What should we do if there is a next bull market?
Foreword
Time flies, and it is the end of the year. Looking back, it has been a rough year for the crypto market. Not only has it been affected by macro markets, but there has been one black swan event after another internally.
The most recent event of note was that the FTX collapsed because SBF has a business network that spans half of the cryptocurrency world. In terms of the news, the systemic risk posed by this black swan event to the cryptocurrency community has not yet been fully released.
The intraday picture bears out this view. Earlier, in July-October, mainstream coins such as ETH and BTC would follow the traditional market fluctuations, and the positive correlation in the market was very high. However, after the FTX collapse, this positive correlation plummeted, causing the cryptocurrency market to start going on its independent risk-absorbing market. In the following months, there is a risk that the macro markets in traditional finance will turn towards the Fed pivot. At the same time, the above view needs to indicate whether the crypto market can end the current risk-digesting market and follow the rally.
Most of the previous bull market return strategies and experiences will fail in this market situation. As an average retail investor whose beliefs have been decentralised, the most effective thing you can do during the hibernation phase is not to chase highs, not to track hot spots, but to look for opportunities to go bottom fishing, where the strategies are critical. After all, those who choose the wrong bottoming method will most likely miss the bull market.
The "New Trends" section of the following few issues of the weekly report will bring you a series of bids worth bottoming out, but beforehand, three pre-conditions should be stressed.
l Do not assume that the concept of decentralisation is bound to gain mass adoption in the future, i.e. there is bound to be another crypto bull market.
· The ability to endure a long and difficult bear market without significant adverse effects on your personal life resulting from a bottom.
· Do not blindly chase up and keep the bottom-buying target when the reason is unknown;
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We launched the first bottoming item this week, and future weekly reports will serialise a token worthy of bargain hunting according to market conditions. New narratives will be featured first if they become available.
Ⅰ TON: The Open Network
The Open Network (TON) is powered by the famous chat app Te1egram (hereafter referred to as the Blue Plane app), which tops the instant messaging category in several national app markets.
However, while it is the crypto community's most favoured instant messaging medium, compared to Twitter, it has neither the stock (which has been delisted since Musk's acquisition) nor the 'Web3' hype theme of token/NFT. Blue Plane, an APP that straddles the Web2 to Web3 community, has and only has a TON to be hyped.
Also, regarding the breadth of exchange support, it still needs to be backed by the head CEX. (FTX stopped supporting it after it crashed), so I'm sure TON will have plenty of stories to tell in the future, i.e. concerning listing.
The history of TON about the blue plane
TON and the Blue Plane app have a very close relationship. However, due to the SEC's access, they are like Romeo and Juliet, maintaining contact very subtly.
But since FTX announced the launch of TON in November last year, the relationship between the two has become more public. Several actions evidence the association Blue Plane took - its official account constantly advertises TON in social chats; it uses TON to pay for Blue Plane's personalised domain names; Blue Plane members (Premium) support TON payments, etc.
As mentioned above, TON has only been on the market for a little while since the launch of FTX. The TON project started a long time ago, in 2017, which makes the situation very puzzling. Thus, I will try to explain the twists and turns that TON has undergone over this period based on the information from the Alpha Ton community.
In 2017, a team led by Durov, the owner of Blue Airplane, decided to design their L1 as the then L1 blockchain could not support Blue Airplane's hundreds of millions of users.
In January 2018, GRAM, a POS coin running on the Telegram Open Network, was launched. Relying on a 23-page white paper and a 132-page technical paper, it raised $1.7 billion for Blue Plane in a bidding process between February and March.
In January 2019, Blue Plane launched the TON test network.1 In October of the same year, Blue Plane sent a letter to investors containing a link to the TON key generator. However, the US SEC clamped down on the key generator, which provides access to Gram tokens, the week before the launch. SEC required them to delay sending the tickets, leading to a delay in the overall launch.
On 24 March 2020, the court ruled that Gram violated the Securities Act and granted the SEC's order "prohibiting the delivery of Grams to initial purchasers". In response, Telegram sought clarification and wanted the court to prohibit initial foreign purchasers from completing their purchases, but the court denied the request.
In May 2020, the Telegram team ceased developing TON and support for the test network, paying a settlement of $18.5 million and agreeing to return $1.2 billion in funds to investors.
The public doesn't know that the project is not dead but is slowly reborn with new blood.
After the verdict was announced, the enthusiasts forked TON. The development process of TON continues with developers around the world who are not affiliated with any commercial organisation and do not include any former or current Telegram employees.
In July 2021, the TON Foundation packaged the results of this period and sent a request for transfer to the Blue Plane team.
On 2 August 2021, Telegram appreciated the work done by the TON Foundation and agreed to the transfer of all information.
Next, part of the community went open source for CPU mining code, private GPU mining, and open source for GPU mining code and eventually entered the era of mining pools.
It is easy to see that a series of late operations by the TON Foundation was designed to comply, resulting in several ghost mines, the results of which need no elaboration.
After a period of inactivity, exchanges such as FTX and OKEX have released TON. Currently, the Pow Giver contract for distributing PoW rewards has dried up, meaning that TON has become the only POS coin that is both energy efficient and free.
Strategies after bottom fishing
If you do not have a short-term need to trade Tokens purchased on CEX, it is essential that you bring them to the chain. The following is a description of the TON on-chain method.
The official Blue Plane hosted wallet (hosted means that the helper and private key are not [solely] under the user’s control) is the bot @wallet. Once you have followed the prompts to create your wallet, the bot will send you a ton chain address. Fill in this address into the withdrawal field on the exchange, and you can withdraw your TON tokens to the bot wallet.
This method is very convenient. As an official channel, it can already support money transfers. In the future, the official will further improve its function. However, the security limit of this method is limited by the security of the user's Blue Plane account, and there is a risk of revealing the Blue Plane login phone number. Also, third-party malware for account logins can threaten this Tunxis method, so please ensure to get the APP from the official channel.
Ton, Domain Name and Username
Ton’s domain name is similar to ENS and can be used to transfer funds. At the same time, the holder will receive the domain name under the name xxx. ton.VIP. It is a bit pricey, though, and its pre-sale price at the time of its launch bid is as follows.
Domain name over five characters: 0,01TON
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Four-character domain name: 49 TON
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Three-character domain name: 249 TON
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Two-character domain name: 999 TON
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One-character domain name: 2999 TON
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Ton's Username holders can have a simple sharing link like "xxx.t.me". This differentiates it from the default "t.me/xxx". In terms of perception, the former is superior to the default format and is aimed at a broad range of people who buy from formal businesses and celebrities.
What’s more. Both domain names and usernames are currently available at low prices on Getgems, the secondary NFT marketplace.
TON Roadmap
To be clear, the TON project is more than just the Ton Blockchain. It also has a unique network technology, the Ton Network.
The TON network protocol was created specifically for the TON blockchain to enable nodes to communicate with each other and exchange data. The TON network is a fully decentralised, secure, private computer network, similar to TOR or I2P (Invisible internet project).
Future updates to TON will also focus on network communication, which aims to create a peer-to-peer network without centralised servers. The nodes that go offline will have no impact on the functionality of the network and guarantee the anonymity of the user IPs.
On top of the TON network, the TON proxy, TON site and TON Storage will be created. In 2023, cross-chain systems for BTC and EVM will also be introduced. Thus, TON will not only connect different blockchains but will also innovatively revolutionise the existing Internet landscape.
Risks and Summary
You don't have to worry about TON going bankrupt. Unlike most cryptocurrency projects, TON is backed by hundreds of millions of daily users of the instant messaging Blue Plane App.
Anyone who has used a few instant messaging products will have a scale to measure the ease of use of Blue Plane. The experience of using this app surpasses that of all similar competitors, including those already on the market and have excessive market capitalisation. From this perspective, TON has taken centre stage in the industry.
Having combed through this, I'm already overwhelmed with the desire to go for TON. But we must calm down!
We must be clear that FTX was the most frequently traded place for TON spot before it was called aped, so many users should have mentioned the chain after buying the area. This will lead to many TONs being liquidated when FTX goes into bankruptcy and liquidation.
In terms of price, the impact on TON prices after the FTX collapsed was insignificant. This is something to worry about because it indicates that many spot chips are still very concentrated and may not produce low-price chip opportunities until the next collapsing moment.
Finally, the original purpose of this series is not to let you read and spend impulsively but to let you pay more attention to the market and be aware of the existence of TON Token.
In the end, it requires your wisdom to decide whether to do the bottom fishing or not.