Recently, I’ve seen many people in the community still struggling to understand concepts like “native dogs” and “golden dogs.” So I’ll share my understanding.

Honestly, there’s no absolute boundary between native dogs and golden dogs; they can transform into each other. A well-executed native dog can become a golden dog, like SHIB, which is a prime example. Conversely, poorly managed golden dogs are not as good as native dogs. Conventional projects are basically more complex variants of native or golden dogs.

First, what is a native dog? As the name suggests, a native dog is a project that can explode in a short period, multiplying your investment by hundreds, thousands, or even tens of thousands of times. But this depends on whether you entered early enough, whether the rise is based on real data, and whether the liquidity pool is sufficient for you to exit safely.

Native dogs generally fall into two categories. One is the “Pixiu contract,” which is basically impossible to sell out after entering. This exists both domestically and internationally. The operators are usually the same old faces, just changing tactics to continue scamming. The evolved version of Pixiu is even more ruthless; it mimics a popular native dog, with the same name, same Twitter account, and official-looking Telegram or Discord accounts, but the contract address has been changed. When people rush in, they realize they’re trapped.

The other type is regular native dogs, mostly community-driven projects, often called Meme coins. Logically, this model isn’t flawed, but it requires certain conditions. First, you need to genuinely follow the project team’s plans and strategies. Second, you should bring your friends to join in.

Take YFI as an example. Many think YFI succeeded because of its technical prowess. Let me be blunt: the project team telling you it’s technically advanced is just a scam. What really works is the “verification system.” The project team will invite large holders into a small group, like the top holders, to verify their holdings at irregular intervals. If your holdings are still there, you stay; if you reduce or sell all, you get kicked out. This ensures the big holders’ chips stay put, and small retail investors can’t cause any waves. Without significant selling pressure, the price skyrockets. As the price rises, holders gain more confidence. If someone tries to dump, big players will buy up the supply, creating a win-win situation.

There’s also the “new user invitation system,” including referral links, airdrops, whitelists, etc. Essentially, it’s about rewarding those who invite new users. Staking for airdrops, staking for mining, inviting new users for staking dividends—all these are about locking your position to prevent selling pressure, with airdrops as compensation.

True “god projects” only appear in community-driven native dog projects, but certain conditions are necessary. First, large holders must verify their holdings; there must be a referral mechanism; staking and airdrops should be part of the incentives. Some projects also have deflation mechanisms. If you rush in and then leave within minutes, hours, or a day or two, you’ll just keep chasing new native dogs, falling into a vicious cycle. It’s better to hold onto one and observe the project’s logic and strategy. If the project team has no ideas or initiatives, then there’s nothing to say about dumping. But if they keep releasing positive news, and you try to sabotage, then you’re destined to never make money.

Here’s a fundamental logic worth considering: as long as the project isn’t Pixiu, no one wants the project to die. Everyone wants to grow big and strong. The project team does what they should, then finds that even with a telescope, they can’t see retail investors. How can they proceed? The project team has its own tasks; retail investors have their self-discipline—invite new users, hold firmly, add to positions. SHIB’s project team announced they would give up last year, but after it rose, everyone called it a “god coin,” and no one remembers it was once a failed project.

Timing is also crucial. Entering early or late means completely different cost bases. You also need to see if you can connect with the project team, listen to their development plans, and judge whether they have a broader vision. AMA sessions are a good opportunity; Telegram and Discord are channels. Asking questions is always good—if they don’t reply, try different ways; if still no response, just leave.

But the most critical point—if the project team is your friend, or you know someone inside the project, or you can access different resources—that’s the key. All those other conditions can be absent, but without this, no matter how much capital you throw in, you’re just destined to get scammed.

Imagine you’re one of the top 10 holders but don’t know the project team, can’t see what positive news they’ll announce next, and are just attracted by hype, blindly thinking it’s a foreign golden dog with big ambitions, then going all-in. Are you naive? All data is transparent to the project team. You think you’re a big holder, but they haven’t given you permission. You’re like a wild wolf entering a wolf pack’s territory, with dozens of eyes watching you. Do you think you can make ten, hundred, or thousand times profit? That’s pure naivety.

You might see friends making 50x, 100x, or even 1000x on native dogs and then cashing out. You might think they’re awesome. But once you understand the logic, I can only say they’re just incredibly lucky. Every native dog project has a group of operators. A good community is about everyone working together. Your friend might just have bought and held without telling anyone, and the project’s success is entirely due to those constantly operating. Your friend is the most disliked by project teams and operators—no effort, just taking the victory. Such luck isn’t something everyone has. The crypto myth is never short of stories; some people get lucky short-term. But if you rely on that luck to play native dogs long-term, time will reveal everything clearly.

Now, about golden dogs. A good native dog can turn into a golden dog. But even then, it’s not very meaningful. If you talk about technology, there’s none. If you mention other aspects, many are lacking. Even the vision and roadmap can be absent later on. Some may already be listed on exchanges, with huge funds behind them, but their upside is limited, and their downside is unlimited.

As for conventional projects, there’s even less to say. Angel rounds, seed rounds, private placements, public offerings—constantly talking about how much they’ve raised, top-tier levels. Isn’t that basically a death sentence? Just watch and see—the announced news is usually internal information that’s been digested multiple times before retail investors get to buy in. Retail investors want to make 50x, 100x, but angel, seed, private, and public rounds are often at thousands of times base. Why should you profit? The only role of retail investors is to provide cover for the project’s exit.

These projects tell stories, claiming they have technology, want to develop real-world applications, or have new concepts. Think about it—how important is that? Bitcoin’s technology is from ancient times; its slow transfer speed and lack of scalability are well known. Does it have technology? In terms of real-world application, I find it strange—why do people think real-world use is directly related to coin price? Why look for a causal relationship between the two?

If you’re trading real estate, do you worry about feng shui or whether there have been murders? The only thing you care about is how much you can earn. Does it matter otherwise? If you’re trading stocks, are you supporting the company’s development or helping the boss get through tough times? Then you’re just wasting your effort. The same applies to crypto—don’t be fooled by concepts like real-world application. ADA has been a public chain for years; as long as I don’t develop real-world use, I can keep scamming.

Without channels and resources, don’t bother with conventional projects—they’re not worth much. Secondary market purchases are also fine; in the end, most will just lose everything and exit.