The Frenzy of the Crypto Circle: The Inscription Craze is Sweeping In

Recently, an unprecedented craze for inscriptions has swept through the cryptocurrency circle, which can be described as “crazy.” This trend has not only affected ordinary investors but has also impacted the blockchain gaming industry. Some project leaders have reported that employees are shifting their focus to inscriptions, with some even considering resigning to specialize in inscriptions. This phenomenon was unimaginable a few months ago, as the blockchain gaming industry itself is one of the hot tracks in recent times.

However, the allure of inscriptions seems to far exceed that of chain games, to the point that even recruitment has become difficult. Even positions offering a fixed monthly salary plus NFT airdrops struggle to attract enough candidates. In this situation, even the writing of investment research articles has been affected.

As an industry practitioner, I also find it hard to resist the allure of inscriptions. With the arrival of the bull market, participating in some projects first and then delving deeper into research might inspire more ideas and motivation. The following are some personal viewpoints for reference only and do not constitute investment advice.

The uniqueness of inscriptions

For users, inscriptions have three main characteristics: fair issuance, full circulation, and very high profit potential. For project parties, the biggest advantage of inscriptions is that there is no clearly defined project party on the surface, thereby reducing legal risks. However, as the profit effects of inscriptions spread widely among Web3 users, these characteristics are gradually weakening.

1. Fair issuance: This feature is mainly reflected in early projects from the first half of this year, such as Ordi. Current inscription projects may have adopted more sophisticated issuance strategies.

2. Full circulation: This characteristic is facing challenges, as some projects are starting to retain a portion of tokens for staking in DeFi and GameFi.

3. High yield potential: Originally, users could spend a small amount of Gas fees for a chance to obtain considerable returns, but now the Gas fees have increased significantly, raising the participation threshold and risks.

4. The role of the project party: Although there is no clear project party on the surface, in practice, there may be cases where robots are arranged in advance or cooperation with off-exchange traders occurs.

The Sustainability of the Inscription Craze

The author believes that the current wave of inscriptions in this bull market is likely to continue. Compared to the NFT and ICO trends in previous bull markets, the current enthusiasm for inscriptions does not seem to have peaked yet. More importantly, as the only new asset class that has emerged in this bull market, there are still many stories to be told about inscriptions in the future. Additionally, veteran miners in the crypto space are also motivated to maintain high Gas fees, which may further drive the development of inscriptions.

For investors looking to participate in the inscription project, here are some suggestions:

1. Look for innovative inscription projects with Web3 application potential, especially those that can provide real value beyond their meme attributes.

2. Participate cautiously in the short term, focusing on projects that are likely to be listed on mainstream exchanges.

3. Pay attention to some early old inscription projects, such as BRC20’s OXBT and Deed, as they may attract new funds to enter.

The Future Outlook of Inscription

The first wave of wealth creation opportunities in the inscription market may have already passed, and investors should not expect to see mythical returns like those of early BTC or ORDI again. However, there are still some relatively lower-multiple opportunities, such as the liquidity boost that may come when being listed on mainstream exchanges.

In the future, the key lies in finding projects that can bring practical application value to inscriptions. Whether in DeFi, GameFi, SocialFi, or other fields, projects that can effectively integrate inscriptions into economic or business models are worth paying attention to. Such projects could become the next ORDI, SATS, or RATS.

Overall, the inscription market is still in the development stage, with opportunities and risks coexisting. Investors should remain vigilant, analyze rationally, and also maintain an open attitude towards market innovations.