Interview: Arain, ChainCatcher
Guest: 0x Wizard
Compiled by: Arain, ChainCatcher
0x Wizard is a crypto-Chinese KOL with nearly 200,000 followers on X, known as the “Meme Wizard”.
Meme can be said to be a main thread running through this bull market cycle, although some people still find it emotionally difficult to admit it.
Bravely participate in the second wave of opportunities is the purpose of 0x Wizard. Combining the bottom-up market recognition and thinking about the fundamental reasons, he believes that although the bull market has begun, the on-chain Meme has actually just begun.
“There will be another 500 billion-dollar memes in the future, but it may be difficult to have another $50 billion asset.” 0x Wizard said in an exclusive interview with ChainCatcher. However, the primary and secondary gameplay of Meme are completely different. For some highly valued Meme projects that are about to enter the secondary market, he recommends observing before building a position.
In the interview, 0x Wizard also shared his methodology for capturing new tracks and new narrative judgments, including the Three Laws of the Bull Market Engine and the nature of the track. He discussed several popular AI Memes and Meme investment experience.
The following is the interview content:
My background in product development makes me better at new narrative tracks and first-tier and semi-investment
ChainCatcher: What did you do before entering the cryptocurrency world?
0x Wizard: I was in charge of product manager-related work in an Internet company and participated in some B-end and C-end product design. Later, I started my own business and made Internet-related products. In 2017, I noticed that the emerging field of encrypted digital currency began to show a unique development trend. Some friends around me were also discussing related topics. With my own interest and optimism about its development potential, I officially entered the cryptocurrency circle.
Due to my past work experience, I am good at judging new tracks, new narratives, and primary and secondary investments. I think the choice and inclination of tracks are consistent with the fundamental basis of making Internet products. However, it is not to copy the previous product ideas to the cryptocurrency investment, but there are many common points. For example, when making a product, you have to see whether the user really needs it, rather than just subjectively thinking it is good. You cannot fall into the misunderstanding of designing from top to bottom and imagining it. You have to see whether the market recognizes it. The same is true for investing in the cryptocurrency circle. The key to judging whether a new track or a new project is successful is to see the markets acceptance. For example, in the AI track, there are many targets with valuations of over 100 million US dollars in the primary and secondary markets. This is the markets actual recognition of it as a trend. So when I make an investment, I will be more inclined to understand and observe the real choices of the market first.
ChainCatcher: Please share your most successful and most unsuccessful investment in the world of cryptocurrency.
0x Wizard: There are many successful investment cases. When I first entered the circle, I played on-chain games and algorithmic stablecoins, and I made 100 times the profit in almost a month. Later, I participated in projects like ORDI, and the large capital investment also made about ten times the profit. There are also projects like ACT that have achieved nearly 100 times the profit.
Major setbacks are impressive. Therefore, I suggest that you avoid adding leverage in the cryptocurrency world, whether it is contract leverage or ordinary leverage. Leverage is the source of my biggest setbacks. Sometimes the greed in human nature comes out, or you are unwilling to make a profit and always want to recover the loss as soon as possible, which will prompt you to add leverage or do contract trading.
Every detour may be a must for investors, and they have to experience it personally. Only in this process of ups and downs, life and death, can they truly understand what should and should not be done in investment.
ChainCatcher: Some tracks may be false propositions. What is your main basis for judging the track?
0x Wizard: On the one hand, we need to look at the markets recognition from the bottom up, which is a very critical point. As I said before, we cant just subjectively imagine that a certain track is good, we have to look at the real reaction of the market. For example, in the AI track, many related targets with valuations of over 100 million US dollars have emerged in the primary and secondary markets. This is the markets real recognition that it is a trend, so it is likely to be a track worth paying attention to.
On the other hand, we also need to think about the most fundamental reasons behind the track. For example, what is the most fundamental thing in the cryptocurrency circle, and what are the most successful elements at the bottom, and we can measure whether a track is feasible from these perspectives. Taking the assets in the cryptocurrency circle as an example, I have summarized several axioms for judgment and summarized them as the Three Laws of the Bull Market Engine:
“Old technology, new gameplay”: As the old saying goes, “a long slope with thick snow”, it depends on whether this technology has sufficient accumulation of foundation. For example, on-chain assets actually rely on the advantages accumulated by previous infrastructure such as DeFi, and have a foundation for development;
New track, new hope: If it is a brand new concept, the market will have a higher valuation ceiling, just like the previous metaverse concept. Even if the product may not be qualified by traditional Internet standards, it can reach a high market value in a bull market because it proposes new trends and new hopes. For example, in the bull market of 2020-21, although the products of projects such as SAND were poor, their market value increased significantly due to new trends and hopes.
Batch generation of new assets: A single money-making asset is unlikely to create a shocking force. Only when many related assets can make profits will it form a strong attraction. For example, if different on-chain projects can make investors profitable, it will attract more people to participate.
Combining these bottom-up market recognitions and thinking about the underlying causes, it will not be easy to make mistakes in judging the track. Even if there are occasional setbacks, they are only temporary situations in small branches and will not affect the judgment of the larger track trend.
ChainCatcher: You just mentioned some of the most fundamental reasons. Do these most fundamental reasons all point to the same place?
0x Wizard: The answer to this question lies in what exactly cryptocurrency is doing. I think it is mainly doing the following things, because it does these things ten times better - there is a startup methodology in Silicon Valley, when something is done ten times better than others, everyone has reason to adopt it, and then it can achieve great success.
The first is asset issuance. In traditional industries, asset issuance faces many legal, compliance and process issues, which are extremely difficult. For example, asset-related affairs in China are prone to involve illegal areas. Even with the New Third Board and Nasdaq, it is difficult to transform enterprises into assets. In the cryptocurrency world, asset issuance is extremely convenient and the speed is far faster than that of traditional industries. All kinds of strange things can be quickly converted into assets. Although there may be a large number of junk assets, this fast asset issuance capability brings the native activity of the cryptocurrency world. From IC0 to defi, inscriptions, and on-chain assets, they are all manifestations of asset issuance.
The second is regulatory arbitrage. I remember a very interesting project, a Web3 project in Nigeria. Nigerians bought shopping cards in the United States through Crypto and sent them back to their families in China. Although the handling fee was as high as 10-20 points, they were still willing to do so because Crypto provided a way of regulatory arbitrage, bypassing the foreign exchange control of the Nigerian authorities.
The third is the dominance of speculative demand. Speculation is an important part of the native demand of the currency circle. Similar to the stock industry, speculation is a neutral word in the currency circle. The currency circle has formed a 24-hour global casino, where people continue to engage in speculative transactions, such as speculation, leveraging speculation (R), and Ethereum-based POS, all of which serve speculation. DeFis TVL and handling fees grew rapidly in the last bull market, but declined in the bear market. This shows that what really happened in DeFi in the currency circle is more about speculative demand, rather than changing the world and moving traditional financial assets to the chain as expected. The business model established in the currency circle has a huge revenue scale of zero-sum games (such as BIs revenue is close to the BN level), which also shows the dominant position of speculation in the currency circle.
There may be 500 billion-dollar memes in the future, and AI memes should be the focus
ChainCatcher: You mentioned earlier that Meme has become the new theme of this bull market. So from the perspective of the primary and secondary markets, what are your expectations respectively?
0x Wizard: From the perspective of the secondary market, the Meme market will definitely have peaks and troughs, and basically follow the general market. The specific rise and fall is actually difficult to accurately predict. I have made many prediction errors before. For example, I originally thought that Meme should pull up first, but in fact, like XRP, according to the experience of the last round, the pull-up situation only appeared at the end of the market. This time, it started to pull up in the first wave after Trump was elected.
However, it is certain that it will definitely pull up, and then it will most likely fall, and the decline may reach 80% or even 90%, which is a common situation. When the market is pulled up, the market value of some Meme coins may reach billions of dollars, or even tens of billions of dollars.
From the perspective of the primary market, I think the Meme market is not dependent on bull or bear markets, and it will always exist. Even before the bull market, we can see that Meme projects with market capitalizations of hundreds of millions of dollars or even billions of dollars continue to appear. Although it has its own small cycle, it will not have an obvious bull-bear cycle like the broader market, but it may be more crazy during a bull market. In the future, there may be, for example, 500 Meme projects with a market capitalization of more than one billion US dollars. Even if the market capitalization of a single project is not particularly high, it may be in the tens of billions or tens of billions of US dollars. From the perspective of the on-chain carrying capacity, it is very likely that Memes with a market capitalization of between one billion and two billion US dollars will appear. This is already happening on different chains, such as Solana, Base, etc.
Since the on-chain Meme market value space is limited, if its price is high before listing, it is recommended to wait for it to circulate to the secondary level and buy it after the price is adjusted, because the secondary level has a larger valuation space, and the high valuation of the primary level may be difficult to support subsequent increases due to insufficient liquidity.
ChainCatcher: Why do you keep pushing AI Meme?
0x Wizard: First of all, cryptocurrency investment relies on imagination. The assets that have been hyped in the cryptocurrency circle in the past must have enough imagination. Like the previous DeFi, the narrative is the revolution of traditional finance, and there are also NFT and metaverse concepts, claiming that everyone will live in a virtual world in the future. These stories are very imaginative. But now, everyone has basically understood NFT, and the metaverse is like Facebook itself has not been successful. If DeFi is implemented, it must come up with actual data. I think the most imaginative thing in the cryptocurrency circle is AI, and it is difficult for others to have such appeal.
Secondly, AI has real value. Just like DeFi has real transactions, TVL (total locked value) data reflects its value, and the same is true for AI. Some current AI agent projects have already generated revenue, such as Virtuals; many AI projects are being used in large quantities, such as ai16z; some AI projects already have considerable traffic, such as Meme projects such as ACT and GOAT. Some AI agents are even better than many manual works as knowledge aggregators. They integrate corpora to serve everyone - this is actually an improvement in productivity level, not just empty slogans, but can be seen in action and can bring changes to encrypted digital currencies.
Therefore, AI has imagination and can be implemented in the cryptocurrency circle, and the implemented part can further drive more applications to be implemented. Based on these, I believe that AI is the biggest trend in the cryptocurrency industry in 2025, without a doubt, and other trends are not on the same level as it.
ChainCatcher: You have mentioned the ecology of the ACT project many times. Can you share your unique understanding of it?
0x Wizard: ACT has a unique ecological niche. It is a meme that appeared at a specific time, representing a tokenized concept of the future of AI. It promotes, for example, providing support to some AI agents, allowing them to make more attempts and innovations, and bringing them together to create platforms like ACT swap, so that everyone can interact with them in a tokenized manner on an interface by inputting prompt commands. This whole process is a very interesting presentation of the integration of AI, Crypto and social media, and is a very imaginative form of presentation of the future development of AI in this regard.
Moreover, ACT is the only AI Meme project that is currently listed on a large centralized exchange, so its advantages are more obvious. Even if other AI Meme projects such as GOAT, AI16Z, and Virtuals are listed on secondary exchanges in the future, I think ACT will still be one of the most important targets. After all, in this circle, everyone develops together, is recognized by the market together, and obtains more liquidity together, so that there will be better performance overall, just like the saying goes, A lone walker is fast, but a group of walkers go far. So on the whole, ACT has a unique position and importance in the field of AI Meme.
ChainCatcher: In addition to ACT, in the field of AI Meme, are there any other projects that you are optimistic about that you can share with us?
0x Wizard: GOAT is a project that brought the popularity of this track in the early days. A certain consensus has been formed and everyone is quite accepting of it. There are also platform projects like ai16z and Virtuals, which have a large number of AI agents using them for production and other operations, which are also worth paying attention to.
The advantage of platform projects lies in the network effect. Once they have formed a scale and influence, it is difficult for others to challenge them. Other pure AI agent projects will face more intense competition, faster iteration speed, and relatively lower moats.
Therefore, if you want to make a more stable investment, platform projects such as ACT, GOAT, ai16z, and Virtuals would be better candidates for consideration.
Meme: The differences between the first and second levels are huge. Ordinary investors are not suitable for hot stocks.
ChainCatcher: What are the specific differences in the strategies that need to be adopted when investing in Meme in the primary market and the secondary market? Can you share your methodology?
0x Wizard: When investing in Meme in the primary market, the key is to look at the market value. It is necessary to judge at what market value level the target is suitable for participation and at what stage it is more appropriate to participate based on experience. For example, when some value targets fall from a market value of more than 100 million to between 25 million and 30 million, a drop of about 80%, if it meets personal investment expectations and the strike zone, you can consider buying a small position. The chip accumulation process of the primary market target is relatively fast, which may only take a few days or a week. As long as the dealer has not shipped, there is a possibility of pulling up the market later, and it will cooperate with the narrative, the recovery of community popularity, etc. to carry out secondary pull-ups and other operations. Even if the market falls after pulling up, it may start again later.
In the secondary market, the logic of chips must be followed. Investors need to learn how to play in the secondary market, such as technical analysis methods such as Wyckoff theory. They do not have to be proficient in them, but they cannot be ignorant of them. Otherwise, they are easily panicked by price fluctuations and cannot understand the reasons behind them. There is a chip collection process in the secondary market, that is, the accumulation stage. Only after this stage is completed will the distribution process of pulling the market enter.
In addition, the secondary market pays great attention to the hype of new assets and new concepts. Taking the AI track as an example, after a large number of AI agent projects have emerged, targets such as ACT, considering various factors, are likely to see a surge in the secondary market in the future. Compared with projects such as Virtuals and ai16z, which have a market value of nearly one billion US dollars, they have limited funds in the primary market, and the space and significance for continuing to double in the secondary market are relatively small, so we must comprehensively consider these factors to understand and grasp the investment logic of the secondary market.
ChainCatcher: You once mentioned that investors should learn to distinguish between potential targets and hot stocks. So what indicators can help us distinguish between the two?
0x Wizard: I think we can observe and judge from the following aspects.
The first is the narrative and community status of the target itself. At the narrative level, for example, some AI-related projects have innovative AI encryption interaction modes or represent unique trends, and such narratives are relatively outstanding. At the community level, it is necessary to pay attention to whether there are loyal fans who continue to build when the price falls, conduct secondary creation every day, and remain active on various platforms. At the same time, the community cannot be limited to Chinese or English communities. Both Chinese and English communities must be popular, so that the upper limit of its subsequent development will be higher. Narrative and community can be regarded as one of the basic elements of judgment.
The second is the capital side. We should pay attention to the chips and judge whether the dealer has already left the market with profits and handed over the chips to the big players. We can use some chip analysis methods, such as checking whether the front row are all big losers. If so, the target may be difficult to rise again. If the dealer still holds a large number of unmoved chips, it means that it has the motivation to continue collecting chips and conduct secondary pull-ups. Combining the trends and community conditions mentioned above and the capital chips and capital conditions mentioned later, we can roughly judge whether a target is a potential target.
In general, hot stocks are more suitable for P-level investors who are more professional in on-chain games, have the energy to participate early, and can enter the market with tens of thousands or hundreds of thousands of US dollars and sell them for profit when the price rises to a certain level. They are good at participating in the first wave of the market from the internal market to the initial heat. However, for most ordinary investors, it is recommended to pay more attention to and participate in potential targets. Of course, this needs to be judged comprehensively based on their own actual situation.
ChainCatcher: During your cryptocurrency investment process, you must need to have a lot of information to assist in decision-making. Can you share some useful sources of information?
0x Wizard: I often use a variety of sources for information. First, data websites like GMGN, which publish rankings of popular targets every day, covering various memes and other related content. I recommend checking at least twice a day to record new targets, and then observe their subsequent rise and fall, changes in the chip structure, and then combine their trends with the community situation to comprehensively judge whether to participate in the investment. This is very important.
Secondly, there are some tools. Some tools can push hot BOTs, and some will recommend dozens of related information every day. Of course, users need to have the energy to filter and view them on Telegram.
The next is the forwarding group, such as the Alpha group in China, where you can learn about the content that everyone is paying attention to and discussing. Twitter is also very important. Follow those who often share their insights in the cryptocurrency circle and participate in various projects. However, you need to screen them yourself and select the tweets of those who you think are reliable and have reference value to view. In addition, everyone can form their own small circle and find like-minded people with similar levels to communicate and discuss together. As the saying goes, many hands make light work, this can speed up the acquisition of information. In short, by using these channels in combination, there will basically be no lack of information.
ChainCatcher: Faced with massive amounts of information, how do you screen and assist in investment decisions?
0x Wizard: This is indeed a key question. When there is a lot of information, screening is very important. First of all, you have to judge based on your own investment goals, risk tolerance and other personal circumstances. For example, some information may look very tempting, but if the corresponding investment risk exceeds your tolerance, you have to consider it carefully.
As for the acquired target information, as I mentioned before, we need to analyze whether its narrative is innovative, whether it has development potential, whether the community is active and cohesive, both Chinese and English communities must be taken into account, and the funding situation, etc. We cannot just blindly follow others good words, we must have our own judgment logic.
When it comes to actual application, you must understand that investment is risky. Even if you do a lot of information collection and analysis in the early stage, mistakes may occur. I suggest that when you first start to participate in investment, you can try it with a small part of the funds, just as paying tuition to accumulate experience. When you are familiar with it and have confidence, you can gradually adjust your investment strategy. At the same time, you must clarify your investment style and know what types of investment you are suitable for. For example, hot disks are suitable for professional and energetic P young players who participate early (referring to players who played PVP in the early days of Meme. The early days of Meme refer to when the market value is very low and the internal disk is just released). They can make profits in the first wave of the market, but ordinary investors may be more suitable to focus on potential targets, but in the end, they still have to make a comprehensive judgment based on their actual situation.
