returns is relatively simple compared to the exchange platform.

Initially, BOME and SLERF allowed me to earn quite a bit, and I also earned a decent amount from Japanese cats. SLERF had a $1.2 million market cap in an hour, and the Japanese cat had around $1 million market cap overnight. Currently, these two have earned me the most. ChillGuy has also earned quite a bit through two-stage processes. At that time, CHILLGUY bought the bottom with a large position and sold off when there was a big rebound to a major exchange platform's contract. TRUMP was bought for approximately $14 per token with an investment of $600,000. Melania then bought approximately less than $2 million but made hundreds of thousands in profit and exited.

How to Evaluate MEME Narratives?

Look at the IP's popularity and the project team's operational capabilities. For emotional coins like these, if you feel that the hype has peaked, you need to sell. There is a saying that sells at the peak of people's hype, which is the idea. For example, even when GOAT was at $600-700 million during peak hype, selling at that time was not a problem. Although it wasn't the highest point, as long as it is a reasonable price in your cognition or psychologically, it's fine.

Ultimately, you need to review your trades more, train your understanding and gut feeling, and accumulate experience. For example, if you go through a coin's journey from inception to climax, and then from climax to zero, you have probably experienced the lifecycle of that token. For instance, with TRUMP, many people invested hundreds of thousands or even millions. Similar to SLERF and BOME, their most significant feature is fairness. This also aligns with the previously mentioned MEME Impossible Triangle theory, where capacity, leverage, and certainty are all combined.

For CHILLGUY, it was all about market heat and sentiment at the time. Every time it experienced a deep dive, there was a strong buy-the-dip force. Observing CHILLGUY's trading volume and number of holding addresses, it seemed like it was poised for a major exchange listing, indicating strong upward potential. Judging its turnover rate was also straightforward; a turnover rate exceeding 1%-5% was already considered significant, with the most prominent phenomenon being consistently high trading volume while the market cap remained relatively stable.

CHILLGUY had over one hundred thousand holding addresses, while TRUMP had over seventy thousand, and generally, most MEME coins had around forty to fifty thousand holding addresses. This clearly indicated that CHILLGUY had a significant traffic volume. With several consecutive days of leading on-chain transaction volume and being part of a very innovative concept in the TIKTOK track, I decided to get on board. My biggest realization was the significant difference between MEME coins and traditional VC coins. Due to their novelty, especially for a leader in a particular track, we cannot precisely value MEME coins. Unlike traditional Layer2 public chains, which can be evaluated based on TVL, user base, and ecosystem, it was challenging to determine the value of something like ORDI initially, a new element in a specific track.

How to Control Take Profit, Stop Loss, and Position Management?

Avoid Over-Optimism and Self-Brainwashing

Traders often tend to be overly optimistic about the projects they choose, overlooking their potential risks. Learning to analyze projects from a calm and objective perspective and avoiding self-brainwashing and self-hyping is crucial. For example, when a project experiences a surge due to hype followed by a decline, it is essential to rationally assess whether it can rise again rather than blindly believing it will repeat its previous performance.

Implement Timely Stop Loss and Avoid Holding Onto Losing Positions Stubbornly

Many individuals tend to stubbornly hold onto losing projects out of reluctance to accept losses, always hoping to break even. However, this often results in missing the optimal time to set a stop loss, leading to further losses. Learning to evaluate if a project still holds potential and promptly implementing a stop loss if it seems the project is not recovering is crucial to prevent falling into a deeper hole. As Feng Wuxiang has said, in the long run, only good hands are worth investing in, and bad hands should be abandoned promptly.

Adopt Proper Position Allocation to Avoid Over-Concentration

Avoid concentrating all funds on a few projects and instead adopt a rational position allocation strategy to mitigate risks. By diversifying trades, you can increase fault tolerance, ensuring that even if some projects incur losses, it will not devastate your overall assets. For instance, as I've previously mentioned, even if five out of ten projects are down by half, proper position management can still safeguard the security of your overall assets.

Grow Your Investment Through Profit Rolling While Safeguarding Your Capital

It is essential to learn how to roll your profits into trades instead of constantly adding to your capital. This approach can increase investment returns while ensuring the safety of your initial capital. After gaining profits, you can reinvest a portion of them, but it is important to ensure that your capital remains intact. Through this method, you can steadily grow your assets over the long term.

Pay Attention to Project Narrative and Market Sentiment

The project narrative and market sentiment are crucial for trading decisions. It is important to assess whether a project's narrative is compelling and if market sentiment is bullish. When market sentiment reaches a peak, it is often a good time to take profits; whereas during a market downturn, there may be an opportunity to position oneself. For example, when everyone is hyping a project worldwide, it is likely a good time to sell.

Choose Projects with High Certainty

During trading, try to select projects with high certainty. Projects with a clear use case, a strong team background, and promising market prospects deserve more attention and trading activity. At the same time, avoid investing in projects with high uncertainty to mitigate trading risks.

How to Participate in MEME Culture and Yield Farming Simultaneously?

Because engaging in MEME culture is quite an "ev" (evolutionary) thing, such as playing MEME and often using JUP, knowing that JUP will have a future airdrop.

Personally, I don't use the BOT, only engage in two aspects. In most cases, for example, after our BOT purchase, and when the price stabilizes at a certain point, when I decide to sell, I also use JUP to sell. This way, I boost the trading volume of JUP while reducing the BOT's 1% fee. In this back-and-forth process, I receive a $50,000 airdrop and save around $50,000 on the Trading BOT fee. The total comes to $100,000 in and out, which covers the wear and tear of playing MEME. When you do the math this way, it's actually a decent sum of money.

Similarly, with Metaora, many of us judged it to be quite significant. So, many times when I sell, I tend to increase my position in Metaora's pool, collect the fees, and then exit. Because I know that Metaora's airdrop will also be valuable. For example, if I currently have 50,000 coins, I add them to the pool, and when the price reaches $70,000 or $80,000 to sell, I collect a fee of $5,000 to $10,000, and this fee from the airdrop will also be refunded to me in the future,

In short, it's about having fun with MEME while also doing some very positive EV activities, such as intentionally using tools from projects with airdrops.

@mia_okx's Final Thoughts:

Fengshen is a very straightforward and sincere person. Many times in our conversations, I tried to have him summarize some high-winning-rate methodology for everyone, but he didn't give any grand summary. He simply said, with a hint of nonchalance, "You'll get the hang of it after playing for a while."

He mentioned that industry successful figures he knows who started from the ground up work 16 hours a day, 6 days a week, pouring their heart and soul into it, persisting for a year or even longer before achieving success. Doing positive EV activities, calculating expected returns, and then all that's left is sitting there and persevering. This once again made the words "focus" and "diligence" more concrete in Mia's mind.

This time, Fengshen also generously shared the method for sustained profitability. A multi-dimensional strategy is key, combining both serious trading and MEME, leveraging the benefits of various platforms, focusing on long-term gains. Risk control is equally important — timely stop-loss, proper fund allocation, avoiding chasing highs and selling lows. In terms of mindset, he suggested maintaining objectivity and calmness, not pursuing perfection, and accepting the market's rules. Long-term development requires continuous learning, patience being the main focus. Hopefully, everyone will gain something from this.

Finally, a big thanks to @0x0xfeng for the sharing, and everyone is welcome to continue following the "Friends of OKX" dialogue series.

Disclaimer:

This article is for reference only. The opinions expressed are solely those of the author and do not represent the position of OKX. This article does not intend to provide (i) investment advice or recommendations; (ii) an offer or solicitation to buy, sell, or hold digital assets; (iii) financial, accounting, legal, or tax advice. We do not guarantee the accuracy, completeness, or usefulness of such information. Holding digital assets (including stablecoins and NFTs) involves high risks and may experience significant fluctuations. You should carefully consider whether trading or holding digital assets is suitable for your financial situation. For your specific circumstances, consult your legal/tax/investment professional. You are responsible for understanding and complying with local applicable laws and regulations.

This article is a contributed submission and does not represent the views of BlockBeats.