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- 🧟 How to invest in cults
GM everyone. This is 2036, the crypto newsletter that pays you.
Here’s what we’re serving up today 🍲: are kids trading NFTs in their basements degenerates? Or is the most underrated crypto strategy the most obvious?
Let’s dig in.
🥔 Today’s meat and potatoes
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Retail investors (people like you and me) tend to come in 2 shades:
1/ Pseudo-intellectuals who’ve convinced themselves they’ve found the next 100X.
These are typically smart people who missed the previous crypto cycles.
They’re 100% convinced that only fundamentals matter. They buy coins because their underlying protocols have some technical innovation or feature they believe is the future.
[FYI, that’s how some people end up buying Cardano]
These people overthink everything and always have a comeback that starts with “aaaaaaakshully…”.
They fall in the middle of the curve:
For way too long, we were in that camp.
But luckily, time has pushed us to the edge. Which edge, we’re not sure. But the result is the same.
[FYI: if you don’t know where you stand, simplify. If you don’t land on the right, at least you’ll land on the left.]
2/ Memers who don’t understand anything but love the WAGMI vibes.
[Wagmi is degen-speak for “We’re all going to make it.”]
On the flip side of pseudo-intellectuals, you have meme vibers.
Meme vibers don’t give a f*ck about fundamentals (protocol revenue, fees, etc.), business cycles, or how things are supposed to work.
They’re in crypto and NFTs for the culture, the fun, the community, for sticking it to some authority (VCs, regulators, politicians, etc.) and for getting rich today.
In the process, they consciously or unconsciously create cults.
These cults are centered around rituals, memes, or beliefs that make them feel like they’re part of something bigger.
Like the “GM” that you’ll see everywhere on crypto Twitter:
there’s literally 98 more of these “GM”
Remember WallStreetbets?
Nearly 2 million (mostly) kids on Reddit pooled their resources together to pump the stock of Gamestop 600% - which caused $6 BILLION of losses for hedge funds that shorted the stock.
The Redditors were encouraged to “diamond hand 💎” - to not sell, no matter the price - and frowned upon those who did (i.e. those who left the cult).
This behavior is more prevalent than ever in crypto. Cults dominate the NFT and memecoin market.
The problem is that the overthinking pseudo-intellectuals overthink these way too much.
And so we miss them.
But cults are some of the best investments you can make.
So how do you identify a cult?
a/ They don’t care about short-term price movements. They take a “long-term” perspective because they “know” their cult is going to 1000X.
b/ They have a strong vision for what their cult will become.
c/ They frown upon those who provide any criticism of their cult or (even worse) leave.
Any objective analysis is considered “FUD” (Fear, Uncertainty & Doubt)
If you have questions, “you don’t get it. Have fun staying poor.”
If you sell, you’re a loser and a sell-out.
Bitcoin is a cult. The Bored Ape Yacht Club is a cult. Once a convert, always a convert.
If you can identify the right cults early, you can make more money than you ever thought.
Luckily for us, Elon has a new cult. And it could change a lot of things. More on this tomorrow đź‘€
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