Lately, I’ve been seeing some chatter on Telegram saying things like:
- “We need crypto influencers to shill the $WSB token!”
- “Where’s the marketing?”
- “Why is the price dropping?”
- “I should have gotten out already”
- “I invested because it was backed up by Jamie and a good group but never expected it to turn out like this.”
With this recent dialogue, I wanted to start a discussion on investing in general. Why does anyone invest in anything, ever? I’m talking about BTC, ETH, GME, SPY, stocks, gold, etc. Of course, the primary idea is to make money - to be able to sell at a higher price than what you bought it for. For some, the purpose for investing may also be to profit off of dividends that the particular organization might pay out to bring in passive income for the stockholder (ex: IBM, MSFT, etc.). With cryptocurrencies, there can be some tokens where you can gain some passive income through staking (or if you like taking risks for higher gains, Yield Farming). NOTE: Just because a token has a temporary farming feature to it does not necessarily mean it’s a farming-focused token. More on this later.
Regardless of your purpose in investing, there should be a fundamental and rational reasoning behind it. I’ve continued to observe some of the GME/AMC drama and while a lot of it can be debated, those who have invested are putting some serious effort and money into it. While it can be called gambling (and in some ways, I agree), there is still something behind it. One of the highlights from observing these discussions is the stress they put on managing their expectations. This is of particular importance with any investment and is something that I think is lost on many people who have put their money towards crypto over the last few months. If you started getting into cryptocurrencies in the January-March timeframe, you could almost randomly pick a token and chances were pretty good you would make money. There were some who were fortunate enough to see 10x, 100x, 1,000x, or even 10,000x on their initial investment almost overnight. I believe the attention this brought to crypto spoiled many people’s expectations. The recent meme stock craze carries some of the same unrealistic expectations.
When it comes to the $WSB token, it is completely unreasonable to expect even 5x on your investment in a relatively quick timeframe, especially considering how new it is and the fact that ETPs haven’t even launched yet. Let’s not forget how new this is. Here’s a quick timeframe summary:
- April 20th: $WSB IDO launches on BSCstarter
- April 27th: Farming starts
- May 20th: 1st ETP Poll
- May 27th: Farming 2.0 starts
- June 6th: 1st ETP Vote is Live
- June 14th: $WSB Listing on BitMart
All of this happened in the span of LESS THAN TWO MONTHS. Step back and ask yourself: Am I being reasonable to expect more?
For some reason, it is addicting to continually watch the price action for cryptocurrencies and it is easy to get caught up in it (especially if its going down, as it has been lately). Just 4 days ago, I posted this: Addressing the Price of $WSB Tokens and since then the price went from $.063 to $.047. My original argument remains and I continue to hold. Keep in mind that almost ALL cryptocurrencies are trending somewhat flat or slightly down. $WSB isn’t going to be an exception in its current state so don’t expect it to be. Instead, think about it’s potential (The Potential for Long-term Passive Income?).
$WSB is NOT a farming token. There are fundamental reasons why I invested in it and the ability to farm is not one of the primary ones. That was a nice perk to be sure and I’m certainly taking advantage of it, but the main reason I have a fairly significant investment in $WSB has to do with the ETPs themselves. The product that hasn’t even released yet. So I’m willing to wait out the product release (as any patient investor should be).
For those of you who have seen the show Shark Tank. Imagine one of the Sharks investing in a person and their company, then complaining about their investment not making a return after two months and before the product has had a chance to be released. From the sidelines, it would be easy to criticize that for having incorrect expectations going into it. Now, apply this same criticism to yourself (if you’re worried about the current price). Managing your emotions and expectations are important.
Rounding out this post, I invite everyone to respond to these questions:
- Why did YOU invest?
- For those of you who are considering selling or have already sold: What changed?