The world of cryptocurrency never sleeps. If I had to describe the evolution of the crypto industry in 2021 in one phrase, it would be “nothing short of spectacular.”
From the explosive rise of NFTs and the continued maturation of DeFi to groundbreaking advancements in Ethereum Layer 2 solutions, the entire ecosystem moved from speculative fantasy to tangible reality. Venture capital poured in, Web3 and the metaverse became mainstream narratives, and a global wave of innovation—fueled by both value and speculation—swept across markets.
Yet, as history reminds us: “All victory comes from the persistence of belief.” In such turbulent waters, only those who maintain clarity, discipline, and conviction can navigate the storm.
As an investor deeply embedded in this space since 2017, I owe it to myself—and to readers—to reflect on the year’s key developments, my investment decisions, wins, losses, and most importantly, the lessons learned.
This isn’t a dry, data-driven recap like Messari’s reports. This is raw, personal insight—unfiltered and opinionated. Some views may clash with popular sentiment. But sometimes, being right means standing alone.
Stick with me. By the end, you’ll walk away with actionable insights that could shape your next big move.
📈 Personal Investment Performance: A Breakthrough Year
2021 marked my highest return since entering crypto in late 2017—surpassing the sum of all previous years’ gains combined. It wasn’t luck. It was strategy, timing, and relentless focus.
My journey began with BTC at $7,000 during the bear market. I kept accumulating through downturns—even down to $3,000—believing in its long-term value as digital gold. Along the way, I made mistakes: speculative plays, failed ICOs, emotional trades. But BTC accumulation never stopped.
Then came March 12, 2020—the pandemic crash. BTC dropped to $6K. I doubled down. The next day? $3,8K. No hesitation: I liquidated everything—half into BTC, half into ETH.
But that wasn’t enough. A gut feeling hit me. After two hours of reflection, I made a bold decision: I cashed out every credit line—Weilidai, Jiebei, multiple credit cards—totaling over $100K—and went all-in on ETH, spreading repayments over 24–36 months.
⚠️ Important note: This is not financial advice. Everyone has different risk tolerance. My non-investment income cushioned this bet. Copying leverage blindly will lead to ruin. Copy the mindset, not the moves.
In 2020, I took another leap: leaving my role as a VC partner, exiting stakes in edtech, media, and retail ventures, and fully committing to crypto investing and education. I launched a real-money portfolio (starting at $1M) to practice what I preach—and aim to grow it to $100M.
I also predicted BTC’s rebound to $8K+ using gap theory (dubbed “The Miracle Day”), though the post was later deleted due to platform policies.
Markets change. Indicators fail. But sound investment principles endure.
🔍 Core Investment Themes & Key Bets
DeFi: Riding the Summer Wave with ASU Strategy
DeFi’s 2020–2021 boom—often called “DeFi Summer”—was ignited by innovations like Compound’s liquidity mining and Uniswap’s AMM model. At its core? Democratizing market-making profits once reserved for institutions.
I saw this shift coming nearly a year early—in November 2019—when DeFi’s Total Value Locked (TVL) was under $1 billion. Most dismissed it. My article was even deleted for being “too radical.” But history proved otherwise.
My early DeFi thesis centered on ASU:
- Aave (lending)
- Synthetix (SNX) (synthetic assets)
- Uniswap (UNI) (DEX)
These represented the three pillars of decentralized finance: lending, trading, and asset creation.
Results:
- AAVE: From ~$25 to $600+ (20x+ return)
- SNX: Massive surge driven by community momentum
- UNI: Solid growth, though VC origins limited upside vs community-led tokens
Lesson: Community-powered tokens often outperform VC-backed ones.
I re-entered during the July 2021 dip—building a $1M real-money portfolio focused on AAVE’s breakout fueled by Korean exchange listings.
Then came Curve (CRV)—the gateway to DeFi 2.0. With complex incentive models and deep protocol-owned liquidity, CRV separated serious investors from casual speculators.
Projects like SPELL and OHM followed—interesting experiments, but more hype than substance. My rule? If I don’t understand it, I don’t invest.
Public Blockchains: ETH & DOT Over Hype
Did I miss Solana’s 100x run? Yes. Terra? Fantom? Avalanche? Also yes.
But here’s my stance: most high-performance blockchains trade technological gains for decentralization—a betrayal of blockchain’s core ethos.
They’re built for speed, not sustainability. And in tech, today’s leader is tomorrow’s legacy system.
Still, multi-chain is inevitable. Interoperability will define the next era.
That’s why my only major public chain bets were:
Ethereum (ETH)
- Foundation for DeFi settlement
- Backbone of NFTs and metaverse apps
- Potential for 30x+ growth, minimal systemic risk
Polkadot (DOT)
- True innovation in cross-chain communication
- Unlike Cosmos, DOT offers shared security and parachain auctions
- I staked over 10,000 DOT across projects like Acala and Moonbeam
- Early GLMR rewards alone yielded ~$30K; full vesting could net **$300K+**
DOT remains undervalued. Many still compare it to EOS—a flawed analogy. DOT isn’t just another chain. It’s infrastructure for a multi-chain future.
NFTs & Metaverse: Calling the Billion-Dollar Shift Early
I was among the first Chinese analysts to identify NFTs and the metaverse as generational opportunities—long before Facebook rebranded to Meta.
Why? Because NFTs solve two foundational problems:
- Digital ownership: NFTs are the building blocks of Web3 economies—enabling identity (DID), asset rights, and virtual real estate.
- Cultural value: NFT art becomes spiritual capital—like digital Renaissance paintings—with infinite scarcity and social prestige.
My investments reflected both angles:
- Metaverse land in Decentraland (MANA) and Sandbox (SAND)
- NFT platforms: Rarible (RARI), Rare (RARE)
- Blue-chip collectibles: Bored Ape Yacht Club (BAYC), CryptoPunks
Average return: over 10x.
Could it have been higher? Absolutely.
I delayed full commitment until June 2021 due to operational distractions—exiting legacy businesses, hiring teams, managing partnerships. Had I acted in March, I’d have caught BAYC’s early surge.
Hindsight is clear. But timing requires focus—and I was stretched too thin.
Web3 & DAO: Beyond Hype to Real Infrastructure
Web3 isn’t anti-platform—it’s about redistributing power.
The current model? “Fat protocols, skinny applications.”
The future? “Skinny platforms, fat users.”
Blockchain flips the script: users own data, earn value, and govern ecosystems via DAOs.
My Web3 bets:
- Arweave (AR) – permanent data storage
- MANA – superior community-driven metaverse
- ANT – governance token for Aragon DAO framework
And yes—DOT again, as the connective tissue of Web3.
DAOs remain misunderstood. Projects like PeopleDAO or OpenDAO aren’t real DAOs—they’re branding stunts with zero governance power over their referenced platforms.
True DAOs require:
- Real voting rights
- Treasury control
- On-chain decision-making
Until then, most “DAO tokens” are just speculative assets.
But the vision is valid: decentralized coordination is the future of work, finance, and culture.
Gaming & Speculation: The Good, Bad, and Ugly
I dipped into play-to-earn games late—July 2021 on Axie Infinity (AXS). Then jumped into so-called “Top 5 P2E” projects:
- CyberDragon
- Farmers World
- Crypto Spaceships
- RACA (MetaBeast)
Result? Mixed at best. Disastrous at worst.
| Project | Outcome |
|---|---|
| CyberDragon | Rule changes killed profitability |
| Farmers World | 100x material crash after breakeven |
| MetaBeast | Dumped post-launch; minimal gain |
| Crypto Spaceships | Token fell 40x; servers shut down |
Lost thousands in unrealized gains—and some principal.
But here’s my belief: You must explore frontier trends—even if you lose.
Every cycle has explorers who get burned—and pioneers who find gold. The key is risk management: small positions, clear exit rules.
My strategy? “守正出奇” – Conservative core, aggressive satellite bets.
Big positions in BTC/ETH. Tiny allocations chasing asymmetric upside.
And yes—if another Axie-like opportunity emerges, I’ll be there.
🔑 Building a Risk-Value Investment Framework
Crypto doesn’t fit traditional value investing models. No cash flows. No dividends.
So I developed a hybrid approach: Risk-Value Investing.
It combines:
- VC mindset: Spot macro trends before they go mainstream
- Value discipline: Invest only in projects with real utility and strong fundamentals
How to Evaluate Projects:
| Factor | Why It Matters |
|---|---|
| Team | Founders must be mission-driven—not just profit-chasing |
| Model | Innovation > replication (e.g., DOT vs ETH clones) |
| Execution | Speed matters. ADA took 4 years for smart contracts |
| Data | On-chain metrics > social media hype |
Avoid projects where leaders have a history of rug pulls or vaporware. Trust is scarce—and once broken, never restored.
❓ Frequently Asked Questions
Q: How do you balance high-risk bets with long-term investing?
A: Use a tiered portfolio: 70% core assets (BTC/ETH), 20% proven ecosystems (DeFi/NFT leaders), 10% speculative plays (new chains, gaming).
Q: Was leveraging personal debt worth it?
A: Only because I had high confidence and backup income. Never risk essential funds. Leverage amplifies both gains and pain.
Q: Can average investors replicate this success?
A: Yes—but through consistency, not shortcuts. Focus on learning, not FOMO.
Q: What’s your view on regulation?
A: Inevitable. But innovation always outpaces control. Build compliantly; stay ahead of policy shifts.
Q: How important is community in crypto projects?
A: Critical. Strong communities drive adoption, resilience, and price momentum—see SNX or AAVE.
Q: Will NFTs last beyond speculation?
A: Absolutely. Digital ownership is permanent. Use cases will expand into music, IP rights, identity verification.
The crypto revolution is just beginning.
46 billion internet users.
1 million crypto investors.
You’re already in the top 2%.
If you’re reading this—you’re not just early.
You’re among those shaping what comes next.
Stories start quietly.
Ours is unfolding now.
And remember:
All victory comes from the persistence of belief.
Stay focused. Stay curious.
The best is yet to come.