Was it possible to predict the rise of Ethereum, Cryptopunks, and BAYC before they went mainstream?
Some thoughts on information curation in crypto…
Consistently generating alpha in crypto is a function of surfacing, analyzing, and acting upon the right information at the right time. The data can come from publicly available sources or conversations with your network.
There are multiple instances of analysts, journalists, and investors identifying and publicly writing about the biggest successes in crypto well before the mainstream has caught on. A few examples:
- Fred Ehrsam on Ethereum’s Potential in May 2016
- 1 ETH in May 2016: $12.73
- 1 ETH in February 2022: $3158 - Jason Abbruzzese (Mashable) on Cryptopunks in June 2017
- CryptoPunk Floor in June 2017: $0 (plus minting cost)
- CryptoPunk Floor in February 2022: $200,000+ - “corporate trash” on BAYC in June 2021
- BAYC Floor in June 2021: $4,462
- BAYC Floor in February 2022: $300,000+
There are a limited number of hours in the day. Every minute one spends on irrelevant information is time lost for consuming valuable information. It is easy to suffer information overload in crypto. Thus, it is critical to carefully curate one’s daily crypto information consumption from all sources (Twitter, Discord, Email, etc.). Additionally, specific thematic and foundational knowledge of each sector within crypto is essential to extract meaning from all the incoming information.
Once an investor identifies an up-and-coming trend from a trusted source, then it is a matter of DYOR and opening an appropriately sized position.
