Jack Yi, founder of LD Capital: Insight into the future potential of Ethereum from market fluctuations

Article author: 0x9999in1, MetaEra

"Since we released a research report on ETH at $1,700, the price of ETH has risen by more than 70% in just over ten days." Jack Yi, founder of LD Capital, shared this "good news" on his social platform.

This is not only a confirmation of the market trend, but also more like a veteran who has once again won rewards with his judgment and courage on the battlefield.

As a senior investor who has been in the crypto industry since 2015, Jack Yi has not only witnessed the growth and changes of mainstream cryptocurrencies such as Bitcoin and Ethereum, but also accumulated rich market insights by participating in investments in more than 200 projects. Recently, MetaEra had the honor of inviting Jack Yi for an in-depth interview to share his growth experience in the market cycle, his optimistic prediction of the future value of Ethereum, and effective strategies for dealing with market fluctuations.

Highlights

● As the entire financial infrastructure and crypto-native innovation base, ETH's ecosystem is still the most advanced in the entire industry.

● The greatest value of the blockchain field has been proven to be financial substitution and upgrading, rather than Web2 application substitution.

● As a financial infrastructure, ETH has more than ten times the market growth potential.

● Focusing on future trends is the core of our investment.

● The strong will always be strong and have higher requirements for investment research, so everyone is forced to update their knowledge and information and cannot rely on simple cyclical thinking to invest.

Full Interview

MetaEra: As an OG in the crypto circle, you have extensive experience in cryptocurrency investment. Please share which experiences in your career have had a significant impact on your current market analysis and decision-making?

Jack Yi : I started to enter the crypto industry in 2015. I used to be engaged in classical investment. Several key nodes had a great impact on me. One was the early Bitcoin mining and buying of Ethereum, which caught up with the price rising trend stage, and the other was the crazy new project investment boom in 2017. However, during the big bear market in 2018 and 2019, the industry encountered its first trough. After the 312 incident, there was another bull market, and then it entered the bear market again. In this process, I participated in more than 200 project investments and experienced the pain of more than a dozen trading teams and team management. It took countless joys and sorrows to truly establish the concept of cycles and the current investment philosophy.

MetaEra: In your latest research report, you put forward an optimistic forecast that the long-term price of ETH will reach $10,000. Please elaborate on the main arguments and technical logic supporting this forecast?

Jack Yi : First of all, this prediction is based on our judgment of the trend of this bull market. CZ (Changpeng Zhao) predicted that the price of Bitcoin may be between $500,000 and $1 million, while we conservatively estimated that Bitcoin could reach $300,000, so it is reasonable to expect Ethereum to rise to $10,000. As the entire financial infrastructure and crypto-native innovation site, ETH's ecology is still the most advanced in the entire industry. The ETH Foundation has also refocused on the development of the L1 ecology. Secondly, the reason why ETH was oversold before was because of the market leverage cleanup factor. Too many big players relied on the thinking of the last round of bull market to go long on ETH. After the big players were liquidated, the long army would inevitably rebound reasonably, because ETH was shorted by nearly 10 million ETH in the entire network at the time of $1,700. This is a historic opportunity for the long army, full of motivation.

MetaEra: With ETH rising for several consecutive days, the value of your research report is still rising. For users who have already executed investment actions and those who are still waiting and watching, do you have any opinions you would like to share?

Jack Yi : I think investment requires enough patience to withstand the fluctuations. As a top asset, ETH itself should be a long-term allocation. If you have already made an investment, you should hold it for a long time until you think this round of bull market is over before selling it. For users who are still waiting and watching, you can buy gradually. If there is a normal callback, you don’t have to worry about buying high. The cycle lengthens the investment allocation mode, or you look for new assets with greater growth potential, because ETH’s rebound and recovery will lead the industry bull market. Only ETH and the ecological recovery can bring back the bull market. BTC is a quasi-electronic gold asset.

MetaEra: In the face of market volatility, what specific measures do you recommend investors take to manage risks and capture opportunities in the ETH ecosystem?

Jack Yi : Volatility is the biggest feature of finance. Investors cannot expect to invest at the most ideal price. No one’s transaction can be at the ideal buying and selling point. They can only extend the cycle to set the buying and selling prices. The ETH ecosystem does have many good assets whose growth rates will exceed ETH. This requires professional investment research capabilities, because the higher the return, the greater the risk. In our research report, we focused on analyzing leading projects such as UNI, ENJ and AAVE.

MetaEra: Even without considering short-term price fluctuations, where do you think Ethereum's greatest growth potential lies in the next five to ten years?

Jack Yi : First of all, the greatest value of the blockchain field has been proven to be financial substitution and upgrading, rather than Web2 application substitution. The scale of the entire global financial field is as high as a trillion-dollar market, and the encryption field has too many advantages to play a role. As the entire industry moves forward, ETH, as a financial infrastructure, still has more than ten times the market growth potential. This is not an exaggeration.

MetaEra: The crypto market has gone through several bull and bear cycles. How do we define the current cycle of the cryptocurrency market? How should investors adjust their strategies according to different market stages?

Jack Yi : From my personal observation, we are currently at the beginning stage of the bull market. In fact, if you look at BTC and SOL (when SOL was between $25 and $30, we published two consecutive SOL research reports), they have grown by 6 times and 20 times respectively. However, in this cycle, due to the excessive variety of projects and the focus of compliant ETFs and listed companies on buying BTC and the MEME bull market led by SOL, there has not been a general rise in the market. This is also in line with the laws of mature financial markets. If you look at the US stock market, not all listed companies have been able to outperform the index in decades of bull markets. The strong will always be strong, and the requirements for investment research are higher, so everyone is forced to update their knowledge and information and cannot rely on simple cyclical thinking to invest.

MetaEra: What track will LD Capital focus on at present? Does it have an investment logic different from other investment institutions?

Jack Yi : We are currently focusing on secondary market investment, and are preparing to establish two secondary institutions with different directions, namely Trend Research and Liquid Digital. For primary market investment, we are interested in infrastructure construction, AI and IPO opportunities. Our biggest feature is that we have enough experience and have "paid" the tuition fees for the cycle, which can help founders and projects improve their industry awareness and avoid common mistakes. For example, in 2022, we recommend that each founder raise as much financing as possible and simplify the team structure to survive the bear market and wait for the bull market to come before making efforts.

MetaEra: What are the potential impacts of changing regulatory policies around the world on the cryptocurrency market? How do you view this challenge?

Jack Yi : After the crypto-friendly US president took office, the global crypto industry ushered in the best regulatory environment, and Hong Kong, the Asian financial center, is also continuously releasing more crypto-friendly policies. Now, the most important influencing factors include the approval of cryptocurrency ETFs, the increase in investment in crypto assets such as Bitcoin by listed companies, and the continuous listing of crypto companies. I believe there will be more good news in the future.

MetaEra: In your opinion, what has been the most significant change in the blockchain and cryptocurrency industry over the past few years? What does this suggest for future developments?

Jack Yi : In the past few years, as cryptocurrencies have gradually been integrated into the mainstream financial market, the cyclicality of the crypto industry has become less obvious, which is extremely beneficial to the long-term development of the industry. At the same time, this also puts higher demands on the professional level of investors. Secondly, we need to think about the opportunities in the future industry. Compliance and on-chain are the biggest paradigm shifts we have seen so far. In addition, IPOs, infrastructure construction, AI and other reconstruction opportunities, focusing on future trends is the core of our investment. If you have any views on future opportunities, you are welcome to communicate.