Winners Average Winners, The 20 IQ Recipe to Discovering Cycle Leaders in AI, RWA and Meme Sectors
Winners average winners is a phrase made popular by Hsaka one of the most respected traders in digital assets. In this report we breakdown what he means by this and how you can apply it..
The phrase "Winners average winners," popularized by HsakaTrades and akin to "let your winners ride" from the 'All in Podcast,' underscores a crucial investment strategy in the digital assets space. It suggests that rather than cashing out, investors should focus on compounding gains by continuing to invest in their best-performing assets. The rationale is simple: identifying a winning asset is challenging, and once you have a winner, its potential to outperform the market (in our case btc/eth) can be significant, especially if it leads its respective buzz narrative sector and is a bull trend versus its BTC and Eth pair. This strategy embodies the 20IQ trading style with the simple thesis of ‘Strong Coin = Good Coin’, which ironically 150iq market participants do the same because they understand that the strongest coin is usually the cycle leader for the respective narrative. In this report, we go through the 3 hottest narratives and the cycle leader based on relative strength which embodies the ‘winners average winners’ strategy.
AI Narrative Cycle Leader - Render
AI Sector: In the realm of Artificial Intelligence, Render (RNDR), partnered with Apple, stands out for its significant traction and integration in AI features like Chatgpt and graphic rendering. Nosana (NOS) on Solana follows as an exceptional candidate, resembling an early-stage RNDR, exclusively available on Jupiter—a promising factor for those looking to replicate Render’s success trajectory. Lastly, Prime Echelon, an innovative AR/VR card game, rounds out our AI sector picks, leveraging the increasing popularity of immersive gaming experiences to establish its market position.
Honorable Mention: Oasis Network ($ROSE): For this honorable mention, I want to spotlight Oasis Network, which is carving a niche in decentralized data governance and privacy-enhancing technologies. Although $ROSE has not yet distinguished itself as a top performer, it possesses all the makings of one. The partnerships with industry giants like Meta and Google Cloud underline its legitimacy and potential in the AI field—distinguishing it from many projects that promise much but deliver little. Furthermore, Oasis's development activity surpasses that of other AI contenders, such as Tao, setting a robust pace in project advancements. Led by Dawn Song, a renowned AI researcher who consults for figures like Elon Musk and Vitalik Buterin, the project's leadership, active development, and high-profile collaborations collectively signal that $ROSE could emerge as a frontrunner in the AI sector as the broader market begins to appreciate its underlying value and technological contributions.
RWA Narrative Cycle Leader - Ondo Finance
Real World Assets (RWAs) - Ondo Finance has rapidly become a standout name in the Real World Assets (RWAs) narrative, captivating the market with its innovative approach to decentralized finance (DeFi). Ondo has revolutionized the integration of traditional assets with blockchain technology, boasting an impressive total value locked (TVL) that is nearing the $1 billion mark in less than a year. This meteoric rise is largely attributed to its robust platform that facilitates the tokenization of real-world assets, allowing for seamless and secure investments. The backing by BlackRock further enhances its credibility and positions Ondo as a powerhouse in the RWA sector. Its unique offerings not only meet the growing demand for more tangible and stable investment opportunities within the digital asset space but also provide a bridge between conventional financial markets and DeFi, promising to expand the blockchain's applicability and reach. One of the ways you could have scored an entry in Ondo was by realizing it was only listed on coinbase and Blackrock was associated these two factors should have been a trigger for a position.
Honorable Mention - Propy Inc and Maple Finance: While Ondo Finance leads the pack, Propy Inc and Maple Finance also deserve recognition within the RWA space. Propy Inc. is pioneering the integration of real estate into the blockchain, offering a streamlined, secure process for transacting properties. On the other hand, Maple Finance is making significant strides in providing decentralized corporate debt financing, which allows companies to access capital directly from lenders without the need for traditional financial intermediaries. Both Propy and Maple are pushing the boundaries of how blockchain technology can be applied to traditional sectors, enhancing efficiency and reducing barriers to entry and operation within these markets. Partnerships
Meme Coins - Cycle Leaders: Wif, Bonk & Brett
Meme Coins - Dominant Forces on Solana and Beyond: The meme coin sector continues to thrive, particularly on the Solana blockchain, which is known for fostering a vibrant and active meme coin ecosystem. Wif and Bonk stand out as exemplars of the "Winners average winners" principle, showcasing strong community support and market performance. These tokens leverage the playful and viral nature of meme coins, maintaining significant engagement and visibility within the Solana community.
Meanwhile, Brett, operating on Base, an Ethereum Layer 2 solution, has also made significant strides. Though it is not part of the Solana ecosystem, Brett exemplifies how meme coins can succeed across different platforms by tapping into similar dynamics of community involvement and cultural resonance. This inclusion in diverse blockchain environments highlights the universal appeal and potential of meme coins to resonate and perform well across various networks, following the "Winners average winners" strategy effectively.
By aligning your portfolio with these leading coins across AI, RWAs, and Meme sectors, you can effectively implement a 'Winners average winners' strategy, aiming for outsized returns in a highly speculative and volatile market environment. Personally I have struggled applying this strategy as I often get too emotional with my bags. Like Rose for example it has a lot going for it yes but it’s clearly not a cycle leader so for me it’s been difficult to admit I was late to render and nos and instead chase this. Similar to Ondo, the reason people (myself included) have a hard time applying this simple strategy is because of our greed for chasing high risk to reward plays and make up for the missed early entry. This is the opposite of what you want to do even though it seems like the right way to so-called ‘make it back’. This is revenge trading and the odds of outperformance are against you when you do that, instead just keep averaging winners. Try not to overtrade, and you will outperform the majority of market participants with RNDR, ONDO, and an established Sol Meme of your choice and a Sol meme from the ‘degen zone’. 👇👀1
The L1 Cycle Leader - Solana
Solana Meme Super Cycle? The meme coin sector is thriving, especially on the Solana blockchain, which has emerged as a central hub for this distinctive category of cryptocurrencies. At the forefront are GME on Sol and Giga on Sol, both of which have demonstrated remarkable growth and strong community engagement. These tokens harness the power of cultural phenomena and community-driven dynamics, generating excitement that keeps the ecosystem vibrant. Notably, Costco Hotdog has also emerged as a significant player, particularly due to its team's humorous guerrilla marketing campaign at Consensus, capturing the essence of what makes meme coins soar to a new height which is IRL marketing via viral content bridging the meme from the digital realm to physical. STAN (Stanley Cup) is leading all of the Solana meme eco with thier animated content, would not fade this team.
☢️ Entering DEGEN ZONE 🚨
2Honorable Mentions - While the spotlight shines brightest on the likes of GME on Sol and Giga on Sol, other meme coins like FKETH (Fuck Eth), WYNN (Anita Max Wynn), STAN (Stanley Cup), WBS (White Boy Summer), and Rickroll also contribute significantly to the ecosystem’s culture and cultism. These coins, while not yet at the forefront of market performance, play crucial roles by engaging different sub-communities within the Solana network. They represent the broader meme culture that is deeply embedded in social media, where humor, virality, and social commentary often drive community building, investor speculation, and ultimately real network adoption. Solana memes have proven to be superior to eth memes so far this cycle, applying the winners, average winners strategy to Solana, the network architecture seems to be more equipped for mass consumer adoption given the low transaction fees, high throughput, arguably better UX and more interesting consumer apps are being built here. Ironically the high Eth gas fees will probably be a result of Eth memes trying to keep up with Sol memes but ultimately driving the gas fees so high on mainet that it’s unusable for most. This is why base seems so obvious but the liquidity just isn’t there versus Solana, so for now, Solana remains king. FKETH 🖕
*Disclaimer - Please note this is not financial advice and is for education/entertainment purposes only.
This article is for informational purposes only and should not be taken as investment advice. The opinions expressed are the author's own and do not reflect the views of any affiliated entities. Investments in digital assets are highly speculative and carry significant risk, including the potential loss of principal. Readers should conduct their own research or consult with a professional before making any investment decisions.
Mentioned assets are examples and not endorsements to buy, sell, or hold. The digital asset market is volatile, and performance can be unpredictable. Verify all information and comply with applicable laws and regulations before investing.