Coinworld reports:
In 2023, inscriptions are one of the hottest topics in the cryptocurrency circle, and there are still many opportunities in this field. The community is moving towards becoming the largest Chinese inscription community, and in the future, we will arrange interesting and potential projects to interact with everyone in this community. Currently, I will also be stationed in the community to learn and understand the latest inscription ecology together with everyone.
Although this field is very active, it is necessary to remind everyone to be diligent, as the investment risk of encrypted assets is very high. If you are not familiar enough, please do not try it at will. The purpose of this community is to help everyone understand more projects, rather than encourage everyone to invest. This AMA is not financial advice, it is just content sharing.
The highlight is here! Introducing today’s guest, Jack Kong. Jack has led the Nasdaq listing of “the first stock in the blockchain industry” JN Technology and “the first stock in the Web3 metaverse” Nano Labs, and is currently the founder and CEO of Nano Labs, a director of Hong Kong Cyberport Management Company, and a member of the third generation Internet development special group of the Hong Kong SAR government. Looking at such achievements, it is clear that a big shot is here!
1.
We are all very familiar with Btok, so first, please introduce Btok, LuLu.
Hello everyone, I am LuLu, the Asia-Pacific market manager of Btok. Btok is a leading global blockchain social network, covering tens of millions of users worldwide. Btok focuses on the blockchain world and is a new generation blockchain social app that integrates community, social, wallet, aggregated trading, red envelope airdrops, and information. Btok will continue to deepen the blockchain social field, connecting various parties in the blockchain world, and providing comprehensive solutions for users and project owners. At the same time, Btok is also committed to creating an open, truly decentralized social network, focusing on value sharing and truly sharing profits with users, creating the world’s largest WEB3.0 social network and opening a new era of blockchain social experience.
We are all very familiar with me. The theme of this AMA is about inscriptions. Please listen to the sharing of the guest.
2. Jack ~ Your X often posts such articles recently: “One inscription question a day, which inscription do you like today?” There are many hot topics in the cryptocurrency circle, why are you particularly concerned about inscriptions?
There are many reasons to pay attention to inscriptions, from the value, compliance, and technological aspects, inscriptions are very good investment targets. First of all, from the perspective of value, inscriptions are a new type of encrypted asset, which is the third type of encrypted asset after homogeneous tokens and non-homogeneous tokens. The characteristics of inscriptions, such as fair launch, attract a large number of newcomers from outside the circle, giving newcomers the opportunity without having to take over high market value projects. Traffic is a very important part of the industry. For web3, the continuous injection of fresh blood is an indispensable part of the healthy development of the industry. Secondly, from the compliance perspective, many inscriptions are ownerless, even if they are self-deployed, there may be no chips in hand. There is no issue of securities issuance here, unlike some assets issued by smart contracts, there is no compliance risk. Inscriptions are often a bottom-up community behavior, without the risk of project parties and centralization. There will not be issues like pool withdrawals in DeFi. Finally, from a technological perspective, inscriptions are actually a technological innovation. Inscriptions on Bitcoin use innovative protocols to give Bitcoin the ability to develop its own ecosystem, extending to second-layer networks, etc. Inscriptions on other public chains such as Ethereum have built a storage-index second-layer blockchain structure, forming a parallel consensus with smart contracts, and can reduce gas, etc. Many enterprise blockchains have done this before. Overall, inscriptions are the most important asset category in this bull market, and will usher in a wave of bull markets after the entry of compliant funds through ETFs.
3.
Many people often joke that when inscriptions fall, someone will say that inscriptions are dead. The next day, when inscriptions rise, they will be excited and encourage everyone to rush into inscriptions. Do you think inscriptions should be viewed from the perspective of “embracing bubbles” or do they actually have practical uses?
First of all, any asset in its early stages seems to have a bubble element. Like the ICO in 2017 and the NFT issuance boom in 2021, there are a lot of air coins. Some died with the cooling of the market, and some are still doing well today. Inscriptions have only been around for a little over a year and are mainly speculative at this early stage. As time goes by, inscriptions will gradually have more practical uses. There are many areas where inscriptions can be used. For example, unisat uses sats as platform coins, which is comparable to BNB in traditional tokens. For example, the Kong community has its own treasury, which can be compared to nouns in NFT or grayscale in FT. For example, AIBS, which has built an AI application market and an inscription payment gateway, other inscriptions can be used as payment currency for AI products, giving inscriptions payment scenarios. With these various ways of empowering inscriptions, it is developing rapidly. We will soon see more and more practical uses for inscriptions in the digital world.
4.
Many inscriptions that have not yet been listed on exchanges do not have good liquidity. Is their wealth effect still there? Or is it only the first batch of ORDIs and SATs that benefit?
There is liquidity, besides Ordi and sats, inscriptions from head projects like rats, mmss, kong, and AINN have good liquidity. From the perspective of exchanges, they will also help with liquidity. Inscriptions have communities and traffic, and major exchanges are competing for this. Major exchanges, such as Binance and Bybit, are launching their own web3 wallets, and high-quality inscription projects will also be listed on CEX, which all contribute to potential liquidity. In addition, with the increasing recognition of inscriptions by the public, more newcomers from outside the circle will enter. The current inscription players are probably around 600,000 to 800,000, and during a bull market, it may reach 30 to 50 million, so there will no longer be a liquidity problem at that time.
5.
There are BAYC on Ethereum, and now there is a Bitcoin Apes NFT that looks exactly the same on Bitcoin. Which one do you think is truly unique? What do you think of NFTs on Bitcoin?
Uniqueness is mainly reflected in the narrative. For example, the Bitcoin frog and node monkey of the Ordinals protocol belong to early NFTs. The crocodile of the Atomicals protocol belongs to the head of the Arc20 protocol. The head of NFT for the Yin and Yang inscriptions is Ordirock. There is no real uniqueness here, but rather a variety. Like the NFTs in the Ethereum era, there are various types of NFTs, each with its own community, culture, and brand integration and other empowerment. The gameplay of NFTs on Ethereum can be replicated in the BTC ecosystem. The NFTs on Bitcoin currently have a market value that is far smaller than the NFTs in the Ethereum ecosystem, which means there is great potential for appreciation. In addition, NFTs on Bitcoin are actually new things, because they are not tokens, but strictly speaking, they are not NFTs, but “non-homogeneous inscriptions,” which is a more accurate expression.
6.
Since anyone can issue inscriptions without any threshold, how do you suggest we find early high-quality inscription projects? What kind of projects are more likely to succeed?
Early high-quality inscription projects can be monitored through tools such as Genii data and MCT. Projects that are more likely to succeed are those with significant innovation in narrative or technology, support from successful community core members, and a strong community with a diversified holding address.
7.
The transaction fees on the Bitcoin chain are particularly high, which may be unbearable for small investors, and may not be conducive to mass adoption. What is your view?
Second-layer networks can solve this problem. Bitcoin already has many second-layer networks, and with the maturity of cross-chain bridges, it will be possible to achieve lower gas fees, which will be beneficial for small investors’ transactions. In addition, solutions like veda, which leverage the Ethereum Virtual Machine on the Bitcoin network, can also reduce gas. Even if we look at the transaction fees on the Bitcoin main chain, in the absence of congestion, gas can be less than 10u, which is generally acceptable for small investors. Even when gas is high, small investors can achieve value storage through low-frequency trading behaviors.
8.
How do you see the performance of inscriptions in the upcoming bull market?
The performance of inscriptions in the upcoming bull market will be very eye-catching. Inscriptions will produce leading projects in various subdivided areas, such as AINN in the AI field, Kong in the community inscription, depin, and games, which will continue to drive the growth of the sector.
9.
What inscriptions have you been paying attention to recently?
I have been paying attention to BRC20 inscriptions recently. Projects like AINN in the AI sector and Veda in the Bitcoin EVM are worth long-term attention.
10.
Since we are talking about a bull market, everyone must be very curious about what you think the cryptocurrency market in 2024 and 2025 will look like?
In 2024, it will be the year of compliance for the cryptocurrency market. Bitcoin’s ETF has been approved, and next, Ethereum’s ETF will be approved, and more and more tokens will be covered by mainstream institutions. Compliance is a very important event for the cryptocurrency market, which means that mainstream financial institutions can enter in large numbers. Mainstream institutions bring in massive amounts of capital, and the current total market value of the cryptocurrency market is only $2 trillion, which is negligible compared to the overall volume of traditional finance. The entrance of the cryptocurrency market into the mainstream means that the total market value will continue to grow.
11.
In addition to inscriptions, please also share some sectors, projects, or currencies that you are optimistic about?
The combination of AI and web3 is a very promising direction. Web3 and AI can naturally be combined, as they are the evolution direction of the digital world. In addition, the depin track, the RWA track, and the games and social tracks that have been mentioned before will produce a series of high-quality projects.
12.
The trend in 2024?
First, it will be compliance. With the approval of the Bitcoin ETF and the subsequent approval of the Ethereum ETF, a large amount of compliant funds will enter. At the same time, various countries and regions around the world will gradually have more relaxed policies regarding the adoption of cryptocurrencies. Secondly, inscriptions, AI, and the Bitcoin ecosystem will be the main sectors in the bull market of 2024. Inscriptions are a new asset, AI is a long-term productivity improvement, and the Bitcoin ecosystem will develop from 0 to 1 and then start the development from 1 to 100. After that, some of the original tracks will welcome more new users due to the maturity of infrastructure. For example, many 3A games that have raised a lot of money have completed high-quality deliveries and attracted more users. Other tracks such as RWA and social will also experience significant growth with the improvement of L2 and the maturity of infrastructure. Overall, 2024 will be the year of compliance, growth, and mass adoption for web3.
