You MUST Realize That This Is The Biggest Lie In Crypto - Layer 0, Aethir
Summary
TLDRThe video script challenges the prevailing opinion that the crypto bull market is over, arguing instead that it will be unprecedented in size. It addresses concerns about high valuations and token unlocks, using examples like Solana and Gala Games to illustrate how demand can outpace supply, leading to significant price increases. The speaker emphasizes the importance of Metcalfe's Law, which predicts growing network value, and suggests that retail and VC investments will drive the next bull market, potentially reaching $7 to $9 trillion in market cap.
Takeaways
- 📈 The speaker disagrees with the popular opinion that the crypto bull market is over and believes it will be the biggest ever, with a significant increase in total market cap.
- 💡 The video aims to dispel the fear, uncertainty, and doubt (FUD) circulating about the cancellation of the altcoin season and the state of crypto.
- 🚀 Examples like Solana and Gala from the last bull market are cited to illustrate the potential for massive gains despite large market capitalizations and token unlocks.
- 💎 The importance of understanding the supply and demand model in crypto is emphasized, with the speaker arguing that increasing supply does not necessarily lead to decreasing prices if demand grows.
- 💼 The role of venture capital (VC) funds in setting high valuations for new crypto projects at launch is discussed, and their potential impact on market dynamics is considered.
- 🔒 The speaker suggests that value creation in crypto projects often involves locked tokens, which can lead to rapid price increases as the market realizes the project's potential.
- 📊 Data from defil llama.com is recommended for tracking recent fundraising activities in the crypto space, indicating the amount of capital flowing into new projects.
- 📈 Metcalfe's law is highlighted as a principle that suggests each bull market will be larger than the previous one, driven by the growth of the crypto community and network effects.
- 🎲 The video encourages viewers to look beyond current circulating supply and valuations, focusing instead on the potential for increased demand and the long-term prospects of projects.
- 🏆 The potential for gaming and AI projects to deliver real-world services and value post-bull market is suggested, indicating a shift from hype to utility in crypto projects.
- 🔗 The speaker promotes their other channel, the School of Crypto, which will offer live trading updates and educational content for those interested in trading and understanding the crypto market.
Q & A
What is the main argument the speaker is making about the current state of the crypto bull market?
-The speaker argues against the popular opinion that the crypto bull market is over, stating that it will be bigger than any seen before, with the total market cap of crypto potentially increasing six or seven times from its current state.
What is the 'elephant in the room' the speaker refers to, and what is their stance on it?
-The 'elephant in the room' is the concern that the crypto market is broken due to high valuations and token unlocks, leading to a decrease in price. The speaker disagrees, believing that the market is not broken and that these concerns are overblown.
What is the role of Venture Capital (VC) funds in the valuation and launch of new crypto projects?
-VC funds invest in new crypto projects, often dictating the valuation at which the project launches. They aim for a high return on investment, which can lead to inflated valuations on launch day due to locked-up value and a small percentage of tokens in circulation.
Why does the speaker believe that the concerns about token unlocks and increased supply are not as significant as some suggest?
-The speaker believes that the rapid increase in demand, as explained by Metcalfe's law, will outpace the increase in supply. This means that even with more tokens being unlocked, the market can still support higher prices due to growing interest and participation.
What is Metcalfe's law and how does the speaker apply it to the growth of the crypto market?
-Metcalfe's law states that the value of a network is proportional to the square of the number of its users. The speaker applies this by suggesting that as the crypto community grows exponentially, the market value of cryptocurrencies will also increase significantly, supporting higher valuations despite token unlocks.
Can you provide an example of a crypto project that performed exceptionally well in the previous bull market according to the speaker?
-The speaker cites Solana (SOL) as an example of a project that performed exceptionally well, with returns of thousands of percent and a 20,000% move within a short period.
What is your view on the future potential of the crypto market?
-The speaker is optimistic about the future of the crypto market, believing that the current developments and increasing adoption will lead to unprecedented growth and opportunities in the industry.
Outlines
📉 Contrary Opinion on Crypto Market Cap Growth
The speaker challenges the prevailing belief that the crypto bull market is over, arguing that it will actually be much larger than any previous one. They predict a significant increase in the total market cap of crypto, possibly 6 to 7 times its current size. The speaker plans to debunk common fears, using examples like Solana and Gala from the last bear market to illustrate why this will be the biggest opportunity in a lifetime. They address the concerns about high market cap valuations at launch, like Layer Zero's $757 million versus its $3 billion fully diluted valuation, explaining that the supply and demand model is often misunderstood in this context.
💡 Understanding Token Supply and Demand Dynamics
This paragraph delves into the supply and demand model, explaining how an increase in supply can lead to a decrease in price if demand remains constant. The speaker uses the analogy of diamonds and apples to illustrate the point. They then discuss how crypto projects raise money from venture capital funds and how these funds influence the valuation at launch, often leading to significant profits for the investors. The speaker argues against the notion that increased token supply due to unlocking will necessarily lead to a decrease in price, citing examples of successful projects like Solana, which saw substantial growth despite increasing supply.
🚀 The Impact of Retail and VC Investment on Crypto Growth
The speaker discusses the role of retail and venture capital (VC) investments in driving the growth of crypto projects. They reference 'Mets Law' to explain how each bull market gets progressively larger as the community and network grow exponentially. The speaker uses the example of Gala Games, which saw a 370x return during the last bull market, to demonstrate that despite significant token unlocks, the demand can still outpace supply, leading to price increases. They suggest that VCs may take profits initially but later reinvest to trigger market movements, indicating that the final market push comes from retail investors.
💼 The Role of Fundamentals and Future Potential in Crypto Projects
The speaker emphasizes the importance of backing fundamentally strong crypto projects that deliver a service, rather than those propped up by hype alone. They highlight Aether, a project with exposure to Nvidia h100 chips, as an example of a promising investment. The speaker argues that despite a low current circulating supply, the project's potential and the gradual unlocking of tokens over time make it a good investment. They advise focusing on the circulating supply rather than the fully diluted valuation and to look for projects that have the potential to become mainstream, suggesting that the next bull market could see projects delivering real services.
🔗 Crypto Trading Platforms and Educational Resources
The speaker promotes Bitchx, a crypto trading platform that does not require KYC or a VPN, and encourages viewers to suggest coins for listing. They also mention the School of Crypto, another channel where they will be providing live trading updates and educational content on various aspects of trading. The speaker invites viewers to subscribe to stay updated on the content and to take advantage of the educational opportunities provided.
Mindmap
Keywords
💡Crypto Bull Market
💡Altcoin Season
💡Venture Capital (VCs)
💡Market Cap
💡Supply and Demand Model
💡Token Unlocks
💡Circulating Supply
💡Metcalfe's Law
💡Retail Investors
💡Bitx
💡AI and Crypto
Highlights
Contrary to popular opinion, the presenter believes the crypto bull market will be larger than ever before, with a significant increase in total market cap.
Disputing the notion that altcoin season is cancelled, the video argues that the crypto market will experience unprecedented growth.
The presenter addresses the common fear, uncertainty, and doubt (FUD) circulating in the crypto community regarding the impact of venture capital (VC) on the market.
An analysis of Layer Zero's market cap and valuation is used to illustrate the supply and demand model in the context of crypto valuations.
The importance of understanding the supply and demand dynamics in crypto markets is emphasized, with examples of how it affects pricing.
A counterargument is presented against the belief that increased token supply will inevitably lead to lower prices, using the example of Salana's growth despite token unlocks.
The role of venture capital in setting valuations for new crypto projects and the potential impact on market dynamics is discussed.
The presenter uses historical data to show that Salana's price increased significantly even with large token unlocks, indicating demand can overcome supply increases.
The concept of Metcalfe's Law is introduced to explain how network growth can lead to increased value in crypto projects, even with increased supply.
Gala Games' performance in the last bull market is highlighted as an example of how demand can drive prices up despite supply increases.
The potential for AI and compute projects like Aether to benefit from the growing demand for processing power in the crypto space is discussed.
Aether's market cap and token unlock schedule are analyzed to show that despite a large fully diluted valuation, the project has potential for growth.
The presenter argues that the circulating supply is more important than the fully diluted valuation when assessing a crypto project's potential.
The potential for gaming and AI projects to deliver real-world services and value beyond the current market hype is highlighted.
The presenter encourages viewers to look for projects with strong fundamentals and real-world applications for long-term investment potential.
A call to action for viewers to participate in a giveaway and follow the presenter on Twitter for updates and insights.
An invitation to join the School of Crypto for live trading updates and educational content on various aspects of trading and crypto.
Transcripts
crypto bull market is over altcoin
season is cancelled because the VCS
wrecked crypto this is a popular opinion
being shared across crypto right now
that I fundamentally disagree with this
crypto bull market will be bigger than
any crypto bull market you have ever
seen before the total market cap of
crypto will be doing a six or 7 x from
here and it couldn't be more exciting in
this video I'm going to address this
common fud that's going around right now
and tell you with examples like salana
and Gala from the last B Market that
absolutely mooned why this is going to
be the biggest opportunity that you have
in your lifetime so hit that like button
and let's get on with today's video now
guys if you turn on crypto YouTube today
or Twitter you're probably seeing posts
like this altcoin season cancelled
crypto is broken coming from some really
highly reputable channels like crypto
banter miles deutcher and others who do
have some of the best content going and
their channels that I often refer to for
a lot of my content but they've been
addressing one really big elephant in
the room but I'm not really sure I agree
with this and what is this elephant in
the room well it's this as we look at an
example and there are hundreds of
examples right now we're going to look
at layer zero okay layer zero you can
see has a market cap of $757 million and
was launched like a week ago at $757
million you can see that's a
significantly smaller market cap than
the fully diluted valuation of $3
billion now I see a lot of people being
like I can't buy by that because the
diluted valuation is enormous I will
never see a return because of this one
thing and it's this the supply and
demand model supply and demand dictates
that if there is more supply all the
time entering the market then the price
of crypto or whatever it might be will
start to decrease that's why diamonds
are expensive because they're rare and
in high demand and apples are cheap
because while the demand is high there
are lots of them and yes I probably
could have come up with a better example
than using apples and comparing them to
Diamonds but you get the picture now
what everyone's basically talking about
is over time crypto projects are
unlocking and pumping more tokens into
the supply while the demand
theoretically Remains the Same and if
the demand theoretically Remains the
Same while the supply increases they are
fully right the price will start to drip
towards the downside and considering
many of these projects have been
launched up massive valuations if demand
Remains the Same price will technically
decrease over a period of time but for
most of these monster tokens that have
been releasing right now you don't need
to give a you don't need to give a
about that and before I show you
exactly why this is with Garla gaming
and salana let's just consider what's
going on for those of you who are new to
crypto and maybe don't know what's going
on before crypto projects are available
for you to go and buy as tokens they're
obviously doing something they have
teams they're building games they're
building blockchains they're doing all
sorts of different things that require a
lot of money or quite expensive so what
they do is they go and raise money from
Venture Capital funds and if you want to
go and see what's been raised recently
go to defil llama.com go down to where
it says raises and overview and you can
see the the amount of money being raised
and if you look at the top of the last
bull market you will see $7 billion in
one single month was raised for new
crypto projects you can come to here and
see that only around $1 billion is being
launched per month at the moment which
is my first reason that we don't need to
be too stressed about this so these big
Venture Capital funds of which you can
come to crypto fundraising. info and
find a few of these big names coinbase
Ventures Anoka Brands a16 Z so what is
going on well these companies will buy
into new crypto prodject and they will
dictate this new crypto project that's
probably set up in a garage somewhere
that I want you to launch at a billion
dollar valuation so Anoka Brands will
give you let's say $5 million in return
for like 5 or 10% of the company they
will then dictate the valuation at which
the price launches at which means that
on launch day their investment does like
a 20x maybe even more so how do they
suddenly just create this value from
thin air well a lot of the value is in
lockups it can't be released onto the
market which means you have like 10%
circulating Supply moving around
hopefully you're following so far
effectively what the problem is that
everyone out there is talking about is
that these guys have been greedy and
they've ruined crypto while I don't
disagree they have been effing greedy I
don't think crypto is broken and
hopefully this is the first major reason
that's going to open your eyes there was
moreable top performing coins in the
last bull market but few performed more
strongly than salana and for lots of
people salana did thousands of x's
returns because if you look at salana
all the way back when uh you know July
2020 it was around 90 and within a short
space of time it did a
20,000% move okay which is like a
280X plus now if you got in earlier than
that which the VCS did they probably
made even more money so looking at this
chart you would have to agree with me
that salana was pretty successful but
lots of people are like well you can't
buy into a coin well this coin's only
got 10% circulating Supply there's no
way it can go up I disagree if you come
to token. unlocks
doapp salana which is a mouthful you can
see the unlocks that are happening on
lots of different cryptos but in this
case salana now if you come down here
what we want to do is find the top of
salana which was the 7th of November
2021 now on the 7th of November 2021 we
can see down here there was around this
many tokens in circulating supply for
salana okay so this many tokens is just
about 510 million okay 510 million just
as an example okay and then you can see
that today the number of tokens is
significantly increased over 600 million
tokens but what I want to point out is
that was the high and look at this
unlock that happened before salana got
there that unlock happened around
January the 4th 2021 so there's
significant unlocks and significant
unlocks have continued to happen while
the price of salana actually continued
to go up so yes if you look at this
model it wasn't necessarily aiding the
price of salana that the supply was
going up but because the demand
increased so rapidly it didn't really
matter and you might be like but yeah
but now there's loads of projects that
are doing the same there's loads of new
projects that are coming in with these
massive valuations it can't possibly go
from here well I'll bring you across to
this post from Ral poell on March the
12th 2022 Ral po has been talking about
Met's law saying that each bull market
is going to get bigger and bigger and
this is a very decent post to pay
attention to which if you want to go and
read it I'll repost on my Twitter page
down here so if you want to go and find
out more go and check out this from Ral
power cuz it is absolutely essential in
understanding the future of crypto also
while you're at it you can join in our
hot summer giveaway where we're giving
away $5,000 worth of different prizes
ranging from tangent wallets to cash
prizes to one-onone ask me anything
cools with myself let's just keep it to
ask me anything in crypto calls just
that you're not disappointed and so many
other things simply just have to come
across follow me on Twitter and you can
go and join this hot summer giveaway
retweet it while you're at it and let's
grow this thing now I'm not going to
bore you with what R pal says about me
C's law but he basically says that as a
community grows over a period of time
then we go from this size of network to
this size of network and exponentially
bigger and bigger effectively at the
start you don't know anyone really who
trades crypto as well and then after a
period of time you start to identify
other people who trade crypto and then
suddenly you know your Barber is talking
about crypto and and then you go to
school to drop off your kid and you're
talking to other parents in the
playground and they're talking about
crypto and and you know exponentially
it's getting bigger and bigger which
means that during the last ball Market
while the total market cap of crypto was
around $2 trillion it's very likely that
we will reach seven to maybe in a bull
case8 or 9 trillion in this bull market
which is an insanely large amount of
money and more than enough to prop up a
lot of these crypto coins despite that
supply and demand model and if you come
back to Ral po you'll see that he
basically links all of these Network
value models to the Chart so as the
network gets bigger ultimately the price
of something will increase this is
Bitcoin he then goes on to do it with
ethereum and he says even works for xrp
which means considering the xrp price is
just continuing to sort of go down that
the xrp Army seems to be shrinking
another small victory for crypto but if
you weren't convinced by salana this one
will surely convince you and this is
Gala games in the last ball Market from
the 13th of September all the way to the
26th of November which was a little over
a couple of months Gara games did more
than a
370x remember those dates 13th of
September till the 26th of November come
back to Tok unlocks search for gara
games come down below 13th of September
2021 Gara games was all the way down
here in terms of unlocks you can see
that's around 1 billion okay today we
can see it all the way up around 10
billion by the time the 26th of November
rolls around we've already 2x in token
unlock from that previous date the token
Supply had done a 2X in just that couple
of months for gara games and no one
investing gave two shits about it so why
did it in blow up so much it blew up so
much because suddenly everyone flooded
into the market no one gave a crap about
the fact that it was unlocking the
supply and demand model didn't really
count because the demand went up so
bloody aggressively that the supply
couldn't keep up and ultimately the
price increased so hopefully you're
starting to understand that I don't
think that these unlocks mean actually
that much during the point of time where
we could see multiple multiple trillions
of dollars flooding into a market the
most hyped and excited projects are
backed by the biggest VCS those VCS will
do something very significant as well
the VCS will take their initial profits
out when a coin launches onto the market
eventually we have a bit of cool down
and eventually when the time is right
those VCS will inject a bunch of that
Capital back into those coins why
because they can trigger a move like
this and the move carries on everyone
out there suddenly stops talking about
turbo coin and Brett and whatever else
and goes oh my God gala's up like 120%
today I'm going to put my money in Gala
they all start to Pile in like this they
keep piling keep piling in the VCS
eventually take their money out and rug
pulled a lot of them so we simply
understand that despite a massive unlock
that was still to come for gara games it
still managed to Rally significantly
into its first full-blown bull market
because ultimately this move isn't
caused by the smart money which most of
us are because we're sat in the markets
right now is caused by the final flood
in of retail and a bit of VC money as
well so if the VCS are still in there
and the retail is yet to flood into the
market then still many of these coins
will see aggressive moves higher and if
you're still being really kind of I
don't know about this it doesn't seem
right to me then fine simply do this
okay let's go to coin market cap let's
look at another project Aether one of my
absolute favorite projects of this bull
market why well for the reasons I've
been telling you about for months on
recent ather videos I've made but also
Alex Becker sums it up pretty clearly
here I've started to venture into a few
AI Ventures over the last two years
almost every single time there's a
bottleneck around the processing power
and costs it's literally a matter of
months before big AI startups start
using crypto to manage Ai and it will
shift the entire software industry to
using crypto to distribute processing
power and I've been telling you over and
over again that most of these deep in AI
compute projects can't really cope with
the specific processing power needed
because they don't have the right chips
the Nvidia h100 chips and a handful of
other highly specialized very expensive
chips ather has exposure to around $400
Million worth of these Nvidia h100 chips
which means ather is primed to be able
to process his compute power for people
like Mr Becka but anyway not going to
show this to you I'm just using this as
an example market cap $279 million okay
but fully diluted valuation $3.1 billion
many of you keyboard Warriors out there
will be like red flag red flag and I'm
here to tell you that you're wrong
because while the circulating Supply is
9% and that looks horrible we need to go
and look at the token unlocks for ather
to understand whether or not bearing in
mind the bull market is likely to finish
and let's say 18 months if we were
really really generous 2 years then we
can find something out well we can look
at this chart you can see that basically
these are how tokens are getting
unlocked and in maybe a year's time they
will double in Supply but where are
these tokens coming from well most of
the unlock is actually coming in the
form of distribution from the Checker
nodes these Checker nodes are
distributed to Guess Who the retailers
who bought them are they likely to sell
and dump on everyone else well probably
much less likely because they're in a
bull market they waiting for the tops
and they only bought those notes cuz
they're bullish on this project and
looking down to 2029 you can see that
they basically very limited unlocks that
are happening over this period of time
so yes while there is a big circulating
Supply to eventually enter into the
market it's going to happen over a
significant period of time and during
that same time we've got metra's law
pumping a load more people back into the
ecosystem to prop up these projects so
simply I'm not that worried about a
bunch of unlocks that are happening for
a number of these projects in fact
because of this if the circulating
Supply is only around 9% of Aether right
now it means its current market cap is
set around $270 million and even if it
does a 2X in the next year that's around
$500 million so for it to do a 10x it
needs to go to $5 billion remember of
the circula supply don't worry about the
FTV worry about the circulating Supply
right now because this supply and demand
model dictates what is happening today
right now and what is going to happen in
the future and as long as that Supply
doesn't massively ramp up over the next
few months then you're probably all
right and it's much easier to to make
significant gains in coins that have
massive valuations that are actually
undervalued and since what Alex Becker's
just said a lot of these projects if you
are backing ones that are fundamentally
very strong that are actually delivering
a service then you can't go too far
wrong if you're looking into gaming if
you've going to find a game that has the
potential to actually become a
mainstream game guess what you're going
to make an absolute killing because
there's a potential chance that after
this bull market there are projects that
will actually be delivering a service
who would have thought this and they're
not just going to be propped up by hot
air and excitement anymore they're
actually going to be delivering
something and I don't want you to miss
out on some seriously decent projects of
which this is just an example and
obviously there's loads of other
projects out there i.net launched
recently similar situation I'm just lazy
I don't want to flick through different
projects the only thing I will say to
you is this a lot of people are looking
at previous coins from previous bull
markets like salana and saying well it
reached this valuation there's a good
chance it's going to reach three or four
times that and they're simply looking at
and alltime price chart they're like in
the last bull market the price went to
$258 of course it can do a four or 5x on
this it should be worth $1,000
$1,250 whatever it is all you got to do
though is see that this time we've only
reached what $200 which is lower you
will see in price than the previous bull
market but if we click on market cap you
will see that more recently we actually
hit alltime highs for salana that is
something that is worth keeping into
account that may be in the longer course
coins that have been diluting over time
there is a chance that maybe some of
them won't reach previous valuations but
for newer coins I wouldn't concern
yourself so much now guys all of the
coins pretty much that I talk about on
this channel are available through
bitchx which is linked down below they
launched ather the other day they
launched AI o they' launched render and
a huge amount of other tokens out there
the best part of bitchx it doesn't
require a kyc you don't need to use a
VPN no matter where you live around the
world and they're doing their best to
preserve this service also we are
listing coins on the every single day
that they ask us to list so if you want
to list specific coins on bitx then
write them out down below and I will go
and contact the team and ask them to get
them listed ASAP all you got to do go
across sign up to bitchx link down below
where you'll get an additional bonus and
if you write the coin that you want to
trade on that platform without needing a
kyc or a VPN then I'll ask the team
there's a very very good chance they'll
be able to list those tokens now one
more plug while we're at it the school
of crypto my other channel my second
channel will be starting from tomorrow
to deliver live trading updates for the
people who are interested in day trading
I'm partnering up with my friend Dylan
to deliver you three trading sessions
live per week happening on Monday
Wednesday and Friday also going to be
delivering you various other tutorials
where you can learn to trade you can
learn to use different trading exchanges
you can learn to understand supply and
demand Zone trading you can learn to
understand different indicators you can
learn to understand which are the best
pairs to be trading and you can play
along with a team to be able to make
significant games so make sure you go
across there subscribe so that you don't
miss that live stream that's happening
on Monday evening Europe time guys
thanks very much for watching if you
enjoyed that video or if you didn't but
you just want to help me to succeed
because it's Sunday and you're happy hit
that like button subscribe and I'll see
you tomorrow in another video bye-bye
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