Why am I hesitant to hold a Heavy Position in L1 Tokens for the long term?

Question

"Block Rhythm" To be honest, I&#39;ve never thought that L1 Tokens are necessarily a trap. Shorting? That&#39;s even less the case. It&#39;s just that, how should I put it, I feel they are not particularly strong investment targets.Think about it, with thousands or tens of thousands of coins in this circle, there must be a batch of truly top-tier assets to be found, right? Why get caught up in those 7-point ones when there are good targets rated 9 or 10?The positions I hold now allow me to sleep soundly, relying on the fact that each coin meets several hard standards: first, there must be barriers that others cannot replicate; second, it should be in a rapidly growing sector; third, the valuation shouldn&#39;t be too outrageous. With these three criteria in place, I basically feel reassured.In simple terms, what L1 lacks is a real moat. Technology can be copied, ecosystems can be dug up, and users can migrate. Holding onto it for a long time in such an environment always feels a bit precarious.

GateUser-00be86fc · Accepted Answer

The saying about the moat is not wrong, but there are still quite a few people all in on some L1.

If the technology can&#39;t be replicated, it all comes down to who burns money faster, in the end, it&#39;s still a capital game.

It&#39;s better to buy those with real applications than to touch those with ridiculous valuations.

I agree with your three standards, but it&#39;s just too easy to compromise during actual operations.

That&#39;s how it is in the crypto world; even a 7-point project can rise tenfold, while a 10-point project often has the most dumb buyers.

Projects without a moat are indeed precarious in the long run, that&#39;s a hard truth.

Dig a bit into the ecosystem, migrate some users, the advantage of L1 really is just that bit of Computing Power, it&#39;s too hollow.

I&#39;m the same, I&#39;d rather miss out than be trapped.

OffchainOracle · Answer

Regarding the moat, L1 is indeed a bit disappointing, but it makes sense.

CounterIndicator · Answer

These three standards sound simple, but there aren&#39;t many coins that can actually be caught.

The fact that L1 has no moat has long been understood; it&#39;s just hard to let go of playing people for suckers.

There are a bunch with outrageous valuations, but they really can&#39;t hold up many people.

That&#39;s not wrong, but to be fair, everyone wants a 9-point asset; the key is how to determine that it is indeed a 9.

So are you currently holding those few that truly have barriers?

If you want to sleep soundly, the conditions are indeed tough, and most people can&#39;t meet them.

This logic is fine, but in practice, anyone can easily be tempted.

To put it bluntly, the moat is just lacking; what do L1s have left besides boasting about technological progress?

TokenDustCollector · Answer

Indeed, the moat for this L1 really lacks competitiveness.

I agree with this logic; rather than getting entangled in L1, it&#39;s better to look for targets with real barriers.

The selling point of L1 is just two words, too many of them, no differentiation.

Speaking of which, these three hard standards are really strict; it&#39;s the hardest part to seize in the race&#39;s explosion.

To be honest, I&#39;m already tired of the L1 story; it would be better to look at truly innovative tracks.

Indeed, any chain can be replicated, and users will run away; I have also given up on holding long-term.

The moat isn&#39;t deep, and sooner or later, it will return to value; this logic is sound.

Those still holding a Heavy Position in L1 have a bit of a sucker vibe; we need to be more rational.

ApeEscapeArtist · Answer

The issue of the moat is indeed a flaw of L1, and I think so too.

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You&#39;re right, why bother with those 70-point coins? There are so many good coins, why self-torture?

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The three hard standards are quite strict, but the problem is that most L1s can&#39;t meet them.

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The ecosystem can dig, users can migrate, is this L1&#39;s fate?

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I just want to ask, do any L1s really have a moat now, or are they all just blowing smoke?

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The holdings that allow for a good night&#39;s sleep are the way to go; everything else is just empty.

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L1s that have barriers, a clear track, and reasonable valuations are indeed rare.

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Wait, isn&#39;t your logic indirectly bearish on L1, even if you didn&#39;t say it outright?

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If the technology, ecosystem, and users can all be replicated, then why should L1s be held long-term?

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That&#39;s why I&#39;d rather go all in on those few truly competitive ones, L1s can be skipped.

AltcoinMarathoner · Answer

nah but this is exactly the problem tho... we're still early in the adoption curve, right? like yeah L1s lack moats *right now*, but that's kind of the whole accumulation phase story.

been stacking since the pullback, and tbh ecosystem momentum + developer activity metrics tell a different story than the narrative. just mile 15 vibes. finish line's still way out there

FomoAnxiety · Answer

The moat here is indeed a pain point, L1s really have no natural barriers

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I agree, why struggle for a target with a score of 7, there are fatter opportunities in this cycle

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But then again, technology cannot be copied, and once the ecosystem is launched, it’s really hard to dig; your three standards are too strict

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Wait a minute, don’t let this valuation be too outrageous, which coin in the entire market fits this criterion?

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I’ve heard the argument about investing to sleep soundly countless times, but in the end, it still doesn’t make money

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L1 is just a pseudo-demand, might as well go all in on Spot

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Your logic is actually looking for the perfect target, but where in the market is there anything that’s flawless?

OnChainSleuth · Answer

Hmm... I somewhat agree, L1 is really not as stable as imagined.

The moat is indeed a hard injury.

Why cling to a target with a score of 7? This logic makes sense.

By the way, I&#39;m also using your three standards, but I still fell into the trap with some coins.

The ecological migration part is the most annoying; users can&#39;t be retained at all.

There are still too many problems with L1, and I&#39;m gradually exiting.

How did you determine that valuation standard? Is there a quantitative metric?

I always feel this round of bull run will wake L1 up.