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Investors face significant challenges when navigating the world of cryptocurrency. Many believe that tokens inspired by animals outperform legitimate projects, yet this strategy often leads to substantial losses, sometimes as high as 99%.
What Is Pantera’s Approach to Crypto Investing?
Cosmo Jiang, a portfolio manager at Pantera Capital, underscores the significance of fundamental analysis in the crypto landscape. He warns that neglecting fundamentals can result in poor investment outcomes.
“If investments in this industry are not supported by fundamental analysis, it only means we have failed.”
Jiang actively manages nearly $5 billion in assets, focusing on publicly traded tokens. He evaluates potential investments based on product-market fit and the team’s ability to execute their vision effectively.
How Do Solana and Ethereum Compare?
Among Jiang’s preferred choices are Solana (SOL) and Telegram’s TON token, as he believes Ethereum (ETH) has lost some of its appeal. Recently, Solana has outpaced Ethereum in daily active addresses, which he attributes to user growth being a crucial indicator of a token’s true value.
“User growth determines the true value of a token.”
Solana’s revenue has surged by 180% in the past month, while Ethereum’s grew by just 37%, narrowing the annual revenue gap, yet Ethereum’s market cap remains fourfold that of Solana.
Concrete insights from Jiang’s strategies include:
- Prioritize fundamental analysis to avoid investment pitfalls.
- Look for projects with robust user growth and market fit.
- Explore DePIN projects, which blend blockchain with physical infrastructure.
Jiang expresses skepticism towards meme coins, opting instead for projects that facilitate meme coin trading. He anticipates that while immediate returns may not match Bitcoin’s remarkable rise, long-term investments in blockchain technology will yield significant gains as the technology matures and reaches a broader user base.