Inscription Boom in the Encryption Circle: Risks and Opportunities Coexist

Recently, the cryptocurrency circle has been swept by a wave of inscriptions, which can be described as "crazy". As a year-end summary for 2023, we interviewed several leaders of blockchain game projects. Interestingly, many reported that employees are keen on "rushing inscriptions", with even some young employees suggesting resignation to focus on this. This phenomenon has also spread within our own work group, with the attractiveness of job postings significantly diminished. In contrast, while blockchain games are also a popular track, they still pale in comparison to the hotness of inscriptions.

The Uniqueness of Inscription

From the user's perspective, inscriptions have three main characteristics: fair distribution, full circulation, and high leverage. For project parties, the main advantage of inscriptions is that there is no clearly defined project party on the surface, which reduces legal risks. However, as the profit effect of inscriptions spreads widely among Web3 users, these characteristics are gradually weakening.

1. Fair distribution: Early projects like Ordi truly achieved this. Most of the current inscription teams have already coordinated the timing in advance and prepared batch robots.

2. Full circulation: This characteristic has been challenged. Some new projects have reserved a portion of the supply for DeFi and GameFi staking.

3. High leverage: Originally hoped to obtain high returns with a small amount of capital, but the current Gas fees have significantly increased, adding to the risk.

4. Ambiguity of the project party: Whether the actions of deploying robots in advance or collaborating with OTC traders for hype can still be considered as "no project party" is open to discussion.

The Future Direction of Inscription

Despite the aforementioned changes, the inscription craze is likely to continue. Compared to the NFT and ICO booms in past bull markets, the current hype around inscriptions does not seem to have peaked yet. As the only new asset class that has emerged in this bull market, there are still many stories to be told about inscriptions. Additionally, veteran miners in the crypto space hope to maintain high Gas fees for profit, which will support the inscription craze.

For future inscription projects, the following directions can be considered:

1. Look for innovative inscription projects that can integrate into Web3 applications, adding actual functionality based on 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 established inscription projects, such as BRC20's OXBT and Deed, which have recently seen significant growth.

Personal Opinion

1. The opportunity for sudden wealth has decreased: Do not expect a resurgence of the early myths of sudden wealth, as these are often eye-catching messages released by market makers.

2. Moderate yield opportunities still exist: for example, listing on mainstream exchanges may bring significant liquidity increases.

3. Look for real applications: Pay attention to projects that can bring inscriptions into real applications, whether in the DeFi, GameFi, or SocialFi fields. Such projects may become the next ORDI, SATS, or RATS.

Overall, the inscription market is undergoing rapid changes, with opportunities and risks coexisting. Participants need to remain vigilant and conduct thorough research and risk management.